Rev. Rul. 60-381

Section 5006(a)(2) of the Internal Revenue Code of 1954 provides, in part, that, with certain specified exceptions, the internal revenue tax on distilled spirits entered for deposit in internal revenue bond must be determined within twenty years from the date of original entry for deposit in such storage. One of these exceptions covers spirits of 190 degrees or more of proof. Held , the twenty-year bonding period limitation is not applicable to spirits distilled and entered into bonded storage at 190 degrees or more of proof, even though such spirits are subsequently reduced in proof. Where spirits entered for storage in bond at 190 degrees or more of proof are subsequently reduced, such spirits should continue to be carried in the proprietor's records as exempt from the twenty-year bonding period. However, a supplemental entry to show the quantity of such reduced spirits should be made at item six of Form 332, Statement by Kinds, Seasons, and Years of Production of Spirits in Bonded Warehouses.