which the apparatus is made. The identification marks may not be covered by insulating or other material, or otherwise obscured or concealed. Such marks on stills or condensers will be disclosed by the manufacturer or vendor in the notice to the regional regulatory administrator.

[20 FR 6118, Aug. 23, 1955, as amended by T.D. 6393, 24 FR 5297, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

PAYMENT OF TAX

§ 196.34 Special tax return.

Special (occupational) taxes imposed on manufacturers of stills or condensers and the special (commodity) taxes on such articles will be paid by the manufacturer pursuant to the filing of a special tax return, Form 11, showing the information required by the headings on the form and the instructions thereon or issued in respect thereto. Special tax returns on Form 11 shall be filed, with remittance with the director of the service center serving the internal revenue district in which the place of manufacture is located: Provided, That a taxpayer subject to special (occupational) tax for the same period at two or more locations shall (a) file one special tax return Form 11, with remittance, to cover all such locations, with the director of the service center serving the internal revenue district in which the taxpayer's principal place of business (or principal office in the case of a corporate taxpayer) is located; and (b) prepare, in duplicate, a list identified with his name, address, employer identification number, class of tax, and period covered by his return. The list shall show, by States, the name (and trade name, if any) and address of each location (including taxpayer's principal place of business or principal office, if subject to special tax) for which special tax is being paid. The original of the list shall be attached to the Form 11, as a part of his return, and the copy shall be retained by the taxpayer for a period of not less than 2 years.

[T.D. 7110, 36 FR 8036, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.34a Employer identification number.

The employer identification number (defined at § 301.7701-12 of this chapter) of the taxpayer who has been assigned such a number shall be shown on each Form 11, including amended Form 11, filed pursuant to the provisions of this part. Failure of the taxpayer to include his employer identification number on Form 11 may result in assertion and collection of the penalty specified in § 301.6676-1 of this chapter.

(75 Stat. 828; 26 U.S.C. 6109, 6676)

[T.D. 6606, 27 FR 8521, Aug. 25, 1962, as amended by T.D. 7008, 34 FR 3667, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.34b Application for employer identification number.

(a) An employer identification number will be assigned pursuant to application on Form SS-4 filed by the taxpayer. Form SS-4 may be obtained from the director of the service center or from any district director.

(b) An application on Form SS-4 for an employer identification number shall be made by every taxpayer who files a return on Form 11, but who prior to the filing of his first return on Form 11 has neither secured an employer identification number nor made application therefor. Such application on Form SS-4 shall be filed on or before the seventh day after the date on which such first return on Form 11 is filed.

(c) Each taxpayer shall make application for and shall be assigned only one employer identification number, regardless of the number of places of business for which the taxpayer is required to file Form 11.

(75 Stat. 828; 26 U.S.C. 6109)

[T.D. 7008, 34 FR 3667, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.34c Execution of Form SS-4.

The application on Form SS-4, together with any supplementary statement, shall be prepared in accordance with the form, instructions, and regulations applicable thereto, and shall set forth fully and clearly the data therein called for. The application

shall be filed with the district director of any internal revenue district in which the taxpayer operates a business or manufactures a commodity subject to special tax under this part, except that where the instructions on or relating to Form SS-4 so provide, Form SS-4 shall be filed with the director of the service center serving such district. The application shall be signed by (a) the individual, if the person is an individual; (b) the president, vice president, or other principal officer, if the person is a corporation; (c) a responsible and duly authorized member or officer having knowledge of its affairs, if the person is a partnership or other unincorporated organization; or (d) the fiduciary, if the person is a trust or estate.

(75 Stat. 828; 26 U.S.C. 6109)

[T.D. 7008, 34 FR 3667, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.34d Hand-carried returns.

Notwithstanding the provisions of this part relating to the filing of returns on Form 11 for special tax, such returns which are filed by hand carrying shall be filed with the district director of the internal revenue district in which the taxpayer's business is located or, as to a single return prepared under the provisions of § 196.34 to cover liability at two or more locations, the return shall be filed with the district director of the internal revenue district in which the taxpayer's principal place of business (or principal office in the case of a corporate taxpayer) is located.

(68A Stat. 752, as amended; 26 U.S.C. 6091) [T.D. 7110 36 FR 8036, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.35 Execution of Form 11.

The return of an individual proprietor shall be signed by the proprietor; the return of a partnership shall be signed by an authorized member of the firm; and the return of a corporation shall be signed by an authorized officer thereof. In each case, the person signing the return shall designate his capacity as "individual owner," "member of firm," or in the case of a corporation, the title of the

officer. Receivers, trustees, assignees, executors, administrators, and other legal representatives who continue the business of a bankrupt, insolvent, deceased person, etc., will indicate the fiduciary capacity in which they act. When a return is signed by an agent or attorney-in-fact, his signature should be preceded by the name of the principal followed by his title. Returns signed by persons as agents will not be accepted unless they file with the ATF officer with whom the Form 11 is required to be filed a power of attorney, authorizing them so to act. Form 11 must contain or be verified by a written declaration that it has been executed under the penalties of perjury.

(68A Stat. 749,846; 26 U.S.C. 6065, 7011) [T.D. 7008, 34 FR 3667, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.36 Special (occupational) tax.

Except as provided in § 196.26 (in the case of distillers), no person shall engage in or carry on the trade or business of manufacturing stills or condensers to be used in distilling until he has paid the special (occupational) tax imposed by section 5101, I.R.C. Special taxes shall be imposed as of the first day of July in each year, or on commencing any trade or business on which such tax is imposed. In the former case, the tax shall be reckoned for one year, and in the latter, it shall be reckoned proportionately from the 1st day of the month in which the liability to the special tax commenced, to and including the 30th day of June following.

(72 Stat. 1346; 26 U.S.C. 5142)

[T.D. 6393, 24 FR 5298, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.36a Issuance of stamps.

Upon filing a return properly executed on Form 11, together with a remittance in the full amount due, the taxpayer will be issued an appropriately designated stamp. Special tax stamps will not be issued until the tax is fully paid. If such Form 11 with remittance covers multiple locations, the taxpayer will be issued one special (occupational) tax stamp for each location listed in the attachment to Form

11 required by § 196.34 but showing, as to name and address, only the name of the taxpayer and the address of the taxpayer's principal place of business (or principal office in the case of a corporate taxpayer).

[T.D. 7110, 36 FR 8036, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.36b Distribution of special (occupational) tax stamps for multiple locations.

On receipt of the special tax stamps, the taxpayer will verify that he has one stamp for each location listed in his copy of the attachment to Form 11 required by § 196.34. He shall designate one stamp for each location and shall type thereon the trade name, if different from the name in which the stamp was issued, and address of the business conducted at the location for which that stamp is designated. He shall then forward each stamp to the place of business designated on the stamp.

[T.D. 7110, 36 FR 8036, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.37 Examination of special tax stamp. The stamp issued as a receipt for the payment of the special (occupational) tax shall be kept at the still manufacturer's place of business, available for inspection by any ATF officer during business hours.

(72 Stat. 1348; 26 U.S.C. 5146)

[T.D. 7130, 36 FR 12853, July 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.38 Special (commodity) tax.

The special (commodity) tax on each still or condenser intended for distilling is due, except as provided in § 196.26, when the manufacture thereof is completed and shall be paid before such article is removed from the place of manufacture, unless removed without payment of tax for exportation or deposit in a foreign-trade zone, or before being set up, if manufactured on the premises where intended to be used. The special (commodity) tax stamp denoting taxpayment shall be canceled by the manufacturer by writing across the face thereof, in permanent ink, the word

"canceled" followed by the name of the manufacturer, the manufacturer's serial number of the article, and the date of cancellation.

(72 Stat. 1339, 1340; 26 U.S.C. 5101, 5106) [T.D. 6393, 24 FR 5298, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.39 Disposition of special (commodity) tax stamp.

After cancellation of the stamp has been completed, the stamp shall be enclosed in a moisture proof case having a transparent face and secured to the article by means of screws, bolts, or rivets, or by brazing, or shall be furnished to the user of the distilling apparatus for retention in his files on the premises where the distilling apparatus is set up. The stamp must be kept available for examination by ATF officers.

(68A Stat. 830; 26 U.S.C. 6804)

[20 FR 6118, Aug. 23, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.40 Types of distilling apparatus subject to special (commodity) tax. Except as provided in § 196.26, the $22 tax is due on each still and on each condenser used as indicated in this section and not merely one tax on the unit. This means that tax is due on the beer still, and each successive still or condenser through which the spirits are passed, including an intermediate or primary condenser for low wines, which require doubling, with the following exceptions:

(a) A condenser for the condensation of aldehydes or fusel oil only, where such aldehydes or fusel oil contain only negligible quantities of spirits, is not subject to the $22 tax.

(b) A preheater used solely for preheating distilling material is not subject to the $22 tax.

(c) A cooler, consisting of a series of metal tubes enclosed in a water jacket or other apparatus of similar construction, used solely for reducing the temperature of hot spirits, is not subject to the $22 tax.

(d) A separator or dephlegmator, used solely for separating vapors of lower boiling points from vapors of higher boiling points, allowing the

latter to condense and reflux to the still, and the former to pass forward to a condenser, is not subject to the $22 tax.

(72 Stat. 1339; 26 U.S.C. 5101)

[20 FR 6118, Aug. 23, 1955, as amended by T.D. 6393, 24 FR 5298, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.41 Use by United States.

Any still or distilling apparatus intended for use by the United States, or any governmental agency thereof, in distilling, may be removed by the manufacturer, subject to the notice of removal prescribed by § 196.42 without payment of the special (commodity) tax thereon.

(68A Stat. 900; 26 U.S.C. 7510)

[20 FR 6118, Aug. 23, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975]

PROCEDURE FOR REMOVAL FOR DOMESTIC USE FOR DISTILLING

§ 196.42 Notice of removal.

No still, boiler (double or pot still), condenser, or other distilling apparatus intended for use in distilling, shall be removed from the premises of the manufacturer, or dealer, as the case may be, for delivery to a user, or for his own use until the regional regulatory administrator of the region to which the equipment will be shipped has been notified on Form 110. Such notice shall contain or be verified by a written declaration that it is made under the penalties of perjury, and must disclose the name and address of the manufacturer or vendor, the approximate date the apparatus is to be removed, the name and address of the person by whom the apparatus is to be used, the purpose for which it is to be used, the type and kind of apparatus, its capacity, the manufacturer's serial number of the apparatus, the serial number of the manufacturer's special (occupational) tax stamp and, unless the apparatus is to be removed without payment of tax for use by the United States, or without payment of tax for exportation or removed to a foreign-trade zone, the serial number of the special (commodity) tax stamp for the apparatus. No distilling apparatus may be set up for distilling with

out application to and permit from the regional regulatory administrator in whose region the apparatus is to be used as provided in § 196.43.

(72 Stat. 1339; 26 U.S.C. 5105)

[20 FR 6118, Aug. 23, 1955, as amended by T.D. 6393, 24 FR 5298, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975)

§ 196.43 Application and permit to set up distilling apparatus.

Upon receipt of such distilling apparatus and before setting up the same for distilling, the user shall apply to the regional regulatory administrator on Part 1, Form 1609, in duplicate, for permission to set up such apparatus, specifying the type of apparatus, the capacity, the serial number thereof, the name and address of the manufacturer, the name and address of the vendor, and the purpose for which the apparatus will be used. The regional regulatory administrator shall then, if he has in his possession the notice of removal of the distilling apparatus from the premises of the manufacturer or vendor, issue a permit on Part 2, Form 1609, authorizing the distilling apparatus to be set up by the user. Such permission will contain the stipulations: (a) That the distilling apparatus must be immediately registered when set up, as required by §§ 196.45 to 196.47, and (b) that all provisions of internal revenue law and regulations, as may be applicable to the class of operations to be conducted, will be complied with prior to use of such apparatus for distilling.

(68A Stat. 617, 628; 26 U.S.C. 5105, 5174) [20 FR 6119, Aug. 28, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.44 Failure to give notice; penalty.

Failure to give notice of intention to remove and obtain the permit to set up a still is punishable by a fine of not more than $1,000 or imprisonment for not more than one year, or both, and the distilling apparatus is forfeitable to the Government.

(72 Stat. 1405, 1412; 26 U.S.C. 5615, 5687) [T.D. 6393, 24 FR 5298, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

REGISTRY OF STILLS

§ 196.45 Registration with regional regulatory administrator.

Every person having in his possession or custody, or under his control, any still, or distilling apparatus set up, shall register such still or apparatus with the regional regulatory administrator of the region in which such still or distilling apparatus is located immediately on its being set up (except that stills or distilling apparatus not used or intended to be used for the distillation, redistillation, or recovery of distilled spirits are not required to be registered under this section). The registration shall be filed on Form 26, except that where so provided in other regulations under this chapter the registration shall be accomplished by describing the still or distilling apparatus on the application for registration of the plant or on the permit application. An approved copy of the registration will be returned to the registrant by the regional regulatory administrator and shall be retained on the premises where the still is set up for examination by ATF officers.

(72 Stat. 1355; 26 U.S.C. 5179)

[T.D. 6393, 24 FR 5298, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.46 When still is "set up".

A still will be regarded as set up and subject to registry when it is in position over a furnace, or connected with a boiler so that heat may be applied, although the condenser may not be in position. These instructions as to stills set up are intended merely as illustrations and are not expected to cover all types of stills or condensers requiring registration under the law.

(72 Stat. 1355; 26 U.S.C. 5179)

[20 FR 6119, Aug. 23, 1955, as amended by T.D. 6393, 24 FR 5298, June 30, 1958. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.47 Change in location or ownership of distilling apparatus.

In the event a user desires to remove any distilling apparatus subject to registration under this part to another location after the same has been registered, no permit therefor will be re

quired. The used must, however, prior to removal, file Form 26 to register the apparatus "not for use" and to disclose the location to which the removal is to be made and the approximate date of such removal. After removal, no such distilling apparatus intended for use in distilling may be again set up without application to and permit from the regional regulatory administrator in whose region the apparatus is to be used, as provided in § 196.43. Likewise, when a user sells or otherwise disposes of any distilling apparatus, no permit for removal, sale, or disposition thereof will be required. The user must, however, prior to disposal of such apparatus, file Form 26 with the regional regulatory administrator to register the apparatus "not for use” and to disclose the method of disposition (sale, destruction, or otherwise), the name and address of the person to whom disposed of, the approximate date the apparatus is to be removed, and the purpose for which it is intended to be used. After removal, no such distilling apparatus intended for use in distilling may be again set up without application to and permit from the regional regulatory administrator in whose region the apparatus is to be used, as provided in § 196.43. Where there has been a change in ownership, custodianship, control, or a removal to other premises, of any still or distilling apparatus, intended for use in distilling, the person in whose possession, custody, or under whose control the still or distilling apparatus is set up must immediately register the same with the regional regulatory administrator. Where the user of distilling apparatus maintains the special (commodity) tax stamp denoting taxpayment in his files, as authorized by § 196.39, and there is a change in ownership or the distilling apparatus is removed from one premise to another the stamp must be transferred to the new owner or to the new premises.

(68A Stat. 617, 628; 26 U.S.C. 5105, 5174)

[20 FR 6119, Aug. 23, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]