Rev. Rul. 59-149

Advice has been requested whether the user who purchases proprietary solvents and lacquer thinners must file Form 1479-A, Formula for Preparation made with Specially Denatured Alcohol.

Section 182.845(a) of the Industrial Alcohol Regulations permits producers of proprietary solvents and lacquer thinners to sell such articles to users for solvent or other manufacturing purposes satisfactory to the Director, Alcohol and Tobacco Tax Division, and to dealers and other producers for resale. This section of the regulations prohibits the sale of proprietary solvents and lacquer thinners by the producers to users for the manufacture for sale of preparations which do not contain sufficient quantities of other materials to definitely change the composition and character of the proprietary solvents or lacquer thinners.

In order that the Internal Revenue Service may determine whether preparations manufactured for sale with the use of proprietary solvents or lacquer thinners contain sufficient quantities of other material so that such preparations are removed from the restriction as to sale contained in the regulations, persons who purchase proprietary solvents or lacquer thinners for such use are required to file Form 1479-A, Formula for Preparation made with Specially Denatured Alcohol, or a statement of process and formula, in quadruplicate with the Director, Alcohol and Tobacco Tax Division. This requirement is applicable without regard to the size of the containers of the finished products or the quantities of proprietary solvents or lacquer thinners purchased for use in the manufacture of such preparations.

Where more than one preparation is produced for sale with the use of substantially the same kind and quantities of other material, a representative product may be covered by Form 1479-A, Formula for Preparation made with Specially Denatured Alcohol, and submitted to the Director, Alcohol and Tobacco Tax Division, and additional similar products may be covered in a statement, in quadruplicate, in which reference must be made to the approved Form 1479-A, and filed with the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax in lieu of filing Form 1479-A for such additional products. If the proprietary solvents or lacquer thinners are to be used in the manufacture of surface coatings containing not less than two pounds of solid coating material per gallon, a statement, in quadruplicate, to that effect may be submitted to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax, in lieu of submitting Form 1479-A to the Director, Alcohol and Tobacco Tax Division.

However, where the proprietary solvent or lacquer thinner is to be used by the purchaser solely for solvent or manufacturing purposes not involving the sale of preparations containing proprietary solvents or lacquer thinners, the submission of Form 1479-A, Formula for Preparation made with Specially Denatured Alcohol, is not required.