72 S T A T. ] "(3)
PUBLIC LAW 85-859-SEPT. 2, 1958 MAXIMUM LOSS ALLOWANCES.—
" (A) If all the alcoholic ingredients used in distilled spirits products during the fiscal year were distilled spirits withdrawn from bond by the proprietor of the bottling premises on payment or determination of tax, for removal to such premises, the loss allowable in such fiscal year under paragraph (1)(B) shall not be greater than the excess of losses over gains, and shall not exceed the maximum amount of loss allowable as shown in the following schedule: "If total completions during the fiscal year in proof gallons are: "Not over 24,000 "Over 24,000 but not over 120,000
The maximum allowable loss in proof gallons i s: 2 percent of completions. 480 proof gallons plus 1% of excess over 24,000. "Over 120,000 but not over 600,000 1,440 proof gallons plus. 6 % of excess over 120,000. "Over 600,000 but not over 2,400,000— 4,320 proof gallons plus. 3 % of excess over 600,000. "Over 2,400,000 9,720 proof gallons plus.2% of excess over 2,400,000.
The Secretary or his delegate may, by regulations, reduce the amount of the maximum allowable losses in the preceding schedule when he finds that such adjustment is necessary for protection of the revenue, or increase the amount of such maximum allowable losses if he finds that such may be done without undue jeopardy to the revenue and is necessary to more n'early provide for the actual losses described in paragraph (1)(B). However, in no event shall allowable losses exceed 2 percent of total completions. " (B) If alcoholic ingredients other than distilled spirits withdrawn from bond by the proprietor of the bottling premises on payment or determination of tax, for removal to such premises, were used in distilled spirits products during the fiscal year, the loss allowable under paragraph (1)(B) shall be determined by first obtaining the amount that would have been allowable if all of the ingredients had been distilled spirits withdrawn from bond by the proprietor of the bottling premises on payment or determination of tax, for removal to such premises, and thereafter reducing this amount by an amount proportional to the percentage which the total proof gallons of such alcoholic ingredients bears to the total proof gallons of all alcoholic ingredients used in such distilled spirits products. " (C) As used in this subsection, the term 'completions' means the distilled spirits products bottled and cased or otherwise packaged or placed in approved containers for removal from the bottling premises, and the term 'fiscal year' means the period from July 1 of a calendar year through June 80 of the following year. " (D) The Secretary or his delegate may, under such regulations and conditions as he may prescribe, make tentative allowances for losses provided for in paragraph (1)(B), for fractional parts of a year, which allowances shall be computed by the procedures prescribed in paragraphs (3) (A) and (3)(B), except that the numerical values for the completions and for the maximum allowable losses in proof gallons in the schedule in paragraph (3)(A) shall be divided by the number of such fractional parts within the fiscal year. " (E) The loss allowable to any proprietor qualifying for abatement, remission, credit, or refund of taxes under para-
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