27 CFR 26.262 – Determination of tax on distilled spirits
(a) If the certificate required by § 26.205 covers distilled spirits, and the distilled spirits are not being transferred under subparts O or Oa of this part, the tax imposed by 26 U.S.C. § 7652 which provides for a tax equal to the tax imposed by 26 U.S.C. § 5001 will be collected on each proof gallon, and fractional part thereof, contained in the shipment.
(b) A credit against the tax imposed on distilled spirits by 26 U.S.C. § 7652 is allowable under 26 U.S.C. § 5010 on each proof gallon of alcohol derived from eligible wine or from eligible flavors which do not exceed 2
(c) Where credit against the tax is desired, the person liable for the tax shall establish an effective tax rate in accordance with § 26.262a. The effective tax rate established will be applied to each withdrawal or other disposition of the distilled spirits within the United States.