Change in partnership.

§ 25.73 Change in partnership. (a) New notice required. The withdrawal of one or more members of a partnership or the taking in of a new partner, whether active or silent, constitutes a change in proprietorship. Unless exempted by paragraph (b) of this section, the death, bankruptcy or adjudicated insolvency of one or more partners results in a dissolution of the partnership and a change in proprietorship. The successor shall qualify the brewery in the same manner as the proprietor of a new brewery. (b) Continuing partnership. A surviving partner or partners may continue to operate the brewery for purposes of liquidation and settlement under the following conditions: (1) Under the laws of the State where the partnership was formed, the partnership is not terminated on death or insolvency of a partner(s); and (2) Under the laws of the State where the partnership was formed, the surviving partner(s) has the exclusive right to control and possession of the partnership assets for the purpose of liquidation and settlement; and (3) If the brewer has filed a bond, a consent of surety is filed in which the surety and the surviving partner(s) agree to remain liable on the bond. (c) Settlement of partnership. If the surviving partner(s) acquires the business on completion of the settlement of the partnership, that partner(s) must qualify in his or her own name from the date of acquisition. The partner(s) must give a new brewer's notice on Form 5130.10 and a new bond on Form 5130.22, except that the partner(s) is not required to file a bond if the brewer is exempt from bond requirements under § 25.91(e). (Sec. 201, Pub. L. 85–859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. ATF–224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986; T.D. TTB–146, 82 FR 1127, Jan. 4, 2017]