Rev. Rul. 59-117

Section 170.186 of the Miscellaneous Regulations Relating to Liquor provides, in part, that within eight years of the date of original entry for deposit, and with the prior approval of the internal revenue officer in charge, packages of spirits of the same kind, distilled by the same proprietor (under his own or any trade name) at the same distillery, and which have been stored in internal Revenue bond in the same kind of cooperage for not less than four years (or two years in the case of rum or brandy) may, as provided in sections 170.185 through 170.196 of the regulations, be dumped and mingled in a warehouse tank, and immediately repackaged in as many as necessary of the packages from which dumped, for further storage in bond. Held, when packages are being filled with mingled spirits in a continuing consolidation program, where the original components of each lot would be eligible for mingling with each other, and it becomes evident that the last package would not be filled to capacity if the tank were drained, the proprietor may determine the gauge of the spirits remaining in the tank, in a quantity less than a full package, and treat such spirits as a part of the succeeding lot to be mingled in that tank. If the original components of the heel are not eligible for mingling with the components of the succeeding lot, or if the consolidation operations are discontinued, the spirits remaining must be drawn off into a remnant package as provided in the regulations. Entries on Form 2323, Mingling of Distilled Spirits, must be appropriately modified to reflect the operation.