-CITE-
26 USC CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
-HEAD-
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
-MISC1-
Subchapter Sec.(!1)
A. Gallonage and occupational taxes 5001
B. Qualification requirements for distilled spirits
plants 5171
C. Operation of distilled spirits plants 5201
D. Industrial use of distilled spirits 5271
E. General provisions relating to distilled spirits 5291
F. Bonded and taxpaid wine premises 5351
G. Breweries 5401
H. Miscellaneous plants and warehouses 5501
I. Miscellaneous general provisions 5551
J. Penalties, seizures, and forfeitures relating to
liquors 5601
PRIOR PROVISIONS
The provisions of a prior chapter 51, Distilled Spirits, Wines,
and Beer, were set out as:
Subchapter A, Gallonage and occupational taxes, comprising
sections 5001 to 5012, 5021 to 5028, 5041 to 5045, 5051 to
5057, 5061 to 5065, 5081 to 5084, 5091 to 5093, 5101 to 5106,
5111 to 5116, 5121 to 5124, 5131 to 5134, and 5141 to 5149.
Subchapter B, Distilleries, comprising sections 5171 to 5180,
5191 to 5197, and 5211 to 5217.
Subchapter C, Internal Revenue bonded warehouses, comprising
sections 5231 to 5233 and 5241 to 5252.
Subchapter D, Rectifying plants, comprising sections 5271 to
5275 and 5281 to 5285.
Subchapter E, Industrial alcohol plants, bonded warehouses,
denaturing plants, and denaturation, comprising sections 5301
to 5320 and 5331 to 5334.
Subchapter F, Bonded and taxpaid wine premises, comprising
sections 5351 to 5357, 5361 to 5373, 5381 to 5388, 5391, and
5392.
Subchapter G, Breweries, comprising sections 5401 to 5403 and
5411 to 5416.
Subchapter H, Miscellaneous plants and warehouses, comprising
sections 5501, 5502, 5511, 5512, and 5521 to 5523.
Subchapter I, Miscellaneous general provisions, comprising
sections 5551 to 5557.
Subchapter J, Penalties, seizures, and forfeitures relating to
liquors, comprising sections 5601 to 5650, 5661 to 5663, 5671
to 5676, 5681 to 5690, and 5691 to 5693.
-SECREF-
CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in sections 5846, 6103, 6423, 6808,
7328 of this title; title 6 section 531; title 19 section 1754.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - Gallonage and Occupational Taxes 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
-HEAD-
SUBCHAPTER A - GALLONAGE AND OCCUPATIONAL TAXES
-MISC1-
Part
I. Gallonage taxes.
II. Occupational tax.
-End-
-CITE-
26 USC PART I - GALLONAGE TAXES 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
-HEAD-
PART I - GALLONAGE TAXES
-MISC1-
Subpart
A. Distilled spirits.
[B. Repealed.]
C. Wines.
D. Beer.
E. General provisions.
AMENDMENTS
1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(1), July 26, 1979,
93 Stat. 290, struck out item relating to subpart B
"Rectification".
-SECREF-
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in section 5684 of this title.
-End-
-CITE-
26 USC Subpart A - Distilled Spirits 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
SUBPART A - DISTILLED SPIRITS
-MISC1-
Sec.
5001. Imposition, rate, and attachment of tax.
5002. Definitions.
5003. Cross references to exemptions, etc.
5004. Lien for tax.
5005. Persons liable for tax.
5006. Determination of tax.
5007. Collection of tax on distilled spirits.
5008. Abatement, remission, refund, and allowance for loss
or destruction of distilled spirits.
[5009. Repealed.]
5010. Credit for wine content and for flavors content.
PRIOR PROVISIONS
A prior subpart A, comprising sections 5001 to 5012, related to
tax on distilled spirits, prior to the general revision of this
chapter by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat.
1313.
AMENDMENTS
1980 - Pub. L. 96-598, Sec. 6(b), Dec. 24, 1980, 94 Stat. 3489,
added item 5010.
1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(2), July 26, 1979,
93 Stat. 290, struck out item 5009 "Drawback".
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 5505, 6651 of this
title.
-End-
-CITE-
26 USC Sec. 5001 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
Sec. 5001. Imposition, rate, and attachment of tax
-STATUTE-
(a) Rate of tax
(1) General
There is hereby imposed on all distilled spirits produced in or
imported into the United States a tax at the rate of $13.50 on
each proof gallon and a proportionate tax at the like rate on all
fractional parts of a proof gallon.
(2) Products containing distilled spirits
All products of distillation, by whatever name known, which
contain distilled spirits, on which the tax imposed by law has
not been paid, and any alcoholic ingredient added to such
products, shall be considered and taxed as distilled spirits.
(3) Wines containing more than 24 percent alcohol by volume
Wines containing more than 24 percent of alcohol by volume
shall be taxed as distilled spirits.
(4) Distilled spirits withdrawn free of tax
Any person who removes, sells, transports, or uses distilled
spirits, withdrawn free of tax under section 5214(a) or section
7510, in violation of laws or regulations now or hereafter in
force pertaining thereto, and all such distilled spirits shall be
subject to all provisions of law relating to distilled spirits
subject to tax, including those requiring payment of the tax
thereon; and the person so removing, selling, transporting, or
using the distilled spirits shall be required to pay such tax.
(5) Denatured distilled spirits or articles
Any person who produces, withdraws, sells, transports, or uses
denatured distilled spirits or articles in violation of laws or
regulations now or hereafter in force pertaining thereto, and all
such denatured distilled spirits or articles shall be subject to
all provisions of law pertaining to distilled spirits that are
not denatured, including those requiring the payment of tax
thereon; and the person so producing, withdrawing, selling,
transporting, or using the denatured distilled spirits or
articles shall be required to pay such tax.
(6) Fruit-flavor concentrates
If any volatile fruit-flavor concentrate (or any fruit mash or
juice from which such concentrate is produced) containing
one-half of 1 percent or more of alcohol by volume, which is
manufactured free from tax under section 5511, is sold,
transported, or used by any person in violation of the provisions
of this chapter or regulations promulgated thereunder, such
person and such concentrate, mash, or juice shall be subject to
all provisions of this chapter pertaining to distilled spirits
and wines, including those requiring the payment of tax thereon;
and the person so selling, transporting, or using such
concentrate, mash, or juice shall be required to pay such tax.
(7) Imported liqueurs and cordials
Imported liqueurs and cordials, or similar compounds,
containing distilled spirits, shall be taxed as distilled
spirits.
(8) Imported distilled spirits withdrawn for beverage purposes
There is hereby imposed on all imported distilled spirits
withdrawn from customs custody under section 5232 without payment
of the internal revenue tax, and thereafter withdrawn from bonded
premises for beverage purposes, an additional tax equal to the
duty which would have been paid had such spirits been imported
for beverage purposes, less the duty previously paid thereon.
(9) Alcoholic compounds from Puerto Rico
Except as provided in section 5314, upon bay rum, or any
article containing distilled spirits, brought from Puerto Rico
into the United States for consumption or sale there is hereby
imposed a tax on the spirits contained therein at the rate
imposed on distilled spirits produced in the United States.
(b) Time of attachment on distilled spirits
The tax shall attach to distilled spirits as soon as this
substance is in existence as such, whether it be subsequently
separated as pure or impure spirits, or be immediately, or at any
subsequent time, transferred into any other substance, either in
the process of original production or by any subsequent process.
(c) Cross reference
For provisions relating to the tax on shipments to the United
States of taxable articles from Puerto Rico and the Virgin
Islands, see section 7652.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1314; amended Pub. L. 86-75, Sec. 3(a)(2), (3), June 30, 1959, 73
Stat. 157; Pub. L. 86-564, title II, Sec. 202(a)(4), (5), June 30,
1960, 74 Stat. 290; Pub. L. 87-72, Sec. 3(a)(4), (5), June 30,
1961, 75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(3), (4), June 28,
1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(4), (5), June 29,
1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(4), (5), June 30,
1964, 78 Stat. 237; Pub. L. 89-44, title V, Sec. 501(a), June 21,
1965, 79 Stat. 150; Pub. L. 96-39, title VIII, Secs. 802, 805(d),
July 26, 1979, 93 Stat. 273, 278; Pub. L. 98-369, div. A, title I,
Sec. 27(a)(1), July 18, 1984, 98 Stat. 507; Pub. L. 101-508, title
XI, Sec. 11201(a)(1), Nov. 5, 1990, 104 Stat. 1388-415; Pub. L.
103-465, title I, Sec. 136(a), Dec. 8, 1994, 108 Stat. 4841.)
-MISC1-
PRIOR PROVISIONS
A prior section 5001, acts Aug. 16, 1954, ch. 736, 68A Stat. 595;
Mar. 30, 1955, ch. 18, Sec. 3(a)(4), (5), 69 Stat. 14; Mar. 29,
1956, ch. 115, Sec. 3(a)(4), (5), 70 Stat. 66; Mar. 29, 1957, Pub.
L. 85-12, Sec. 3(a)(2), (3), 71 Stat. 9; June 30, 1958, Pub. L.
85-475, Sec. 3(a)(2), (3), 72 Stat. 259, consisted of provisions
similar to those comprising this section, prior to the general
revision of this chapter by Pub. L. 85-859. See section 5061(d) of
this title.
AMENDMENTS
1994 - Subsec. (a)(3) to (10). Pub. L. 103-465 redesignated pars.
(4) to (10) as (3) to (9), respectively, and struck out former par.
(3), "Imported perfumes containing distilled spirits", which read
as follows: "There is hereby imposed on all perfumes imported into
the United States containing distilled spirits a tax of $13.50 per
wine gallon, and a proportionate tax at a like rate on all
fractional parts of such wine gallon."
1990 - Subsec. (a)(1), (3). Pub. L. 101-508 substituted "$13.50"
for "$12.50".
1984 - Subsec. (a)(1), (3). Pub. L. 98-369 substituted "$12.50"
for "$10.50".
1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 802, struck out "in
bond or" after "distilled spirits" and "or wine gallon when below
proof" after "each proof gallon" and substituted "a tax" for "an
internal revenue tax" and "proof gallon" for "such proof or wine
gallon".
Subsec. (a)(2). Pub. L. 96-39, Sec. 805(d), inserted ", and any
alcoholic ingredient added to such products" after "has not been
paid".
1965 - Subsec. (a)(1). Pub. L. 89-44 struck out last sentence
which provided that the rate of tax imposed by par. (1) would be $9
on and after July 1, 1965.
Subsec. (a)(3). Pub. L. 89-44 struck out last sentence which
provided that the rate of tax imposed by par. (3) would be $9 on
and after July 1, 1965.
1964 - Subsec. (a)(1). Pub. L. 88-348 substituted "July 1, 1965"
for "July 1, 1964".
Subsec. (a)(3). Pub. L. 88-348 substituted "July 1, 1965" for
"July 1, 1964".
1963 - Subsec. (a)(1). Pub. L. 88-52, Sec. 3(a)(4), substituted
"July 1, 1964" for "July 1, 1963".
Subsec. (a)(3). Pub. L. 88-52, Sec. 3(a)(5), substituted "July 1,
1964" for "July 1, 1963".
1962 - Subsec. (a)(1). Pub. L. 87-508, Sec. 3(a)(3), substituted
"July 1, 1963" for "July 1, 1962".
Subsec. (a)(3). Pub. L. 87-508, Sec. 3(a)(4), substituted "July
1, 1963" for "July 1, 1962".
1961 - Subsec. (a)(1). Pub. L. 87-72, Sec. 3(a)(4), substituted
"July 1, 1962" for "July 1, 1961".
Subsec. (a)(3). Pub. L. 87-72, Sec. 3(a)(5), substituted "July 1,
1962" for "July 1, 1961".
1960 - Subsec. (a)(1). Pub. L. 86-564, Sec. 202(a)(4),
substituted "July 1, 1961" for "July 1, 1960".
Subsec. (a)(3). Pub. L. 86-564, Sec. 202(a)(5), substituted "July
1, 1961" for "July 1, 1960".
1959 - Subsec. (a)(1). Pub. L. 86-75, Sec. 3(a)(2), substituted
"July 1, 1960" for "July 1, 1959".
Subsec. (a)(3). Pub. L. 86-75, Sec. 3(a)(3), substituted "July 1,
1960" for "July 1, 1959".
EFFECTIVE DATE OF 1994 AMENDMENT
Section 136(d) of Pub. L. 103-465 provided that: "The amendments
made by this section [amending this section and sections 5002,
5005, 5007, 5061, 5131, 5132, 5134, and 7652 of this title] shall
take effect on January 1, 1995."
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11201(d) of Pub. L. 101-508 provided that: "The
amendments made by this section [amending this section and sections
5010, 5041, 5051, and 5061 of this title] shall take effect on
January 1, 1991."
EFFECTIVE DATE OF 1984 AMENDMENT
Section 27(d) of Pub. L. 98-369 provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section and section
5010 of this title and enacting provisions set out as a note under
this section] shall take effect on October 1, 1985.
"(2) Electronic transfer provisions. - The amendments made by
subsection (c) [amending sections 5061 and 5703 of this title]
shall apply to taxes required to be paid on or after September 30,
1984."
EFFECTIVE DATE OF 1979 AMENDMENT
Section 810 of title VIII of Pub. L. 96-39 provided that: "The
amendments made by this title [amending this section and sections
5002 to 5008, 5043, 5061, 5064, 5066, 5116, 5171 to 5173, 5175 to
5178, 5180, 5181, 5201 to 5205, 5207, 5211 to 5215, 5221 to 5223,
5231, 5232, 5235, 5241, 5273, 5291, 5301, 5352, 5361 to 5363, 5365,
5381, 5391, 5551, 5601, 5604, 5610, 5612, 5615, 5663, 5681, 5682,
and 5691 of this title, repealing sections 5009, 5021 to 5026, 5081
to 5084, 5174, 5233, 5234, 5251, 5252, 5364, and 5521 to 5523 of
this title, and enacting provisions set out as notes under sections
1, 5061, 5171, and 5173 of this title] shall take effect on January
1, 1980."
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 applicable on and after July 1, 1965,
see section 701(d) of Pub. L. 89-44, set out as a note under
section 5701 of this title.
EFFECTIVE DATE
Section 210(a)(1) of Pub. L. 85-859 provided that: "The
amendments made by sections 201 and 205 [amending this chapter and
repealing acts Mar. 3, 1877, 114, 19 Stat. 393, and Oct. 18, 1888,
ch. 1194, 25 Stat. 560] shall take effect on July 1, 1959, except
that any provision having the effect of a provision contained in
such amendments may be made effective at an earlier date by the
promulgation of regulations by the Secretary or his delegate to
effectuate such provision, in which case the effective date shall
be that prescribed in such regulations. The amendments made by
paragraphs (17) and (18) of section 204 [amending section 7652 of
this title] shall take effect on July 1, 1959. Except as provided
in section 206(f), all other provisions of this title [enacting
sections 5849, 5854, 5855, and 7608 of this title, amending chapter
52 of this title and sections 5801, 5811, 5814, 5821, 5843, 5848,
5851, 6071, 6207, 6422, 7214, 7272, 7301, 7324 to 7326, 7609, and
7655 of this title, and repealing former section 5854 of this
title] shall take effect on the day following the date of the
enactment of this Act [Sept. 2, 1958]."
SHORT TITLE
Section 1(a) of Pub. L. 85-859 provided that: "This Act [see
Tables for classification] may be cited as the 'Excise Tax
Technical Changes Act of 1958'."
SAVINGS PROVISION
Section 210(b) of title II of Pub. L. 85-859, as amended by Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"The amendment of any provision of the Internal Revenue Code of
1986 [formerly I.R.C. 1954] by this title [enacting sections 5849,
5854, 5855, and 7608 of this title, amending this chapter, chapter
52 of this title and sections 5801, 5811, 5814, 5821, 5843, 5848,
5851, 6071, 6207, 6422, 7214, 7272, 7301, 7324 to 7326, 7609, 7652,
and 7655 of this title, and enacting provisions set out as notes
under this section and sections 5006, 5025, 5064, 5175, 5304, and
5601 of this title] shall not affect any act done or any right
accruing or accrued, or any suit or proceeding had or commenced in
any civil cause before such amendment; but all rights and
liabilities under such code prior to such amendment shall continue,
and may be enforced in the same manner, as if such amendment had
not been made."
REFERENCES TO OTHER PROVISIONS OF LAW
Section 210(d) of title II of Pub. L. 85-859 provided that: "For
the purpose of applying any provision of this title [see Savings
Provision note above] to any occurrence on or after the effective
date of such provision, any reference in this title to another
provision thereof shall also be deemed to be a reference to the
corresponding provision of prior law, when consistent with the
purpose of the provision to be applied."
REPEAL OF ACTS MAR. 3, 1877 AND OCT. 18, 1888
Section 205 of Pub. L. 85-859 repealed acts March 3, 1877, ch.
114, 19 Stat. 393 and Oct. 18, 1888, ch. 1194, 25 Stat. 560, which
related to production and warehousing of fruit brandy, and are
covered by this chapter. For effective date of repeal, see section
210(a)(1) of Pub. L. 85-859, set out as an Effective Date note
above.
FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER
Section 11201(e) of Pub. L. 101-508 provided that:
"(1) Imposition of tax. -
"(A) In general. - In the case of any tax-increased article -
"(i) on which tax was determined under part I of subchapter A
of chapter 51 of the Internal Revenue Code of 1986 or section
7652 of such Code before January 1, 1991, and
"(ii) which is held on such date for sale by any person,
there shall be imposed a tax at the applicable rate on each such
article.
"(B) Applicable rate. - For purposes of subparagraph (A), the
applicable rate is -
"(i) $1 per proof gallon in the case of distilled spirits,
"(ii) $0.90 per wine gallon in the case of wine described in
paragraph (1), (2), (3), or (5) of section 5041(b) of such
Code, and
"(iii) $9 per barrel in the case of beer.
In the case of a fraction of a gallon or barrel, the tax imposed
by subparagraph (A) shall be the same fraction as the amount of
such tax imposed on a whole gallon or barrel.
"(C) Tax-increased article. - For purposes of this subsection,
the term 'tax-increased article' means distilled spirits, wine
described in paragraph (1), (2), (3), or (5) of section 5041(b)
of such Code, and beer.
"(2) Exception for small domestic producers. -
"(A) In the case of wine held by the producer thereof on
January 1, 1991, if a credit would have been allowable under
section 5041(c) of such Code (as added by this section) on such
wine had the amendments made by subsection (b) [amending sections
5041 and 5061 of this title] applied to all wine removed during
1990 and had the wine so held been removed for consumption on
December 31, 1990, the tax imposed by paragraph (1) on such wine
shall be reduced by the credit which would have been so
allowable.
"(B) In the case of beer held by the producer thereof on
January 1, 1991, if the rate of the tax imposed by section 5051
of such Code would have been determined under subsection (a)(2)
thereof had the beer so held been removed for consumption on
December 31, 1990, the tax imposed by paragraph (1) on such beer
shall not apply.
"(C) For purposes of this paragraph, an article shall not be
treated as held by the producer if title thereto had at any time
been transferred to any other person.
"(3) Exception for certain small wholesale or retail dealers. -
No tax shall be imposed by paragraph (1) on tax- increased articles
held on January 1, 1991, by any dealer if -
"(A) the aggregate liquid volume of tax-increased articles held
by such dealer on such date does not exceed 500 wine gallons, and
"(B) such dealer submits to the Secretary (at the time and in
the manner required by the Secretary) such information as the
Secretary shall require for purposes of this paragraph.
"(4) Credit against tax. - Each dealer shall be allowed as a
credit against the taxes imposed by paragraph (1) an amount equal
to -
"(A) $240 to the extent such taxes are attributable to
distilled spirits,
"(B) $270 to the extent such taxes are attributable to wine,
and
"(C) $87 to the extent such taxes are attributable to beer.
Such credit shall not exceed the amount of taxes imposed by
paragraph (1) with respect to distilled spirits, wine, or beer, as
the case may be, for which the dealer is liable.
"(5) Liability for tax and method of payment. -
"(A) Liability for tax. - A person holding any tax-increased
article on January 1, 1991, to which the tax imposed by paragraph
(1) applies shall be liable for such tax.
"(B) Method of payment. - The tax imposed by paragraph (1)
shall be paid in such manner as the Secretary shall prescribe by
regulations.
"(C) Time for payment. - The tax imposed by paragraph (1) shall
be paid on or before June 30, 1991.
"(6) Controlled groups. -
"(A) Corporations. - In the case of a controlled group -
"(i) the 500 wine gallon amount specified in paragraph (3),
and
"(ii) the $240, $270, and $87 amounts specified in paragraph
(4),
shall be apportioned among the dealers who are component members
of such group in such manner as the Secretary shall by
regulations prescribe. For purposes of the preceding sentence,
the term 'controlled group' has the meaning given to such term by
subsection (a) of section 1563 of such Code; except that for such
purposes the phrase 'more than 50 percent' shall be substituted
for the phrase 'at least 80 percent' each place it appears in
such subsection.
"(B) Nonincorporated dealers under common control. - Under
regulations prescribed by the Secretary, principles similar to
the principles of subparagraph (A) shall apply to a group of
dealers under common control where 1 or more of such dealers is
not a corporation.
"(7) Other laws applicable. -
"(A) In general. - All provisions of law, including penalties,
applicable to the comparable excise tax with respect to any
tax-increased article shall, insofar as applicable and not
inconsistent with the provisions of this subsection, apply to the
floor stocks taxes imposed by paragraph (1) to the same extent as
if such taxes were imposed by the comparable excise tax.
"(B) Comparable excise tax. - For purposes of subparagraph (A),
the term 'comparable excise tax' means -
"(i) the tax imposed by section 5001 of such Code in the case
of distilled spirits,
"(ii) the tax imposed by section 5041 of such Code in the
case of wine, and
"(iii) the tax imposed by section 5051 of such Code in the
case of beer.
"(8) Definitions. - For purposes of this subsection -
"(A) In general. - Terms used in this subsection which are also
used in subchapter A of chapter 51 of such Code shall have the
respective meanings such terms have in such part.
"(B) Person. - The term 'person' includes any State or
political subdivision thereof, or any agency or instrumentality
of a State or political subdivision thereof.
"(C) Secretary. - The term 'Secretary' means the Secretary of
the Treasury or his delegate.
"(9) Treatment of imported perfumes containing distilled spirits.
- For purposes of this subsection, any article described in section
5001(a)(3) of such Code shall be treated as distilled spirits;
except that the tax imposed by paragraph (1) shall be imposed on a
wine gallon basis in lieu of a proof gallon basis. To the extent
provided by regulations prescribed by the Secretary, the preceding
sentence shall not apply to any article held on January 1, 1991, on
the premises of a retail establishment."
FLOOR STOCKS TAX TREATMENT OF ARTICLES IN FOREIGN TRADE ZONES
Section 11218 of Pub. L. 101-508 provided that: "Notwithstanding
the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other
provision of law, any article which is located in a foreign trade
zone on the effective date of any increase in tax under the
amendments made by this part or part I [part I (Secs. 11201-11203)
or part II (Secs. 11211-11218) of subtitle B of title XI of Pub. L.
101-508, see Tables for classification] shall be subject to floor
stocks taxes imposed by such parts if -
"(1) internal revenue taxes have been determined, or customs
duties liquidated, with respect to such article before such date
pursuant to a request made under the 1st proviso of section 3(a)
of such Act [19 U.S.C. 81c(a)], or
"(2) such article is held on such date under the supervision of
a customs officer pursuant to the 2d proviso of such section
3(a)."
FLOOR STOCKS TAXES ON DISTILLED SPIRITS
Section 27(b) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, title XVIII, Sec. 1801(c)(3), Oct. 22, 1986, 100 Stat.
2095, 2786, provided that:
"(1) Imposition of tax. - On distilled spirits on which tax was
imposed under section 5001 or 7652 of the Internal Revenue Code of
1986 [formerly I.R.C. 1954] before October 1, 1985, and which were
held on such date for sale by any person, there shall be imposed a
tax at the rate of $2.00 for each proof gallon and a proportionate
tax at the like rate on all fractional parts of a proof gallon.
"(2) Exception for certain small wholesale or retail dealers. -
No tax shall be imposed by paragraph (1) on distilled spirits held
on October 1, 1985, by any dealer if -
"(A) the aggregate liquid volume of distilled spirits held by
such dealer on such date does not exceed 500 wine gallons, and
"(B) such dealer submits to the Secretary (at the time and in
the manner required by the Secretary) such information as the
Secretary shall require for purposes of this paragraph.
"(3) Credit against tax. - Each dealer shall be allowed as a
credit against the taxes imposed by paragraph (1) an amount equal
to $800. Such credit shall not exceed the amount of taxes imposed
by paragraph (1) for which the dealer is liable.
"(4) Liability for tax and method of payment. -
"(A) Liability for tax. - A person holding distilled spirits on
October 1, 1985, to which the tax imposed by paragraph (1)
applies shall be liable for such tax.
"(B) Method of payment. - The tax imposed by paragraph (1)
shall be paid in such manner as the Secretary shall by
regulations prescribe.
"(C) Time for payment. -
"(i) In general. - Except as provided in clause (ii), the tax
imposed by paragraph (1) shall be paid on or before April 1,
1986.
"(ii) Installment payment of tax in case of small or
middle-sized dealers. - In the case of any small or
middle-sized dealer, the tax imposed by paragraph (1) may be
paid in 3 equal installments due as follows:
"(I) The first installment shall be paid on or before April
1, 1986.
"(II) The second installment shall be paid on or before
July 1, 1986.
"(III) The third installment shall be paid on or before
October 1, 1986.
If the taxpayer does not pay any installment under this clause on
or before the date prescribed for its payment, the whole of the
unpaid tax shall be paid upon notice and demand from the
Secretary.
"(iii) Small or middle-sized dealer. - For purposes of clause
(ii), the term 'small or middle-sized dealer' means any dealer
if the aggregate gross sales receipts of such dealer for its
most recent taxable year ending before October 1, 1985, does
not exceed $500,000.
"(5) Controlled groups. -
"(A) Controlled groups of corporations. - In the case of a
controlled group -
"(i) the 500 wine gallon amount specified in paragraph (2),
"(ii) the $800 amount specified in paragraph (3), and
"(iii) the $500,000 amount specified in paragraph
(4)(C)(iii),
shall be apportioned among the dealers who are component members
of such group in such manner as the Secretary shall by
regulations prescribe. For purposes of the preceding sentence,
the term 'controlled group' has the meaning given to such term by
subsection (a) of section 1563 of the Internal Revenue Code of
1986; except that for such purposes the phrase 'more than 50
percent' shall be substituted for the phrase 'at least 80
percent' each place it appears in such subsection.
"(B) Nonincorporated dealers under common control. - Under
regulations prescribed by the Secretary, principles similar to
the principles of subparagraph (A) shall apply to a group of
dealers under common control where 1 or more of such dealers is
not a corporation.
"(6) Other laws applicable. - All provisions of law, including
penalties, applicable with respect to the taxes imposed by section
5001 of the Internal Revenue Code of 1986 shall, insofar as
applicable and not inconsistent with the provisions of this
subsection, apply in respect of the taxes imposed by paragraph (1)
to the same extent as if such taxes were imposed by such section
5001.
"(7) Definitions and special rules. - For purposes of this
subsection -
"(A) Dealer. - The term 'dealer' means -
"(i) any wholesale dealer in liquors (as defined in section
5112(b) of the Internal Revenue Code of 1986), and
"(ii) any retail dealer in liquors (as defined in section
5122(a) of such Code).
"(B) Distilled spirits. - The term 'distilled spirits' has the
meaning given such term by section 5002(a)(8) of the Internal
Revenue Code of 1986.
"(C) Person. - The term 'person' includes any State or
political subdivision thereof, or any agency or instrumentality
of a State or political subdivision thereof.
"(D) Secretary. - The term 'Secretary' means the Secretary of
the Treasury or his delegate.
"(E) Treatment of imported perfumes containing distilled
spirits. - Any article described in section 5001(a)(3) of such
Code shall be treated as distilled spirits; except that the tax
imposed by paragraph (1) shall be imposed on a wine gallon basis
in lieu of a proof gallon basis. To the extent provided in
regulations prescribed by the Secretary, the preceding sentence
shall not apply to any article held on October 1, 1985, on the
premises of a retail establishment.
"(F) Treatment of distilled spirits in foreign trade zones. -
Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C.
81a) or any other provision of law, distilled spirits which are
located in a foreign trade zone on October 1, 1985, shall be
subject to the tax imposed by paragraph (1) and shall be treated
for purposes of this subsection as held on such date for sale if
-
"(i) internal revenue taxes have been determined, or customs
duties liquidated, with respect to such distilled spirits
before such date pursuant to a request made under the first
proviso of section 3(a) of such Act [19 U.S.C. 81c(a)], or
"(ii) such distilled spirits are held on such date under the
supervision of customs pursuant to the second proviso of such
section 3(a).
Under regulations prescribed by the Secretary, provisions similar
to sections 5062 and 5064 of such Code shall apply to distilled
spirits with respect to which tax is imposed by paragraph (1) by
reason of this subparagraph."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5004, 5005, 5007, 5008,
5010, 5061, 5066, 5215, 5273, 5314, 5391, 5512, 7652 of this title.
-End-
-CITE-
26 USC Sec. 5002 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
Sec. 5002. Definitions
-STATUTE-
(a) In general
For purposes of this chapter -
(1) Distilled spirits plant
The term "distilled spirits plant" means an establishment which
is qualified under subchapter B to perform any distilled spirits
operation.
(2) Distilled spirits operation
The term "distilled spirits operation" means any operation for
which qualification is required under subchapter B.
(3) Bonded premises
The term "bonded premises", when used with respect to distilled
spirits, means the premises of a distilled spirits plant, or part
thereof, on which distilled spirits operations are authorized to
be conducted.
(4) Distiller
The term "distiller" includes any person who -
(A) produces distilled spirits from any source or substance,
(B) brews or makes mash, wort, or wash fit for distillation
or for the production of distilled spirits (other than the
making or using of mash, wort, or wash in the authorized
production of wine or beer, or the production of vinegar by
fermentation),
(C) by any process separates alcoholic spirits from any
fermented substance, or
(D) making or keeping mash, wort, or wash, has a still in his
possession or use.
(5) Processor
(A) In general
The term "processor", when used with respect to distilled
spirits, means any person who -
(i) manufactures, mixes, or otherwise processes distilled
spirits, or
(ii) manufactures any article.
(B) Rectifier, bottler, etc., included
The term "processor" includes (but is not limited to) a
rectifier, bottler, and denaturer.
(6) Certain operations not treated as processing
In applying paragraph (5), there shall not be taken into
account -
(A) Operations as distiller
Any process which is the operation of a distiller.
(B) Mixing of taxpaid spirits for immediate consumption
Any mixing (after determination of tax) of distilled spirits
for immediate consumption.
(C) Use by apothecaries
Any process performed by an apothecary with respect to
distilled spirits which such apothecary uses exclusively in the
preparation or making up of medicines unfit for use for
beverage purposes.
(7) Warehouseman
The term "warehouseman", when used with respect to distilled
spirits, means any person who stores bulk distilled spirits.
(8) Distilled spirits
The terms "distilled spirits", "alcoholic spirits", and
"spirits" mean that substance known as ethyl alcohol, ethanol, or
spirits of wine in any form (including all dilutions and mixtures
thereof from whatever source or by whatever process produced).
(9) Bulk distilled spirits
The term "bulk distilled spirits" means distilled spirits in a
container having a capacity in excess of 1 wine gallon.
(10) Proof spirits
The term "proof spirits" means that liquid which contains
one-half its volume of ethyl alcohol of a specific gravity of
0.7939 at 60 degrees Fahrenheit (referring to water at 60 degrees
Fahrenheit as unity).
(11) Proof gallon
The term "proof gallon" means a United States gallon of proof
spirits, or the alcoholic equivalent thereof.
(12) Container
The term "container", when used with respect to distilled
spirits, means any receptacle, vessel, or form of package,
bottle, tank, or pipeline used, or capable of use, for holding,
storing, transferring, or conveying distilled spirits.
(13) Approved container
The term "approved container", when used with respect to
distilled spirits, means a container the use of which is
authorized by regulations prescribed by the Secretary.
(14) Article
Unless another meaning is distinctly expressed or manifestly
intended, the term "article" means any substance in the
manufacture of which denatured distilled spirits are used.
(15) Export
The terms "export", "exported", and "exportation" include
shipments to a possession of the United States.
(b) Cross references
(1) For definition of manufacturer of stills, see section
5102.
(2) For definition of dealer, see section 5112(a).
(3) For definitions of wholesale dealers, see section 5112.
(4) For definitions of retail dealers, see section 5122.
(5) For definitions of general application to this title, see
chapter 79.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1315; amended Pub. L. 89-44, title VIII, Sec. 807(a), June 21,
1965, 79 Stat. 164; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A),
Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec.
805(e), July 26, 1979, 93 Stat. 278; Pub. L. 103-465, title I, Sec.
136(c)(1), Dec. 8, 1994, 108 Stat. 4841.)
-MISC1-
PRIOR PROVISIONS
A prior section 5002, act Aug. 16, 1954, ch. 736, 68A Stat. 597,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising subsec. (a)(6), (9), and
(11) of this section were contained in prior sections 5213(a)(1)
and 5319(1), (2), and (7), act Aug. 16, 1954, ch. 736, 68A Stat.
639, 661, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1994 - Subsec. (b)(1) to (6). Pub. L. 103-465 redesignated pars.
(2) to (6) as (1) to (5), respectively, and struck out former par.
(1) which provided a cross reference to section 5041(c) of this
title for definition of "wine gallon".
1979 - Subsec. (a)(1). Pub. L. 96-39 substituted "distilled
spirits operation" for "operation, or any combination of
operations, for which qualification is required under such
subchapter".
Subsec. (a)(2), (3). Pub. L. 96-39 added par. (2) and
redesignated former par. (2) as (3). Former par. (3), defining
"bottling premises", was struck out.
Subsec. (a)(4). Pub. L. 96-39 redesignated par. (5) as (4).
Former par. (4), defining "bonded warehouseman", was struck out.
Subsec. (a)(5) to (7). Pub. L. 96-39 added pars. (5) to (7) and
redesignated former pars. (5) to (7) as (4), (8), and (10),
respectively.
Subsec. (a)(8). Pub. L. 96-39 redesignated former par. (6) as
(8). Former par. (8) redesignated (11).
Subsec. (a)(9). Pub. L. 96-39 added par. (9) and redesignated
par. (9) as (12).
Subsec. (a)(10) to (15). Pub. L. 96-39 redesignated former pars.
(7) to (12) as (10) to (15), respectively.
Subsec. (b). Pub. L. 95-39 struck out par. (2) which provided for
a cross reference to section 5082 for a definition of rectifier and
redesignated pars. (3) to (7) as (2) to (6), respectively.
1976 - Subsec. (a)(10). Pub. L. 94-455 struck out "or his
delegate" after "Secretary".
1965 - Subsec. (a). Pub. L. 89-44 added par. (12).
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
136(d) of Pub. L. 103-465, set out as a note under section 5001 of
this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
810 of Pub. L. 96-39, set out as a note under section 5001 of this
title.
EFFECTIVE DATE OF 1965 AMENDMENT
Section 807(c) of Pub. L. 89-44 provided that: "The amendments
made by subsections (a) and (b) [amending this section and section
5053 of this title] shall take effect on July 1, 1965."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5214, 5273, 5291, 5301 of
this title; title 19 section 81c; title 23 section 158.
-End-
-CITE-
26 USC Sec. 5003 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
Sec. 5003. Cross references to exemptions, etc.
-STATUTE-
(1) For provisions authorizing the withdrawal of distilled
spirits free of tax for use by Federal or State agencies, see
sections 5214(a)(2) and 5313.
(2) For provisions authorizing the withdrawal of distilled
spirits free of tax by nonprofit educational organizations,
scientific universities or colleges of learning, laboratories,
hospitals, blood banks, sanitariums, and charitable clinics,
see section 5214(a)(3).
(3) For provisions authorizing the withdrawal of certain
imported distilled spirits from customs custody without payment
of tax, see section 5232.
(4) For provisions authorizing the withdrawal of denatured
distilled spirits free of tax, see section 5214(a)(1).
(5) For provisions exempting from tax distilled spirits for
use in production of vinegar by the vaporizing process, see
section 5505(j).
(6) For provisions relating to the withdrawal of wine spirits
without payment of tax for use in the production of wine, see
section 5373.
(7) For provisions exempting from tax volatile fruit-flavor
concentrates, see section 5511.
(8) For provisions authorizing the withdrawal of distilled
spirits from bonded premises without payment of tax for export,
see section 5214(a)(4).
(9) For provisions authorizing withdrawal of distilled
spirits without payment of tax to customs bonded warehouses for
export, see section 5214(a)(9).
(10) For provisions relating to withdrawal of distilled
spirits without payment of tax as supplies for certain vessels
and aircraft, see 19 U.S.C. 1309.
(11) For provisions authorizing regulations for withdrawal of
distilled spirits for use of United States free of tax, see
section 7510.
(12) For provisions relating to withdrawal of distilled
spirits without payment of tax to foreign-trade zones, see 19
U.S.C. 81c.
(13) For provisions relating to exemption from tax of taxable
articles going into the possessions of the United States, see
section 7653(b).
(14) For provisions authorizing the withdrawal of distilled
spirits without payment of tax for use in certain research,
development, or testing, see section 5214(a)(10).
(15) For provisions authorizing the withdrawal of distilled
spirits without payment of tax for transfer to manufacturing
bonded warehouses for manufacturing for export, see section
5214(a)(6).
(16) For provisions authorizing the withdrawal of articles
from the bonded premises of a distilled spirits plant free of
tax when contained in an article, see section 5214(a)(11).
(17) For provisions relating to allowance for certain losses
in bond, see section 5008(a).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1316; amended Pub. L. 95-176, Secs. 3(c), 4(f), Nov. 14, 1977, 91
Stat. 1365, 1366; Pub. L. 96-39, title VIII, Sec. 807(a)(1), July
26, 1979, 93 Stat. 280.)
-MISC1-
PRIOR PROVISIONS
A prior section 5003, act Aug. 16, 1954, ch. 736, 68A Stat. 597,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Par. (9). Pub. L. 96-39, Sec. 807(a)(1)(A), struck out
"section 5522(a) and" before "section 5214(a)(9)".
Pars. (15) to (17). Pub. L. 96-39, Sec. 807(a)(1)(B), added pars.
(15) and (16) and redesignated former par. (15) as (17).
1977 - Par. (9). Pub. L. 95-176, Sec. 3(c), struck out
"manufacturing" after "customs" and inserted reference to section
5214(a)(9).
Par. (14). Pub. L. 95-176, Sec. 4(f), substituted "withdrawal of
distilled spirits without payment of tax for use in certain
research, development, or testing, see section 5214(a)(10)" for
"removal of samples free of tax for making tests or laboratory
analyses, see section 5214(a)(9)".
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
810 of Pub. L. 96-39, set out as a note under section 5001 of this
title.
EFFECTIVE DATE OF 1977 AMENDMENT
Section 7 of Pub. L. 95-176 provided that: "The amendments made
by this Act [amending this section and sections 5004, 5005, 5008,
5025, 5062, 5066, 5175, 5178, 5205, 5207, 5214, 5215, and 5234 of
this title] shall take effect on the first day of the first
calendar month which begins more than 90 days after the date of the
enactment of this Act [Nov. 14, 1977]."
-End-
-CITE-
26 USC Sec. 5004 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
Sec. 5004. Lien for tax
-STATUTE-
(a) Distilled spirits subject to lien
(1) General
The tax imposed by section 5001(a)(1) shall be a first lien on
the distilled spirits from the time the spirits are in existence
as such until the tax is paid.
(2) Exceptions
The lien imposed by paragraph (1), or any similar lien imposed
on the spirits under prior provisions of internal revenue law,
shall terminate in the case of distilled spirits produced on
premises qualified under internal revenue law for the production
of distilled spirits when such distilled spirits are -
(A) withdrawn from bonded premises on determination of tax;
or
(B) withdrawn from bonded premises free of tax under
provisions of section 5214(a)(1), (2), (3), (11), or (12), or
section 7510; or
(C) exported, deposited in a foreign-trade zone, used in the
production of wine, laden as supplies upon, or used in the
maintenance or repair of, certain vessels or aircraft,
deposited in a customs bonded warehouse, or used in certain
research, development, or testing, as provided by law.
(b) Cross reference
For provisions relating to extinguishing of lien in case of
redistillation, see section 5223(e).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1317; amended Pub. L. 89-44, title VIII, Sec. 805(f)(1), June 21,
1965, 79 Stat. 161; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A),
Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 4(c), Nov. 14,
1977, 91 Stat. 1366; Pub. L. 96-39, title VIII, Sec. 807(a)(2),
July 26, 1979, 93 Stat. 280; Pub. L. 96-223, title II, Sec.
232(e)(2)(C), Apr. 2, 1980, 94 Stat. 280.)
-MISC1-
PRIOR PROVISIONS
A prior section 5004, act Aug. 16, 1954, ch. 736, 68A Stat. 598,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising subsec. (b)(1) of this
section were contained in prior section 5007(e)(1), act Aug. 16,
1954, ch. 736, 68A Stat. 600, prior to the general revision of this
chapter by Pub. L. 85-859.
AMENDMENTS
1980 - Subsec. (a)(2)(B). Pub. L. 96-223 substituted "(11), or
(12)," for "or (11),".
1979 - Subsec. (a)(2)(B). Pub. L. 96-39, Sec. 807(a)(2)(C),
substituted "(3), or (11)" for "or (3)".
Subsecs. (b), (c). Pub. L. 96-39, Sec. 807(a)(2)(A), (B),
redesignated subsec. (c) as (b). Former subsec. (b), relating to
other property subject to lien, was repealed.
1977 - Subsec. (a)(2). Pub. L. 95-176 struck out reference to
par. (9) of section 5214(a) in subpar. (B), and in subpar. (C)
substituted "a customs bonded warehouse" for "customs manufacturing
bonded warehouses" and provided for termination of the lien for tax
when the distilled spirits are used in certain research,
development, or testing.
1976 - Subsec. (b)(3)(B), (4). Pub. L. 94-455 struck out "or his
delegate" after "Secretary", wherever appearing.
1965 - Subsec. (c). Pub. L. 89-44 substituted "5223(e)" for
"5223(d)".
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 effective on the first day of the
first calendar month beginning more than 60 days after Apr. 2,
1980, see section 232(h)(3) of Pub. L. 96-223, set out as an
Effective Date note under section 5181 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
810 of Pub. L. 96-39, set out as a note under section 5001 of this
title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on first day of first
calendar month beginning more than 90 days after Nov. 14, 1977, see
section 7 of Pub. L. 95-176, set out as a note under section 5003
of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Section 805(g)(2) of Pub. L. 89-44 provided that: "The amendments
made by subsections (b), (d), and (f) (other than paragraph (6))
[amending this section and sections 5025, 5083, 5223, and 5234 of
this title], shall take effect on October 1, 1965."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 6327 of this title.
-End-
-CITE-
26 USC Sec. 5005 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
Sec. 5005. Persons liable for tax
-STATUTE-
(a) General
The distiller or importer of distilled spirits shall be liable
for the taxes imposed thereon by section 5001(a)(1).
(b) Domestic distilled spirits
(1) Liability of persons interested in distilling
Every proprietor or possessor of, and every person in any
manner interested in the use of, any still, distilling apparatus,
or distillery, shall be jointly and severally liable for the
taxes imposed by law on the distilled spirits produced therefrom.
(2) Exception
A person owning or having the right of control of not more than
10 percent of any class of stock of a corporate proprietor of a
distilled spirits plant shall not be deemed to be a person liable
for the tax for which such proprietor is liable under the
provisions of paragraph (1). This exception shall not apply to an
officer or director of such corporate proprietor.
(c) Proprietors of distilled spirits plants
(1) Bonded storage
Every person operating bonded premises of a distilled spirits
plant shall be liable for the internal revenue tax on all
distilled spirits while the distilled spirits are stored on such
premises, and on all distilled spirits which are in transit to
such premises (from the time of removal from the transferor's
bonded premises) pursuant to application made by him. Such
liability for the tax on distilled spirits shall continue until
the distilled spirits are transferred or withdrawn from bonded
premises as authorized by law, or until such liability for tax is
relieved by reason of the provisions of section 5008(a). Nothing
in this paragraph shall relieve any person from any liability
imposed by subsection (a) or (b).
(2) Transfers in bond
When distilled spirits are transferred in bond in accordance
with the provisions of section 5212, persons liable for the tax
on such spirits under subsection (a) or (b), or under any similar
prior provisions of internal revenue law, shall be relieved of
such liability, if proprietors of transferring and receiving
premises are independent of each other and neither has a
proprietary interest, directly or indirectly, in the business of
the other, and all persons liable for the tax under subsection
(a) or (b), or under any similar prior provisions of internal
revenue law, have divested themselves of all interest in the
spirits so transferred. Such relief from liability shall be
effective from the time of removal from the transferor's bonded
premises, or from the time of divestment of interest, whichever
is later.
(d) Withdrawals free of tax
All persons liable for the tax under subsection (a) or (b), or
under any similar prior provisions of internal revenue law, shall
be relieved of such liability as to distilled spirits withdrawn
free of tax under the provisions of section 5214(a)(1), (2), (3),
(11), or (12), or under section 7510, at the time such spirits are
so withdrawn from bonded premises.
(e) Withdrawals without payment of tax
(1) Liability for tax
Any person who withdraws distilled spirits from the bonded
premises of a distilled spirits plant without payment of tax, as
provided in section 5214(a)(4), (5), (6), (7), (8), (9), (10), or
(13), shall be liable for the internal revenue tax on such
distilled spirits, from the time of such withdrawal; and all
persons liable for the tax on such distilled spirits under
subsection (a) or (b), or under any similar prior provisions of
internal revenue law, shall, at the time of such withdrawal, be
relieved of any such liability on the distilled spirits so
withdrawn if the person withdrawing such spirits and the person,
or persons, liable for the tax under subsection (a) or (b), or
under any similar prior provisions of internal revenue law, are
independent of each other and neither has a proprietary interest,
directly or indirectly, in the business of the other, and all
persons liable for the tax under subsection (a) or (b), or under
any similar prior provisions of internal revenue law, have
divested themselves of all interest in the spirits so withdrawn.
(2) Relief from liability
All persons liable for the tax on distilled spirits under
paragraph (1) of this subsection, or under subsection (a) or (b),
or under any similar prior provisions of internal revenue law,
shall be relieved of any such liability at the time, as the case
may be, the distilled spirits are exported, deposited in a
foreign-trade zone, used in the production of wine, used in the
production of nonbeverage wine or wine products, deposited in
customs bonded warehouses, laden as supplies upon, or used in the
maintenance or repair of, certain vessels or aircraft, or used in
certain research, development, or testing, as provided by law.
(f) Cross references
(1) For provisions requiring bond covering operations at, and
withdrawals from, distilled spirits plants, see section 5173.
(2) For provisions relating to transfer of tax liability to
redistiller in case of redistillation, see section 5223.
(3) For liability for tax on denatured distilled spirits,
articles, and volatile fruit-flavor concentrates, see section
5001(a)(5) and (6).
(4) For liability for tax on distilled spirits withdrawn free
of tax, see section 5001(a)(4).
(5) For liability of wine producer for unlawfully using wine
spirits withdrawn for the production of wine, see section 5391.
(6) For provisions relating to transfer of tax liability for
wine, see section 5043(a)(1)(A).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1318; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(1), Oct. 4,
1976, 90 Stat. 1818; Pub. L. 95-176, Sec. 4(b), (d), Nov. 14, 1977,
91 Stat. 1366; Pub. L. 96-39, title VIII, Sec. 807(a)(3), July 26,
1979, 93 Stat. 280; Pub. L. 96-223, title II, Sec. 232(e)(2)(D),
Apr. 2, 1980, 94 Stat. 280; Pub. L. 98-369, div. A, title IV, Sec.
455(b), July 18, 1984, 98 Stat. 823; Pub. L. 103-465, title I, Sec.
136(c)(2), Dec. 8, 1994, 108 Stat. 4841.)
-MISC1-
PRIOR PROVISIONS
A prior section 5005, acts Aug. 16, 1954, ch. 736, 68A Stat. 599;
Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 206(d), 72 Stat.
1431, consisted of provisions similar to those comprising this
section, prior to the general revision of this chapter by Pub. L.
85-859.
Provisions similar to those comprising subsec. (c)(1), (2) of
this section were contained in prior sections 5194(f), 5217(a), and
5232(a), act Aug. 16, 1954, ch. 736, 68A Stat. 634, 641, 643, prior
to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1994 - Subsec. (f)(3). Pub. L. 103-465, Sec. 136(c)(2)(A),
substituted "section 5001(a)(5) and (6)" for "section 5001(a)(6)
and (7)".
Subsec. (f)(4). Pub. L. 103-465, Sec. 136(c)(2)(B), substituted
"section 5001(a)(4)" for "section 5001(a)(5)".
1984 - Subsec. (e)(1). Pub. L. 98-369, Sec. 455(b)(1),
substituted "(10), or (13)" for "or (10)".
Subsec. (e)(2). Pub. L. 98-369, Sec. 455(b)(2), inserted "used in
the production of nonbeverage wine or wine products,".
1980 - Subsec. (d). Pub. L. 96-223 substituted "(11), or (12),"
for "or (11),".
1979 - Subsec. (c)(3). Pub. L. 96-39, Sec. 807(a)(3)(A), struck
out par. (3) which related to liability for taxes with regard to
withdrawals of distilled spirits from the bonded premises of a
distilled spirits plant.
Subsec. (d). Pub. L. 96-39, Sec. 807(a)(3)(B), substituted "(3),
or (11)" for "or (3)".
Subsec. (f)(1). Pub. L. 96-39, Sec. 807(a)(3)(C), substituted
"requiring bond covering operations at, and withdrawals from,
distilled spirits plants" for "conditioning warehousing bonds on
the payment of the tax" and "5173" for "5173(c)".
Subsec. (f)(6). Pub. L. 96-39, Sec. 807(a)(3)(D), added par. (6).
1977 - Subsec. (d). Pub. L. 95-176, Sec. 4(d)(1), struck out
reference to par. (9) of section 5214(a).
Subsec. (e)(1). Pub. L. 95-176, Sec. 4(d)(2), inserted reference
to pars. (9) and (10) of section 5214(a).
Subsec. (e)(2). Pub. L. 95-176, Sec. 4(b), substituted "customs
bonded warehouses" for "customs manufacturing bonded warehouses"
and provided for relief from liability for tax on distilled spirits
used in certain research, development, or testing.
1976 - Subsec. (c)(2). Pub. L. 94-455 substituted "Such relief
from liability shall be effective from the time of removal from the
transferor's bonded premises, or from the time of divestment of
interest, whichever is later." for "Such liability for the tax on
distilled spirits shall continue until the distilled spirits are
transferred or withdrawn from bonded premises as authorized by law,
or until such liability for tax is relieved by reason of the
provisions of section 5008(a). Nothing in this paragraph shall
relieve any person from any liability imposed by subsection (a) or
(b).".
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
136(d) of Pub. L. 103-465, set out as a note under section 5001 of
this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 18, 1984, see section
456(c) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 effective on first day of first
calendar month beginning more than 60 days after Apr. 2, 1980, see
section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date
note under section 5181 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
810 of Pub. L. 96-39, set out as a note under section 5001 of this
title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on first day of first
calendar month beginning more than 90 days after Nov. 14, 1977, see
section 7 of Pub. L. 95-176, set out as a note under section 5003
of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1905(d) of Pub. L. 94-455 provided that: "The amendments
made by this section [amending this section and sections 5007 to
5009, 5025, 5026, 5043, 5054, 5061, 5105, 5111, 5113, 5114, 5117,
5121, 5122, 5131, 5142, 5148, 5171, 5174, 5177, 5179, 5214, 5222,
5232 to 5234, 5272, 5314, 5362, 5368, 5392, 5505, 5551, 5601, 5662,
5685, 5701, 5703, 5704, 5712, 5723, 5751, 5752, 5762, and 5763 of
this title and repealing sections 5104, 5144, 5315, 5676, and 5689
of this title] shall take effect on the first day of the first
month which begins more than 90 days after the date of the
enactment of this Act [Oct. 4, 1976]."
-End-
-CITE-
26 USC Sec. 5006 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
Sec. 5006. Determination of tax
-STATUTE-
(a) Requirements
(1) In general
Except as otherwise provided in this section, the tax on
distilled spirits shall be determined when the spirits are
withdrawn from bond. Such tax shall be determined by such means
as the Secretary shall by regulations prescribe, and with the use
of such devices and apparatus (including but not limited to tanks
and pipelines) as the Secretary may require. The tax on distilled
spirits withdrawn from the bonded premises of a distilled spirits
plant shall be determined upon completion of the gauge for
determination of tax and before withdrawal from bonded premises,
under such regulations as the Secretary shall prescribe.
(2) Distilled spirits not accounted for
If the Secretary finds that the distiller has not accounted for
all the distilled spirits produced by him, he shall, from all the
evidence he can obtain, determine what quantity of distilled
spirits was actually produced by such distiller, and an
assessment shall be made for the difference between the quantity
reported and the quantity shown to have been actually produced at
the rate of tax imposed by law for every proof gallon.
(b) Taxable loss
(1) On original quantity
Where there is evidence satisfactory to the Secretary that
there has been any loss of distilled spirits from any cask or
other package deposited on bonded premises, other than a loss
which by reason of section 5008(a) is not taxable, the Secretary
may require the withdrawal from bonded premises of such distilled
spirits, and direct the officer designated by him to collect the
tax accrued on the original quantity of distilled spirits entered
for deposit on bonded premises in such cask or package; except
that, under regulations prescribed by the Secretary, when the
extent of any loss from causes other than theft or unauthorized
voluntary destruction can be established by the proprietor to the
satisfaction of the Secretary an allowance of the tax on the loss
so established may be credited against the tax on the original
quantity. If such tax is not paid on demand it shall be assessed
and collected as other taxes are assessed and collected.
(2) Alternative method
Where there is evidence satisfactory to the Secretary that
there has been access, other than is authorized by law, to the
contents of casks or packages stored on bonded premises, and the
extent of such access is such as to evidence a lack of due
diligence or a failure to employ necessary and effective controls
on the part of the proprietor, the Secretary (in lieu of
requiring the casks or packages to which such access has been had
to be withdrawn and tax paid on the original quantity of
distilled spirits entered for deposit on bonded premises in such
casks or packages as provided in paragraph (1)) may assess an
amount equal to the tax on 5 proof gallons of distilled spirits
at the prevailing rate on each of the total number of such casks
or packages as determined by him.
(3) Application of subsection
The provisions of this subsection shall apply to distilled
spirits which are filled into casks or packages, as authorized by
law, after entry and deposit on bonded premises, whether by
recasking, filling from storage tanks, consolidation of packages,
or otherwise; and the quantity filled into such casks or packages
shall be deemed to be the original quantity for the purpose of
this subsection, in the case of loss from such casks or packages.
(c) Distilled spirits not bonded
(1) General
The tax on any distilled spirits, removed from the place where
they were distilled and (except as otherwise provided by law) not
deposited in storage on bonded premises of a distilled spirits
plant, shall, at any time within the period of limitation
provided in section 6501, when knowledge of such fact is obtained
by the Secretary, be assessed on the distiller of such distilled
spirits (or other person liable for the tax) and payment of such
tax immediately demanded and, on the neglect or refusal of
payment, the Secretary shall proceed to collect the same by
distraint. This paragraph shall not exclude any other remedy or
proceeding provided by law.
(2) Production at other than qualified plants
Except as otherwise provided by law, the tax on any distilled
spirits produced in the United States at any place other than a
qualified distilled spirits plant shall be due and payable
immediately upon production.
(d) Unlawfully imported distilled spirits
Distilled spirits smuggled or brought into the United States
unlawfully shall, for purposes of this chapter, be held to be
imported into the United States, and the internal revenue tax shall
be due and payable at the time of such importation.
(e) Cross reference
For provisions relating to removal of distilled spirits from
bonded premises on determination of tax, see section 5213.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1320; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Secs. 804(a),
807(a)(4), July 26, 1979, 93 Stat. 274, 280.)
-MISC1-
PRIOR PROVISIONS
A prior section 5006, acts Aug. 16, 1954, ch. 736, 68A Stat. 599;
Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 206(a), 72 Stat.
1431, consisted of provisions similar to those comprising this
section, prior to the general revision of this chapter by Pub. L.
85-859.
Provisions similar to those comprising subsecs. (a)(2)(A), (3) of
this section were contained in prior sections 5007(e)(1) and
5232(a), act Aug. 16, 1954, ch. 736, 68A Stat. 600, 643, prior to
the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 804(a), struck out
"internal revenue" after "provided in this section, the" and
"storage, gauging, and bottling" after "but not limited to".
Subsec. (a)(2), (3). Pub. L. 96-39, Sec. 804(a), redesignated
par. (3) as (2). Former par. (2), relating to distilled spirits
entered for storage, was struck out.
Subsec. (b)(1). Pub. L. 96-39, Sec. 807(a)(4)(A), (B),
substituted "on bonded premises" for "in storage in internal
revenue bond" in two places and "; except" for ", notwithstanding
that the time specified in any bond given for the withdrawal of the
spirits entered in storage in such cask or package has not expired,
except".
Subsec. (b)(2), (3). Pub. L. 96-39, Sec. 807(a)(4)(B),
substituted "on bonded premises" for "in storage in internal
revenue bond".
1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
delegate" after "Secretary".
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
810 of Pub. L. 96-39, set out as a note under section 5001 of this
title.
APPLICATION OF 1972 AMENDMENTS TO PRIOR SECTIONS
Section 206(f) of Pub. L. 85-859, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided:
"(1) The amendments made by this section [amending this section
and sections 5005, 5232, 5242, and 5243 of this title] shall apply
with respect to:
"(A) distilled spirits which on the date of the enactment of
this Act [Sept. 2, 1958] are in internal revenue bonded
warehouses or are in transit to or between such warehouses, and
in respect of which the 8-year bonding period has not expired
before the date of enactment of this Act; and
"(B) distilled spirits which after the date of the enactment of
this Act [Sept. 2, 1958] are entered for deposit in an internal
revenue bonded warehouse.
"(2) If the 8 years from the date of original entry of any
distilled spirits for deposit in internal revenue bonded warehouses
expires at any time during the 10-day period which begins on the
date of the enactment of this Act [Sept. 2, 1958], the amendments
made by this section shall apply with respect to such spirits if
(and only if) before the close of such 10-day period there is filed
with the Secretary of the Treasury or his delegate either -
"(A) a consent of surety which changes (for periods on and
after the date of the enactment of this Act) the condition based
on the withdrawal of spirits from the internal revenue bonded
warehouse within 8 years from the date of original entry for
deposit to a condition based on the withdrawal of spirits from
the internal revenue bonded warehouse within 20 years from the
date of original entry for deposit, or
"(B) a bond which applies to periods on and after the date of
the enactment of this Act and which satisfies the requirements of
the Internal Revenue Code of 1986 [formerly I.R.C. 1954], as
amended by this section, and is conditioned on the withdrawal of
spirits from the internal revenue bonded warehouse within 20
years from the date of original entry for deposit."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5007, 5008, 5010, 5061,
6207 of this title.
-End-
-CITE-
26 USC Sec. 5007 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
Sec. 5007. Collection of tax on distilled spirits
-STATUTE-
(a) Tax on distilled spirits removed from bonded premises
The tax on domestic distilled spirits and on distilled spirits
removed from customs custody under section 5232 shall be paid in
accordance with section 5061.
(b) Collection of tax on imported distilled spirits
The internal revenue tax imposed by section 5001(a)(1) and (2)
upon imported distilled spirits shall be collected by the Secretary
and deposited as internal revenue collections, under such
regulations as the Secretary may prescribe. Section 5688 shall be
applicable to the disposition of imported spirits.
(c) Cross references
(1) For authority of the Secretary to make determinations and
assessments of internal revenue taxes and penalties, see
section 6201(a).
(2) For authority to assess tax on distilled spirits not
bonded, see section 5006(c).
(3) For provisions relating to payment of tax, under certain
conditions, on distilled spirits withdrawn free of tax,
denatured distilled spirits, articles, and volatile
fruit-flavor concentrates, see section 5001(a)(4), (5), and
(6).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1322; amended Pub. L. 94-455, title XIX, Secs. 1905(b)(2)(A),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1822, 1834; Pub. L. 96-39,
title VIII, Sec. 807(a)(5), July 26, 1979, 93 Stat. 280; Pub. L.
103-465, title I, Sec. 136(c)(3), (4), Dec. 8, 1994, 108 Stat.
4841, 4842.)
-MISC1-
PRIOR PROVISIONS
A prior section 5007, act Aug. 16, 1954, ch. 736, 68A Stat. 600,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Prior section 5007(c) related to "payment of tax on alcoholic
compounds from Puerto Rico and Virgin Islands". See section 7652 of
this title.
Prior section 5007(e)(1) related to "assessment for deficiencies
in production and excess of materials used" and "requirement". See
sections 5004(b)(1) and 5006(a)(3) of this title.
Prior section 5007(e)(2) related to "relief from assessment for
deficiencies in production and excess of materials used" and is
obsolete.
AMENDMENTS
1994 - Subsec. (b). Pub. L. 103-465, Sec. 136(c)(3), amended
subsec. (b) generally, striking out provisions relating to
collection and deposit as internal revenue collections of taxes on
imported perfumes containing distilled spirits.
Subsec. (c)(3). Pub. L. 103-465, Sec. 136(c)(4), substituted
"section 5001(a)(4), (5), and (6)" for "section 5001(a)(5), (6),
and (7)".
1979 - Subsec. (a). Pub. L. 96-39 struck out "(1) General" before
"The tax on domestic" and par. (2) which related to distilled
spirits withdrawn to bottling premises under withdrawal bond.
1976 - Subsec. (a)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary".
Subsec. (b)(1). Pub. L. 94-455, Secs. 1905(b)(2)(A),
1906(b)(13)(A), struck out second sentence "Such tax shall be in
addition to any customs duty imposed under the Tariff Act of 1930
(46 Stat. 590; 19 U.S.C., chapter 4), or any subsequent act." and
"or his delegate" after "Secretary" wherever appearing.
Subsecs. (b)(2), (c)(1). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective Jan. 1, 1995, see section
136(d) of Pub. L. 103-465, set out as a note under section 5001 of
this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
810 of Pub. L. 96-39, set out as a note under section 5001 of this
title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(b)(2)(A) of Pub. L. 94-455 effective on
first day of first month which begins more than 90 days after Oct.
4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
under section 5005 of this title.
-End-
-CITE-
26 USC Sec. 5008 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
Sec. 5008. Abatement, remission, refund, and allowance for loss or
destruction of distilled spirits
-STATUTE-
(a) Distilled spirits lost or destroyed in bond
(1) Extent of loss allowance
No tax shall be collected in respect of distilled spirits lost
or destroyed while in bond, except that such tax shall be
collected -
(A) Theft
In the case of loss by theft, unless the Secretary finds that
the theft occurred without connivance, collusion, fraud, or
negligence on the part of the proprietor of the distilled
spirits plant, owner, consignor, consignee, bailee, or carrier,
or the employees or agents of any of them;
(B) Voluntary destruction
In the case of voluntary destruction, unless such destruction
is carried out as provided in subsection (b); and
(C) Unexplained shortage
In the case of an unexplained shortage of bottled distilled
spirits.
(2) Proof of loss
In any case in which distilled spirits are lost or destroyed,
whether by theft or otherwise, the Secretary may require the
proprietor of the distilled spirits plant or other person liable
for the tax to file a claim for relief from the tax and submit
proof as to the cause of such loss. In every case where it
appears that the loss was by theft, the burden shall be upon the
proprietor of the distilled spirits plant or other person
responsible for the distilled spirits tax to establish to the
satisfaction of the Secretary that such loss did not occur as the
result of connivance, collusion, fraud, or negligence on the part
of the proprietor of the distilled spirits plant, owner,
consignor, consignee, bailee, or carrier, or the employees or
agents of any of them.
(3) Refund of tax
In any case where the tax would not be collectible by virtue of
paragraph (1), but such tax has been paid, the Secretary shall
refund such tax.
(4) Limitations
Except as provided in paragraph (5), no tax shall be abated,
remitted, credited, or refunded under this subsection where the
loss occurred after the tax was determined (as provided in
section 5006(a)). The abatement, remission, credit, or refund of
taxes provided for by paragraphs (1) and (3) in the case of loss
of distilled spirits by theft shall only be allowed to the extent
that the claimant is not indemnified against or recompensed in
respect of the tax for such loss.
(5) Applicability
The provisions of this subsection shall extend to and apply in
respect of distilled spirits lost after the tax was determined
and before completion of the physical removal of the distilled
spirits from the bonded premises.
(b) Voluntary destruction
The proprietor of the distilled spirits plant or other persons
liable for the tax imposed by this chapter or by section 7652 with
respect to any distilled spirits in bond may voluntarily destroy
such spirits, but only if such destruction is under such
supervision and under such regulations as the Secretary may
prescribe.
(c) Distilled spirits returned to bonded premises
(1) In general
Whenever any distilled spirits on which tax has been determined
or paid are returned to the bonded premises of a distilled
spirits plant under section 5215(a), the Secretary shall abate or
(without interest) credit or refund the tax imposed under section
5001(a)(1) (or the tax equal to such tax imposed under section
7652) on the spirits so returned.
(2) Claim must be filed within 6 months of return of spirits
No allowance under paragraph (1) may be made unless claim
therefor is filed within 6 months of the date of the return of
the spirits. Such claim may be filed only by the proprietor of
the distilled spirits plant to which the spirits were returned,
and shall be filed in such form as the Secretary may by
regulations prescribe.
(d) Distilled spirits withdrawn without payment of tax
The provisions of subsection (a) shall be applicable to loss of
distilled spirits occurring during transportation from bonded
premises of a distilled spirits plant to -
(1) the port of export, in case of withdrawal under section
5214(a)(4);
(2) the customs manufacturing bonded warehouse, in case of
withdrawal under section 5214(a)(6);
(3) the vessel or aircraft, in case of withdrawal under section
5214(a)(7);
(4) the foreign-trade zone, in case of withdrawal under section
5214(a)(8); and
(5) the customs bonded warehouse in the case of withdrawal
under sections 5066 and 5214(a)(9).
The provisions of subsection (a) shall be applicable to loss of
distilled spirits withdrawn from bonded premises without payment of
tax under section 5214(a)(10) for certain research, development, or
testing, until such distilled spirits are used as provided by law.
(e) Other laws applicable
All provisions of law, including penalties, applicable in respect
of the internal revenue tax on distilled spirits, shall, insofar as
applicable and not inconsistent with subsection (c), be applicable
to the credits or refunds provided for under such subsection to the
same extent as if such credits or refunds constituted credits or
refunds of such tax.
(f) Cross reference
For provisions relating to allowance for loss in case of wine
spirits withdrawn for use in wine production, see section
5373(b)(3).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1323; amended Pub. L. 89-44, title VIII, Sec. 805(a), June 21,
1965, 79 Stat. 160; Pub. L. 90-630, Sec. 1, Oct. 22, 1968, 82 Stat.
1328; Pub. L. 91-659, Secs. 1, 2(a), (b), Jan. 8, 1971, 84 Stat.
1964; Pub. L. 94-273, Sec. 47, Apr. 21, 1976, 90 Stat. 382; Pub. L.
94-455, title XIX, Secs. 1905(a)(2), 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1818, 1834; Pub. L. 95-176, Secs. 2(f), 4(e), Nov. 14,
1977, 91 Stat. 1364, 1366; Pub. L. 96-39, title VIII, Sec.
807(a)(6), July 26, 1979, 93 Stat. 281; Pub. L. 105-34, title XIV,
Sec. 1411(a), Aug. 5, 1997, 111 Stat. 1046.)
-MISC1-
PRIOR PROVISIONS
A prior section 5008, act Aug. 16, 1954, ch. 736, 68A Stat. 602,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
See sections 5205(a), (g) and 5604(a)(1) of this title.
Provisions similar to those comprising subsecs. (a)(1) to (4) and
(f)(1), (2) of this section were contained in prior sections
5011(a)(1) to (4), 5023, 5247(e) and 5522(b), act Aug. 16, 1954,
ch. 736, 68A Stat. 604, 606, 648, 679, prior to the general
revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1997 - Subsec. (c)(1). Pub. L. 105-34 substituted "on which tax
has been determined or paid" for "withdrawn from bonded premises on
payment or determination of tax".
1979 - Subsec. (a)(1)(C). Pub. L. 96-39, Sec. 807(a)(6)(A), added
subpar. (C).
Subsec. (a)(5). Pub. L. 96-39, Sec. 807(a)(6)(B), substituted
"before" for "prior to the completion" and struck out provisions
relating to the applicability of this subsection where the loss
occurred after the time prescribed for the withdrawal of the
distilled spirits from the bonded premises under section 5006(a)(2)
and relating to the applicability of this paragraph to any loss of
distilled spirits for which abatement, remission, credit, or refund
of tax is allowed under subsec. (c).
Subsec. (b). Pub. L. 96-39, Sec. 807(a)(6)(C), struck out "(1)
Distilled spirits in bond" before "The proprietor of" and
provisions relating to distilled spirits withdrawn for
rectification or bottling.
Subsec. (c). Pub. L. 96-39, Sec. 807(a)(6)(C), added subsec. (c).
Former subsec. (c), which related to loss of distilled spirits
withdrawn from bond for rectification or bottling, was struck out.
Subsec. (d). Pub. L. 96-39, Sec. 807(a)(6)(D), redesignated
subsec. (f) as (d). Former subsec. (d), which related to distilled
spirits returned to bonded premises, was struck out.
Subsec. (e). Pub. L. 96-39, Sec. 807(a)(6)(D), (E), redesignated
subsec. (g) as (e) and substituted "subsection (c)" for
"subsections (b)(2), (c), and (d)" and "under such subsection" for
"under such subsections". Former subsec. (e), which related to
samples of distilled spirits used for analysis or testing by United
States, was struck out.
Subsec. (f). Pub. L. 96-39, Sec. 807(a)(6)(D), redesignated
subsec. (h) as (f). Former subsec. (f) redesignated (d).
Subsecs. (g), (h). Pub. L. 96-39, Sec. 807(a)(6)(D), redesignated
subsecs. (g) and (h) as (e) and (f), respectively.
1977 - Subsec. (d). Pub. L. 95-176, Sec. 2(f), reenacted par. (1)
and substituted heading "General" for "Allowance of tax" and "(or
the tax equal to such tax imposed under section 7652)" for "or
under section 7652"; added pars. (2) and (3); and redesignated as
par. (4) provisions of former par. (2) and inserted reference to
allowance of claims under par. (2) or (3).
Subsec. (f)(5). Pub. L. 95-176, Sec. 4(e), added par. (5).
1976 - Subsec. (b)(1). Pub. L. 94-455, Secs. 1905(a)(2)(A),
1906(b)(13)(A), inserted "or by section 7652" after "tax imposed by
this chapter" and struck out "or his delegate" after "Secretary".
Subsec. (b)(2). Pub. L. 94-455, Secs. 1905(a)(2)(B),
1906(b)(13)(A), struck out "or his delegate" after "Secretary" and
inserted ", or under section 7652" after "under subpart B of this
part".
Subsec. (c)(1). Pub. L. 94-455, Secs. 1905(a)(2)(C),
1906(b)(13)(A), struck out "or his delegate" after "Secretary"
wherever appearing and inserted "or under section 7652" after
"under section 5001(a)(1)".
Subsec. (c)(2), (3). Pub. L. 94-273 substituted "computation
year" for "fiscal year" wherever appearing.
Subsec. (c)(5). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
"or his delegate" after "Secretary".
Subsec. (d)(1). Pub. L. 94-455, Secs. 1905(a)(2)(C), (D),
1906(b)(13)(A), struck out "on or after July 1, 1959," after "from
bonded premises," and "or his delegate" after "Secretary" and
inserted "or under section 7652" after "under section 5001(a)(1)".
1971 - Subsec. (b)(2). Pub. L. 91-659, Sec. 2(a), struck out
condition that the distilled spirits can be destroyed only before
bottling and permitted destruction after completion of bottling so
long as the distilled spirits are on the bottling premises and
added taxes imposed under subpart B of this Part as additional
taxes which can be claimed for abatement, remission, credit or
refund.
Subsec. (c)(1)(A). Pub. L. 91-659, Sec. 1, added cl. (iii).
Subsec. (c)(5). Pub. L. 91-659, Sec. 2(b), permits distilled
spirits returned to bottling premises to be treated for purposes of
the various loss provisions as though they had not been removed
from the bottling premises.
1968 - Subsec. (c)(1). Pub. L. 90-630 inserted provisions
allowing abatement, remission, and refund if the casualty loss
occurs after completion of the packaging but before the spirits
have been removed from the premises of the distilled spirits plant
to which the spirits were removed from bond.
1965 - Subsec. (d)(2). Pub. L. 89-44 struck out final clause
prohibiting the allowance of a claim in respect to any distilled
spirits withdrawn from bonded premises of a distilled spirits plant
more than 6 months prior to the date of such return.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1411(b) of Pub. L. 105-34 provided that: "The amendment
made by subsection (a) [amending this section] shall take effect on
the 1st day of the 1st calendar quarter that begins at least 180
days after the date of the enactment of this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section
810 of Pub. L. 96-39, set out as a note under section 5001 of this
title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on first day of first
calendar month beginning more than 90 days after Nov. 14, 1977, see
section 7 of Pub. L. 95-176, set out as a note under section 5003
of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(2) of Pub. L. 94-455 effective on
first day of first month which begins more than 90 days after Oct.
4, 1976, see section 1905(d) of Pub. L. 94-455, set out as a note
under section 5005 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-659 effective on first day of first
calendar month which begins more than 90 days after Jan. 8, 1971,
see section 6 of Pub. L. 91-659, set out as an Effective Date note
under section 5066 of this title.
EFFECTIVE DATE OF 1968 AMENDMENT
Section 4 of Pub. L. 90-630 provided that:
"(a) For purposes of subsection (b), the effective date of this
Act is the first day of the first calendar month which begins more
than 90 days after the date of the enactment of this Act [Oct. 22,
1968].
"(b) The amendments made by the first section of this Act
[amending this section] shall apply only to losses sustained on or
after such effective date. The amendments made by section 2
[amending section 5062 of this title and section 1313 of Title 19,
Customs Duties] shall apply only to articles exported on or after
such effective date. The amendments made by section 3 [amending
section 5232 of this title] shall apply only to withdrawals from
customs custody on or after such effective date."
EFFECTIVE DATE OF 1965 AMENDMENT
Section 805(g)(1) of Pub. L. 89-44 provided that: "The amendments
made by subsections (a), (c), (e), and (f)(6) [amending this
section and sections 5062, 5215, and 5608 of this title] shall take
effect on July 1, 1965."
DISTILLED SPIRITS RETURNED TO BONDED PREMISES OF DISTILLED SPIRITS
PLANT DURING 1980
Subsec. (c)(1) of this section to be treated as including a
reference to section 5041 of this title with respect to distilled
spirits returned to the bonded premises of distilled spirits plants
during 1980, see section 808(d) of Pub. L. 96-39, set out as a note
under section 5061 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5003, 5005, 5006, 5215,
5373 of this title.
-End-
-CITE-
26 USC Sec. 5009 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
[Sec. 5009. Repealed. Pub. L. 96-39, title VIII, Sec. 807(a)(7),
July 26, 1979, 93 Stat. 281]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1327; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(3),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834, related to
drawback on exportation of distilled spirits in casks or packages.
A prior section 5009, act Aug. 16, 1954, ch. 736, 68A Stat. 603,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
See sections 5205(c)(1), (f), (i)(4) and 5206(c) of this title.
EFFECTIVE DATE OF REPEAL
Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39,
set out as an Effective Date of 1979 Amendment note under section
5001 of this title.
-End-
-CITE-
26 USC Sec. 5010 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart A - Distilled Spirits
-HEAD-
Sec. 5010. Credit for wine content and for flavors content
-STATUTE-
(a) Allowance of credit
(1) Wine content
On each proof gallon of the wine content of distilled spirits,
there shall be allowed a credit against the tax imposed by
section 5001 (or 7652) equal to the excess of -
(A) $13.50, over
(B) the rate of tax which would be imposed on the wine under
section 5041(b) but for its removal to bonded premises.
(2) Flavors content
On each proof gallon of the flavors content of distilled
spirits, there shall be allowed a credit against the tax imposed
by section 5001 (or 7652) equal to $13.50.
(3) Fractional part of proof gallon
In the case of any fractional part of a proof gallon of the
wine content, or of the flavors content, of distilled spirits, a
proportionate credit shall be allowed.
(b) Time for determining and allowing credit
(1) In general
The credit allowable by subsection (a) -
(A) shall be determined at the same time the tax is
determined under section 5006 (or 7652) on the distilled
spirits containing the wine or flavors, and
(B) shall be allowable at the time the tax imposed by section
5001 (or 7652) on such distilled spirits is payable as if the
credit allowable by this section constituted a reduction in the
rate of tax.
(2) Determination of content in the case of imports
For purposes of this section, the wine content, and the flavors
content, of imported distilled spirits shall be established by
such chemical analysis, certification, or other methods as may be
set forth in regulations prescribed by the Secretary.
(c) Definitions
For purposes of this section -
(1) Wine content
(A) In general
The term "wine content" means alcohol derived from wine.
(B) Wine
The term "wine" -
(i) means wine on which tax would be imposed by paragraph
(1), (2), or (3) of section 5041(b) but for its removal to
bonded premises, and
(ii) does not include any substance which has been subject
to distillation at a distilled spirits plant after receipt in
bond.
(2) Flavors content
(A) In general
Except as provided in subparagraph (B), the term "flavors
content" means alcohol derived from flavors of a type for which
drawback is allowable under section 5134.
(B) Exceptions
The term "flavors content" does not include -
(i) alcohol derived from flavors made at a distilled
spirits plant,
(ii) alcohol derived from flavors distilled at a distilled
spirits plant, and
(iii) in the case of any distilled spirits product, alcohol
derived from flavors to the extent such alcohol exceeds (on a
proof gallon basis) 2 1/2 percent of the finished product.
-SOURCE-
(Added Pub. L. 96-598, Sec. 6(a), Dec. 24, 1980, 94 Stat. 3488;
amended Pub. L. 98-369, div. A, title I, Sec. 27(a)(2), July 18,
1984, 98 Stat. 507; Pub. L. 100-647, title V, Sec. 5063(a), Nov.
10, 1988, 102 Stat. 3681; Pub. L. 101-508, title XI, Sec.
11201(a)(2), Nov. 5, 1990, 104 Stat. 1388-415.)
-MISC1-
PRIOR PROVISIONS
A prior section 5010, act Aug. 16, 1954, ch. 736, 68A Stat. 603,
related to miscellaneous stamp provisions, prior to the general
revision of this chapter by Pub. L. 85-859.
A prior section 5011, act Aug. 16, 1954, ch. 736, 68A Stat. 604,
related to abatement, remission, refund and allowance for loss or
destruction of distilled spirits, prior to the general revision of
this chapter by Pub. L. 85-859.
A prior section 5012, act Aug. 16, 1954, ch. 736, 68A Stat. 605,
related to drawback on exportation of distilled spirits, prior to
the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1990 - Subsec. (a)(1), (2). Pub. L. 101-508 substituted "$13.50"
for "$12.50".
1988 - Subsec. (c)(2)(B). Pub. L. 100-647 added cl. (ii) and
redesignated former cl. (ii) as (iii).
1984 - Subsec. (a)(1), (2). Pub. L. 98-369 substituted "$12.50"
for "$10.50".
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 effective Jan. 1, 1991, see section
11201(d) of Pub. L. 101-508, set out as a note under section 5001
of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 5063(b) of Pub. L. 100-647 provided that: "The amendments
made by this section [amending this section] shall apply with
respect to distilled spirits withdrawn from bond after the date of
the enactment of this Act [Nov. 10, 1988]."
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective Oct. 1, 1985, see section
27(d)(1) of Pub. L. 98-369, set out as a note under section 5001 of
this title.
EFFECTIVE DATE
Section 6(c) of Pub. L. 96-598 provided that: "The amendments
made by subsections (a) and (b) [enacting this section] shall take
effect on January 1, 1980."
-End-
-CITE-
26 USC [Subpart B - Repealed] 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
[Subpart B - Repealed]
-HEAD-
[SUBPART B - REPEALED]
-End-
-CITE-
26 USC Secs. 5021 to 5026 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
[Subpart B - Repealed]
-HEAD-
[Secs. 5021 to 5026. Repealed. Pub. L. 96-39, title VIII, Sec.
803(a), July 26, 1979, 93 Stat. 274]
-MISC1-
Section 5021, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1328, provided for imposition of a tax on rectified
distilled spirits or wines.
A prior section 5021, act Aug. 16, 1954, ch. 736, 68A Stat. 606,
related to imposition and rate of tax, prior to the general
revision of this chapter by Pub. L. 85-859.
Section 5022, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1328; amended Pub. L. 86-75, Sec. 3(a)(4), June 30,
1959, 73 Stat. 157; Pub. L. 86-564, title II, Sec. 202(a)(6), June
30, 1960, 74 Stat. 290; Pub. L. 87-72, Sec. 3(a)(6), June 30, 1961,
75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(5), June 28, 1962, 76 Stat.
114; Pub. L. 88-52, Sec. 3(a)(6), June 29, 1963, 77 Stat. 72; Pub.
L. 88-348, Sec. 2(a)(6), June 30, 1964, 78 Stat. 237; Pub. L.
89-44, title V, Sec. 501(b), June 21, 1965, 79 Stat. 150, imposed a
tax on cordials and liqueurs containing wine.
A prior section 5022, acts Aug. 16, 1954, ch. 736, 68A Stat. 606;
Mar. 30, 1955, ch. 18, Sec. 3(a)(6), 69 Stat. 14; Mar. 29, 1956,
ch. 115, Sec. 3(a)(6), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12,
Sec. 3(a)(4), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec.
3(a)(4), 72 Stat. 259, imposed a tax on cordials and liqueurs
containing wine, prior to the general revision of this chapter by
Pub. L. 85-859.
Section 5023, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1328, imposed a tax on the blending of beverage rums
and brandies.
A prior section 5023, act Aug. 16, 1954, ch. 736, 68A Stat. 606,
imposed a tax on blending of beverage brandies, prior to the
general revision of this chapter by Pub. L. 85-859.
Section 5024, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1328, indicated the sources for the definitions of
"rectifier", "products of rectification", and "distilled spirits"
and referred to other definitions relating to distilled spirits as
well as other definitions of general application to this title.
A prior section 5024, act Aug. 16, 1954, ch. 736, 68A Stat. 607,
defined "rectifier" and "products of rectification", prior to the
general revision of this chapter by Pub. L. 85-859.
Section 5025, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1328; amended Pub. L. 89-44, title VIII, Sec.
805(b), (f)(2)-(5), June 21, 1965, 79 Stat. 161; Pub. L. 94-455,
title XIX, Secs. 1905(a)(4), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat.
1818, 1834; Pub. L. 95-176, Secs. 5(b), 6, Nov. 14, 1977, 91 Stat.
1366, 1367, enumerated 12 exemptions from the rectification tax.
A prior section 5025, act Aug. 16, 1954, ch. 736, 68A Stat. 607,
related to exemption from rectification tax, prior to the general
revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising section 5025(e)(1), (2),
(4) of this title were contained in former sections 5023, 5217(a),
and 5306 of this title, act Aug. 16, 1954, ch. 736, 68A Stat. 606,
641, 657, prior to the general revision of this chapter by Pub. L.
85-859.
Section 5026, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1330; Pub. L. 94-455, title XIX, Secs.
1905(b)(2)(B), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1822, 1834,
related to the determination and collection of the rectification
tax.
A prior section 5026, act Aug. 16, 1954, ch. 736, 68A Stat. 608,
related to determination and collection of rectification tax, prior
to the general revision of this chapter by Pub. L. 85-859.
A prior section 5027, act Aug. 16, 1954, ch. 736, 68A Stat. 609,
related to stamp provisions applicable to rectifiers, prior to the
general revision of this chapter by Pub. L. 85-859.
A prior section 5028, act Aug. 16, 1954, ch. 736, 68A Stat. 609,
related to cross references for penalty provisions, prior to the
general revision of this chapter by Pub. L. 85-859.
EFFECTIVE DATE OF REPEAL
Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39,
set out as an Effective Date of 1979 Amendment note under section
5001 of this title.
-End-
-CITE-
26 USC Subpart C - Wines 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart C - Wines
-HEAD-
SUBPART C - WINES
-MISC1-
Sec.
5041. Imposition and rate of tax.
5042. Exemption from tax.
5043. Collection of taxes on wines.
5044. Refund of tax on wine.
5045. Cross references.
PRIOR PROVISIONS
A prior subpart C, comprising sections 5041 to 5045, related to
wines, prior to the general revision of this chapter by Pub. L.
85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1997 - Pub. L. 105-34, title XIV, Sec. 1416(b)(3), Aug. 5, 1997,
111 Stat. 1048, struck out "unmerchantable" before "wine" in item
5044.
-SECREF-
SUBPART REFERRED TO IN OTHER SECTIONS
This subpart is referred to in section 5661 of this title.
-End-
-CITE-
26 USC Sec. 5041 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart C - Wines
-HEAD-
Sec. 5041. Imposition and rate of tax
-STATUTE-
(a) Imposition
There is hereby imposed on all wines (including imitation,
substandard, or artificial wine, and compounds sold as wine) having
not in excess of 24 percent of alcohol by volume, in bond in,
produced in, or imported into, the United States, taxes at the
rates shown in subsection (b), such taxes to be determined as of
the time of removal for consumption or sale. All wines containing
more than 24 percent of alcohol by volume shall be classed as
distilled spirits and taxed accordingly. Still wines shall include
those wines containing not more than 0.392 gram of carbon dioxide
per hundred milliliters of wine; except that the Secretary may by
regulations prescribe such tolerances to this maximum limitation as
may be reasonably necessary in good commercial practice.
(b) Rates of tax
(1) On still wines containing not more than 14 percent of alcohol
by volume, $1.07 per wine gallon;
(2) On still wines containing more than 14 percent and not
exceeding 21 percent of alcohol by volume, $1.57 per wine gallon;
(3) On still wines containing more than 21 percent and not
exceeding 24 percent of alcohol by volume, $3.15 per win |
