-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 wine gallon;
(4) On champagne and other sparkling wines, $3.40 per wine
gallon;
(5) On artificially carbonated wines, $3.30 per wine gallon; and
(6) On hard cider which is a still wine derived primarily from
apples or apple concentrate and water, containing no other fruit
product, and containing at least one-half of 1 percent and less
than 7 percent alcohol by volume, 22.6 cents per wine gallon.
(c) Credit for small domestic producers
(1) Allowance of credit
Except as provided in paragraph (2), in the case of a person
who produces not more than 250,000 wine gallons of wine during
the calendar year, there shall be allowed as a credit against any
tax imposed by this title (other than chapters 2, 21, and 22) of
90 cents per wine gallon on the 1st 100,000 wine gallons of wine
(other than wine described in subsection (b)(4)) which are
removed during such year for consumption or sale and which have
been produced at qualified facilities in the United States. In
the case of wine described in subsection (b)(6), the preceding
sentence shall be applied by substituting "5.6 cents" for "90
cents".
(2) Reduction in credit
The credit allowable by paragraph (1) shall be reduced (but not
below zero) by 1 percent for each 1,000 wine gallons of wine
produced in excess of 150,000 wine gallons of wine during the
calendar year.
(3) Time for determining and allowing credit
The credit allowable by paragraph (1) -
(A) shall be determined at the same time the tax is
determined under subsection (a) of this section, and
(B) shall be allowable at the time any tax described in
paragraph (1) is payable as if the credit allowable by this
subsection constituted a reduction in the rate of such tax.
(4) Controlled groups
Rules similar to rules of section 5051(a)(2)(B) shall apply for
purposes of this subsection.
(5) Denial of deduction
Any deduction under subtitle A with respect to any tax against
which a credit is allowed under this subsection shall only be for
the amount of such tax as reduced by such credit.
(6) Credit for transferee in bond
If -
(A) wine produced by any person would be eligible for any
credit under paragraph (1) if removed by such person during the
calendar year,
(B) wine produced by such person is removed during such
calendar year by any other person (hereafter in this paragraph
referred to as the "transferee") to whom such wine was
transferred in bond and who is liable for the tax imposed by
this section with respect to such wine, and
(C) such producer holds title to such wine at the time of its
removal and provides to the transferee such information as is
necessary to properly determine the transferee's credit under
this paragraph,
then, the transferee (and not the producer) shall be allowed the
credit under paragraph (1) which would be allowed to the producer
if the wine removed by the transferee had been removed by the
producer on that date.
(7) Regulations
The Secretary may prescribe such regulations as may be
necessary to carry out the purposes of this subsection, including
regulations -
(A) to prevent the credit provided in this subsection from
benefiting any person who produces more than 250,000 wine
gallons of wine during a calendar year, and
(B) to assure proper reduction of such credit for persons
producing more than 150,000 wine gallons of wine during a
calendar year.
(d) Wine gallon
For the purpose of this chapter, the term "wine gallon" means a
United States gallon of liquid measure equivalent to the volume of
231 cubic inches. On lesser quantities the tax shall be paid
proportionately (fractions of less than one-tenth gallon being
converted to the nearest one-tenth gallon, and five-hundredths
gallon being converted to the next full one-tenth gallon).
(e) Tolerances
Where the Secretary finds that the revenue will not be endangered
thereby, he may by regulation prescribe tolerances (but not greater
than 1/2 of 1 percent) for bottles and other containers, and, if
such tolerances are prescribed, no assessment shall be made and no
tax shall be collected for any excess in any case where the
contents of a bottle or other container are within the limit of the
applicable tolerance prescribed.
(f) Illegally produced wine
Notwithstanding subsection (a), any wine produced in the United
States at any place other than the bonded premises provided for in
this chapter shall (except as provided in section 5042 in the case
of tax-free production) be subject to tax at the rate prescribed in
subsection (b) at the time of production and whether or not removed
for consumption or sale.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1331; amended Pub. L. 86-75, Sec. 3(a)(5), June 30, 1959, 73 Stat.
157; Pub. L. 86-564, title II, Sec. 202(a)(7), June 30, 1960, 74
Stat. 290; Pub. L. 87-72, Sec. 3(a)(7), June 30, 1961, 75 Stat.
193; Pub. L. 87-508, Sec. 3(a)(6), June 28, 1962, 76 Stat. 114;
Pub. L. 88-52, Sec. 3(a)(7), June 29, 1963, 77 Stat. 72; Pub. L.
88-348, Sec. 2(a)(7), June 30, 1964, 78 Stat. 237; Pub. L. 89-44,
title V, Sec. 501(c), title VIII, Sec. 806(a), June 21, 1965, 79
Stat. 150, 162; Pub. L. 93-490, Sec. 6(a), Oct. 26, 1974, 88 Stat.
1468; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834; Pub. L. 100-647, title VI, Sec. 6101(a), Nov. 10,
1988, 102 Stat. 3710; Pub. L. 101-508, title XI, Sec. 11201(b)(1),
(2), Nov. 5, 1990, 104 Stat. 1388-415, 1388-416; Pub. L. 104-188,
title I, Sec. 1702(b)(5), Aug. 20, 1996, 110 Stat. 1868; Pub. L.
105-34, title IX, Sec. 908(a), (b), Aug. 5, 1997, 111 Stat. 876;
Pub. L. 105-206, title VI, Sec. 6009(a), July 22, 1998, 112 Stat.
812.)
-MISC1-
PRIOR PROVISIONS
A prior section 5041, acts Aug. 16, 1954, ch. 736, 68A Stat. 609;
Mar. 30, 1955, ch. 18, Sec. 3(a)(7), 69 Stat. 14; Mar. 29, 1956,
ch. 115, Sec. 3(a)(7), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12,
Sec. 3(a)(5), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec.
3(a)(5), 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.
AMENDMENTS
1998 - Subsec. (b)(6). Pub. L. 105-206 inserted "which is a still
wine" after "hard cider".
1997 - Subsec. (b)(6). Pub. L. 105-34, Sec. 908(a), added par.
(6).
Subsec. (c)(1). Pub. L. 105-34, Sec. 908(b), inserted at end "In
the case of wine described in subsection (b)(6), the preceding
sentence shall be applied by substituting '5.6 cents' for '90
cents'."
1996 - Subsec. (c)(6), (7). Pub. L. 104-188 added pars. (6) and
(7) and struck out former par. (6) which read as follows:
"(6) Regulations. - The Secretary may prescribe such regulations
as may be necessary to prevent the credit provided in this
subsection from benefiting any person who produces more than
250,000 wine gallons of wine during a calendar year and to assure
proper reduction of such credit for persons producing more than
150,000 wine gallons of wine during a calendar year."
1990 - Subsec. (b)(1). Pub. L. 101-508, Sec. 11201(b)(1)(A),
substituted "$1.07" for "17 cents".
Subsec. (b)(2). Pub. L. 101-508, Sec. 11201(b)(1)(B), substituted
"$1.57" for "67 cents".
Subsec. (b)(3). Pub. L. 101-508, Sec. 11201(b)(1)(C), substituted
"$3.15" for "$2.25".
Subsec. (b)(5). Pub. L. 101-508, Sec. 11201(b)(1)(D), substituted
"$3.30" for "$2.40".
Subsecs. (c) to (f). Pub. L. 101-508, Sec. 11201(b)(2), added
subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to
(f), respectively.
1988 - Subsecs. (d), (e). Pub. L. 100-647 added subsec. (d) and
redesignated former subsec. (d) as (e).
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary".
1974 - Subsec. (a). Pub. L. 93-490 substituted "0.392" for
"0.277".
1965 - Subsec. (a). Pub. L. 89-44, Sec. 806(a), substituted
"0.277" for "0.256".
Subsec. (b). Pub. L. 89-44, Sec. 501(c)(1)-(5), struck out
provisions at end of each par. setting out a specified reduced rate
to be applied on and after July 1, 1965.
1964 - Subsec. (b). Pub. L. 88-348 substituted "July 1, 1965" for
"July 1, 1964" in five places.
1963 - Subsec. (b). Pub. L. 88-52 substituted "July 1, 1964" for
"July 1, 1963" in five places.
1962 - Subsec. (b). Pub. L. 87-508 substituted "July 1, 1963" for
"July 1, 1962" in five places.
1961 - Subsec. (b). Pub. L. 87-72 substituted "July 1, 1962" for
"July 1, 1961" in five places.
1960 - Subsec. (b). Pub. L. 86-564 substituted "July 1, 1961" for
"July 1, 1960" in five places.
1959 - Subsec. (b). Pub. L. 86-75 substituted "July 1, 1960" for
"July 1, 1959" in five places.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 908(c) of Pub. L. 105-34 provided that: "The amendments
made by this section [amending this section] shall take effect on
October 1, 1997."
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188 effective, except as otherwise
expressly provided, as if included in the provision of the Revenue
Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which
such amendment relates, see section 1702(i) of Pub. L. 104-188, set
out as a note under section 38 of this title.
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 6101(b) of Pub. L. 100-647 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to wine
removed after December 31, 1988."
EFFECTIVE DATE OF 1974 AMENDMENT
Section 6(b) of Pub. L. 93-490 provided that: "The amendment made
by this section [amending this section] shall take effect on the
first day of the first calendar month which begins more than 90
days after the date of enactment of this Act [Oct. 26, 1974]."
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by section 501(c) of 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.
Section 806(d)(1) of Pub. L. 89-44 provided that: "The amendment
made by subsection (a) [amending this section] shall take effect on
July 1, 1965."
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER
Imposition of tax on wine, exception for small domestic
producers, exception for certain small wholesale or retail dealers,
credit against tax, liability for tax and method of payment,
controlled groups, other laws applicable, and definitions, see
section 11201(e) of Pub. L. 101-508, set out as a note under
section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5010, 5044, 5061, 5354 of
this title.
-End-
-CITE-
26 USC Sec. 5042 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. 5042. Exemption from tax
-STATUTE-
(a) Tax-free production
(1) Cider
Subject to regulations prescribed by the Secretary, the
noneffervescent product of the normal alcoholic fermentation of
apple juice only, which is produced at a place other than a
bonded wine cellar and without the use of preservative methods or
materials, and which is sold or offered for sale as cider and not
as wine or as a substitute for wine, shall not be subject to tax
as wine nor to the provisions of subchapter F.
(2) Wine for personal or family use
Subject to regulations prescribed by the Secretary -
(A) Exemption
Any adult may, without payment of tax, produce wine for
personal or family use and not for sale.
(B) Limitation
The aggregate amount of wine exempt from tax under this
paragraph with respect to any household shall not exceed -
(i) 200 gallons per calendar year if there are 2 or more
adults in such household, or
(ii) 100 gallons per calendar year if there is only 1 adult
in such household.
(C) Adults
For purposes of this paragraph, the term "adult" means an
individual who has attained 18 years of age, or the minimum age
(if any) established by law applicable in the locality in which
the household is situated at which wine may be sold to
individuals, whichever is greater.
(3) Experimental wine
Subject to regulations prescribed by the Secretary, any
scientific university, college of learning, or institution of
scientific research may produce, receive, blend, treat, and store
wine, without payment of tax, for experimental or research use
but not for consumption (other than organoleptical tests) or
sale, and may receive such wine spirits without payment of tax as
may be necessary for such production.
(b) Cross references
(1) For provisions relating to exemption of tax on losses of
wine (including losses by theft or authorized destruction), see
section 5370.
(2) For provisions exempting from tax samples of wine, see
section 5372.
(3) For provisions authorizing withdrawals of wine free of
tax or without payment of tax, see section 5362.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1331; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 95-458, Sec. 2(a), Oct. 14, 1978,
92 Stat. 1255.)
-MISC1-
PRIOR PROVISIONS
A prior section 5042, act Aug. 16, 1954, ch. 736, 68A Stat. 610,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1978 - Subsec. (a)(2). Pub. L. 95-458 substituted in heading
"Wine for personal or family use" for "Family wine" and in text
provision permitting an adult to produce 200 gallons of wine per
calendar year if there are 2 or more adults in the household or 100
gallons of wine per calendar year if there is one adult in the
household for provision which permitted the duly registered head of
any family to produce an amount of wine not exceeding 200 gallons
of wine per annum.
1976 - Subsec. (a)(1) to (3). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 2(c) of Pub. L. 95-458 provided that: "The amendments
made by this section [amending this section and sections 5051,
5053, 5054, 5092, 5222, and 5674 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 [Oct. 14,
1978]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5041, 5222, 5351 of this
title.
-End-
-CITE-
26 USC Sec. 5043 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. 5043. Collection of taxes on wines
-STATUTE-
(a) Persons liable for payment
The taxes on wine provided for in this subpart shall be paid -
(1) Bonded wine cellars
In the case of wines removed from any bonded wine cellar, by
the proprietor of such bonded wine cellar; except that -
(A) in the case of any transfer of wine in bond as authorized
under the provisions of section 5362(b), the liability for
payment of the tax shall become the liability of the transferee
from the time of removal of the wine from the transferor's
premises, and the transferor shall thereupon be relieved of
such liability; and
(B) in the case of any wine withdrawn by a person other than
such proprietor without payment of tax as authorized under the
provisions of section 5362(c), the liability for payment of the
tax shall become the liability of such person from the time of
the removal of the wine from the bonded wine cellar, and such
proprietor shall thereupon be relieved of such liability.
(2) Foreign wine
In the case of foreign wines which are not transferred to a
bonded wine cellar free of tax under section 5364, by the
importer thereof.
(3) Other wines
Immediately, in the case of any wine produced, imported,
received, removed, or possessed otherwise than as authorized by
law, by any person producing, importing, receiving, removing, or
possessing such wine; and all such persons shall be jointly and
severally liable for such tax with each other as well as with any
proprietor, transferee, or importer who may be liable for the tax
under this subsection.
(b) Payment of tax
The taxes on wines shall be paid in accordance with section 5061.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1332; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(2)(C), Oct.
4, 1976, 90 Stat. 1822; Pub. L. 96-39, title VIII, Sec. 807(a)(8),
July 26, 1979, 93 Stat. 281; Pub. L. 105-206, title VI, Sec.
6014(b)(1), July 22, 1998, 112 Stat. 820.)
-MISC1-
PRIOR PROVISIONS
A prior section 5043, act Aug. 16, 1954, ch. 736, 68A Stat. 610,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1998 - Subsec. (a)(2). Pub. L. 105-206 inserted "which are not
transferred to a bonded wine cellar free of tax under section 5364"
after "foreign wines".
1979 - Subsec. (a)(1)(A). Pub. L. 96-39 struck out "between
bonded wine cellars" after "transfer of wine in bond".
1976 - Subsec. (b). Pub. L. 94-455 substituted "The taxes" for
"Except as provided in subsection (a)(3), the taxes".
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates (see
section 1422(c) of Pub. L. 105-34 set out as an Effective Date note
under section 5364 of this title), see section 6024 of Pub. L.
105-206, set out as a note under section 1 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 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5005, 5061, 5362 of this
title.
-End-
-CITE-
26 USC Sec. 5044 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. 5044. Refund of tax on wine
-STATUTE-
(a) General
In the case of any wine removed from a bonded wine cellar and
returned to bond under section 5361 -
(1) any tax imposed by section 5041 shall, if paid, be refunded
or credited, without interest, to the proprietor of the bonded
wine cellar to which such wine is delivered; or
(2) if any tax so imposed has not been paid, the person liable
for the tax may be relieved of liability therefor,
under such regulations as the Secretary may prescribe. Such
regulations may provide that claim for refund or credit under
paragraph (1), or relief from liability under paragraph (2), may be
made only with respect to minimum quantities specified in such
regulations. The burden of proof in all such cases shall be on the
applicant.
(b) Date of filing
No claim under subsection (a) shall be allowed unless filed
within 6 months after the date of the return of the wine to bond.
(c) Status of wine returned to bond
All provisions of this chapter applicable to wine in bond on the
premises of a bonded wine cellar and to removals thereof shall be
applicable to wine returned to bond under the provisions of this
section.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1332; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 105-34, title XIV, Sec. 1416(a),
(b)(2), Aug. 5, 1997, 111 Stat. 1048; Pub. L. 105-206, title VI,
Sec. 6014(b)(2), July 22, 1998, 112 Stat. 820.)
-MISC1-
PRIOR PROVISIONS
A prior section 5044, act Aug. 16, 1954, ch. 736, 68A Stat. 611,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1998 - Subsec. (a). Pub. L. 105-206 substituted "removed from a
bonded wine cellar" for "produced in the United States" in
introductory provisions.
1997 - Pub. L. 105-34, Sec. 1416(b)(2), struck out
"unmerchantable" after "tax on" in section catchline.
Subsec. (a). Pub. L. 105-34, Sec. 1416(a), struck out "as
unmerchantable" after "to bond" in introductory provisions.
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary".
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1416(c) of Pub. L. 105-34 provided that: "The amendments
made by this section [amending this section and section 5361 of
this title] 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]."
-End-
-CITE-
26 USC Sec. 5045 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. 5045. Cross references
-STATUTE-
For provisions relating to the establishment and operation of
wineries, see subchapter F, and for penalties pertaining to
wine, see subchapter J.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1333.)
-MISC1-
PRIOR PROVISIONS
A prior section 5045, act Aug. 16, 1954, ch. 736, 68A Stat. 611,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC Subpart D - 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
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart D - Beer
-HEAD-
SUBPART D - BEER
-MISC1-
Sec.
5051. Imposition and rate of tax.
5052. Definitions.
5053. Exemptions.
5054. Determination and collection of tax on beer.
5055. Drawback of tax.
5056. Refund and credit of tax, or relief from liability.
PRIOR PROVISIONS
A prior subpart D, comprising sections 5051 to 5057 of this
title, related to beer, prior to the general revision of this
chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72
Stat. 1313.
-End-
-CITE-
26 USC Sec. 5051 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 D - Beer
-HEAD-
Sec. 5051. Imposition and rate of tax
-STATUTE-
(a) Rate of tax
(1) In general
A tax is hereby imposed on all beer brewed or produced, and
removed for consumption or sale, within the United States, or
imported into the United States. Except as provided in paragraph
(2), the rate of such tax shall be $18 for every barrel
containing not more than 31 gallons and at a like rate for any
other quantity or for fractional parts of a barrel.
(2) Reduced rate for certain domestic production
(A) $7 a barrel rate
In the case of a brewer who produces not more than 2,000,000
barrels of beer during the calendar year, the per barrel rate
of the tax imposed by this section shall be $7 on the first
60,000 barrels of beer which are removed in such year for
consumption or sale and which have been brewed or produced by
such brewer at qualified breweries in the United States.
(B) Controlled groups
In the case of a controlled group, the 2,000,000 barrel
quantity specified in subparagraph (A) shall be applied to the
controlled group, and the 60,000 barrel quantity specified in
subparagraph (A) shall be apportioned among the brewers who are
component members of such group in such manner as the Secretary
or his delegate shall by regulations prescribed. For purposes
of the preceding sentence, the term "controlled group" has the
meaning assigned to it by subsection (a) of section 1563,
except that for such purposes the phrase "more than 50 percent"
shall be substituted for the phrase "at least 80 percent" in
each place it appears in such subsection. Under regulations
prescribed by the Secretary or his delegate, principles similar
to the principles of the preceding two sentences shall be
applied to a group of brewers under common control where one or
more of the brewers is not a corporation.
(C) Regulations
The Secretary may prescribe such regulations as may be
necessary to prevent the reduced rates provided in this
paragraph from benefiting any person who produces more than
2,000,000 barrels of beer during a calendar year.
(3) Tolerances
Where the Secretary or his delegate finds that the revenue will
not be endangered thereby, he may by regulations prescribe
tolerances for barrels and fractional parts of barrels, and, if
such tolerances are prescribed, no assessment shall be made and
no tax shall be collected for any excess in any case where the
contents of a barrel or a fractional part of a barrel are within
the limit of the applicable tolerance prescribed.
(b) Assessment on materials used in production in case of fraud
Nothing contained in this subpart or subchapter G shall be
construed to authorize an assessment on the quantity of materials
used in producing or purchased for the purpose of producing beer,
nor shall the quantity of materials so used or purchased be
evidence, for the purpose of taxation, of the quantity of beer
produced; but the tax on all beer shall be paid as provided in
section 5054, and not otherwise; except that this subsection shall
not apply to cases of fraud, and nothing in this subsection shall
have the effect to change the rules of law respecting evidence in
any prosecution or suit.
(c) Illegally produced beer
The production of any beer at any place in the United States
shall be subject to tax at the rate prescribed in subsection (a)
and such tax shall be due and payable as provided in section
5054(a)(3) unless -
(1) such beer is produced in a brewery qualified under the
provisions of subchapter G, or
(2) such production is exempt from tax under section 5053(e)
(relating to beer for personal or family use).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1333; amended Pub. L. 86-75, Sec. 3(a)(6), June 30, 1959, 73 Stat.
157; Pub. L. 86-564, title II, Sec. 202(a)(8), June 30, 1960, 74
Stat. 290; Pub. L. 87-72, Sec. 3(a)(8), June 30, 1961, 75 Stat.
193; Pub. L. 87-508, Sec. 3(a)(7), June 28, 1962, 76 Stat. 114;
Pub. L. 88-52, Sec. 3(a)(8), June 29, 1963, 77 Stat. 72; Pub. L.
88-348, Sec. 2(a)(8), June 30, 1964, 78 Stat. 237; Pub. L. 89-44,
title V, Sec. 501(d), June 21, 1965, 79 Stat. 150; Pub. L. 94-529,
Sec. 1, Oct. 17, 1976, 90 Stat. 2485; Pub. L. 95-458, Sec.
2(b)(2)(A), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 101-508, title
XI, Sec. 11201(c), Nov. 5, 1990, 104 Stat. 1388-416.)
-MISC1-
PRIOR PROVISIONS
A prior section 5051, act Aug. 16, 1954, ch. 736, 68A Stat. 611,
as amended by acts Mar. 30, 1955, ch. 18, Sec. 3(a)(8), 69 Stat.
14; Mar. 29, 1956, ch. 115, Sec. 3(a)(8), 70 Stat. 66; Mar. 29,
1957, Pub. L. 85-12, Sec. 3(a)(6), 71 Stat. 9; June 30, 1958, Pub.
L. 85-475, Sec. 3(a)(6), 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.
AMENDMENTS
1990 - Subsec. (a)(1). Pub. L. 101-508, Sec. 11201(c)(1),
substituted "$18" for "$9".
Subsec. (a)(2)(C). Pub. L. 101-508, Sec. 11201(c)(2), added
subpar. (C).
1978 - Subsec. (c). Pub. L. 95-458 added subsec. (c).
1976 - Subsec. (a). Pub. L. 94-529 reduced the excise tax on beer
for small brewers to $7 per barrel on the first 60,000 barrels
produced in the United States and removed for sale or consumption
or sale during the calendar year, the reduced rate to be applicable
only to brewers producing no more than 2 million barrels of beer in
a calendar year, and inserted provision that if several brewers are
members of a controlled group, the 2-million barrel limit is to be
applied to the controlled group and the 60,000-barrel limit is to
be apportioned among the members of the controlled group in
accordance with Treasury Department regulations promulgated by the
Secretary or his delegate.
1965 - Subsec. (a). Pub. L. 89-44 struck out sentence providing
for the imposition on and after July 1, 1965, of a tax of $8 in
lieu of the tax imposed by the section.
1964 - Subsec. (a). Pub. L. 88-348 substituted "July 1, 1965" for
"July 1, 1964".
1963 - Subsec. (a). Pub. L. 88-52 substituted "July 1, 1964" for
"July 1, 1963".
1962 - Subsec. (a). Pub. L. 87-508 substituted "July 1, 1963" for
"July 1, 1962".
1961 - Subsec. (a). Pub. L. 87-72 substituted "July 1, 1962" for
"July 1, 1961".
1960 - Subsec. (a). Pub. L. 86-564 substituted "July 1, 1961" for
"July 1, 1960".
1959 - Subsec. (a). Pub. L. 86-75 substituted "July 1, 1960" for
"July 1, 1959".
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 1978 AMENDMENT
Amendment by Pub. L. 95-458 effective on first day of first
calendar month beginning more than 90 days after Oct. 14, 1978, see
section 2(c) of Pub. L. 95-458, set out as a note under section
5042 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 2 of Pub. L. 94-529 provided that: "The amendment made by
the first section of this Act [amending this section] shall take
effect on the first day of the first calendar year which begins
after the date of the enactment of this Act [Oct. 17, 1976]."
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 effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER
Imposition of tax on beer, exception for small domestic
producers, exception for certain small wholesale or retail dealers,
credit against tax, liability for tax and method of payment,
controlled groups, other laws applicable, and definitions, see
section 11201(e) of Pub. L. 101-508, set out as a note under
section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5041, 5054, 5061, 5671 of
this title.
-End-
-CITE-
26 USC Sec. 5052 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 D - Beer
-HEAD-
Sec. 5052. Definitions
-STATUTE-
(a) Beer
For purposes of this chapter (except when used with reference to
distilling or distilling material) the term beer means beer, ale,
porter, stout, and other similar fermented beverages (including
sake or similar products) of any name or description containing
one-half of 1 percent or more of alcohol by volume, brewed or
produced from malt, wholly or in part, or from any substitute
therefor.
(b) Gallon
For purposes of this subpart, the term gallon means the liquid
measure containing 231 cubic inches.
(c) Removed for consumption of sale
Except as provided for in the case of removal of beer without
payment of tax, the term "removed for consumption or sale", for the
purposes of this subpart means -
(1) Sale of beer
The sale and transfer of possession of beer for consumption at
the brewery; or
(2) Removals
Any removal of beer from the brewery.
(d) Brewer
For definition of brewer, see section 5092.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1333; amended Pub. L. 91-673, Sec. 1(b), Jan. 12, 1971, 84 Stat.
2056.)
-MISC1-
PRIOR PROVISIONS
A prior section 5052, act Aug. 16, 1954, ch. 736, 68A Stat. 612,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1971 - Subsec. (c)(2). Pub. L. 91-673 struck out proviso that
removal of beer shall not include beer returned to the brewery on
the same day such beer is removed from the brewery.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-673 effective on first day of first
calendar month which begins more than 90 days after Jan. 12, 1971,
see section 5 of Pub. L. 91-673, set out as a note under section
5056 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in title 23 section 158.
-End-
-CITE-
26 USC Sec. 5053 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 D - Beer
-HEAD-
Sec. 5053. Exemptions
-STATUTE-
(a) Removals for export
Beer may be removed from the brewery, without payment of tax, for
export, in such containers and under such regulations, and on the
giving of such notices, entries, and bonds and other security, as
the Secretary may by regulations prescribe.
(b) Removals when unfit for beverage use
When beer has become sour or damaged, so as to be incapable of
use as such, a brewer may remove the same from his brewery without
payment of tax, for manufacturing purposes, under such regulations
as the Secretary may prescribe.
(c) Removals for laboratory analysis
Beer may be removed from the brewery, without payment of tax, for
laboratory analysis, subject to such limitations and under such
regulations as the Secretary may prescribe.
(d) Removals for research, development, or testing
Under such conditions and regulations as the Secretary may
prescribe, beer may be removed from the brewery without payment of
tax for use in research, development, or testing (other than
consumer testing or other market analysis) of processes, systems,
materials, or equipment relating to beer or brewery operations.
(e) Beer for personal or family use
Subject to regulation prescribed by the Secretary, any adult may,
without payment of tax, produce beer for personal or family use and
not for sale. The aggregate amount of beer exempt from tax under
this subsection with respect to any household shall not exceed -
(1) 200 gallons per calendar year if there are 2 or more adults
in such household, or
(2) 100 gallons per calendar year if there is only 1 adult in
such household.
For purposes of this subsection, the term "adult" means an
individual who has attained 18 years of age, or the minimum age (if
any) established by law applicable in the locality in which the
household is situated at which beer may be sold to individuals,
whichever is greater.
(f) Removal for use as distilling material
Subject to such regulations as the Secretary may prescribe, beer
may be removed from a brewery without payment of tax to any
distilled spirits plant for use as distilling material.
(g) Removals for use of foreign embassies, legations, etc.
(1) In general
Subject to such regulations as the Secretary may prescribe -
(A) beer may be withdrawn from the brewery without payment of
tax for transfer to any customs bonded warehouse for entry
pending withdrawal therefrom as provided in subparagraph (B),
and
(B) beer entered into any customs bonded warehouse under
subparagraph (A) may be withdrawn for consumption in the United
States by, and for the official and family use of, such foreign
governments, organizations, and individuals as are entitled to
withdraw imported beer from such warehouses free of tax.
Beer transferred to any customs bonded warehouse under
subparagraph (A) shall be entered, stored, and accounted for in
such warehouse under such regulations and bonds as the Secretary
may prescribe, and may be withdrawn therefrom by such
governments, organizations, and individuals free of tax under the
same conditions and procedures as imported beer.
(2) Other rules to apply
Rules similar to the rules of paragraphs (2) and (3) of section
5362(e) shall apply for purposes of this subsection.
(h) Removals for destruction
Subject to such regulations as the Secretary may prescribe, beer
may be removed from the brewery without payment of tax for
destruction.
(i) Removal as supplies for certain vessels and aircraft
For exemption as to supplies for certain vessels and
aircraft, see section 309 of the Tariff Act of 1930, as amended
(19 U.S.C. 1309).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1334; amended Pub. L. 89-44, title VIII, Sec. 807(b), June 21,
1965, 79 Stat. 164; Pub. L. 91-673, Sec. 2, Jan. 12, 1971, 84 Stat.
2056; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834; Pub. L. 95-458, Sec. 2(b)(1), Oct. 14, 1978, 92
Stat. 1255; Pub. L. 105-34, title XIV, Secs. 1414(b), 1418(a),
1419(a), Aug. 5, 1997, 111 Stat. 1047-1049.)
-MISC1-
PRIOR PROVISIONS
A prior section 5053, act Aug. 16, 1954, ch. 736, 68A Stat. 612,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1997 - Subsec. (f). Pub. L. 105-34, Sec. 1414(b), added subsec.
(f). Former subsec. (f) redesignated (i).
Subsec. (g). Pub. L. 105-34, Sec. 1418(a), added subsec. (g).
Subsec. (h). Pub. L. 105-34, Sec. 1419(a), added subsec. (h).
Subsec. (i). Pub. L. 105-34, Sec. 1414(b), redesignated subsec.
(f) as (i).
1978 - Subsecs. (e), (f). Pub. L. 95-458 added subsec. (e) and
redesignated former subsec. (e) as (f).
1976 - Subsecs. (a) to (d). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
1971 - Subsecs. (d), (e). Pub. L. 91-673 added subsec. (d) and
redesignated former subsec. (d) as (e).
1965 - Subsec. (a). Pub. L. 89-44 struck out "to a foreign
country" after "export".
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1414(d) of Pub. L. 105-34 provided that: "The amendments
made by this section [amending this section and sections 5056 and
5222 of this title] 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]."
Section 1418(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]."
Section 1419(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 1978 AMENDMENT
Amendment by Pub. L. 95-458 effective on first day of first
calendar month beginning more than 90 days after Oct. 14, 1978, see
section 2(c) of Pub. L. 95-458, set out as a note under section
5042 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-673 effective on first day of first
calendar month which begins more than 90 days after Jan. 12, 1971,
see section 5 of Pub. L. 91-673, set out as a note under section
5056 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective July 1, 1965, see section
807(c) of Pub. L. 89-44, set out as a note under section 5002 of
this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5051, 5054, 5092, 5222,
5401, 5674 of this title.
-End-
-CITE-
26 USC Sec. 5054 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 D - Beer
-HEAD-
Sec. 5054. Determination and collection of tax on beer
-STATUTE-
(a) Time of determination
(1) Beer produced in the United States; certain imported beer
Except as provided in paragraph (3), the tax imposed by section
5051 on beer produced in the United States, or imported into the
United States and transferred to a brewery free of tax under
section 5418, shall be determined at the time it is removed for
consumption or sale, and shall be paid by the brewer thereof in
accordance with section 5061.
(2) Beer imported into the United States
Except as provided in paragraph (4), the tax imposed by section
5051 on beer imported into the United States and not transferred
to a brewery free of tax under section 5418 shall be determined
at the time of the importation thereof, or, if entered for
warehousing, at the time of removal from the 1st such warehouse.
(3) Illegally produced beer
The tax on any beer produced in the United States shall be due
and payable immediately upon production unless -
(A) such beer is produced in a brewery qualified under the
provisions of subchapter G, or
(B) such production is exempt from tax under sections (!1)
5053(e) (relating to beer for personal or family use).
(4) Unlawfully imported beer
Beer 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.
(b) Tax on returned beer
Beer which has been removed for consumption or sale and is
thereafter returned to the brewery shall be subject to all
provisions of this chapter relating to beer prior to removal for
consumption or sale, including the tax imposed by section 5051. The
tax on any such returned beer which is again removed for
consumption or sale shall be determined and paid without respect to
the tax which was determined at the time of prior removal of the
beer for consumption or sale.
(c) Applicability of other provisions of law
All administrative and penal provisions of this title, insofar as
applicable, shall apply to any tax imposed by section 5051.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1334; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(5),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834; Pub. L. 95-458,
Sec. 2(b)(2)(B), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 99-509,
title VIII, Sec. 8011(b)(2), Oct. 21, 1986, 100 Stat. 1953; Pub. L.
100-647, title I, Sec. 1018(u)(19), Nov. 10, 1988, 102 Stat. 3591;
Pub. L. 105-206, title VI, Sec. 6014(a)(1), (2), July 22, 1998, 112
Stat. 820.)
-MISC1-
PRIOR PROVISIONS
A prior section 5054, act Aug. 16, 1954, ch. 736, 68A Stat. 613,
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)(1), (2) and
(b) to (d) of this section were contained in prior sections 5055
and 5057(a), act Aug. 16, 1954, ch. 736, 68A Stat. 613, prior to
the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1998 - Subsec. (a)(1). Pub. L. 105-206, Sec. 6014(a)(1), in
heading inserted "; certain imported beer" after "United States"
and in text inserted ", or imported into the United States and
transferred to a brewery free of tax under section 5418," after
"United States".
Subsec. (a)(2). Pub. L. 105-206, Sec. 6014(a)(2), inserted "and
not transferred to a brewery free of tax under section 5418" after
"United States".
1988 - Subsec. (a)(2). Pub. L. 100-647 added period at end.
1986 - Subsec. (a)(2). Pub. L. 99-509 substituted "if entered for
warehousing, at the time of removal from the 1st such warehouse"
for "if entered into customs custody, at the time of removal from
such custody, and shall be paid under such regulations as the
Secretary shall prescribe.".
1978 - Subsec. (a)(3). Pub. L. 95-458 inserted provision
excluding from tax the beer exempt from tax under section 5053(e).
1976 - Subsec. (a)(2). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary".
Subsecs. (c), (d). Pub. L. 94-455, Sec. 1905(a)(5), redesignated
subsec. (d) as (c) and struck out former subsec. (c) respecting
stamps or other devices as evidence of payment of tax.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates (see
section 1421(c) of Pub. L. 105-34 set out as an Effective Date note
under section 5418 of this title), see section 6024 of Pub. L.
105-206, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-509 applicable to articles imported,
entered for warehousing, or brought into the United States or a
foreign trade zone after Dec. 15, 1986, see section 8011(c) of Pub.
L. 99-509, set out as a note under section 5061 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-458 effective on first day of first
calendar month beginning more than 90 days after Oct. 14, 1978, see
section 2(c) of Pub. L. 95-458, set out as a note under section
5042 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(5) 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5051, 5061, 5413 of this
title.
-FOOTNOTE-
(!1) So in original. Probably should be "section".
-End-
-CITE-
26 USC Sec. 5055 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 D - Beer
-HEAD-
Sec. 5055. Drawback of tax
-STATUTE-
On the exportation of beer, brewed or produced in the United
States, the brewer thereof shall be allowed a drawback equal in
amount to the tax paid on such beer if there is such proof of
exportation as the Secretary may by regulations require. For the
purpose of this section, exportation shall include delivery for use
as supplies on the vessels and aircraft described in section 309 of
the Tariff Act of 1930, as amended (19 U.S.C. 1309).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1335; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 105-34, title XIV, Sec. 1420(a),
Aug. 5, 1997, 111 Stat. 1049.)
-MISC1-
PRIOR PROVISIONS
A prior section 5055, act Aug. 16, 1954, ch. 736, 68A Stat. 613,
related to "determination and collection of tax on beer", prior to
the general revision of this chapter by Pub. L. 85-859. See section
5054(a)(1), (2), (c), (d) of this title.
Provisions similar to those comprising this section were
contained in prior section 5056, act Aug. 16, 1954, ch. 736, 68A
Stat. 613, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1997 - Pub. L. 105-34 substituted "paid on such beer if there is
such proof of exportation as the Secretary may by regulations
require." for "found to have been paid on such beer, to be paid on
submission of such evidence, records and certificates indicating
exportation, as the Secretary may by regulations prescribe."
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1420(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]."
-End-
-CITE-
26 USC Sec. 5056 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 D - Beer
-HEAD-
Sec. 5056. Refund and credit of tax, or relief from liability
-STATUTE-
(a) Beer returned or voluntarily destroyed
Any tax paid by any brewer on beer removed for consumption or
sale may be refunded or credited to the brewer, without interest,
or if the tax has not been paid, the brewer may be relieved of
liability therefor, under such regulations as the Secretary may
prescribe, if such beer is returned to any brewery of the brewer or
is destroyed under the supervision required by such regulations. In
determining the amount of tax due on beer removed on any day, the
quantity of beer returned to the same brewery from which removed
shall be allowed, under such regulations as the Secretary may
prescribe, as an offset against or deduction from the total
quantity of beer removed from that brewery on the day of such
return.
(b) Beer lost by fire, theft, casualty, or act of God
Subject to regulations prescribed by the Secretary, the tax paid
by any brewer on beer removed for consumption or sale may be
refunded or credited to the brewer, without interest, or if the tax
has not been paid, the brewer may be relieved of liability
therefor, if such beer is lost, whether by theft or otherwise, or
is destroyed or otherwise rendered unmerchantable by fire,
casualty, or act of God before the transfer of title thereto to any
other person. In any case in which beer is lost or destroyed,
whether by theft or otherwise, the Secretary may require the brewer
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 first sentence shall not apply unless the brewer
establishes to the satisfaction of the Secretary that such theft
occurred before removal from the brewery and occurred without
connivance, collusion, fraud, or negligence on the part of the
brewer, consignor, consignee, bailee, or carrier, or the employees
or agents of any of them.
(c) Beer received at a distilled spirits plant
Any tax paid by any brewer on beer removed for consumption or
sale may be refunded or credited to the brewer, without interest,
or if the tax has not been paid, the brewer may be relieved of
liability therefor, under regulations as the Secretary may
prescribe, if such beer is received on the bonded premises of a
distilled spirits plant pursuant to the provisions of section
5222(b)(2), for use in the production of distilled spirits.
(d) Limitations
No claim under this section shall be allowed (1) unless filed
within 6 months after the date of the return, loss, destruction,
rendering unmerchantable, or receipt on the bonded premises of a
distilled spirits plant or (2) if the claimant was indemnified by
insurance or otherwise in respect of the tax.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1335; amended Pub. L. 91-673, Sec. 1(a), Jan. 12, 1971, 84 Stat.
2056; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834; Pub. L. 105-34, title XIV, Sec. 1414(c), Aug. 5,
1997, 111 Stat. 1047; Pub. L. 105-206, title VI, Sec. 6014(a)(3),
July 22, 1998, 112 Stat. 820.)
-MISC1-
PRIOR PROVISIONS
A prior section 5056, act Aug. 16, 1954, ch. 736, 68A Stat. 613,
related to "drawback of tax" prior to the general revision of this
chapter by Pub. L. 85-859. See section 5055 of this title.
A prior section 5057, act Aug. 16, 1954, ch. 736, 68A Stat. 613,
related to refund and credit of tax or relief from liability, prior
to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1998 - Subsecs. (a) to (c). Pub. L. 105-206 substituted "removed
for consumption or sale" for "produced in the United States".
1997 - Subsec. (c). Pub. L. 105-34, Sec. 1414(c)(1), added
subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 105-34 redesignated subsec. (c) as (d) and
substituted "rendering unmerchantable, or receipt on the bonded
premises of a distilled spirits plant" for "or rendering
unmerchantable".
1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
1971 - Subsec. (a). Pub. L. 91-673 inserted provision permitting
credit or refund of tax if the beer is returned to any brewery of
the brewer who paid the tax, and provided for offset or deduction
against amount of beer removed from the brewery on the day of
return if the beer is returned to the same brewery from which it
was withdrawn.
Subsec. (b). Pub. L. 91-673 inserted provisions for credit or
refund or relief from liability of tax when the beer is lost by
theft or otherwise or rendered unmerchantable by fire, casualty or
act of God, before the transfer of title to any other party, and
required the brewer to file claim for relief from the tax and
submit proof of the cause of the loss, and in the case of theft, to
further prove that such theft occurred before removal from the
brewery and without connivance, collusion, fraud, or negligence on
the part of the brewer, consignor, consignee, bailee, or carrier,
or the employees or agents of any of them.
Subsec. (c). Pub. L. 91-673 substantially reenacted subsec. (c)
to reflect changes in subsec. (b).
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 effective on the 1st day of the 1st
calendar quarter that begins at least 180 days after Aug. 5, 1997,
see section 1414(d) of Pub. L. 105-34, set out as a note under
section 5053 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Section 5 of Pub. L. 91-673 provided that: "The amendments made
by the first four sections of this Act [enacting section 5417 of
this title and amending this section and sections 5052, 5053, 5401,
5402, 5411, 5412, and 5416 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 [Jan. 12, 1971]."
-End-
-CITE-
26 USC Subpart E - General Provisions 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 E - General Provisions
-HEAD-
SUBPART E - GENERAL PROVISIONS
-MISC1-
Sec.
5061. Method of collecting tax.
5062. Refund and drawback in case of exportation.
[5063. Repealed.]
5064. Losses resulting from disaster, vandalism, or
malicious mischief.
5065. Territorial extent of law.
5066. Distilled spirits for use of foreign embassies,
legations, etc.
5067. Cross reference.
PRIOR PROVISIONS
A prior subpart E, comprising sections 5061 to 5065, related to
general provisions, prior to the general revision of this chapter
by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1313.
AMENDMENTS
1978 - Pub. L. 95-423, Sec. 1(b), Oct. 6, 1978, 92 Stat. 936,
substituted "Losses resulting from disaster, vandalism, or
malicious mischief" for "Losses caused by disaster" in item 5064.
1971 - Pub. L. 91-659, Sec. 3(b), Jan. 8, 1971, 84 Stat. 1966,
added item 5066 and redesignated former item 5066 as 5067.
1965 - Pub. L. 89-44, title V, Sec. 501(e), June 21, 1965, 79
Stat. 150, struck out item 5063 "Floor stocks tax refunds on
distilled spirits, wines, cordials, and beer".
-End-
-CITE-
26 USC Sec. 5061 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 E - General Provisions
-HEAD-
Sec. 5061. Method of collecting tax
-STATUTE-
(a) Collection by return
The taxes on distilled spirits, wines, and beer shall be
collected on the basis of a return. The Secretary shall, by
regulation, prescribe the period or event for which such return
shall be filed, the time for filing such return, the information to
be shown in such return, and the time for payment of such tax.
(b) Exceptions
Notwithstanding the provisions of subsection (a), any taxes
imposed on, or amounts to be paid or collected in respect of,
distilled spirits, wines, and beer under -
(1) section 5001(a)(4), (5), or (6),
(2) section 5006(c) or (d),
(3) section 5041(f),
(4) section 5043(a)(3),
(5) section 5054(a)(3) or (4), or
(6) section 5505(a),
shall be immediately due and payable at the time provided by such
provisions (or if no specific time for payment is provided, at the
time the event referred to in such provision occurs). Such taxes
and amounts shall be assessed and collected by the Secretary on the
basis of the information available to him in the same manner as
taxes payable by return but with respect to which no return has
been filed.
(c) Import duties
The internal revenue taxes imposed by this part shall be in
addition to any import duties unless such duties are specifically
designated as being in lieu of internal revenue tax.
(d) Time for collecting tax on distilled spirits, wines, and beer
(1) In general
Except as otherwise provided in this subsection, in the case of
distilled spirits, wines, and beer to which this part applies
(other than subsection (b) of this section) which are withdrawn
under bond for deferred payment of tax, the last day for payment
of such tax shall be the 14th day after the last day of the
semimonthly period during which the withdrawal occurs.
(2) Imported articles
In the case of distilled spirits, wines, and beer which are
imported into the United States (other than in bulk containers) -
(A) In general
The last day for payment of tax shall be the 14th day after
the last day of the semimonthly period during which the article
is entered into the customs territory of the United States.
(B) Special rule for entry for warehousing
Except as provided in subparagraph (D), in the case of an
entry for warehousing, the last day for payment of tax shall
not be later than the 14th day after the last day of the
semimonthly period during which the article is removed from the
1st such warehouse.
(C) Foreign trade zones
Except as provided in subparagraph (D) and in regulations
prescribed by the Secretary, articles brought into a foreign
trade zone shall, notwithstanding any other provision of law,
be treated for purposes of this subsection as if such zone were
a single customs warehouse.
(D) Exception for articles destined for export
Subparagraphs (B) and (C) shall not apply to any article
which is shown to the satisfaction of the Secretary to be
destined for export.
(3) Distilled spirits, wines, and beer brought into the United
States from Puerto Rico
In the case of distilled spirits, wines, and beer which are
brought into the United States (other than in bulk containers)
from Puerto Rico, the last day for payment of tax shall be the
14th day after the last day of the semimonthly period during
which the article is brought into the United States.
(4) Special rule for tax due in September
(A) In general
Notwithstanding the preceding provisions of this subsection,
the taxes on distilled spirits, wines, and beer for the period
beginning on September 16 and ending on September 26 shall be
paid not later than September 29.
(B) Safe harbor
The requirement of subparagraph (A) shall be treated as met
if the amount paid not later than September 29 is not less than
11/15 of the taxes on distilled spirits, wines, and beer for
the period beginning on September 1 and ending on September 15.
(C) Taxpayers not required to use electronic funds transfer
In the case of payments not required to be made by electronic
funds transfer, subparagraphs (A) and (B) shall be applied by
substituting "September 25" for "September 26", "September 28"
for "September 29", and " 2/3 " for " 11/15 ".
(5) Special rule where due date falls on Saturday, Sunday, or
holiday
Notwithstanding section 7503, if, but for this paragraph, the
due date under this subsection for payment of tax would fall on a
Saturday, Sunday, or a legal holiday (within the meaning of
section 7503), such due date shall be the immediately preceding
day which is not a Saturday, Sunday, or such a holiday (or the
immediately following day where the due date described in
paragraph (4) falls on a Sunday).
(e) Payment by electronic fund transfer
(1) In general
Any person who in any 12-month period ending December 31, was
liable for a gross amount equal to or exceeding $5,000,000 in
taxes imposed on distilled spirits, wines, or beer by sections
5001, 5041, and 5051 (or 7652), respectively, shall pay such
taxes during the succeeding calendar year by electronic fund
transfer to a Federal Reserve Bank.
(2) Electronic fund transfer
The term "electronic fund transfer" means any transfer of
funds, other than a transaction originated by check, draft, or
similar paper instrument, which is initiated through an
electronic terminal, telephonic instrument, or computer or
magnetic tape so as to order, instruct, or authorize a financial
institution to debit or credit an account.
(3) Controlled groups
(A) In general
In the case of a controlled group of corporations, all
corporations which are component members of such group shall be
treated as 1 taxpayer. For purposes of the preceding sentence,
the term "controlled group of corporations" has the meaning
given to such term by subsection (a) of section 1563, except
that "more than 50 percent" shall be substituted for "at least
80 percent" each place it appears in such subsection.
(B) Controlled groups which include nonincorporated persons
Under regulations prescribed by the Secretary, principles
similar to the principles of subparagraph (A) shall apply to a
group of persons under common control where 1 or more of such
persons is not a corporation.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1335; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(6),
(b)(2)(E)(iii), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1819, 1822,
1834; Pub. L. 96-39, title VIII, Secs. 804(b), 807(a)(9), July 26,
1979, 93 Stat. 274, 281; Pub. L. 98-369, div. A, title I, Sec.
27(c)(1), July 18, 1984, 98 Stat. 509; Pub. L. 99-509, title VIII,
Sec. 8011(b)(1), Oct. 21, 1986, 100 Stat. 1952; Pub. L. 99-514,
title XVIII, Sec. 1801(c)(1), Oct. 22, 1986, 100 Stat. 2786; Pub.
L. 100-647, title II, Sec. 2003(b)(1)(A), (B), Nov. 10, 1988, 102
Stat. 3598; Pub. L. 101-508, title XI, Secs. 11201(b)(3),
11704(a)(21), Nov. 5, 1990, 104 Stat. 1388-416, 1388-519; Pub. L.
103-465, title I, Sec. 136(c)(5), title VII, Sec. 712(b), Dec. 8,
1994, 108 Stat. 4842, 5000; Pub. L. 104-188, title I, Sec.
1702(b)(6), Aug. 20, 1996, 110 Stat. 1869.)
-MISC1-
PRIOR PROVISIONS
A prior section 5061, act Aug. 16, 1954, ch. 736, 68A Stat. 614,
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. (d) of this
section were contained in former section 5001(c), act Aug. 16,
1954, ch. 736, 68A Stat. 597, prior to the general revision of this
chapter by Pub. L. 85-859.
AMENDMENTS
1996 - Subsec. (b)(3). Pub. L. 104-188 substituted "section
5041(f)," for "section 5041(e),".
1994 - Subsec. (b)(1). Pub. L. 103-465, Sec. 136(c)(5), amended
par. (1) generally. Prior to amendment, par. (1) read as follows:
"section 5001(a)(5), (6), or (7),".
Subsec. (d)(4). Pub. L. 103-465, Sec. 712(b)(1), added par. (4).
Former par. (4) redesignated (5).
Subsec. (d)(5). Pub. L. 103-465, Sec. 712(b), redesignated par.
(4) as (5), substituted "due date" for "14th day" in heading, and
inserted "(or the immediately following day where the due date
described in paragraph (4) falls on a Sunday)" before period at
end.
1990 - Subsec. (b)(3). Pub. L. 101-508, Secs. 11201(b)(3),
11704(a)(21), amended par. (3) identically, substituting "section
5041(e)" for "section 5041(d)".
1988 - Subsec. (d)(2)(A), (B), (3). Pub. L. 100-647 substituted
"last day of the semimonthly period during" for "date on".
1986 - Subsec. (d). Pub. L. 99-509 amended subsec. (d) generally,
substituting provisions relating to time for collecting tax on
distilled spirits, wines, and beer, for provisions relating to
extension of time for collecting tax on distilled spirits.
Subsec. (e)(3). Pub. L. 99-514 added par. (3).
1984 - Subsec. (e). Pub. L. 98-369 added subsec. (e).
1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(9)(A), struck out
"rectified distilled spirits and wines," after "distilled spirits,
wines,".
Subsec. (b). Pub. L. 96-39, Sec. 807(a)(9)(B), in provisions
preceding par. (1) struck out "rectified distilled spirits and
wines" after "spirits, wines," and redesignated pars. (4) to (7) as
(3) to (6), respectively. Former par. (3), which made reference to
section 5026(a)(2), was struck out.
Subsec. (d). Pub. L. 96-39, Sec. 804(b), added subsec. (d).
1976 - Subsec. (a). Pub. L. 94-455, Secs. 1905(a)(6)(A),
1906(b)(13)(A), struck out last sentence providing for continued
payment of taxes by stamp until the Secretary shall by regulation
provide for collection of the taxes on the basis of a return and
struck out "or his delegate" after "Secretary".
Subsec. (b). Pub. L. 94-455, Sec. 1905(a)(6)(B), substituted the
exceptions provisions for discretion method of collection providing
that "Whether or not the method of collecting any tax imposed by
this part is specifically provided in this part, any such tax may,
under regulations prescribed by the Secretary or his delegate, be
collected by stamp, coupon, serially-numbered ticket, or the use of
tax-stamp machines, or by such other reasonable device or method as
may be necessary or helpful in securing collection of the tax."
Subsec. (c). Pub. L. 94-455, Sec. 1905(a)(6)(C), substituted the
import duties provision for provision respecting applicability of
other provisions of law and reading "All administrative and penalty
provisions of this title, insofar as applicable, shall apply to the
collection of any tax which the Secretary or his delegate
determines or prescribes shall be collected in any manner provided
in this section."
Subsec. (d). Pub. L. 94-455, Sec. 1905(b)(2)(E)(iii), struck out
subsec. (d) which provided cross reference to section 5689 for
penalty and forfeiture for tampering with a stamp machine.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188 effective, except as otherwise
expressly provided, as if included in the provision of the Revenue
Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which
such amendment relates, see section 1702(i) of Pub. L. 104-188, set
out as a note under section 38 of this title.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by section 136(c)(5) of 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.
Section 712(e) of Pub. L. 103-465 provided that: "The amendments
made by this section [amending this section and sections 5703 and
6302 of this title] shall take effect on January 1, 1995."
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11201(b)(3) of 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 2003(b)(2) of Pub. L. 100-647 provided that: "The
amendments made by paragraph (1) [amending this section and section
5703 of this title] shall take effect as if included in the
amendments made by section 8011 of the Omnibus Budget
Reconciliation Act of 1986 [Pub. L. 99-509]."
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by Pub. L. 99-514 effective, except as otherwise
provided, as if included in the provisions of the Tax Reform Act of
1984, Pub. L. 98-369, div. A, to which such amendment relates, see
section 1881 of Pub. L. 99-514, set out as a note under section 48
of this title.
Section 8011(c) of Pub. L. 99-509, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section and sections
5054, 5703, and 5704 of this title] shall apply to removals during
semimonthly periods ending on or after December 31, 1986.
"(2) Imported articles, etc. - Subparagraphs (B) and (C) of
section 5703(b)(2) of the Internal Revenue Code of 1986 [formerly
I.R.C. 1954] (as added by this section), paragraphs (2) and (3) of
section 5061(d) of such Code (as amended by this section), and the
amendments made by subsections (a)(2) and (b)(2) [amending sections
5054 and 5704 of this title] shall apply to articles imported,
entered for warehousing, or brought into the United States or a
foreign trade zone after December 15, 1986.
"(3) Special rule for distilled spirits and tobacco for
semimonthly period ending december 15, 1986. - With respect to
remittances of -
"(A) taxes imposed on distilled spirits by section 5001 or 7652
of such Code, and
"(B) taxes imposed on tobacco products and cigarette papers and
tubes by section 5701 or 7652 of such Code,
for the semimonthly period ending December 15, 1986, the last day
for payment of such remittances shall be January 14, 1987.
"(4) Treatment of smokeless tobacco in inventory on June 30,
1986. - The tax imposed by section 5701(e) of the Internal Revenue
Code of 1986 shall not apply to any smokeless tobacco which -
"(A) on June 30, 1986, was in the inventory of the manufacturer
or importer, and
"(B) on such date was in a form ready for sale."
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to taxes required to be
paid on or after Sept. 30, 1984, see section 27(d)(2) of Pub. L.
98-369, 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(a)(6), (b)(2)(E)(iii) 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
TRANSITIONAL RULES RELATING TO DETERMINATION AND PAYMENT OF TAX
Section 808 of Pub. L. 96-39, as amended by Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) Liability for Payment of Tax. - Except as otherwise provided
in this section, the tax on all distilled spirits which have been
withdrawn from bond on determination of tax and on which tax has
not been paid by the close of December 31, 1979, shall become due
on January 1, 1980, and shall be payable in accordance with section
5061 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954].
"(b) Treatment of Controlled Stock and Bulk Wine. -
"(1) Election with respect to controlled stock. - The
proprietor of a distilled spirits plant may elect to convert any
distilled spirits or wine which on January 1, 1980, is controlled
stock.
"(2) Election with respect to wine. - The proprietor of a
distilled spirits plant may elect to convert any bulk wine which
on January 1, 1980, is on the premises of a distilled spirits
plant.
"(3) Effect of election. - If an election under paragraph (1)
or (2) is in effect with respect to any controlled stock or wine
-
"(A) any distilled spirits, wine, or rectification tax
previously paid or determined on such controlled stock or wine
shall be abated or (without interest) credited or refunded
under such regulations as the Secretary shall prescribe, and
"(B) such controlled stock or wine shall be treated as
distilled spirits or wine on which tax has not been paid or
determined.
"(4) Making of elections. - The elections under this subsection
shall be made at such time and in such manner as the Secretary
shall by regulations prescribe.
"(c) Taxpaid Stock. -
"(1) Taxpaid stock may remain on bonded premises during 1980. -
Section 5612(a) of the Internal Revenue Code of 1986 (relating to
forfeiture of taxpaid distilled spirits remaining on bonded
premises) shall not apply during 1980.
"(2) Separation of taxpaid stock. - All distilled spirits and
wine on which tax has been paid and which are on the bonded
premises of a distilled spirits plant shall be physically
separated from other distilled spirits and wine. Such separation
shall be by the use of separate tanks, rooms, or buildings, or by
partitioning, or by such other methods as the Secretary finds
will distinguish such distilled spirits and wine from other
distilled spirits and wine on the bonded premises of the
distilled spirits plant.
"(d) Return of Distilled Spirits Products Containing Taxpaid
Wine. - With respect to distilled spirits returned to the bonded
premises of distilled spirits plants during 1980, section
5008(c)(1) of the Internal Revenue Code of 1986 (relating to
refunds for distilled spirits returned to bonded premises) shall be
treated as including a reference to section 5041 of such Code.
"(e) Return of Distilled Spirits Products Containing Other
Alcoholic Ingredients. - With respect to distilled spirits to which
alcoholic ingredients other than distilled spirits have been added
and which have been withdrawn from a distilled spirits plant before
January 1, 1980, section 5215(a) of the Internal Revenue Code of
1986 shall apply only if such spirits are returned to the distilled
spirits plant from which withdrawn.
"(f) Secretary Defined. - For purposes of this section, the term
'Secretary' means the Secretary of the Treasury or his delegate."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4052, 5026, 5043, 5054,
5081, 5703, 5731, 5801, 6302 of this title.
-End-
-CITE-
26 USC Sec. 5062 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 E - General Provisions
-HEAD-
Sec. 5062. Refund and drawback in case of exportation
-STATUTE-
(a) Refund
Under such regulations as the Secretary may prescribe, the amount
of any internal revenue tax erroneously or illegally collected in
respect to exported articles may be refunded to the exporter of the
article, instead of to the manufacturer, if the manufacturer waives
any claim for the amount so to be refunded.
(b) Drawback
On the exportation of distilled spirits or wines manufactured,
produced, bottled, or packaged in casks or other bulk containers in
the United States on which an internal revenue tax has been paid or
determined, and which are contained in any cask or other bulk
container, or in bottles packed in cases or other containers, there
shall be allowed, under regulations prescribed by the Secretary, a
drawback equal in amount to the tax found to have been paid or
determined on such distilled spirits or wines. In the case of
distilled spirits, the preceding sentence shall not apply unless
the claim for drawback is filed by the bottler or packager of the
spirits and unless such spirits have been marked, especially for
export, under regulations prescribed by the Secretary. The
Secretary is authorized to prescribe regulations governing the
determination and payment or crediting of drawback of internal
revenue tax on spirits and wines eligible for drawback under this
subsection, including the requirements of such notices, bonds,
bills of lading, and other evidence indicating payment or
determination of tax and exportation as shall be deemed necessary.
(c) Exportation of imported liquors
(1) Allowance of tax
Upon the exportation of imported distilled spirits, wines, and
beer upon which the duties and internal revenue taxes have been
paid or determined incident to their importation into the United
States, and which have been found after entry to be
unmerchantable or not to conform to sample or specifications, and
which have been returned to customs custody, the Secretary shall,
under such regulations as he shall prescribe, refund, remit,
abate, or credit, without interest, to the importer thereof, the
full amount of the internal revenue taxes paid or determined with
respect to such distilled spirits, wines, or beer.
(2) Destruction in lieu of exportation
At the option of the importer, such imported distilled spirits,
wines, and beer, after return to customs custody, may be
destroyed under customs supervision and the importer thereof
granted relief in the same manner and to the same extent as
provided in this subsection upon exportation.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1336; amended Pub. L. 88-539, Sec. 1, Aug. 31, 1964, 78 Stat. 746;
Pub. L. 89-44, title VIII, Sec. 805(f)(6), June 21, 1965, 79 Stat.
161; Pub. L. 90-630, Sec. 2(a), Oct. 22, 1968, 82 Stat. 1328; Pub.
L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat.
1834; Pub. L. 95-176, Sec. 1, Nov. 14, 1977, 91 Stat. 1363; Pub. L.
98-369, div. A, title IV, Sec. 454(c)(1), July 18, 1984, 98 Stat.
820.)
-MISC1-
PRIOR PROVISIONS
A prior section 5062, act Aug. 16, 1954, ch. 736, 68A Stat. 614,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1984 - Subsec. (b). Pub. L. 98-369 substituted "have been marked"
for "have been stamped or restamped, and marked".
1977 - Subsec. (b). Pub. L. 95-176 substituted in first sentence
"manufactured, produced, bottled, or packaged in casks or other
bulk containers" and "other bulk container" for "manufactured or
produced" and "package" and in last sentence "spirits and wines
eligible for drawback under this subsection, including the
requirements" for "domestic distilled spirits and wines, including
the requirement".
1976 - Subsecs. (a), (b), (c)(1). Pub. L. 94-455 struck out "or
his delegate" after "Secretary" wherever appearing.
1968 - Subsec. (b). Pub. L. 90-630 permitted, under Treasury
regulations, drawback of the tax where the stamping, restamping, or
marking is done after the spirits have been removed from the
original bottling plant.
1965 - Subsec. (c)(1). Pub. L. 89-44 struck out "within six
months of their release therefrom" after "customs custody".
1964 - Subsec. (c). Pub. L. 88-539 added subsec. (c).
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 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 1968 AMENDMENT
Amendment by Pub. L. 90-630 applicable only to articles exported
on or after first day of first calendar month which begins more
than 90 days after Oct. 22, 1968, see section 4 of Pub. L. 90-630,
set out as a note under section 5008 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective July 1, 1965, see section
805(g)(1) of Pub. L. 89-44, set out as a note under section 5008 of
this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 2 of Pub. L. 88-539 provided that: "The amendment made by
the first section of this Act [amending this section] shall apply
with respect to articles exported or destroyed after the date of
the enactment of this Act [Aug. 31, 1964]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5008, 5066 of this title.
-End-
-CITE-
26 USC Sec. 5063 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 E - General Provisions
-HEAD-
[Sec. 5063. Repealed. Pub. L. 89-44, title V, Sec. 501(e), June 21,
1965, 79 Stat. 150]
-MISC1-
Section, Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72
Stat. 1336; Pub. L. 86-75, Sec. 3(b)(1), June 30, 1959, 73 Stat.
157; Pub. L. 86-564, title II, Sec. 202(b)(1), June 30, 1960, 74
Stat. 290; Pub. L. 87-72, Sec. 3(b)(1), June 30, 1961, 75 Stat.
193; Pub. L. 87-508, Sec. 3(b)(1), June 28, 1962, 76 Stat. 114;
Pub. L. 88-52, Sec. 3(b)(1)(A), June 29, 1963, 77 Stat. 72; Pub. L.
88-348, Sec. 2(b)(1)(A), June 30, 1964, 78 Stat. 237, made
provision for floor stocks refunds on distilled spirits, wines,
cordials, and beer and set out limitations on the eligibility for
such refunds or credits.
A prior section 5063, act Aug. 16, 1954, ch. 736, 68A Stat. 615,
consisted of provisions similar to those comprising section 5063,
prior to the general revision of this chapter by Pub. L. 85-859.
EFFECTIVE DATE OF REPEAL
Repeal applicable on and after July 1, 1965, see section 701(d)
of Pub. L. 89-44, set out as an Effective Date of 1965 Amendment
note under section 5701 of this title.
-End-
-CITE-
26 USC Sec. 5064 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 E - General Provisions
-HEAD-
Sec. 5064. Losses resulting from disaster, vandalism, or malicious
mischief
-STATUTE-
(a) Payments
The Secretary, under such regulations as he may prescribe, shall
pay (without interest) an amount equal to the amount of the
internal revenue taxes paid or determined and customs duties paid
on distilled spirits, wines, and beer previously withdrawn, which
were lost, rendered unmarketable, or condemned by a duly authorized
official by reason of -
(1) fire, flood, casualty, or other disaster, or
(2) breakage, destruction, or other damage (but not including
theft) resulting from vandalism or malicious mischief,
if such disaster or damage occurred in the United States and if
such distilled spirits, wines, or beer were held and intended for
sale at the time of such disaster or other damage. The payments
provided for in this section shall be made to the person holding
such distilled spirits, wines, or beer for sale at the time of such
disaster or other damage.
(b) Claims
(1) Period for making claim; proof
No claim shall be allowed under this section unless -
(A) filed within 6 months after the date on which such
distilled spirits, wines, or beer were lost, rendered
unmarketable, or condemned by a duly authorized official, and
(B) the claimant furnishes proof satisfactory to the
Secretary that the claimant -
(i) was not indemnified by any valid claim of insurance or
otherwise in respect of the tax, or tax and duty, on the
distilled spirits, wines, or beer covered by the claim; and
(ii) is entitled to payment under this section.
(2) Minimum claim
Except as provided in paragraph (3)(A), no claim of less than
$250 shall be allowed under this section with respect to any
disaster or other damage (as the case may be).
(3) Special rules for major disasters
If the President has determined under the Disaster Relief and
Emergency Assistance Act that a "major disaster" (as defined in
such Act) has occurred in any part of the United States, and if
the disaster referred to in subsection (a)(1) occurs in such part
of the United States by reason of such major disaster, then -
(A) paragraph (2) shall not apply, and
(B) the filing period set forth in paragraph (1)(A) shall not
expire before the day which is 6 months after the date on which
the President makes the determination that such major disaster
has occurred.
(4) Regulations
Claims under this section shall be filed under such regulations
as the Secretary shall prescribe.
(c) Destruction of distilled spirits, wines, or beer
When the Secretary has made payment under this section in respect
of the tax, or tax and duty, on the distilled spirits, wines, or
beer condemned by a duly authorized official or rendered
unmarketable, such distilled spirits, wines, or beer shall be
destroyed under such supervision as the Secretary may prescribe,
unless such distilled spirits, wines, or beer were previously
destroyed under supervision satisfactory to the Secretary.
(d) Products of Puerto Rico
The provisions of this section shall not be applicable in respect
of distilled spirits, wines, and beer of Puerto Rican manufacture
brought into the United States and so lost or rendered unmarketable
or condemned.
(e) Other laws applicable
All provisions of law, including penalties, applicable in respect
of internal revenue taxes on distilled spirits, wines, and beer
shall, insofar as applicable and not inconsistent with this
section, be applied in respect of the payments provided for in this
section to the same extent as if such payments constituted refunds
of such taxes.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1337; amended Pub. L. 91-606, title III, Sec. 301(i), Dec. 31,
1970, 84 Stat. 1759; Pub. L. 93-288, title VII, Sec. 702(i),
formerly title VI, Sec. 602(i), May 22, 1974, 88 Stat. 164,
renumbered title VII, Sec. 702(i), Pub. L. 103-337, div. C, title
XXXIV, Sec. 3411(a)(1), (2), Oct. 5, 1994, 108 Stat. 3100; Pub. L.
94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat.
1834; Pub. L. 95-423, Sec. 1(a), Oct. 6, 1978, 92 Stat. 935; Pub.
L. 96-39, title VIII, Sec. 807(a)(10), July 26, 1979, 93 Stat. 282;
Pub. L. 100-707, title I, Sec. 109(l), Nov. 23, 1988, 102 Stat.
4709.)
-REFTEXT-
REFERENCES IN TEXT
The Disaster Relief and Emergency Assistance Act, referred to in
subsec. (b)(3), is Pub. L. 93-288, May 22, 1974, 88 Stat. 143, as
amended, known as the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, which is classified principally to
chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health and
Welfare. For complete classification of this Act to the Code, see
Short Title note set out under section 5121 of Title 42 and Tables.
-MISC1-
PRIOR PROVISIONS
A prior section 5064, act Aug. 16, 1954, ch. 736, 68A Stat. 615,
related to "territorial extent of law", prior to the general
revision of this chapter by Pub. L. 85-859. See section 5065 of
this title.
AMENDMENTS
1988 - Subsec. (b)(3). Pub. L. 100-707 substituted "and Emergency
Assistance Act" for "Act of 1974".
1979 - Pub. L. 96-39 struck out "rectified products," after
"distilled spirits, wines," wherever appearing.
1978 - Pub. L. 95-423 substituted "Losses resulting from
disaster, vandalism, or malicious mischief" for "Losses caused by
disaster" in section catchline.
Subsec. (a). Pub. L. 95-423 substituted provisions authorizing
the Secretary, under such regulations as he may prescribe, to pay
the prescribed amount on distilled spirits, etc., lost, rendered
unmarketable, or condemned by a duly authorized official by reason
of fire, flood, casualty or other disaster, breakage, destruction,
or other damage (but not including theft) resulting from vandalism
or malicious mischief, for provisions authorizing such payment
where the President has determined under the Disaster Relief Act of
1974 that a "major disaster" has occurred, and that distilled
spirits, etc., were lost, rendered unmarketable, or condemned by a
duly authorized official by reason of such disaster occurring after
June 30, 1959.
Subsec. (b). Pub. L. 95-423 redesignated par. (1) as (1)(A),
substituted provisions disallowing a claim unless filed within 6
months after such distilled spirits, etc., were lost, rendered
unmarketable or condemned, for provisions disallowing a claim
unless filed within 6 months after the President determined that
such disaster occurred, and added par. (1)(B); in par. (2)
substituted provisions limiting claims to no less than $250, except
as provided in par. (3)(A), for provisions demanding proof that
claimant was not indemnified by any valid claim of insurance and
that he is entitled to payment under this section; and added pars.
(3) and (4).
1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
1974 - Subsec. (a). Pub. L. 93-288 substituted "Disaster Relief
Act of 1974" for "Disaster Relief Act of 1970".
1970 - Subsec. (a). Pub. L. 91-606 substituted "Disaster Relief
Act of 1970" for "Act of September 30, 1950 (42 U.S.C. 1855)".
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 1978 AMENDMENT
Section 1(c) of Pub. L. 95-423 provided that: "The amendments
made by this section [amending this section] shall apply to
disasters (or other damage) occurring on or after the first day of
the first calendar month which begins more than 90 days after the
date of the enactment of this Act [Oct. 6, 1978]."
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-288 effective Apr. 1, 1974, see section
605 of Pub. L. 93-288, set out as an Effective Date note under
section 5121 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-606 effective Dec. 31, 1970, see section
304 of Pub. L. 91-606, set out as a note under section 165 of this
title.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
EXCEPTION TO EFFECTIVE DATE
Section 210(a)(3) of Pub. L. 85-859, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"Provisions having the effect of section 5064 of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954] (as such section is
included in chapter 51 of such Code as amended by section 201 of
this Act) shall be deemed to be included in the Internal Revenue
Code of 1986, effective on the day following the date of the
enactment of this Act [Sept. 2, 1958], and shall apply with respect
to disasters occurring after such date of enactment, and not later
than June 30, 1959."
BEER LOST BY REASON OF FLOODS OF 1951 OR HURRICANES OF 1954
Section 207 of Pub. L. 85-859 provided for payment of an amount
equal to the amount of taxes paid under section 3150(a) of the
Internal Revenue Code of 1939 on fermented malt liquor which was
lost, rendered unmarketable, or condemned by reason of the floods
of 1951 or the hurricanes of 1954, under certain conditions and
under regulations to be prescribed.
LOSSES OF ALCOHOLIC LIQUORS CAUSED BY DISASTER
Section 208 of Pub. L. 85-859 provided for payment of an amount
equal to the amount of taxes and customs duties paid on distilled
spirits, wines, rectified products, and beer previously withdrawn,
which were lost, rendered unmarketable, or condemned by reason of a
major disaster occurring after Dec. 31, 1954, and not later than
Sept. 2, 1958, under certain conditions and under regulations to be
prescribed.
-End-
-CITE-
26 USC Sec. 5065 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 E - General Provisions
-HEAD-
Sec. 5065. Territorial extent of law
-STATUTE-
The provisions of this part imposing taxes on distilled spirits,
wines, and beer shall be held to extend to such articles produced
anywhere within the exterior boundaries of the United States,
whether the same be within an internal revenue district or not.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1337.)
-MISC1-
PRIOR PROVISIONS
A prior section 5065, act Aug. 16, 1954, ch. 736, 68A Stat. 615,
made a cross reference to general administrative provisions
applicable to assessment, collection, refund, etc., of taxes, prior
to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising this section were
contained in former section 5064, act Aug. 16, 1954, ch. 736, 68A
Stat. 615, prior to the general revision of this chapter by Pub. L.
85-859.
-End-
-CITE-
26 USC Sec. 5066 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 E - General Provisions
-HEAD-
Sec. 5066. Distilled spirits for use of foreign embassies,
legations, etc.
-STATUTE-
(a) Entry into customs bonded warehouses
(1) Bottled distilled spirits withdrawn from bonded premises
Under such regulations as the Secretary may prescribe, bottled
distilled spirits may be withdrawn from bonded premises as
provided in section 5214(a)(4) for transfer to customs bonded
warehouses in which imported distilled spirits are permitted to
be stored in bond for entry therein pending withdrawal therefrom
as provided in subsection (b). For the purposes of this chapter,
the withdrawal of distilled spirits from bonded premises under
the provisions of this paragraph shall be treated as a withdrawal
for exportation and all provisions of law applicable to distilled
spirits withdrawn for exportation under the provisions of section
5214(a)(4) shall apply with respect to spirits withdrawn under
this paragraph.
(2) Bottled distilled spirits eligible for export with benefit of
drawback
Under such regulations as the Secretary may prescribe,
distilled spirits marked especially for export under the
provisions of section 5062(b) may be shipped to a customs bonded
warehouse in which imported distilled spirits are permitted to be
stored, and entered in such warehouses pending withdrawal
therefrom as provided in subsection (b), and the provisions of
this chapter shall apply in respect of such distilled spirits as
if such spirits were for exportation.
(3) Time deemed exported
For the purposes of this chapter, distilled spirits entered
into a customs bonded warehouse as provided in this subsection
shall be deemed exported at the time so entered.
(b) Withdrawal from customs bonded warehouses
Notwithstanding any other provisions of law, distilled spirits
entered into customs bonded warehouses under the provisions of
subsection (a) may, under such regulations as the Secretary may
prescribe, be withdrawn from such warehouses for consumption in the
United States by and for the official or family use of such foreign
governments, organizations, and individuals who are entitled to
withdraw imported distilled spirits from such warehouses free of
tax. Distilled spirits transferred to customs bonded warehouses
under the provisions of this section shall be entered, stored, and
accounted for in such warehouses under such regulations and bonds
as the Secretary may prescribe, and may be withdrawn therefrom by
such governments, organizations, and individuals free of tax under
the same conditions and procedures as imported distilled spirits.
(c) Withdrawal for domestic use
Distilled spirits entered into customs bonded warehouses as
authorized by this section may be withdrawn therefrom for domestic
use, in which event they shall be treated as American goods
exported and returned.
(d) Sale or unauthorized use prohibited
No distilled spirits withdrawn from customs bonded warehouses or
otherwise brought into the United States free of tax for the
official or family use of such foreign governments, organizations,
or individuals as are authorized to obtain distilled spirits free
of tax shall be sold, or shall be disposed of or possessed for any
use other than an authorized use. The provisions of section
5001(a)(5) (!1) are hereby extended and made applicable to any
person selling, disposing of, or possessing any distilled spirits
in violation of the preceding sentence, and to the distilled
spirits involved in any such violation.
-SOURCE-
(Added Pub. L. 91-659, Sec. 3(a), Jan. 8, 1971, 84 Stat. 1965;
amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,
1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 2(d), Nov. 14, 1977, 91
Stat. 1364; Pub. L. 96-39, title VIII, Sec. 807(a)(11), July 26,
1979, 93 Stat. 282; Pub. L. 98-369, div. A, title IV, Sec.
454(c)(2), July 18, 1984, 98 Stat. 820.)
-REFTEXT-
REFERENCES IN TEXT
Section 5001(a)(5), referred to in subsec. (d), was redesignated
section 5001(a)(4) by Pub. L. 103-465, title I, Sec. 136(a), Dec.
8, 1994, 108 Stat. 4841.
-MISC1-
PRIOR PROVISIONS
A prior section 5066 was renumbered 5067 of this title.
AMENDMENTS
1984 - Subsec. (a)(2). Pub. L. 98-369 substituted "marked" for
"stamped or restamped, and marked,".
1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 807(a)(11)(A),
substituted "bottled distilled spirits" for "distilled spirits
bottled in bond for export under the provisions of section 5233, or
bottled distilled spirits returned to bonded premises under section
5215(b),".
Subsec. (b). Pub. L. 96-39, Sec. 807(a)(11)(B), struck out "or
domestic distilled spirits transferred to customs bonded warehouses
under section 5521(d)(2)" after "the provisions of subsection (a)".
1977 - Subsec. (a)(1). Pub. L. 95-176 substituted par. (1)
heading "Bottled distilled spirits withdrawn from bonded premises"
for "Distilled spirits bottled in bond for export" and authorized
withdrawal of bottled distilled spirits returned to bonded premises
under section 5215(b) as provided in section 5214(a)(4).
1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 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
Section 6 of Pub. L. 91-659 provided that: "This Act [enacting
this section and amending sections 5008, 5173, 5178, 5215, and 5232
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 [Jan. 8, 1971]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5008, 5214 of this title.
-FOOTNOTE-
(!1) See References in Text note below.
-End-
-CITE-
26 USC Sec. 5067 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 E - General Provisions
-HEAD-
Sec. 5067. Cross reference
-STATUTE-
For general administrative provisions applicable to the
assessment, collection, refund, etc., of taxes, see subtitle F.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1338, Sec. 5066; renumbered Sec. 5067, Pub. L. 91-659, Sec. 3(a),
Jan. 8, 1971, 84 Stat. 1965.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in former section 5065, act Aug. 16, 1954, ch. 736, 68A
Stat. 615, prior to the general revision of this chapter by Pub. L.
85-859.
-End-
-CITE-
26 USC PART II - OCCUPATIONAL TAX 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 II - OCCUPATIONAL TAX
-HEAD-
PART II - OCCUPATIONAL TAX
-MISC1-
Subpart
A. Proprietors of distilled spirits plants, bonded wine
cellars, etc.
B. Brewer.
C. Manufacturers of stills.
D. Wholesale dealers.
E. Retail dealers.
F. Nonbeverage domestic drawback claimants.
G. General provisions.
PRIOR PROVISIONS
A prior part II, consisting of subparts A to G, related to
occupational tax, prior to the general revision of this chapter by
Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1987 - Pub. L. 100-203, title X, Sec. 10512(a)(1)(C), Dec. 22,
1987, 101 Stat. 1330-448, added item relating to subpart A.
1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(3), July 26, 1979,
93 Stat. 290, struck out item relating to subpart A "Rectifier" in
table of subparts comprising part II.
-SECREF-
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in sections 5691, 6423 of this title.
-End-
-CITE-
26 USC Subpart A - Proprietors of Distilled Spirits
Plants, Bonded Wine Cellars, Etc. 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 II - OCCUPATIONAL TAX
Subpart A - Proprietors of Distilled Spirits Plants, Bonded Wine
Cellars, Etc.
-HEAD-
SUBPART A - PROPRIETORS OF DISTILLED SPIRITS PLANTS, BONDED WINE
CELLARS, ETC.
-MISC1-
Sec.
5081. Imposition and rate of tax.
PRIOR PROVISIONS
A prior subpart A, consisted of sections 5081 to 5084 of this
title, prior to repeal by Pub. L. 96-39, title VIII, Sec. 803(b),
July 26, 1979, 93 Stat. 274, effective Jan. 1, 1980.
Section 5081, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1338, imposed a tax on rectifiers of distilled
spirits or wines.
Another prior section 5081, act Aug. 16, 1954, ch. 736, 68A Stat.
615, imposed a tax on rectifiers of distilled spirits or wines,
prior to the general revision of this chapter by Pub. L. 85-859.
Section 5082, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1338, defined "rectifier".
Another prior section 5082, act Aug. 16, 1954, ch. 736, 68A Stat.
616, defined "rectifier", prior to the general revision of this
chapter by Pub. L. 85-859.
Section 5083, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1338; amended Pub. L. 89-44, title VIII, Sec.
805(f)(7), June 21, 1965, 79 Stat. 161, enumerated source authority
for 15 exemptions from tax under sections 5021 and 5081 of this
title.
Another prior section 5083, act Aug. 16, 1954, ch. 736, 68A Stat.
616, enumerated source authority for certain exemptions from tax
under sections 5021 and 5081 of this title, prior to the general
revision of this chapter by Pub. L. 85-859.
Section 5084, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1339, made cross references to other provisions
relating to rectification.
Another prior section 5084, act Aug. 16, 1954, ch. 736, 68A Stat.
616, made cross references to other provisions relating to
rectification, prior to the general revision of this chapter by
Pub. L. 85-859.
-End-
-CITE-
26 USC Sec. 5081 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 II - OCCUPATIONAL TAX
Subpart A - Proprietors of Distilled Spirits Plants, Bonded Wine
Cellars, Etc.
-HEAD-
Sec. 5081. Imposition and rate of tax
-STATUTE-
(a) General rule
Every proprietor of -
(1) a distilled spirits plant,
(2) a bonded wine cellar,
(3) a bonded wine warehouse, or
(4) a taxpaid wine bottling house,
shall pay a tax of $1,000 per year in respect of each such
premises.
(b) Reduced rates for small proprietors
(1) In general
Subsection (a) shall be applied by substituting "$500" for
"$1,000" with respect to any taxpayer not described in subsection
(c) the gross receipts of which (for the most recent taxable year
ending before the 1st day of the taxable period to which the tax
imposed by subsection (a) relates) are less than $500,000.
(2) Controlled group rules
All persons treated as 1 taxpayer under section 5061(e)(3)
shall be treated as 1 taxpayer for purposes of paragraph (1).
(3) Certain rules to apply
For purposes of paragraph (1), rules similar to the rules of
subparagraphs (B) and (C) of section 448(c)(3) shall apply.
(c) Exemption for small producers
Subsection (a) shall not apply with respect to any taxpayer who
is a proprietor of an eligible distilled spirits plant (as defined
in section 5181(c)(4)).
-SOURCE-
(Added Pub. L. 100-203, title X, Sec. 10512(a)(1)(A), Dec. 22,
1987, 101 Stat. 1330-447; amended Pub. L. 100-647, title VI, Sec.
6106(a), (b), Nov. 10, 1988, 102 Stat. 3712.)
-MISC1-
PRIOR PROVISIONS
Prior sections 5081 to 5084 of this title constituted a former
subpart A of this part, see Prior Provisions note set out preceding
this section.
AMENDMENTS
1988 - Subsec. (b)(1). Pub. L. 100-647, Sec. 6106(b), inserted
"not described in subsection (c)" after "taxpayer".
Subsec. (c). Pub. L. 100-647, Sec. 6106(a), added subsec. (c).
EFFECTIVE DATE OF 1988 AMENDMENT
Section 6106(c) of Pub. L. 100-647 provided that: "The amendments
made by this section [amending this section] shall take effect on
July 1, 1989."
EFFECTIVE DATE
Section 10512(h) of Pub. L. 100-203 provided that:
"(1) In general. - The amendments made by this section [enacting
this section and sections 5276 and 5731 of this title and amending
sections 5091, 5111, 5121, 5131, 5691, and 5801 of this title]
shall take effect on January 1, 1988.
"(2) All taxpayers treated as commencing in business on january
1, 1988. -
"(A) In general. - Any person engaged on January 1, 1988, in
any trade or business which is subject to an occupational tax
shall be treated for purposes of such tax as having 1st engaged
in such trade or business on such date.
"(B) Limitation on amount of tax. - In the case of a taxpayer
who paid an occupational tax in respect of any premises for any
taxable period which began before January 1, 1988, and includes
such date, the amount of the occupational tax imposed by reason
of subparagraph (A) in respect of such premises shall not exceed
an amount equal to 1/2 the excess (if any) of -
"(i) the rate of such tax as in effect on January 1, 1988,
over
"(ii) the rate of such tax as in effect on December 31, 1987.
"(C) Occupational tax. - For purposes of this paragraph, the
term 'occupational tax' means any tax imposed under part II of
subchapter A of chapter 51, section 5276, section 5731, or
section 5801 of the Internal Revenue Code of 1986 (as amended by
this section).
"(D) Due date of tax. - The amount of any tax required to be
paid by reason of this paragraph shall be due on April 1, 1988."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5091 of this title.
-End-
-CITE-
26 USC Subpart B - Brewer 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 II - OCCUPATIONAL TAX
Subpart B - Brewer
-HEAD-
SUBPART B - BREWER
-MISC1-
Sec.
5091. Imposition and rate of tax.
5092. Definition of brewer.
5093. Cross references.
PRIOR PROVISIONS
A prior subpart B, consisting of sections 5091 to 5093, related
to brewer, prior to the general revision of this chapter by Pub. L.
85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5091 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 II - OCCUPATIONAL TAX
Subpart B - Brewer
-HEAD-
Sec. 5091. Imposition and rate of tax
-STATUTE-
(a) General rule
Every brewer shall pay a tax of $1,000 per year in respect of
each brewery.
(b) Reduced rates for small brewers
Rules similar to the rules of section 5081(b) shall apply for
purposes of subsection (a).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1339; amended Pub. L. 100-203, title X, Sec. 10512(a)(2), Dec. 22,
1987, 101 Stat. 1330-448.)
-MISC1-
PRIOR PROVISIONS
A prior section 5091, act Aug. 16, 1954, ch. 736, 68A Stat. 616,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1987 - Pub. L. 100-203 amended section generally. Prior to
amendment, section read as follows: "Every brewer shall pay $110 a
year in respect of each brewery; except that any brewer of less
than 500 barrels a year shall pay the sum of $55 a year. Any beer
procured by a brewer in his own hogsheads, barrels, or kegs under
the provisions of section 5413 shall be included in calculating the
liability to brewers' special tax of both the brewer who produces
the same and the brewer who procures the same."
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
10512(h) of Pub. L. 100-203, set out as an Effective Date note
under section 5081 of this title.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5671 of this title.
-End-
-CITE-
26 USC Sec. 5092 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 II - OCCUPATIONAL TAX
Subpart B - Brewer
-HEAD-
Sec. 5092. Definition of brewer
-STATUTE-
Every person who brews beer (except a person who produces only
beer exempt from tax under section 5053(e)) and every person who
produces beer for sale shall be deemed to be a brewer.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1339; amended Pub. L. 95-458, Sec. 2(b)(3), Oct. 14, 1978, 92 Stat.
1256.)
-MISC1-
PRIOR PROVISIONS
A prior section 5092, act Aug. 16, 1954, ch. 736, 68A Stat. 617,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1978 - Pub. L. 95-458 inserted provision which excludes from
definition of brewer a person who produces beer exempt from tax
under section 5053(e).
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-458 effective on the first day of the
first calendar month beginning more than 90 days after Oct. 14,
1978, see section 2(c) of Pub. L. 95-458, set out as a note under
section 5042 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5052, 5402 of this title.
-End-
-CITE-
26 USC Sec. 5093 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 II - OCCUPATIONAL TAX
Subpart B - Brewer
-HEAD-
Sec. 5093. Cross references
-STATUTE-
(1) For exemption of brewer from special tax as wholesale and
retail dealer, see section 5113(a).
(2) For provisions relating to liability for special tax for
carrying on business in more than one location, see section
5143(c).
(3) For exemption from special tax in case of sales made on
purchaser dealers' premises, see section 5113(d).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1339.)
-MISC1-
PRIOR PROVISIONS
A prior section 5093, act Aug. 16, 1954, ch. 736, 68A Stat. 617,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC Subpart C - Manufacturers of Stills 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 II - OCCUPATIONAL TAX
Subpart C - Manufacturers of Stills
-HEAD-
SUBPART C - MANUFACTURERS OF STILLS
-MISC1-
Sec.
5101. Notice of manufacture of still; notice of set up of
still.
5102. Definition of manufacturer of stills.
PRIOR PROVISIONS
A prior subpart C, consisting of sections 5101 to 5106, related
to manufacturers of stills, prior to the general revision of this
subpart by Pub. L. 98-369, div. A, title IV, Sec. 451(a), July 18,
1984, 98 Stat. 818.
Another prior subpart C, consisting of sections 5101 to 5106,
related to manufacturers of stills, prior to the general revision
of this chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5101 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 II - OCCUPATIONAL TAX
Subpart C - Manufacturers of Stills
-HEAD-
Sec. 5101. Notice of manufacture of still; notice of set up of
still
-STATUTE-
(a) Notice requirements
(1) Notice of manufacture of still
The Secretary may, pursuant to regulations, require any person
who manufactures any still, boiler, or other vessel to be used
for the purpose of distilling, to give written notice, before the
still, boiler, or other vessel is removed from the place of
manufacture, setting forth by whom it is to be used, its
capacity, and the time of removal from the place of manufacture.
(2) Notice of set up of still
The Secretary may, pursuant to regulations, require that no
still, boiler, or other vessel be set up without the manufacturer
of the still, boiler, or other vessel first giving written notice
to the Secretary of that purpose.
(b) Penalties, etc.
(1) For penalty and forfeiture for failure to give notice of
manufacture, or for setting up a still without first giving
notice, when required by the Secretary, see sections 5615(2)
and 5687.
(2) For penalty and forfeiture for failure to register still
or distilling apparatus when set up, see section 5601(a)(1) and
5615(1).
-SOURCE-
(Added Pub. L. 98-369, div. A, title IV, Sec. 451(a), July 18,
1984, 98 Stat. 818.)
-MISC1-
PRIOR PROVISIONS
A prior section 5101, added Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1339, contained provisions relating to
imposition and rate of tax, prior to the general revision of this
subpart by Pub. L. 98-369.
Another prior section 5101, act Aug. 16, 1954, ch. 736, 68A Stat.
617, consisted of provisions similar to those comprising this
section, prior to the general revision of this chapter by Pub. L.
85-859.
EFFECTIVE DATE
Section 456 of part II (Secs. 451-456) of subtitle D of title IV
of division A of Pub. L. 98-369, as amended by Pub. L. 99-514,
title XVIII, Sec. 1845, Oct. 22, 1986, 100 Stat. 2856, provided
that:
"(a) In General. - Except as otherwise provided in this section
the amendments made by this part [enacting this section and section
5102 of this title, amending sections 5005, 5062, 5066, 5116, 5134,
5179, 5204, 5206, 5207, 5214, 5215, 5235, 5301, 5354, 5555, 5604,
5613, 5615, 5691, 6103, 6801, and 7213 of this title, repealing
section 5205 of this title, and omitting sections 5103, 5105, and
5106 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 [July 18, 1984].
"(b) Repeal of Stamp Requirement. - The amendments made by
section 454 [amending sections 5062, 5066, 5116, 5204, 5206, 5207,
5215, 5235, 5301, 5555, 5604, 5613, and 6801 of this title and
repealing section 5205 of this title] shall take effect on July 1,
1985.
"(c) Fortification of Cooking Wine. - The amendments made by
section 455 [amending sections 5005, 5214, and 5354 of this title]
shall take effect on the date of the enactment of this Act [July
18, 1984].
"(d) Section 452. - The amendment made by section 452 [amending
section 5134 of this title] shall apply to products manufactured or
produced after October 31, 1984."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5179, 5615 of this title.
-End-
-CITE-
26 USC Sec. 5102 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 II - OCCUPATIONAL TAX
Subpart C - Manufacturers of Stills
-HEAD-
Sec. 5102. Definition of manufacturer of stills
-STATUTE-
Any person who manufactures any still or condenser to be used in
distilling shall be deemed a manufacturer of stills.
-SOURCE-
(Added Pub. L. 98-369, div. A, title IV, Sec. 451(a), July 18,
1984, 98 Stat. 819.)
-MISC1-
PRIOR PROVISIONS
A prior section 5102, added Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1339, consisted of provisions similar to
those comprising this section, prior to the general revision of
this subpart by Pub. L. 98-369.
Another prior section 5102, act Aug. 16, 1954, ch. 736, 68A Stat.
617, defined manufacturer of stills, prior to the general revision
of this chapter by Pub. L. 85-859.
A prior section 5103, added Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1339, related to exemptions from the taxes
imposed by section 5101 of this title, prior to the general
revision of this subpart by Pub. L. 98-369.
Another prior section 5103, act Aug. 16, 1954, ch. 736, 68A Stat.
617, related to exemptions, prior to the general revision of this
chapter by Pub. L. 85-859.
A prior section 5104, added Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1339, provided that the tax imposed on
stills or condensers by section 5101 be paid by stamp, denoting the
tax, under regulations prescribed by Secretary or his delegate,
prior to repeal by Pub. L. 94-455, title XIX, Sec.
1905(b)(3)(A)(i), Oct. 4, 1976, 90 Stat. 1822, effective on first
day of first month which began more than 90 days after Oct. 4,
1976.
Another prior section 5104, act Aug. 16, 1954, ch. 736, 68A Stat.
617, required taxes to be paid by stamps, prior to the general
revision of this chapter by Pub. L. 85-859.
A prior section 5105, added Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1339; amended Pub. L. 94-455, title XIX,
Secs. 1905(b)(6)(A), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823,
1834, related to notice of manufacturer of and permit to set up
still, prior to the general revision of this subpart by Pub. L.
98-369. See section 5101 of this title.
Another prior section 5105, act Aug. 16, 1954, ch. 736, 68A Stat.
617, related to notice of manufacture of and permit to set up
still, prior to the general revision of this chapter by Pub. L.
85-859.
A prior section 5106, added Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1340; amended Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to export
without payment of tax and export with the privilege of drawback,
prior to the general revision of this subpart by Pub. L. 98-369.
Another prior section 5106, act Aug. 16, 1954, ch. 736, 68A Stat.
618, related to payment of tax and drawback on exports, prior to
the general revision of this chapter by Pub. L. 85-859.
EFFECTIVE DATE
Section effective on first day of first calendar month which
begins more than 90 days after July 18, 1984, see section 456(a) of
Pub. L. 98-369, set out as a note under section 5101 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5002 of this title.
-End-
-CITE-
26 USC Subpart D - Wholesale Dealers 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 II - OCCUPATIONAL TAX
Subpart D - Wholesale Dealers
-HEAD-
SUBPART D - WHOLESALE DEALERS
-MISC1-
Sec.
5111. Imposition and rate of tax.
5112. Definitions.
5113. Exemptions.
5114. Records.
[5115. Repealed.]
5116. Packaging distilled spirits for industrial uses.
5117. Prohibited purchases by dealers.
PRIOR PROVISIONS
A prior subpart D, consisting of sections 5111 to 5116, related
to wholesale dealers, 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. 1415(b)(3), Aug. 5, 1997,
111 Stat. 1047, struck out item 5115 "Sign required on premises".
-End-
-CITE-
26 USC Sec. 5111 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 II - OCCUPATIONAL TAX
Subpart D - Wholesale Dealers
-HEAD-
Sec. 5111. Imposition and rate of tax
-STATUTE-
(a) Wholesale dealers in liquors
Every wholesale dealer in liquors shall pay a special tax of $500
a year.
(b) Wholesale dealers in beer
Every wholesale dealer in beer shall pay a special tax of $500 a
year.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1340; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(3)(B), Oct.
4, 1976, 90 Stat. 1822; Pub. L. 100-203, title X, Sec. 10512(b),
Dec. 22, 1987, 101 Stat. 1330-448.)
-MISC1-
PRIOR PROVISIONS
A prior section 5111, act Aug. 16, 1954, ch. 736, 68A Stat. 618,
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) of this
section were contained in former section 5112(a), act Aug. 16,
1954, ch. 736, 68A Stat. 618, prior to the general revision of this
chapter by Pub. L. 85-859.
AMENDMENTS
1987 - Subsec. (a). Pub. L. 100-203, Sec. 10512(b)(1),
substituted "$500" for "$255".
Subsec. (b). Pub. L. 100-203, Sec. 10512(b)(2), substituted
"$500" for "$123".
1976 - Subsec. (a). Pub. L. 94-455 struck out provisions
authorizing the issuance of stamps denoting payment of the special
tax.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
10512(h) of Pub. L. 100-203, set out as an Effective Date note
under section 5081 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5113, 5123, 5182 of this
title.
-End-
-CITE-
26 USC Sec. 5112 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 II - OCCUPATIONAL TAX
Subpart D - Wholesale Dealers
-HEAD-
Sec. 5112. Definitions
-STATUTE-
(a) Dealer
When used in this subpart, subpart E, or subpart G, the term
"dealer" means any person who sells, or offers for sale, any
distilled spirits, wines, or beer.
(b) Wholesale dealer in liquors
When used in this chapter, the term "wholesale dealer in liquors"
means any dealer, other than a wholesale dealer in beer, who sells,
or offers for sale, distilled spirits, wines, or beer, to another
dealer.
(c) Wholesale dealer in beer
When used in this chapter, the term "wholesale dealer in beer"
means a dealer who sells, or offers for sale, beer, but not
distilled spirits or wines, to another dealer.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1340.)
-MISC1-
PRIOR PROVISIONS
A prior section 5112, act Aug. 16, 1954, ch. 736, 68A Stat. 618,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Prior section 5112(a) also provided for issuance of stamp
denoting payment of special tax as "wholesale dealer in wines" or
"wholesale dealer in wines and beer". See section 5111(a) of this
title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5002, 5691 of this title.
-End-
-CITE-
26 USC Sec. 5113 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 II - OCCUPATIONAL TAX
Subpart D - Wholesale Dealers
-HEAD-
Sec. 5113. Exemptions
-STATUTE-
(a) Sales by proprietors of controlled premises
No proprietor of a distilled spirits plant, bonded wine cellar,
taxpaid wine bottling house, or brewery, shall be required to pay
special tax under section 5111 or section 5121 on account of the
sale at his principal business office as designated in writing to
the Secretary, or at his distilled spirits plant, bonded wine
cellar, taxpaid wine bottling house, or brewery, as the case may
be, of distilled spirits, wines, or beer, which, at the time of
sale, are stored at his distilled spirits plant, bonded wine
cellar, taxpaid wine bottling house, or brewery, as the case may
be, or had been removed from such premises to a taxpaid storeroom
operated in connection therewith and are stored therein. However,
on such proprietor shall have more than one place of sale, as to
each distilled spirits plant, bonded wine cellar, taxpaid wine
bottling house, or brewery, that shall be exempt from special taxes
by reason of the sale of distilled spirits, wines, or beer stored
at such premises (or removed therefrom and stored as provided in
this section), by reason of this subsection.
(b) Sales by liquor stores operated by States, political
subdivisions, etc.
No liquor store engaged in the business of selling to persons
other than dealers, which is operated by a State, by a political
subdivision of a State or by the District of Columbia, shall be
required to pay any special tax imposed under section 5111, by
reason of selling distilled spirits, wines, or beer to dealers
qualified to do business as such in such State, subdivision, or
District, if such State, political subdivision, or District has
paid the applicable special tax imposed under section 5121, and if
such State, political subdivision, or District has paid special tax
under section 5111 at its principal place of business.
(c) Casual sales
(1) Sales by creditors, fiduciaries, and officers of court
No person shall be deemed to be a dealer by reason of the sale
of distilled spirits, wines, or beer which have been received by
him as security for or in payment of a debt, or as an executor,
administrator, or other fiduciary, or which have been levied on
by any officer under order or process of any court or magistrate,
if such distilled spirits, wines, or beer are sold by such person
in one parcel only or at public auction in parcels of not less
than 20 wine gallons.
(2) Sales by retiring partners or representatives of deceased
partners to incoming or remaining partners
No person shall be deemed to be a dealer by reason of a sale of
distilled spirits, wines, or beer made by such person as a
retiring partner or the representative of a deceased partner to
the incoming, remaining, or surviving partner or partners of a
firm.
(3) Return of liquors for credit, refund, or exchange
No person shall be deemed to be a dealer by reason of the bona
fide return of distilled spirits, wines, or beer to the dealer
from whom purchased (or to the successor of the vendor's business
or line of merchandise) for credit, refund, or exchange, and the
giving of such credit, refund, or exchange shall not be deemed to
be a purchase within the meaning of section 5117.
(d) Dealers making sales on purchaser dealer's premises
(1) Wholesale dealers in liquors
No wholesale dealer in liquors who has paid the special tax as
such dealer shall again be required to pay special tax as such
dealer on account of sales of wines or beer to wholesale or
retail dealers in liquors, or to limited retail dealers, or of
beer to wholesale or retail dealers in beer, consummated at the
purchaser's place of business.
(2) Wholesale dealers in beer
No wholesale dealer in beer who has paid the special tax as
such a dealer shall again be required to pay special tax as such
dealer on account of sales of beer to wholesale or retail dealers
in liquors or beer, or to limited retail dealers, consummated at
the purchaser's place of business.
(e) Sales by retail dealers in liquidation
No retail dealer in liquors or retail dealer in beer, selling in
liquidation his entire stock of liquors in one parcel or in parcels
embracing not less than his entire stock of distilled spirits, of
wines, or of beer to any other dealer, shall be deemed to be a
wholesale dealer in liquors or a wholesale dealer in beer, as the
case may be, by reason of such sale or sales.
(f) Sales to limited retail dealers
(1) Retail dealers in liquors
No retail dealer in liquors who has paid special tax as such
dealer under section 5121(a) shall be required to pay special tax
under section 5111 on account of the sale at his place of
business of distilled spirits, wines, or beer to limited retail
dealers as defined in section 5122(c).
(2) Retail dealers in beer
No retail dealer in beer who has paid special tax as such
dealer under section 5121(b) shall be required to pay special tax
under section 5111 on account of the sale at his place of
business of beer to limited retail dealers as defined in section
5122(c).
(g) Coordination of taxes under section 5111
No tax shall be imposed by section 5111(a) with respect to a
person's activities at any place during a year if such person has
paid the tax imposed by section 5111(b) with respect to such place
for such year.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1340; amended Pub. L. 87-863, Sec. 4(b), Oct. 23, 1962, 76 Stat.
1142; Pub. L. 94-455, title XIX, Secs. 1905(a)(7), 1906(b)(13)(A),
Oct. 4, 1976, 90 Stat. 1819, 1834; Pub. L. 100-647, title II, Sec.
2004(t)(2), (4), Nov. 10, 1988, 102 Stat. 3609, 3610.)
-MISC1-
PRIOR PROVISIONS
A prior section 5113, act Aug. 16, 1954, ch. 736, 68A Stat. 619,
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), (d), and (e)
of this section were contained in prior sections 5123(a), (b)(3),
(c), 5144(c), and 5306, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
624, 657, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1988 - Subsec. (a). Pub. L. 100-647, Sec. 2004(t)(2), substituted
"controlled premises" for "distilled spirits plants, bonded wine
cellars, or breweries" in heading and inserted "taxpaid wine
bottling house," after "bonded wine cellar," wherever appearing in
text.
Subsec. (g). Pub. L. 100-647, Sec. 2004(t)(4), added subsec. (g).
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsec. (f)(1). Pub. L. 94-455, Sec. 1905(a)(7), inserted
reference to distilled spirits.
1962 - Subsec. (b). Pub. L. 87-863 substituted "if such State,
political subdivision, or district" for "if such liquor store"
before "has paid the", and struck out reference to Territories
wherever appearing.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provisions of the Revenue Act of
1987, Pub. L. 100-203, title X, to which such amendment relates,
see section 2004(u) of Pub. L. 100-647, set out as a note under
section 56 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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 1962 AMENDMENT
Section 4(c) of Pub. L. 87-863 provided that: "The amendments
made by subsections (a) and (b) of this section [amending this
section and section 5123 of this title] shall take effect on July
1, 1962."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5093, 5123, 5681 of this
title.
-End-
-CITE-
26 USC Sec. 5114 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 II - OCCUPATIONAL TAX
Subpart D - Wholesale Dealers
-HEAD-
Sec. 5114. Records
-STATUTE-
(a) Requirements
(1) Distilled spirits
Every wholesale dealer in liquors who sells distilled spirits
to other dealers shall keep daily a record of distilled spirits
received and disposed of by him, in such form and at such place
and containing such information, and shall submit correct
summaries of such records to the Secretary at such time and in
such form and manner, as the Secretary shall by regulations
prescribe. Such dealer shall also submit correct extracts from or
copies of such records, at such time and in such form and manner
as the Secretary may by regulations prescribe; however, the
Secretary may on application by such dealer, in accordance with
such regulations, relieve him from this requirement until further
notice, whenever the Secretary deems that the submission of such
extracts or copies serves no useful purpose in law enforcement or
in protection of the revenue.
(2) Wines and beer
Every wholesale dealer in liquors and every wholesale dealer in
beer shall provide and keep, at such place as the Secretary shall
by regulations prescribe, a record in book form of all wines and
beer received, showing the quantities thereof and from whom and
the dates received, or shall keep all invoices of, and bills for,
all wines and beer received.
(b) Exemption of States, political subdivisions, etc.
The provision of subsection (a) shall not apply to a State, to a
political subdivision of a State, to the District of Columbia, or
to liquor stores operated by any of them, if they maintain and make
available for inspection by internal revenue officers such records
as will enable such officers to trace all distilled spirits, wines,
and beer received, and all distilled spirits disposed of by them.
Such States, subdivisions, District, or liquor stores shall, upon
the request of the Secretary, furnish him such transcripts,
summaries and copies of their records with respect to distilled
spirits as he shall require.
(c) Cross references
(1) For provisions requiring proprietors of distilled spirits
plants to keep records and submit reports of receipts and
dispositions of distilled spirits, see section 5207.
(2) For penalty for violation of subsection (a), see section
5603.
(3) For provisions relating to the preservation and
inspection of records, and entry of premises for inspection,
see section 5146.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1342; amended Pub. L. 94-455, title XIX, Secs. 1905(c)(1),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5114, act Aug. 16, 1954, ch. 736, 68A Stat. 619,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary" wherever appearing.
Subsec. (b). Pub. L. 94-455, Secs. 1905(c)(1), 1906(b)(13)(A),
struck out "or Territory" after "a State", "Territories" after
"States,", and "or his delegate" after "Secretary".
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(c)(1) 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. 5115 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 II - OCCUPATIONAL TAX
Subpart D - Wholesale Dealers
-HEAD-
[Sec. 5115. Repealed. Pub. L. 105-34, title XIV, Sec. 1415(a), Aug.
5, 1997, 111 Stat. 1047]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1342; amended Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to requirement
that a sign be posted on premises where liquor is sold and penalty
for noncompliance.
A prior section 5115, act Aug. 16, 1954, ch. 736, 68A Stat. 620,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
See section 5205(d) of this title.
-End-
-CITE-
26 USC Sec. 5116 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 II - OCCUPATIONAL TAX
Subpart D - Wholesale Dealers
-HEAD-
Sec. 5116. Packaging distilled spirits for industrial uses
-STATUTE-
(a) General
The Secretary may, at his discretion and under such regulations
as he may prescribe, authorize a dealer engaging in the business of
supplying distilled spirits for industrial uses to package
distilled spirits, on which the tax has been paid or determined,
for such uses in containers of a capacity in excess of 1 wine
gallon and not more than 5 wine gallons.
(b) Cross reference
For provisions relating to containers of distilled spirits,
see section 5206.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1343; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(12),
July 26, 1979, 93 Stat. 282; Pub. L. 98-369, div. A, title IV, Sec.
454(c)(3), July 18, 1984, 98 Stat. 821.)
-MISC1-
PRIOR PROVISIONS
A prior section 5116, act Aug. 16, 1954, ch. 736, 68A Stat. 620,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1984 - Subsec. (b). Pub. L. 98-369 substituted "reference" for
"references" in heading, struck out former par. (1) which provided
a cross reference to section 5205(a)(1) of this title regarding
stamps for immediate containers, and struck out designation "(2)"
preceding provisions relating to containers of distilled spirits.
1979 - Subsec. (b)(1). Pub. L. 96-39 substituted "section
5205(a)(1)" for "section 5205(a)(2)".
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary".
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 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.
-End-
-CITE-
26 USC Sec. 5117 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 II - OCCUPATIONAL TAX
Subpart D - Wholesale Dealers
-HEAD-
Sec. 5117. Prohibited purchases by dealers
-STATUTE-
(a) General
It shall be unlawful for any dealer to purchase distilled spirits
for resale from any person other than -
(1) a wholesale dealer in liquors who has paid the special tax
as such dealer to cover the place where such purchase is made; or
(2) a wholesale dealer in liquors who is exempt, at the place
where such purchase is made, from payment of such tax under any
provision of this chapter; or
(3) a person who is not required to pay special tax as a
wholesale dealer in liquors.
(b) Limited retail dealers
A limited retail dealer may lawfully purchase distilled spirits
for resale from a retail dealer in liquors.
(c) Penalty and forfeiture
For penalty and forfeiture provisions applicable to violation
of subsection (a), see sections 5687 and 7302.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1343; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(8), Oct. 4,
1976, 90 Stat. 1819.)
-MISC1-
AMENDMENTS
1976 - Subsecs. (b), (c). Pub. L. 94-455 added subsec. (b) and
redesignated former subsec. (b) as (c).
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5113, 5125 of this title.
-End-
-CITE-
26 USC Subpart E - Retail Dealers 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 II - OCCUPATIONAL TAX
Subpart E - Retail Dealers
-HEAD-
SUBPART E - RETAIL DEALERS
-MISC1-
Sec.
5121. Imposition and rate of tax.
5122. Definitions.
5123. Exemptions.
5124. Records.
5125. Cross references.
PRIOR PROVISIONS
A prior subpart E, consisting of sections 5121 to 5124, related
to retail dealers, prior to the general revision of this chapter by
Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
-SECREF-
SUBPART REFERRED TO IN OTHER SECTIONS
This subpart is referred to in section 5112 of this title.
-End-
-CITE-
26 USC Sec. 5121 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 II - OCCUPATIONAL TAX
Subpart E - Retail Dealers
-HEAD-
Sec. 5121. Imposition and rate of tax
-STATUTE-
(a) Retail dealers in liquors
Every retail dealer in liquors shall pay a special tax of $250 a
year.
(b) Retail dealers in beer
Every retail dealer in beer shall pay a special tax of $250 a
year.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1343; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(9),
(b)(3)(C), Oct. 4, 1976, 90 Stat. 1819, 1822; Pub. L. 100-203,
title X, Sec. 10512(c), Dec. 22, 1987, 101 Stat. 1330-448.)
-MISC1-
PRIOR PROVISIONS
A prior section 5121, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Prior section 5121(a)(2) regarded wholesale dealers in liquors
selling in quantities of less than 5 wine gallons as retail dealers
liable to special tax. See section 5122(a) of this title.
Prior section 5121(b)(2) regarded wholesale dealers in beer
selling in quantities of less than 5 gallons as retail dealers
liable to special tax. See section 5122(b) of this title.
Prior section 5121(c) also described limited retail dealers. See
section 5122(c) of this title.
Provisions similar to those comprising subsecs. (a)(1), (2) of
this section were contained in prior section 5122(a), (c), act Aug.
16, 1954, ch. 736, 68A Stat. 621, prior to the general revision of
this chapter by Pub. L. 85-859.
AMENDMENTS
1987 - Subsec. (a). Pub. L. 100-203, Sec. 10512(c)(1),
substituted "$250" for "$54".
Subsec. (b). Pub. L. 100-203, Sec. 10512(c)(2), substituted
"$250" for "$24".
Subsec. (c). Pub. L. 100-203, Sec. 10512(c)(3), struck out
subsec. (c) which read as follows: "Every limited retail dealer
shall pay a special tax of $4.50 for each calendar month in which
sales are made as such dealer; except that the special tax shall be
$2.20 for each calendar month in which only sales of beer or wine
are made."
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1905(b)(3)(C), struck
out provision for the issuance of a stamp denoting payment of the
special tax.
Subsec. (c). Pub. L. 94-455, Sec. 1905(a)(9), substituted "$4.50"
for "$2.20" as amount of special tax for each calendar month in
which sales are made as such dealer, and inserted provision setting
special tax at $2.20 for each calendar month in which only sales of
beer or wine are made.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
10512(h) of Pub. L. 100-203, set out as an Effective Date note
under section 5081 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5113, 5123, 5182 of this
title.
-End-
-CITE-
26 USC Sec. 5122 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 II - OCCUPATIONAL TAX
Subpart E - Retail Dealers
-HEAD-
Sec. 5122. Definitions
-STATUTE-
(a) Retail dealers in liquors
When used in this chapter, the term "retail dealer in liquors"
means any dealer, other than a retail dealer in beer or a limited
retail dealer, who sells, or offers for sale, any distilled
spirits, wines, or beer, to any person other than a dealer.
(b) Retail dealer in beer
When used in this chapter, the term "retail dealer in beer" means
any dealer, other than a limited retail dealer, who sells, or
offers for sale, beer, but not distilled spirits or wines, to any
person other than a dealer.
(c) Limited retail dealer
When used in this chapter, the term "limited retail dealer" means
any fraternal, civic, church, labor, charitable, benevolent, or
ex-servicemen's organization making sales of distilled spirits,
wine or beer on the occasion of any kind of entertainment, dance,
picnic, bazaar, or festival held by it, or any person making sales
of distilled spirits, wine or beer to the members, guests, or
patrons of bona fide fairs, reunions, picnics, carnivals, or other
similar outings, if such organization or person is not otherwise
engaged in business as a dealer.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1344; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(10), Oct. 4,
1976, 90 Stat. 1819.)
-MISC1-
PRIOR PROVISIONS
A prior section 5122, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Prior section 5122(a) also provided for issuance of stamp
denoting payment of special tax as "retail dealer in wines" or
"retail dealer in wines and beer". See section 5121(a)(1) of this
title.
Prior section 5122(c) related to "retail drug stores or
pharmacies". See section 5121(a)(2) of this title.
Provisions similar to those comprising subsec. (c) of this
section were contained in prior section 5121(c), act Aug. 16, 1954,
ch. 736, 68A Stat. 620.
AMENDMENTS
1976 - Subsec. (c). Pub. L. 94-455 inserted reference to
distilled spirits.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5002, 5113 of this title.
-End-
-CITE-
26 USC Sec. 5123 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 II - OCCUPATIONAL TAX
Subpart E - Retail Dealers
-HEAD-
Sec. 5123. Exemptions
-STATUTE-
(a) Wholesale dealers
(1) Wholesale dealers in liquors
No special tax shall be imposed under section 5121(a) or (b) on
any dealer by reason of the selling, or selling, or offering for
sale, of distilled spirits, wines, or beer at any location where
such dealer is required to pay special tax under section 5111(a).
(2) Wholesale dealers in beer
No special tax shall be imposed under section 5121(b) on any
dealer by reason of the selling, or offering for sale, of beer at
any location where such dealer is required to pay special tax
under section 5111(b).
(b) Business conducted in more than one location
(1) Retail dealers at large
Any retail dealer in liquors or retailer dealer in beer whose
business is such as to require him to travel from place to place
in different States of the United States may, under regulations
prescribed by the Secretary, procure a special tax stamp "At
Large" covering his activities throughout the United States with
the payment of but one special tax as a retail dealer in liquors
or as a retail dealer in beer, as the case may be.
(2) Dealers on trains, aircraft, and boats
Nothing contained in this chapter shall prevent the issue,
under such regulations as the Secretary may prescribe, of special
tax stamps to -
(A) persons carrying on the business of retail dealers in
liquors, or retail dealers in beer, on trains, aircraft, boats
or other vessels, engaged in the business of carrying
passengers; or
(B) persons carrying on the business of retail dealers in
liquors or retail dealers in beer on boats or other vessels
operated by them, when such persons operate from a fixed
address in a port or harbor and supply exclusively boats or
other vessels, or persons thereon, at such port or harbor.
(3) Liquor stores operated by States, political subdivisions,
etc.
A State, a political subdivision of a State, or the District of
Columbia shall not be required to pay more than one special tax
as a retail dealer in liquors under section 5121(a) regardless of
the number of locations at which such State, political
subdivision, or District carries on business as a retail dealer
in liquors.
(c) Coordination of taxes under section 5121
No tax shall be imposed by section 5121(a) with respect to a
person's activities at any place during a year if such person has
paid the tax imposed by section 5121(b) with respect to such place
for such year.
(d) Cross references
(1) For exemption of proprietors of distilled spirits plants,
bonded wine cellars, and breweries from special tax as dealers,
see section 5113(a).
(2) For provisions relating to sales by creditors,
fiduciaries, and officers of courts, see section 5113(c)(1).
(3) For provisions relating to sales by retiring partners or
representatives of deceased partners to incoming or remaining
partners, see section 5113(c)(2).
(4) For provisions relating to return of liquors for credit,
refund, or exchange, see section 5113(c)(3).
(5) For provisions relating to sales by retail dealers in
liquidation, see section 5113(e).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1344; amended Pub. L. 87-863, Sec. 4(a), Oct. 23, 1962, 76 Stat.
1142; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834; Pub. L. 100-647, title II, Sec. 2004(t)(3), Nov. 10,
1988, 102 Stat. 3610.)
-MISC1-
PRIOR PROVISIONS
A prior section 5123, act Aug. 16, 1954, ch. 736, 68A Stat. 621,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Former section 5123(a), (b)(3), and (c) related to "exemptions of
brewers selling in eighth-barrel packages", "dealers making sales
on purchaser dealers' premises" and "sales by retail dealers in
liquidation". See section 5113(a), (d)(1), (2) and (e),
respectively, of this title.
AMENDMENTS
1988 - Subsecs. (c), (d). Pub. L. 100-647 added subsec. (c) and
redesignated former subsec. (c) as (d).
1976 - Subsec. (b)(1), (2). Pub. L. 94-455 struck out "or his
delegate" after "Secretary".
1962 - Subsec. (b)(3). Pub. L. 87-863 added par. (3).
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provisions of the Revenue Act of
1987, Pub. L. 100-203, title X, to which such amendment relates,
see section 2004(u) of Pub. L. 100-647, set out as a note under
section 56 of this title.
EFFECTIVE DATE OF 1962 AMENDMENT
Amendment by Pub. L. 87-863 effective July 1, 1962, see section
4(c) of Pub. L. 87-863, set out as a note under section 5113 of
this title.
-End-
-CITE-
26 USC Sec. 5124 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 II - OCCUPATIONAL TAX
Subpart E - Retail Dealers
-HEAD-
Sec. 5124. Records
-STATUTE-
(a) Receipts
Every retail dealer in liquors and every retail dealer in beer
shall provide and keep in his place of business a record in book
form of all distilled spirits, wines, and beer received, showing
the quantity thereof and from whom and the dates received, or shall
keep all invoices of, and bills for, all distilled spirits, wines,
and beer received.
(b) Dispositions
When he deems it necessary for law enforcement purposes or the
protection of the revenue, the Secretary may by regulations require
retail dealers in liquors and retail dealers in beer to keep
records of the disposition of distilled spirits, wines, or beer, in
such form or manner and of such quantities as the Secretary may
prescribe.
(c) Cross references
For provisions relating to the preservation and inspection of
records, and entry of premises for inspection, see section
5146.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1345; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5124, act Aug. 16, 1954, ch. 736, 68A Stat. 622,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Prior section 5124(b), (c) related to "inspection and
preservation of records". See section 5146(a) of this title.
Prior section 5124(d) was a cross reference to a penalty
provision relating to retail dealers' records.
AMENDMENTS
1976 - Subsec. (b). Pub. L. 94-455 struck out "or his delegate"
after "Secretary" in two places.
-End-
-CITE-
26 USC Sec. 5125 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 II - OCCUPATIONAL TAX
Subpart E - Retail Dealers
-HEAD-
Sec. 5125. Cross references
-STATUTE-
(1) For provisions relating to prohibited purchases by
dealers, see section 5117.
(2) For provisions relating to presumptions of liability as
wholesale dealer in case of sale of 20 wine gallons or more,
see section 5691(b).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1345.)
-End-
-CITE-
26 USC Subpart F - Nonbeverage Domestic Drawback
Claimants 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 II - OCCUPATIONAL TAX
Subpart F - Nonbeverage Domestic Drawback Claimants
-HEAD-
SUBPART F - NONBEVERAGE DOMESTIC DRAWBACK CLAIMANTS
-MISC1-
Sec.
5131. Eligibility and rate of tax.
5132. Registration and regulation.
5133. Investigation of claims.
5134. Drawback.
PRIOR PROVISIONS
A prior subpart F, consisting of sections 5131 to 5134, related
to nonbeverage domestic drawback claimants, prior to the general
revision of this chapter by Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1313.
-SECREF-
SUBPART REFERRED TO IN OTHER SECTIONS
This subpart is referred to in section 7652 of this title.
-End-
-CITE-
26 USC Sec. 5131 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 II - OCCUPATIONAL TAX
Subpart F - Nonbeverage Domestic Drawback Claimants
-HEAD-
Sec. 5131. Eligibility and rate of tax
-STATUTE-
(a) Eligibility for drawback
Any person using distilled spirits on which the tax has been
determined, in the manufacture or production of medicines,
medicinal preparations, food products, flavors, flavoring extracts,
or perfume, which are unfit for beverage purposes, on payment of a
special tax per annum, shall be eligible for drawback at the time
when such distilled spirits are used in the manufacture of such
products as provided for in this subpart.
(b) Rate of tax
The special tax imposed by subsection (a) shall be $500 per year.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1345; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(11), Oct. 4,
1976, 90 Stat. 1819; Pub. L. 100-203, title X, Sec. 10512(d), Dec.
22, 1987, 101 Stat. 1330-448; Pub. L. 103-465, title I, Sec.
136(b), Dec. 8, 1994, 108 Stat. 4841.)
-MISC1-
PRIOR PROVISIONS
A prior section 5131, act Aug. 16, 1954, ch. 736, 68A Stat. 622,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1994 - Subsec. (a). Pub. L. 103-465 substituted "flavoring
extracts, or perfume" for "or flavoring extracts".
1987 - Subsec. (b). Pub. L. 100-203 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: "The
special tax imposed by subsection (a) shall be graduated in amount
as follows: (1) for total annual use not exceeding 25 proof
gallons, $25 a year; (2) for total annual use not exceeding 50
proof gallons, $50 a year; (3) for total annual use of more than 50
proof gallons, $100 a year."
1976 - Subsec. (a). Pub. L. 94-455 struck out "produced in a
domestic registered distillery or industrial alcohol plant and
withdrawn from bond, or using distilled spirits withdrawn from the
bonded premises of a distilled spirits plant," after "Any person
using distilled spirits".
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 1987 AMENDMENT
Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
10512(h) of Pub. L. 100-203, set out as an Effective Date note
under section 5081 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5142, 7652 of this title.
-End-
-CITE-
26 USC Sec. 5132 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 II - OCCUPATIONAL TAX
Subpart F - Nonbeverage Domestic Drawback Claimants
-HEAD-
Sec. 5132. Registration and regulation
-STATUTE-
Every person claiming drawback under this subpart shall register
annually with the Secretary; keep such books and records as may be
necessary to establish the fact that distilled spirits received by
him and on which the tax has been determined were used in the
manufacture or production of medicines, medicinal preparations,
food products, flavors, flavoring extracts, or perfume, which were
unfit for use for beverage purposes; and be subject to such rules
and regulations in relation thereto as the Secretary shall
prescribe to secure the Treasury against frauds.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1345; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 103-465, title I, Sec. 136(b), Dec.
8, 1994, 108 Stat. 4841.)
-MISC1-
PRIOR PROVISIONS
A prior section 5132, act Aug. 16, 1954, ch. 736, 68A Stat. 623,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1994 - Pub. L. 103-465 substituted "flavoring extracts, or
perfume" for "or flavoring extracts".
1976 - Pub. L. 94-455 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.
-End-
-CITE-
26 USC Sec. 5133 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 II - OCCUPATIONAL TAX
Subpart F - Nonbeverage Domestic Drawback Claimants
-HEAD-
Sec. 5133. Investigation of claims
-STATUTE-
For the purpose of ascertaining the correctness of any claim
filed under this subpart, the Secretary is authorized to examine
any books, papers, records, or memoranda bearing upon the matters
required to be alleged in the claim, to require the attendance of
the person filing the claim or of any officer or employee of such
person or the attendance of any other person having knowledge in
the premises, to take testimony with reference to any matter
covered by the claim, and to administer oaths to any person giving
such testimony.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1346; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5133, act Aug. 16, 1954, ch. 736, 68A Stat. 623,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Sec. 5134 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 II - OCCUPATIONAL TAX
Subpart F - Nonbeverage Domestic Drawback Claimants
-HEAD-
Sec. 5134. Drawback
-STATUTE-
(a) Rate of drawback
In the case of distilled spirits on which the tax has been paid
or determined, and which have been used as provided in this
subpart, a drawback shall be allowed on each proof gallon at a rate
of $1 less than the rate at which the distilled spirits tax has
been paid or determined.
(b) Claims
Such drawback shall be due and payable quarterly upon filing of a
proper claim with the Secretary; except that, where any person
entitled to such drawback shall elect in writing to file monthly
claims therefor, such drawback shall be due and payable monthly
upon filing of a proper claim with the Secretary. The Secretary may
require persons electing to file monthly drawback claims to file
with him a bond or other security in such amount and with such
conditions as he shall by regulations prescribe. Any such election
may be revoked on filing of notice thereof with the Secretary. No
claim under this subpart shall be allowed unless filed with the
Secretary within the 6 months next succeeding the quarter in which
the distilled spirits covered by the claim were used as provided in
this subpart.
(c) Allowance of drawback even where certain requirements not met
(1) In general
No claim for drawback under this section shall be denied in the
case of a failure to comply with any requirement imposed under
this subpart or any rule or regulation issued thereunder upon the
claimant's establishing to the satisfaction of the Secretary that
distilled spirits on which the tax has been paid or determined
were in fact used in the manufacture or production of medicines,
medicinal preparations, food products, flavors, flavoring
extracts, or perfume, which were unfit for beverage purposes.
(2) Penalty
(A) In general
In the case of a failure to comply with any requirement
imposed under this subpart or any rule or regulation issued
thereunder, the claimant shall be liable for a penalty of
$1,000 for each failure to comply unless it is shown that the
failure to comply was due to reasonable cause.
(B) Penalty may not exceed amount of claim
The aggregate amount of the penalties imposed under
subparagraph (A) for failures described in paragraph (1) in
respect of any claim shall not exceed the amount of such claim
(determined without regard to subparagraph (A)).
(3) Penalty treated as tax
The penalty imposed by paragraph (2) shall be assessed,
collected, and paid in the same manner as taxes, as provided in
section 6665(a).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1346; amended Pub. L. 90-615, Sec. 2(a), Oct. 21, 1968, 82 Stat.
1210; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec. 452, July 18,
1984, 98 Stat. 819; Pub. L. 103-465, title I, Sec. 136(b), Dec. 8,
1994, 108 Stat. 4841; Pub. L. 104-188, title I, Sec. 1704(t)(12),
Aug. 20, 1996, 110 Stat. 1888.)
-MISC1-
PRIOR PROVISIONS
A prior section 5134, acts Aug. 16, 1954, ch. 736, 68A Stat. 623;
Mar. 30, 1955, ch. 18, Sec. 3(b)(2), 69 Stat. 15; Mar. 29, 1956,
ch. 115, Sec. 3(b)(2), 70 Stat. 67; Mar. 29, 1957, Pub. L. 85-12,
Sec. 3(b)(2), 71 Stat. 10; June 30, 1958, Pub. L. 85-475, Sec.
3(b)(2), 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.
AMENDMENTS
1996 - Subsec. (c)(3). Pub. L. 104-188 substituted "section
6665(a)" for "section 6662(a)".
1994 - Subsec. (c)(1). Pub. L. 103-465 substituted "flavoring
extracts, or perfume" for "or flavoring extracts".
1984 - Subsec. (c). Pub. L. 98-369 added subsec. (c).
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1968 - Subsec. (b). Pub. L. 90-615 substituted "6 months" for "3
months" in last sentence.
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 applicable to products manufactured
or produced after Oct. 31, 1984, see section 456(d) of Pub. L.
98-369, set out as an Effective Date note under section 5101 of
this title.
EFFECTIVE DATE OF 1968 AMENDMENT
Section 2(b) of Pub. L. 90-615 provided that: "The amendment made
by subsection (a) [amending this section] shall apply to claims
filed on or after the date of the enactment of this Act [Oct. 21,
1968]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5010 of this title.
-End-
-CITE-
26 USC Subpart G - General Provisions 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 II - OCCUPATIONAL TAX
Subpart G - General Provisions
-HEAD-
SUBPART G - GENERAL PROVISIONS
-MISC1-
Sec.
5141. Registration.
5142. Payment of tax.
5143. Provisions relating to liability for occupational
taxes.
[5144. Repealed.]
5145. Application of State laws.
5146. Preservation and inspection of records, and entry of
premises for inspection.
5147. Application of subpart.
5148. Cross references.
PRIOR PROVISIONS
A prior subpart G, consisting of sections 5141 to 5149, related
to general provisions, prior to the general revision of this
chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72
Stat. 1313.
AMENDMENTS
1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(3)(D)(ii), Oct. 4,
1976, 90 Stat. 1822, struck out item 5144 "Supply of stamps".
-SECREF-
SUBPART REFERRED TO IN OTHER SECTIONS
This subpart is referred to in sections 5112, 5276, 5731 of this
title.
-End-
-CITE-
26 USC Sec. 5141 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 II - OCCUPATIONAL TAX
Subpart G - General Provisions
-HEAD-
Sec. 5141. Registration
-STATUTE-
For provisions relating to registration in the case of
persons engaged in any trade or business on which a special tax
is imposed, see section 7011(a).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1346.)
-MISC1-
PRIOR PROVISIONS
A prior section 5141, act Aug. 16, 1954, ch. 736, 68A Stat. 624,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-End-
-CITE-
26 USC Sec. 5142 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 II - OCCUPATIONAL TAX
Subpart G - General Provisions
-HEAD-
Sec. 5142. Payment of tax
-STATUTE-
(a) Condition precedent to carrying on business
No person shall be engaged in or carry on any trade or business
subject to tax under this part (except the tax imposed by section
5131) until he has paid the special tax therefor.
(b) Computation
All special taxes under this part (except the tax imposed by
section 5131) shall be imposed as of on the first day of July in
each year, or on commencing any trade or business on which such tax
is imposed. In the former case the tax shall be reckoned for 1
year, and in the latter case it shall be reckoned proportionately,
from the first day of the month in which the liability to a special
tax commenced, to and including the 30th day of June following.
(c) How paid
(1) Payment by return
The special taxes imposed by this part shall be paid on the
basis of a return under such regulations as the Secretary shall
prescribe.
(2) Stamp denoting payment of tax
After receiving a properly executed return and remittance of
any special tax imposed by this subpart, the Secretary shall
issue to the taxpayer an appropriate stamp as a receipt denoting
payment of the tax. This paragraph shall not apply in the case of
a return covering liability for a past period.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1346; amended Pub. L. 94-455, title XIX, Sec. 1905(a)(12), Oct. 4,
1976, 90 Stat. 1820.)
-MISC1-
PRIOR PROVISIONS
A prior section 5142, act Aug. 16, 1954, ch. 736, 68A Stat. 624,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Prior section 5142(d) also contained a cross reference to a
penalty and forfeiture provision for nonpayment of special taxes.
See section 5148(1) of this title.
AMENDMENTS
1976 - Subsec. (c). Pub. L. 94-455 substituted provisions under
which the special taxes would be paid on the basis of a return for
provisions under which the special taxes were paid by stamps
denoting the tax.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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. 5143 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 II - OCCUPATIONAL TAX
Subpart G - General Provisions
-HEAD-
Sec. 5143. Provisions relating to liability for occupational taxes
-STATUTE-
(a) Partners
Any number of persons doing business in partnership at any one
place shall be required to pay but one special tax.
(b) Different businesses of same ownership and location
Whenever more than one of the pursuits or occupations described
in this part are carried on in the same place by the same person at
the same time, except as otherwise provided in this part, the tax
shall be paid for each according to the rates severally prescribed.
(c) Businesses in more than one location
(1) Liability for tax
The payment of a special tax imposed by this part shall not
exempt from an additional special tax the person carrying on a
trade or business in any other place than that stated in the
register kept in the office of the official in charge of the
internal revenue district.
(2) Storage
Nothing contained in paragraph (1) shall require a special tax
for the storage of liquors at a location other than the place
where liquors are sold or offered for sale.
(3) Definition of place
The term "place" as used in this section means the entire
office, plant or area of the business in any one location under
the same proprietorship; and passageways, streets, highways, rail
crossings, waterways, or partitions dividing the premises, shall
not be deemed sufficient separation to require additional special
tax, if the various divisions are otherwise contiguous.
(d) Death or change of location
Certain persons, other than the person who has paid the special
tax under this part for the carrying on of any business at any
place, may secure the right to carry on, without incurring
additional special tax, the same business at the same place for the
remainder of the taxable period for which the special tax was paid.
The persons who may secure such right are:
(1) the surviving spouse or child, or executor or administrator
or other legal representative, of a deceased taxpayer;
(2) a husband or wife succeeding to the business of his or her
living spouse;
(3) a receiver or trustee in bankruptcy, or an assignee for
benefit of creditors; and
(4) the partner or partners remaining after death or withdrawal
of a member of a partnership.
When any person moves to any place other than the place for which
special tax was paid for the carrying on of any business, he may
secure the right to carry on, without incurring additional special
tax, the same business at his new location for the remainder of the
taxable period for which the special tax was paid. To secure the
right to carry on the business without incurring additional special
tax, the successor, or the person relocating his business, must
register the succession or relocation with the Secretary in
accordance with regulations prescribed by the Secretary.
(e) Federal agencies or instrumentalities
Any tax imposed by this part shall apply to any agency or
instrumentality of the United States unless such agency or
instrumentality is granted by statute a specific exemption from
such tax.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1347; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5143, act Aug. 16, 1954, ch. 736, 68A Stat. 624,
related to time for filing returns and cross-referred to penalty
provisions for failure to file returns or for making false or
fraudulent returns, prior to the general revision of this chapter
by Pub. L. 85-859. See subtitle F of this title.
Provisions similar to those comprising this section were
contained in a prior section 5144, act Aug. 16, 1954, ch. 736, 68A
Stat. 624, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1976 - Subsec. (d)(4). Pub. L. 94-455 struck out "or his
delegate" after "Secretary".
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5093 of this title.
-End-
-CITE-
26 USC Sec. 5144 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 II - OCCUPATIONAL TAX
Subpart G - General Provisions
-HEAD-
[Sec. 5144. Repealed. Pub. L. 94-455, title XIX, Sec.
1905(b)(3)(D)(i), Oct. 4, 1976, 90 Stat. 1822]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1348, authorized and directed Secretary or his delegate to
procure the necessary stamps for payment of special taxes and to
make needful regulations relative thereto.
A prior section 5144, act Aug. 16, 1954, ch. 736, 68A Stat. 624,
related to liability for occupational taxes, prior to the general
revision of this chapter by Pub. L. 85-859. See sections 5113(a)
and 5143 of this title.
EFFECTIVE DATE OF REPEAL
Repeal 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 an Effective Date of 1976 Amendment note under
section 5005 of this title.
-End-
-CITE-
26 USC Sec. 5145 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 II - OCCUPATIONAL TAX
Subpart G - General Provisions
-HEAD-
Sec. 5145. Application of State laws
-STATUTE-
The payment of any tax imposed by this part for carrying on any
trade or business shall not be held to exempt any person from any
penalty or punishment provided by the laws of any State for
carrying on such trade or business within such State, or in any
manner to authorize the commencement or continuance of such trade
or business contrary to the laws of such State or in places
prohibited by municipal law; nor shall the payment of any such tax
be held to prohibit any State from placing a duty or tax on the
same trade or business, for State or other purposes.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1348.)
-MISC1-
PRIOR PROVISIONS
A prior section 5145, act Aug. 16, 1954, ch. 736, 68A Stat. 625,
related to "supply of stamps", prior to the general revision of
this chapter by Pub. L. 85-859. See section 5144 of this title.
Provisions similar to those comprising this section were
contained in a prior section 5148, act Aug. 16, 1954, ch. 736, 68A
Stat. 626, prior to the general revision of this chapter by Pub. L.
85-859.
-End-
-CITE-
26 USC Sec. 5146 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 II - OCCUPATIONAL TAX
Subpart G - General Provisions
-HEAD-
Sec. 5146. Preservation and inspection of records, and entry of
premises for inspection
-STATUTE-
(a) Preservation and inspection of records
Any records or other documents required to be kept under this
part or regulations issued pursuant thereto shall be preserved by
the person required to keep such records or documents, as the
Secretary may by regulations prescribe, and shall be kept available
for inspection by any internal revenue officer during business
hours.
(b) Entry of premises for inspection
The Secretary may enter during business hours the premises
(including places of storage) of any dealer for the purpose of
inspecting or examining any records or other documents required to
be kept by such dealer under this chapter or regulations issued
pursuant thereto and any distilled spirits, wines, or beer kept or
stored by such dealer on such premises.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1348; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5146, act Aug. 16, 1954, ch. 736, 68A Stat. 625,
contained cross references to provisions respecting posting stamp
in place of business, prior to the general revision of this chapter
by Pub. L. 85-859. See sections 6806 and 7273 of this title.
Provisions similar to those comprising subsec. (a) of this
section were contained in prior sections 5114(a) and 5124 (b), (c),
act Aug. 16, 1954, ch. 736, 68A Stat. 619, 622, prior to the
general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5114, 5124 of this title.
-End-
-CITE-
26 USC Sec. 5147 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 II - OCCUPATIONAL TAX
Subpart G - General Provisions
-HEAD-
Sec. 5147. Application of subpart
-STATUTE-
The provisions of this subpart shall extend to and apply to the
special taxes imposed by the other subparts of this part and to the
persons on whom such taxes are imposed.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1348.)
-MISC1-
PRIOR PROVISIONS
A prior section 5147, act Aug. 16, 1954, ch. 736, 68A Stat. 626,
made a cross reference to provision respecting keeping of list of
special taxpayers for public inspection, prior to the general
revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising this section were
contained in a prior section 5149, act Aug. 16, 1954, ch. 736, 68A
Stat. 626, prior to the general revision of this chapter by Pub. L.
85-859.
-End-
-CITE-
26 USC Sec. 5148 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 II - OCCUPATIONAL TAX
Subpart G - General Provisions
-HEAD-
Sec. 5148. Cross references
-STATUTE-
(1) For penalties for willful nonpayment of special taxes,
see section 5691.
(2) For penalties applicable to this part generally, see
subchapter J.
(3) For penalties, authority for assessments, and other
general and administrative provisions applicable to this part,
see subtitle F.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1348; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(3)(E), Oct.
4, 1976, 90 Stat. 1822.)
-MISC1-
PRIOR PROVISIONS
A prior section 5148, act Aug. 16, 1954, ch. 736, 68A Stat. 626,
related to "Application of State laws", prior to the general
revision of this chapter by Pub. L. 85-859. See section 5145 of
this title.
Provisions similar to those comprising subd. (1) of this section
were contained in a prior section 5142(d), act Aug. 16, 1954, ch.
736, 68A Stat. 624, prior to the general revision of this chapter
by Pub. L. 85-859.
A prior section 5149, act Aug. 16, 1954, ch. 736, 68A Stat. 626,
related to "Application of subpart", prior to the general revision
of this chapter by Pub. L. 85-859. See section 5147 of this title.
AMENDMENTS
1976 - Par. (3). Pub. L. 94-455 inserted reference to authority
for assessments.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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 Subchapter B - Qualification Requirements for
Distilled Spirits Plants 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
SUBCHAPTER B - QUALIFICATION REQUIREMENTS FOR DISTILLED SPIRITS
PLANTS
-MISC1-
Sec.
5171. Establishment.
5172. Application.
5173. Bonds.
[5174. Repealed.]
5175. Export bonds.
5176. New or renewed bonds.
5177. Other provisions relating to bonds.
5178. Distilled spirits plants.(!1)
5179. Registration of stills.
5180. Signs.
5181. Distilled spirits for fuel use.
5182. Cross references.
PRIOR PROVISIONS
A prior subchapter B, Distilleries, consisted of part I,
Establishment, part II, Operation, and part III, General Provisions
Relating to Distilleries and Distilled Spirits, and consisted of
sections 5171 to 5180, 5191 to 5197, and 5211 to 5217,
respectively, prior to the general revision of this chapter by Pub.
L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1980 - Pub. L. 96-223, title II, Sec. 232(e)(2)(F), Apr. 2, 1980,
94 Stat. 280, added item 5181 and redesignated former item 5181 as
5182.
1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(4), July 26, 1979,
93 Stat. 290, substituted "Bonds" for "Qualification bonds" in item
5173, struck out item 5174 "Withdrawal bonds", and substituted
"Distilled spirits plants" for "Premises of distilled spirits
plants" in item 5178.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 5002, 5601 of this
title.
-FOOTNOTE-
(!1) So in original. Does not conform to section catchline.
-End-
-CITE-
26 USC Sec. 5171 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5171. Establishment
-STATUTE-
(a) Certain operations may be conducted only on bonded premises
Except as otherwise provided by law, operations as a distiller,
warehouseman, or processor may be conducted only on the bonded
premises of a distilled spirits plant by a person who is qualified
under this subchapter.
(b) Establishment of distilled spirits plant
A distilled spirits plant may be established only by a person who
intends to conduct at such plant operations as a distiller, as a
warehouseman, or as both.
(c) Registration
(1) In general
Each person shall, before commencing operations at a distilled
spirits plant (and at such other times as the Secretary may by
regulations prescribe), make application to the Secretary for,
and receive notice of, the registration of such plant.
(2) Application required where new operations are added
No operation in addition to those set forth in the application
made pursuant to paragraph (1) may be conducted at a distilled
spirits plant until the person has made application to the
Secretary for, and received notice of, the registration of such
additional operation.
(3) Secretary may establish minimum capacity and level of
activity requirements
The Secretary may by regulations prescribe for each type of
operation minimum capacity and level of activity requirements for
qualifying premises as a distilled spirits plant.
(4) Applicant must comply with law and regulations
No plant (or additional operation) shall be registered under
this section until the applicant has complied with the
requirements of law and regulations in relation to the
qualification of such plant (or additional operation).
(d) Permits
(1) Requirements
Each person required to file an application for registration
under subsection (c) whose distilled spirits operations (or any
part thereof) are not required to be covered by a basic permit
under the Federal Alcohol Administration Act (27 U.S.C. secs. 203
and 204) shall, before commencing the operations (or part
thereof) not so covered, apply for and obtain a permit under this
subsection from the Secretary to engage in such operations (or
part thereof). Subsections (b), (c), (d), (e), (f), (g), and (h)
of section 5271 are hereby made applicable to persons filing
applications and permits required by or issued under this
subsection.
(2) Exceptions for agencies of a State or political subdivisions
Paragraph (1) shall not apply to any agency of a State or
political subdivision thereof or to any officer or employee of
any such agency, and no such agency, officer, or employee shall
be required to obtain a permit thereunder.
(e) Cross references
(1) For penalty for failure of a distiller or processor to
file application for registration as required by this section,
see section 5601(a)(2).
(2) For penalty for the filing of a false application by a
distiller, warehouseman, or processor of distilled spirits, see
section 5601(a)(3).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1349; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(13),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834; Pub. L. 96-39,
title VIII, Sec. 805(a), July 26, 1979, 93 Stat. 274.)
-REFTEXT-
REFERENCES IN TEXT
The Federal Alcohol Administration Act, referred to in subsec.
(d)(1), is act Aug. 29, 1935, ch. 814, 49 Stat. 977, as amended,
which is classified generally to subchapter I (Sec. 201 et seq.) of
chapter 8 of Title 27, Intoxicating Liquors. The basic permit is
covered by sections 203 and 204 of Title 27. For complete
classification of this Act to the Code, see section 201 of Title 27
and Tables.
-MISC1-
PRIOR PROVISIONS
A prior section 5171, act Aug. 16, 1954, ch. 736, 68A Stat. 627,
related to "premises prohibited for distilling", prior to the
general revision of this chapter by Pub. L. 85-859. See sections
5178(a)(1)(B), (b), (c)(2), and 5505(b) of this title.
Provisions similar to those comprising subsecs. (a), (b)(1) and
(c) of this section were contained in prior sections of act Aug.
16, 1954, prior to the general revision of this chapter by Pub. L.
85-859, as follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5172, 5175(a), 5177(a), 5178, 5231,
5243(a), 5271(a), 5301-5303, 5305,
5331(a)(1).
(b)(1) 5301-5303, 5304(a)(1).
(c) 5175(b), 5271(b).
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 627 to 631, 643, 645, 650, 654, 655.
AMENDMENTS
1979 - Subsecs. (a), (b). Pub. L. 96-39 added subsecs. (a) and
(b) and redesignated former subsecs. (a) and (b) as (c) and (d),
respectively.
Subsec. (c). Pub. L. 96-39 redesignated former subsec. (a) as (c)
and inserted provisions relating to an application requirement
where new operations are added and permitting the Secretary to
establish minimum capacity and level of activity requirements.
Former subsec. (c) redesignated (e).
Subsec. (d). Pub. L. 96-39 redesignated former subsec. (b) as (d)
and substituted reference to subsection (c) for reference to
subsection (a) and struck out reference to section 5274.
Subsec. (e). Pub. L. 96-39 redesignated former subsec. (c) as (e)
and substituted reference to processor for reference to rectifier
and reference to warehouseman for reference to bonded warehouseman
and struck out reference to bottler.
1976 - Subsec. (b)(1). Pub. L. 94-455, Secs. 1905(a)(13)(A),
1906(b)(13)(A), struck out "49 Stat. 978;" before "27 U.S.C. 203,
204" in parenthetical provisions after "Federal Alcohol
Administration Act" and struck out "or his delegate" after
"Secretary".
Subsec. (b)(3). Pub. L. 94-455, Sec. 1905(a)(13)(B), struck out
par. (3) under which persons who were qualified on June 30, 1959,
to perform operations for which a permit was required covering
operations not required to be covered by a basic permit under the
Federal Alcohol Administration Act had been allowed to continue
operations pending a reasonable opportunity to make application for
a permit.
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(a)(13) 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
TRANSITIONAL RULES RELATING TO ALL-IN-BOND METHOD
Section 809(a), (b) of Pub. L. 96-39, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(a) New Application Required. -
"(1) In general. - For purposes of section 5171 of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954] (relating to
establishment of distilled spirits plants), each person who
intends to continue any distilled spirits operation at a premises
after December 31, 1979, shall be treated as intending to
establish a distilled spirits plant on such premises on January
1, 1980.
"(2) Current registration to remain in effect. -
Notwithstanding paragraph (1), the registration of any person
under section 5171 of the Internal Revenue Code of 1986 which is
in effect on December 31, 1979, shall remain in effect until
final action on the application required by paragraph (1).
"(b) Continuing Operations at Existing Premises. - With respect
to any operation which was permitted to be conducted on May 1,
1979, at premises which were registered on such date under section
5171 of the Internal Revenue Code of 1986, the determination of
whether such premises qualify for registration under such section
as a distilled spirits plant shall be made without regard to
whether or not -
"(1) the person engaged in operations at such premises is
registered under such section with respect to such premises as a
distiller or warehouseman, and
"(2) such premises meet the minimum capacity and level of
activity requirements for that type of operation."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5172, 5178, 5601, 5681 of
this title.
-End-
-CITE-
26 USC Sec. 5172 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5172. Application
-STATUTE-
The application for registration required by section 5171(c)
shall, in such manner and form as the Secretary may by regulations
prescribe, identify the applicant and persons interested in the
business (or businesses) covered by the application, show the
nature, location and extent of the premises, show the specific type
or types of operations to be conducted on such premises, and show
any other information which the Secretary may by regulations
require for the purpose of carrying out the provisions of this
chapter.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1349; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(13),
July 26, 1979, 93 Stat. 282.)
-MISC1-
PRIOR PROVISIONS
A prior section 5172, act Aug. 16, 1954, ch. 736, 68A Stat. 627,
related to "conditions precedent to carrying on business of
distilling", prior to the general revision of this chapter by Pub.
L. 85-859 and is covered in part by this section. See also sections
5171(a), 5173(a), 5178(a)(1)(A), and 5601(a)(2), (4) of this title.
Provisions similar to those comprising this section were
contained in prior sections 5175(a), 5178, 5231, 5243(a), 5271,
5301 to 5303, 5305, and 5331(a)(1), act Aug. 16, 1954, ch. 736, 68A
Stat. 628, 631, 643, 645, 650, 654, 655, 657, 661, prior to the
general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 substituted "section 5171(c)" for "section
5171(a)".
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
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.
-End-
-CITE-
26 USC Sec. 5173 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5173. Bonds
-STATUTE-
(a) Operations at, and withdrawals from, distilled spirits plant
must be covered by bond
(1) Operations
No person intending to establish a distilled spirits plant may
commence operations at such plant unless such person has
furnished bond covering operations at such plant.
(2) Withdrawals
No distilled spirits (other than distilled spirits withdrawn
under section 5214 or 7510) may be withdrawn from bonded premises
except on payment of tax unless the proprietor of the bonded
premises has furnished bond covering such withdrawal.
(b) Operations bonds
The bond required by paragraph (1) of subsection (a) shall meet
the requirements of paragraph (1), (2), or (3) of this subsection:
(1) One plant bond
The bond covers operations at a single distilled spirits plant.
(2) Adjacent wine cellar bond
The bond covers operations at a distilled spirits plant and at
an adjacent bonded wine cellar.
(3) Area bond
The bond covers operations at 2 or more distilled spirits
plants (and adjacent bonded wine cellars) which -
(A) are located in the same geographical area (as designated
in regulations prescribed by the Secretary), and
(B) are operated by the same person (or, in the case of a
corporation, by such corporation and its controlled
subsidiaries).
(c) Withdrawal bonds
The bond required by paragraph (2) of subsection (a) shall cover
withdrawals from 1 or more bonded premises the operations at which
could be covered by the same operations bond under subsection (b).
(d) Unit bonds
Under regulations prescribed by the Secretary, the requirements
of paragraphs (1) and (2) of subsection (a) shall be treated as met
by a unit bond which covers both operations at, and withdrawals
from, 1 or more bonded premises which could be covered by the same
operations bond under subsection (b).
(e) Terms and conditions
(1) In general
Any bond furnished under this section shall be conditioned that
the person furnishing the bond -
(A) will faithfully comply with all provisions of law and
regulations relating to the activities covered by such bond,
and
(B) will pay -
(i) all taxes imposed by this chapter, and
(ii) all penalties incurred by, or fines imposed on, such
person for violation of any such provision.
(2) Other terms and conditions
Any bond furnished under this section shall contain such other
terms and conditions as may be required by regulations prescribed
by the Secretary.
(f) Amount
(1) In general
The penal sum of any bond shall be the amount determined under
regulations prescribed by the Secretary.
(2) Maximum and minimum amount
The Secretary shall by regulations prescribe a minimum amount
and a maximum amount for each type of bond which may be furnished
under this section.
(g) Total amount available
The total amount of any bond furnished under this section shall
be available for the satisfaction of any liability incurred under
the terms and conditions of such bond.
(h) Special rules
For purposes of this section -
(1) Withdrawal bonds
In the case of any bond furnished under this section which
covers withdrawals but not operations -
(A) such bond shall be in addition to the operations bond,
and
(B) if distilled spirits are withdrawn under such bond, the
operations bond shall no longer cover liability for payment of
the tax on the spirits withdrawn.
(2) Adjacent wine cellars
(A) Requirements
No wine cellar shall be treated as being adjacent to a
distilled spirits plant unless -
(i) such distilled spirits plant is qualified under this
subchapter for the production of distilled spirits, and
(ii) such wine cellar and the distilled spirits plant are
operated by the same person (or, in the case of a
corporation, by such corporation and its controlled
subsidiaries).
(B) Bond in lieu of wine cellar bond
In the case of any adjacent wine cellar, a bond furnished
under this section which covers operations at such wine cellar
shall be in lieu of any bond which would otherwise be required
under section 5354 with respect to such wine cellar (other than
supplemental bonds required under the second sentence of
section 5354).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1349; amended Pub. L. 91-659, Sec. 4, Jan. 8, 1971, 84 Stat. 1966;
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(c), July 26, 1979,
93 Stat. 276.)
-MISC1-
PRIOR PROVISIONS
A prior section 5173, act Aug. 16, 1954, ch. 736, 68A Stat. 628,
related to "distillery fixtures and equipment", prior to the
general revision of this chapter by Pub. L. 85-859. See sections
5178(a)(1)(A), (2)(B)(C), (c)(1) and 5202(b) of this title.
Provisions similar to those comprising subsecs. (a), (b), (b)(1),
(b)(1)(A) to (C), (b)(3), (c), (c)(1), (d) and (e)(1) of this
section were contained in prior sections of act Aug. 16, 1954,
prior to the general revision of this chapter by Pub. L. 85-859, as
follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5172, 5176(a), 5231, 5232(a), 5272(a),
5301-5303, 5304(a)(5), 5305, 5311(a)(3).
(b) 5176 (a), (d).
(b)(1) 5176(a), 5177(c).
(b)(1)(A)-(C) 5177(b)(1)-(3).
(b)(3) 5177(b)(4).
(c) 5232(a), 5302, 5303, 5306, 5331(a)(3).
(c)(1) 5232(a).
(d) 5272(a).
(e)(1) 5304(a)(5).
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 627, 629 to 631, 643, 650, 654, 655, 657, 662.
AMENDMENTS
1979 - Pub. L. 96-39, among other changes, struck out provisions
relating to liens on distillery property and the furnishing of
indemnity bonds as methods of securing tax payments and inserted
provisions relating to the one plant operations bond, which will
cover the operations at a bonded wine cellar which is adjacent to
the distilled spirits plant and operated by the same person.
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1971 - Subsec. (b)(1). Pub. L. 91-659, Sec. 4(b), extended
exception clause in parenthetical by making reference to cl. (4) of
this subsection.
Subsec. (b)(2). Pub. L. 91-659, Sec. 4(c), inserted reference to
par. (4).
Subsec. (b)(4). Pub. L. 91-659, Sec. 4(a), added par. (4).
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 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.
TRANSITIONAL RULES RELATING TO ALL-IN-BOND METHOD
Section 809(c) of Pub. L. 96-39, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "For purposes
of section 5173 of the Internal Revenue Code of 1986 [formerly
I.R.C. 1954] (relating to bonds), each person who intends to
continue operation at a premises after December 31, 1979, shall be
treated as intending to establish a distilled spirits plant on such
premises on January 1, 1980."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5005, 5175, 5176, 5177,
5213 of this title.
-End-
-CITE-
26 USC Sec. 5174 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
[Sec. 5174. Repealed. Pub. L. 96-39, title VIII, Sec. 807(a)(14),
July 26, 1979, 93 Stat. 282]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1352; amended Pub. L. 94-455, title XIX, Secs.
1905(a)(14), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834,
related to withdrawal bonds.
A prior section 5174, act Aug. 16, 1954, ch. 736, 68A Stat. 630,
related to "registry of stills", prior to the general revision of
this chapter by Pub. L. 85-859. See sections 5179 and 5505(d) of
this title.
Provisions similar to those comprising subsec. (a)(1) of section
5174, added by Pub. L. 85-859, title I, Sec. 201, Sept. 2, 1958,
725 Stat. 1352, relating to the withdrawal from bonded premises of
distilled spirits on the furnishing of a bond by the proprietor of
the bonded premises to secure payment of the tax on such spirits,
were contained in prior sections 5176(b) and 5232(b), act Aug. 16,
1954, ch. 736, 68A Stat. 629, 643, 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 Sec. 5175 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5175. Export bonds
-STATUTE-
(a) Requirements
No distilled spirits shall be withdrawn from bonded premises for
exportation, or for transfer to a customs bonded warehouse, without
payment of tax unless the exporter has furnished bond to cover such
withdrawal under such regulations and conditions, and in such form
and penal sum, as the Secretary may prescribe.
(b) Exception where proprietor withdraws spirits for exportation
In the case of distilled spirits withdrawn from bonded premises
by the proprietor for exportation without payment of tax, the bond
of such proprietor required to be furnished under paragraph (1) of
section 5173(a) covering such premises shall cover such
exportation, and subsection (a) shall not apply.
(c) Cancellation or credit of export bonds
The bonds given under subsection (a) shall be cancelled or
credited and the bonds liable under subsection (b) credited if
there is such proof of exportation as the Secretary may by
regulations require.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1352; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 3(b), Nov. 14, 1977,
91 Stat. 1365; Pub. L. 96-39, title VIII, Sec. 807(a)(15), July 26,
1979, 93 Stat. 282; Pub. L. 105-34, title XIV, Sec. 1412(a), Aug.
5, 1997, 111 Stat. 1046.)
-MISC1-
PRIOR PROVISIONS
A prior section 5175, act Aug. 16, 1954, ch. 736, 68A Stat. 628,
related to "notice of business of distiller", prior to the general
revision of this chapter by Pub. L. 85-859. See sections 5171(a),
(c) and 5172 of this title.
Provisions similar to those comprising this section were
contained in a prior section 5247(a), act Aug. 16, 1954, ch. 736,
68A Stat. 647, prior to the general revision of this chapter by
Pub. L. 85-859.
AMENDMENTS
1997 - Subsec. (c). Pub. L. 105-34 substituted "if there is such
proof of exportation as the Secretary may by regulations require."
for "on the submission of such evidence, records, and certification
indicating exportation as the Secretary may by regulations
prescribe."
1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(15)(A), struck out
"for storage therein pending exportation" after "customs bonded
warehouse".
Subsec. (b). Pub. L. 96-39, Sec. 807(a)(15)(B), substituted "from
bonded premises by the proprietor for exportation without payment
of tax, the bond of such proprietor required to be furnished under
paragraph (1) of section 5173(a) covering such premises shall cover
such exportation, and subsection (a) shall not apply" for "for
exportation without payment of tax on application of the proprietor
of bonded premises, the bond of such proprietor covering such
bonded premises shall cover such exportation and subsection (a)
shall not be applicable".
1977 - Subsec. (a). Pub. L. 95-176 required export bonds for
withdrawals from bonded premises, without payment of tax, for
transfer to a customs bonded warehouse for storage therein pending
exportation.
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1412(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.
CONTINUATION OF DISTILLER'S NOTICE AND BOND
Section 210(f) of Pub. L. 85-859, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"Notwithstanding any provision of section 5175 or 5176(a) of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954], the Secretary
of the Treasury or his delegate may waive, as to registered
distillers or registered fruit distillers qualified to operate
under bond on April 30, 1959, requirements for filing notice and
executing new bond on May 1, 1959, if the distiller and the surety
have executed consent to continuation of the terms of the existing
bond to cover operations from May 1, 1959, to June 30, 1959, both
dates inclusive. Nothing in this subsection shall be construed as
limiting the authority of the Secretary of the Treasury or his
delegate under section 5176(b) or (c) of the Internal Revenue Code
of 1986."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5176, 5177, 5214 of this
title.
-End-
-CITE-
26 USC Sec. 5176 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5176. New or renewed bonds
-STATUTE-
(a) General
New bonds shall be required under sections 5173 and 5175 in case
of insolvency or removal of any surety, and may, at the discretion
of the Secretary, be required in any other contingency affecting
the validity or impairing the efficiency of such bond.
(b) Bonds
If the proprietor of a distilled spirits plant fails or refuses
to furnish a bond required under paragraph (1) of section 5173(a)
or to renew the same, and neglects to immediately withdraw the
spirits and pay the tax thereon, the Secretary shall proceed to
collect the tax.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1353; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(16),
July 26, 1979, 93 Stat. 282.)
-MISC1-
PRIOR PROVISIONS
A prior section 5176(c), act Aug. 16, 1954, ch. 736, 68A Stat.
629, consisted of provisions similar to those comprising subsec.
(a) of this section, prior to the general revision of this chapter
by Pub. L. 85-859.
Prior section 5176(a), (b), (d), (e), related to distiller's
bond: form and approval; additional bond; exemption from survey
requirements; and cross references, prior to the general revision
of this chapter by Pub. L. 85-859. See sections 5173(a), (b),
5174(a)(1) and 5177 of this title.
Provisions similar to those comprising this section were
contained in prior section 5232(c), act Aug. 16, 1954, ch. 736, 68A
Stat. 643, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(16)(A), struck out
", 5174," after "sections 5173".
Subsec. (b). Pub. L. 96-39, Sec. 807(a)(16)(A), substituted
reference to paragraph (1) of section 5173(a) for reference to
section 5173(c) and struck out provisions relating to failure or
refusal of the proprietor of a distilled spirits plant to withdraw
any spirits from storage on bonded premises before the expiration
of the time limited on the bond and pay the tax thereon.
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
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.
CONTINUATION OF DISTILLER'S NOTICE AND BOND
Authority to waive requirements for filing notice and executing
new bond on May 1, 1959, if distiller and surety have executed
consent to continuation of the terms of existing bond to cover
operations from May 1, 1959 to June 30, 1959, see section 210(f) of
Pub. L. 85-859, set out as a note under section 5175 of this title.
-End-
-CITE-
26 USC Sec. 5177 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5177. Other provisions relating to bonds
-STATUTE-
(a) General provisions relating to bonds
The provisions of section 5551 shall be applicable to the bonds
required by or given under sections 5173 and 5175.
(b) Cross references
(1) For deposit of United States bonds or notes in lieu of
sureties, see section 9303 of title 31, United States Code.
(2) For penalty and forfeiture for failure or refusal to give
bond, or for giving false, forged, or fraudulent bond, or
carrying on the business of a distiller without giving bond,
see sections 5601(a)(4), 5601(a)(5), 5601(b), and 5615(3).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1353; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(6)(B), Oct.
4, 1976, 90 Stat. 1823; Pub. L. 96-39, title VIII, Sec. 807(a)(17),
July 26, 1979, 93 Stat. 282; Pub. L. 97-258, Sec. 3(f)(3), Sept.
13, 1982, 96 Stat. 1064.)
-MISC1-
PRIOR PROVISIONS
A prior section 5177, act Aug. 16, 1954, ch. 736, 68A Stat. 628,
related to "conditions of approval of distiller's bond", prior to
the general revision of this chapter by Pub. L. 85-859. See section
5173(b)(1) of this title.
Prior section 5177(a) was a general provision. See section
5171(a) of this title.
Prior section 5177(b)(1) to (3) related to ownership, consent of
owner, or indemnity bond. See section 5173(b)(1)(A) to (C) of this
title.
Prior section 5177(b)(4) related to judicial sale. See section
5173(b)(3) of this title.
Prior section 5177(c) related to situation of distillery. See
sections 5173(b)(1) and 5551(c) of this title.
Prior section 5177(d) was a cross reference to penalty for
improper approval of distiller's bond, and to general provisions
relating to approval, disapproval and appeal on bonds. See subsec.
(a) of this section and section 5551 of this title.
Provisions similar to those comprising subsec. (b) of this
section were contained in prior sections 5176(e) and 5232(d), act
Aug. 16, 1954, ch. 736, 68A Stat. 630, 644, prior to the general
revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1982 - Subsec. (b)(1). Pub. L. 97-258 substituted "section 9303
of title 31, United States Code" for "6 U.S.C. 15".
1979 - Subsec. (a). Pub. L. 96-39 struck out ", 5174," after
"sections 5173".
1976 - Subsec. (b)(2). Pub. L. 94-455 substituted "5601(b)" for
"5601(b)(2)".
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 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. 5178 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5178. Premises of distilled spirits plants
-STATUTE-
(a) Location, construction, and arrangement
(1) General
(A) The premises of a distilled spirits plant shall be as
described in the application required by section 5171(c). The
Secretary shall prescribe such regulations relating to the
location, construction, arrangement, and protection of distilled
spirits plants as he deems necessary to facilitate inspection and
afford adequate security to the revenue.
(B) No distilled spirits plant for the production of distilled
spirits shall be located in any dwelling house, in any shed,
yard, or inclosure connected with any dwelling house, or on board
any vessel or boat, or on premises where beer or wine is made or
produced, or liquors of any description are retailed, or on
premises where any other business is carried on (except when
authorized under subsection (b)).
(C) Notwithstanding any other provision of this chapter
relating to distilled spirits plants the Secretary may approve
the location, construction, arrangement, and method of operation
of any establishment which was qualified to operate on the date
preceding the effective date of this section if he deems that
such location, construction, arrangement, and method of operation
will afford adequate security to the revenue.
(2) Production operations
(A) Any person establishing a distilled spirits plant may, as
described in his application for registration, produce distilled
spirits from any source or substance.
(B) The distilling system shall be continuous and shall be so
designed and constructed and so connected as to prevent the
unauthorized removal of distilled spirits before their production
gauge.
(C) The Secretary is authorized to order and require -
(i) such identification of, changes of, and additions to,
distilling apparatus, connecting pipes, pumps, tanks, and any
machinery connected with or used in or on the premises, and
(ii) such fastenings, locks, and seals to be part of any of
the stills, tubs, pipes, tanks, and other equipment, as he may
deem necessary to facilitate inspection and afford adequate
security to the revenue.
(3) Warehousing operations
(A) Any person establishing a distilled spirits plant for the
production of distilled spirits may, as described in the
application for registration, warehouse bulk distilled spirits on
the bonded premises of such plant.
(B) Distilled spirits plants for the bonded warehousing of bulk
distilled spirits elsewhere than as described in subparagraph (A)
may be established at the discretion of the Secretary by
proprietors referred to in subparagraph (A) or by other persons
under such regulations as the Secretary shall prescribe.
(4) Processing operations
Any person establishing a distilled spirits plant may, as
described in the application for registration, process distilled
spirits on the bonded premises of such plant.
(b) Use of premises for other businesses
The Secretary may authorize the carrying on of such other
businesses (not specifically prohibited by section 5601(a)(6)) on
premises of distilled spirits plants, as he finds will not
jeopardize the revenue. Such other businesses shall not be carried
on until an application to carry on such business has been made to
and approved by the Secretary.
(c) Cross references
(1) For provisions authorizing the Secretary to require
installation of meters, tanks, and other apparatus, see section
5552.
(2) For penalty for distilling on prohibited premises, see
section 5601(a)(6).
(3) For provisions relating to the bottling of distilled
spirits labeled as alcohol, see section 5235.
(4) For provisions relating to the unauthorized use of
distilled spirits in any manufacturing process, see section
5601(a)(9).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1353; amended Pub. L. 91-659, Sec. 5, Jan. 8, 1971, 84 Stat. 1966;
Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834; Pub. L. 95-176, Sec. 2(b), Nov. 14, 1977, 91 Stat.
1364; Pub. L. 96-39, title VIII, Secs. 805(b)(1), 807(a)(18), July
26, 1979, 93 Stat. 275, 283.)
-MISC1-
PRIOR PROVISIONS
A prior section 5178, act Aug. 16, 1954, ch. 736, 68A Stat. 631,
related to plan of distillery, prior to the general revision of
this chapter by Pub. L. 85-859. See sections 5171(a) and 5172 of
this title.
Provisions similar to those comprising subsecs. (a)(1)(A), (B),
(2)(A) to (C), (3), (4)(A), (B), (D), (5), (b), (c)(1), (2), (4) of
this section were contained in prior sections of act Aug. 16, 1954,
prior to the general revision of this chapter by Pub. L. 85-859, as
follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a)(1)(A) 5172, 5173(a), 5231, 5271(a), 5273(a),
5305.
(a)(1)(B) 5171(a).
(a)(2)(A) 5307.
(a)(2)(B) 5173(b).
(a)(2)(C) 5173(a), (c).
(a)(3) 5231, 5243(a), 5302.
(a)(4)(A) 5243(a).
(a)(4)(B), (D) 5271(a), 5273(a).
(a)(5) 5303, 5305, 5331(a)(1).
(b) 5171(a).
(c)(1) 5173(d)(1), 5273(b)(1).
(c)(2) 5171(b).
(c)(4) 5216(b).
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 627, 628, 641, 643, 645, 650, 654, 655, 657, 661.
AMENDMENTS
1979 - Subsec. (a)(1)(A). Pub. L. 96-39, Sec. 807(a)(18),
substituted "section 5171(c)" for "section 5171(a)".
Subsec. (a)(2). Pub. L. 96-39, Sec. 805(b)(1), substituted in
heading "operations" for "facilities" and in subpar. (A) "produce"
for "provided facilities which may be used for the production of"
and struck out in subpar. (B) "closed at all points where potable
or readily recoverable spirits are present and the distilling
apparatus" after "shall be continuous and".
Subsec. (a)(3). Pub. L. 96-39, Sec. 805(b)(1), substituted in
heading "Warehousing operations" for "Bonded warehousing
facilities" and in subpar. (A) "the application" for "his
application" and "warehouse bulk distilled spirits" for "establish
warehousing facilities" and struck out subpar. (C) which related to
facilities for the storage on bonded premises of distilled spirits
in casks, packages, cases, or similar portable approved containers
and subpar. (D), which related to the establishment of a portion of
the premises established under subpar. (C) as an export storage
facility for the storage of distilled spirits returned to bonded
premises under section 5215(b).
Subsec. (a)(4). Pub. L. 96-39, Sec. 805(b)(1), substituted
provisions relating to processing operations for provisions
relating to bottling facilities.
Subsec. (a)(5). Pub. L. 96-39, Sec. 805(b)(1), struck out par.
(5) which related to arrangement and segregation of denaturing
facilities by regulation of the Secretary.
1977 - Subsec. (a)(3)(D). Pub. L. 95-176 added subpar. (D).
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1971 - Subsec. (a)(4)(A). Pub. L. 91-659 substantially reenacted
existing provisions and added cl. (ii) and the following sentence.
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 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5511, 5601 of this title.
-End-
-CITE-
26 USC Sec. 5179 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5179. Registration of stills
-STATUTE-
(a) Requirements
Every person having in his possession or custody, or under his
control, any still or distilling apparatus set up, shall register
such still or apparatus with the Secretary immediately on its being
set up, by subscribing and filing with the Secretary a statement,
in writing, setting forth the particular place where such still or
distilling apparatus is set up, the kind of still and its capacity,
the owner thereof, his place of residence, and the purpose for
which said still or distilling apparatus has been or is intended to
be used (except that stills or distilling apparatus not used or
intended to be used for the distillation, redistillation, or
recovery of distilled spirits are not required to be registered
under this section).
(b) Cross references
(1) For penalty and forfeiture provisions relating to
unregistered stills, see sections 5601(a)(1) and 5615(1).
(2) For provisions requiring notification to set up a still,
boiler, or other vessel for distilling, see section 5101(a)(2).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1355; amended Pub. L. 94-455, title XIX, Secs. 1905(b)(6)(C),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 98-369,
div. A, title IV, Sec. 451(b)(1), July 18, 1984, 98 Stat. 819.)
-MISC1-
PRIOR PROVISIONS
A prior section 5179, act Aug. 16, 1954, ch. 736, 68A Stat. 631,
related to "survey of distillery", prior to the general revision of
this chapter by Pub. L. 85-859.
Provisions similar to those comprising this section were
contained in prior sections 5174 and 5275(2), act Aug. 16, 1954,
ch. 736, 68A Stat. 630, 651, prior to the general revision of this
chapter by Pub. L. 85-859.
AMENDMENTS
1984 - Subsec. (b)(2). Pub. L. 98-369 substituted "notification
to set up a still, boiler, or other vessel for distilling, see
section 5101(a)(2)" for "permit to set up a still, boiler or other
vessel for distilling, see section 5105".
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsec. (b)(1). Pub. L. 94-455, Sec. 1905(b)(6)(C), struck out ",
5601(b)(1)," after "5601(a)(1)".
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective on first day of first
calendar month which begins more than 90 days after July 18, 1984,
see section 456(a) of Pub. L. 98-369, set out as an Effective Date
note under section 5101 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(b)(6)(C) 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5505, 5511, 5601, 5615 of
this title.
-End-
-CITE-
26 USC Sec. 5180 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5180. Signs
-STATUTE-
(a) Requirements
Every person engaged in distilled spirits operations shall place
and keep conspicuously on the outside of his place of business a
sign showing the name of such person and denoting the business, or
businesses, in which engaged. The sign required by this subsection
shall be in such form and contain such information as the Secretary
shall by regulations prescribe.
(b) Penalty
For penalty and forfeiture relating to failure to post sign
or improperly posting such sign, see section 5681.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1355; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(19),
July 26, 1979, 93 Stat. 283.)
-MISC1-
PRIOR PROVISIONS
A prior section 5180, act Aug. 16, 1954, ch. 736, 68A Stat. 632,
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 this section were
contained in prior section 5274, act Aug. 16, 1954, ch. 736, 68A
Stat. 651, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1979 - Subsec. (a). Pub. L. 96-39 substituted "distilled spirits
operation" for "distilling, bonded warehousing, rectifying, or
bottling of distilled spirits".
1976 - Subsec. (a). 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5681 of this title.
-End-
-CITE-
26 USC Sec. 5181 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5181. Distilled spirits for fuel use
-STATUTE-
(a) In general
(1) Purposes for which plant may be established
On such application and bond and in such manner as the
Secretary may prescribe by regulation, a person may establish a
distilled spirits plant solely for the purpose of -
(A) producing, processing, and storing, and
(B) using or distributing,
distilled spirits to be used exclusively for fuel use.
(2) Regulations
In prescribing regulations under paragraph (1) and in carrying
out the provisions of this section, the Secretary shall, to the
greatest extent possible, take steps to -
(A) expedite all applications;
(B) establish a minimum bond; and
(C) generally encourage and promote (through regulation or
otherwise) the production of alcohol for fuel purposes.
(b) Authority to exempt
The Secretary may by regulation provide for the waiver of any
provision of this chapter (other than this section or any provision
requiring the payment of tax) for any distilled spirits plant
described in subsection (a) if the Secretary finds it necessary to
carry out the provisions of this section.
(c) Special rules for small plant production
(1) Applications
(A) In general
An application for an operating permit for an eligible
distilled spirits plant shall be in such a form and manner, and
contain such information, as the Secretary may by regulations
prescribe; except that the Secretary shall, to the greatest
extent possible, take steps to simplify the application so as
to expedite the issuance of such permits.
(B) Receipt of application
Within 15 days of receipt of an application under
subparagraph (A), the Secretary shall send a written notice of
receipt to the applicant, together with a statement as to
whether the application meets the requirements of subparagraph
(A). If such a notice is not sent and the applicant has a
receipt indicating that the Secretary has received an
application, paragraph (2) shall apply as if a written notice
required by the preceding sentence, together with a statement
that the application meets the requirements of subparagraph
(A), had been sent on the 15th day after the date the Secretary
received the application.
(C) Multiple applications
If more than one application is submitted with respect to any
eligible distilled spirits plant in any calendar quarter, the
provisions of this section shall apply only to the first
application submitted with respect to such plant during such
quarter. For purposes of the preceding sentence, if a corrected
or amended first application is filed, such application shall
not be considered as a separate application, and the 15-day
period referred to in subparagraph (A) shall commence with
receipt of the corrected or amended application.
(2) Determination
(A) In general
In any case in which the Secretary under paragraph (1)(B) has
notified an applicant of receipt of an application which meets
the requirements of paragraph (1)(A), the Secretary shall make
a determination as to whether such operating permit is to be
issued, and shall notify the applicant of such determination,
within 45 days of the date on which notice was sent under
paragraph (1)(B).
(B) Failure to make determination
If the Secretary has not notified an applicant within the
time prescribed under subparagraph (A), the application shall
be treated as approved.
(C) Rejection of application
If the Secretary determines under subparagraph (A) that a
permit should not be issued -
(i) the Secretary shall include in the notice to the
applicant of such determination under subparagraph (A)
detailed reasons for such determination, and
(ii) such determination shall not prejudice any further
application for such operating permit.
(3) Bond
No bond shall be required for an eligible distilled spirits
plant. For purposes of section 5212 and subsection (e)(2) of this
section, the premises of an eligible distilled spirits plant
shall be treated as bonded premises.
(4) Eligible distilled spirits plant
The term "eligible distilled spirits plant" means a plant which
is used to produce distilled spirits exclusively for fuel use and
the production from which does not exceed 10,000 proof gallons
per year.
(d) Withdrawal free of tax
Distilled spirits produced under this section may be withdrawn
free of tax from the bonded premises (and any premises which are
not bonded by reason of subsection (c)(3)) of a distilled spirits
plant exclusively for fuel use as provided in section 5214(a)(12).
(e) Prohibited withdrawal, use, sale, or disposition
(1) In general
Distilled spirits produced under this section shall not be
withdrawn, used, sold, or disposed of for other than fuel use.
(2) Rendering unfit for use
For protection of the revenue and under such regulations as the
Secretary may prescribe, distilled spirits produced under this
section shall, before withdrawal from the bonded premises of a
distilled spirits plant, be rendered unfit for beverage use by
the addition of substances which will not impair the quality of
the spirits for fuel use.
(f) Definition of distilled spirits
For purposes of this section, the term "distilled spirits" does
not include distilled spirits produced from petroleum, natural gas,
or coal.
-SOURCE-
(Added Pub. L. 96-223, title II, Sec. 232(e)(1), Apr. 2, 1980, 94
Stat. 278.)
-MISC1-
PRIOR PROVISIONS
A prior section 5181 was renumbered 5182 of this title.
EFFECTIVE DATE
Section 232(h)(3) of Pub. L. 96-223 provided that: "The
amendments made by subsection (e) [enacting this section, amending
sections 5004, 5005, 5214, and 5601, and repealing provisions set
out as a note under section 4081 of this title] shall take effect
on the first day of the first calendar month beginning more than 60
days after the date of the enactment of this Act [Apr. 2, 1980]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5081, 5214, 5601, 6103 of
this title.
-End-
-CITE-
26 USC Sec. 5182 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 B - Qualification Requirements for Distilled Spirits
Plants
-HEAD-
Sec. 5182. Cross references
-STATUTE-
For provisions requiring payment of special (occupational)
tax as wholesale liquor dealer, see section 5111, or as retail
liquor dealer, see section 5121.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1356, Sec. 5181; amended Pub. L. 96-39, title VIII, Sec.
807(a)(20), July 26, 1979, 93 Stat. 283; renumbered Sec. 5182, Pub.
L. 96-223, title II, Sec. 232(e)(1), Apr. 2, 1980, 94 Stat. 278.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in a prior section 5275(3), act Aug. 16, 1954, ch. 736,
68A Stat. 651, prior to the general revision of this chapter by
Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 struck out "as rectifier, see section 5081,
or" after "(occupational) tax".
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.
-End-
-CITE-
26 USC Subchapter C - Operation of Distilled Spirits
Plants 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 C - Operation of Distilled Spirits Plants
-HEAD-
SUBCHAPTER C - OPERATION OF DISTILLED SPIRITS PLANTS
-MISC1-
Part
I. General provisions.
II. Operations on bonded premises.
[III. Repealed.]
PRIOR PROVISIONS
A prior subchapter C, Internal Revenue Bonded Warehouses,
consisted of part I, Establishment, and part II, Operation, and
consisted of sections 5231 to 5233 and 5241 to 5252, respectively,
prior to the general revision of this chapter by Pub. L. 85-859,
title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(5), July 26, 1979,
93 Stat. 290, struck out item relating to Part III "Operations on
bottling premises" in table of parts comprising subchapter C.
-End-
-CITE-
26 USC PART I - GENERAL PROVISIONS 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 C - Operation of Distilled Spirits Plants
PART I - GENERAL PROVISIONS
-HEAD-
PART I - GENERAL PROVISIONS
-MISC1-
Sec.
5201. Regulation of operations.
5202. Supervision of operations.
5203. Entry and examination of premises.
5204. Gauging.
[5205. Repealed.]
5206. Containers.
5207. Records and reports.
PRIOR PROVISIONS
A prior part I, Establishment, consisted of sections 5231 to
5233, prior to the general revision of this chapter by Pub. L.
85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1984 - Pub. L. 98-369, div. A, title IV, Sec. 454(c)(14), July
18, 1984, 98 Stat. 823, struck out item 5205 "Stamps".
-SECREF-
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in section 5216 of this title.
-End-
-CITE-
26 USC Sec. 5201 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 C - Operation of Distilled Spirits Plants
PART I - GENERAL PROVISIONS
-HEAD-
Sec. 5201. Regulation of operations
-STATUTE-
(a) General
Proprietors of distilled spirits plants shall conduct all
operations authorized to be conducted on the premises of such
plants under such regulations as the Secretary shall prescribe.
(b) Distilled spirits for industrial uses
The regulations of the Secretary under this chapter respecting
the production, warehousing, denaturing, distribution, sale,
export, and use of distilled spirits for industrial purposes shall
be such as he deems necessary, advisable, or proper to secure the
revenue, to prevent diversion to illegal uses, and to place the
distilled spirits industry and other industries using such
distilled spirits as a chemical raw material or for other lawful
industrial purposes on the highest possible plane of scientific and
commercial efficiency and development consistent with the
provisions of this chapter. Where nonpotable chemical mixtures
containing distilled spirits are produced for transfer to the
bonded premises of a distilled spirits plant for completion of
processing, the Secretary may waive any provision of this chapter
with respect to the production of such mixtures, and the processing
of such mixtures on the bonded premises shall be deemed to be
production of distilled spirits for purposes of this chapter.
(c) Hours of operations
The Secretary may prescribe regulations relating to hours for
distillery operations and to hours for removal of distilled spirits
from distilled spirits plants; however, such regulations shall not
be more restrictive, as to any operation or function, that the
provisions of internal revenue law and regulations relating to such
operation or function in effect on the day preceding the effective
date of this section.
(d) Identification of distilled spirits
The Secretary may provide by regulations for the addition of
tracer elements to distilled spirits to facilitate the enforcement
of this chapter. Tracer elements to be added to distilled spirits
at any distilled spirits plant under provisions of this subsection
shall be of such character and in such quantity as the Secretary
may authorize or require, and such as will not impair the quality
of the distilled spirits for their intended use.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1357; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(21),
July 26, 1979, 93 Stat. 283.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising subsecs. (a) to (c) of
this section were contained in prior sections of act Aug. 16, 1954,
prior to the general revision of this chapter by Pub. L. 85-859, as
follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5193(a), 5194(g), 5241(a), 5281,
5282(a), 5302, 5305-5307, 5319(6).
(b) 5305.
(c) 5195, 5215, 5306.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 633, 636, 640, 644, 651, 654, 657, 661.
AMENDMENTS
1979 - Subsec. (a). Pub. L. 96-39 substituted "all operations
authorized to be conducted" for "their operations relating to the
production, storage, denaturing, rectification and bottling of
distilled spirits, and all other operations authorized to be
conducted".
1976 - Subsecs. (a) to (d). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-End-
-CITE-
26 USC Sec. 5202 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 C - Operation of Distilled Spirits Plants
PART I - GENERAL PROVISIONS
-HEAD-
Sec. 5202. Supervision of operations
-STATUTE-
All operations on the premises of a distilled spirits plant shall
be conducted under such supervision and controls (including the use
of Government locks and seals) as the Secretary shall by
regulations prescribe.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1357; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 806(a),
July 26, 1979, 93 Stat. 279.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior sections of act Aug. 16, 1954, prior to the
general revision of this chapter by Pub. L. 85-859, as follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5192(a), (c), 5241(a), (b), 5282(b).
(b) 5173(b), 5192(b), (c).
(c) 5241(a), (b).
(d) 5241(b).
(e) 5331(a)(1).
(f) 5193(a), 5250(a), (b).
(g) 5243(b).
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 628, 633, 644, 646, 649, 652, 661.
AMENDMENTS
1979 - Pub. L. 96-39 substituted provisions making on-site
supervision and the use of government locks and seals optional at
the discretion of the Secretary of the Treasury for provisions
whereby bonded warehouses are required to be kept under government
locks and certain activities are required to be conducted under
government supervision.
1976 - Subsecs. (a) to (g). 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.
-End-
-CITE-
26 USC Sec. 5203 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 C - Operation of Distilled Spirits Plants
PART I - GENERAL PROVISIONS
-HEAD-
Sec. 5203. Entry and examination of premises
-STATUTE-
(a) Keeping premises accessible
Every proprietor of a distilled spirits plant shall furnish the
Secretary such keys as may be required for internal revenue
officers to gain access to the premises and any structures thereon,
and such premises shall always be kept accessible to any officer
having such keys.
(b) Right of entry and examination
It shall be lawful for any internal revenue officer at all times,
as well by night as by day, to enter any distilled spirits plant,
or any other premises where distilled spirits operations are
carried on, or structure or place used in connection therewith for
storage or other purposes; to make examination of the materials,
equipment, and facilities thereon; and make such gauges and
inventories as he deems necessary. Whenever any officer, having
demanded admittance, and having declared his name and office, is
not admitted into such premises by the proprietor or other person
having charge thereof, it shall be lawful for such officer, at all
times, as well by night as by day, to use such force as is
necessary for him to gain entry to such premises.
(c) Furnishing facilities and assistance
On the demand of any internal revenue officer or agent, every
proprietor of a distilled spirits plant shall furnish the necessary
facilities and assistance to enable the officer or agent to gauge
the spirits in any container or to examine any apparatus,
equipment, containers, or materials on such premises. Such
proprietor shall also, on demand of such officer or agent, open all
doors, and open for examination all boxes, packages, and all casks,
barrels, and other vessels on such premises.
(d) Authority to break up grounds or walls
It shall be lawful for any internal revenue officer, and any
person acting in his aid, to break up the ground on any part of a
distilled spirits plant or any other premises where distilled
spirits operations are carried on, or any ground adjoining or near
to such plant or premises, or any wall or partition thereof, or
belonging thereto, or other place, to search for any pipe, cock,
private conveyance, or utensil; and, upon finding any such pipe or
conveyance leading therefrom or thereto, to break up any ground,
house, wall, or other place through or into which such pipe or
other conveyance leads, and to break or cut away such pipe or other
conveyance, and turn any cock, or to examine whether such pipe or
other conveyance conveys or conceals any distilled spirits, mash,
wort, or beer, or other liquor, from the sight or view of the
officer, so as to prevent or hinder him from taking a true account
thereof.
(e) Penalty
For penalty for violation of this section, see section 5687.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1357; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(22),
July 26, 1979, 93 Stat. 283.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior sections of act Aug. 16, 1954, prior to the
general revision of this chapter by Pub. L. 85-859, as follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5196(a).
(b) 5196(b), (e).
(c) 5196(c), (e), 5283, 5615.
(d) 5196(d), 5283.
(e) 5615, 5687.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 636, 652, 686, 700.
AMENDMENTS
1979 - Subsec. (b). Pub. L. 96-39, Sec. 807(a)(22)(A),
substituted "where distilled spirits operations are carried on" for
"where distilled spirits are produced or rectified".
Subsec. (c). Pub. L. 96-39, Sec. 807(a)(22)(B), substituted "on
such premises" for "not under the control of the internal revenue
officer in charge".
Subsec. (d). Pub. L. 96-39, Sec. 807(a)(22)(C), substituted
"where distilled spirits operations are carried on" for "where
distilled spirits are produced or rectified".
1976 - Subsec. (a). 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5505, 5511, 5604 of this
title.
-End-
-CITE-
26 USC Sec. 5204 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 C - Operation of Distilled Spirits Plants
PART I - GENERAL PROVISIONS
-HEAD-
Sec. 5204. Gauging
-STATUTE-
(a) General
The Secretary may by regulations require the gauging of distilled
spirits for such purposes, as he may deem necessary, and all
required gauges shall be made at such times and under such
conditions as he may by regulations prescribe.
(b) Gauging instruments
For the determination of tax and the prevention and detection of
frauds, the Secretary may prescribe for use such hydrometers,
saccharometers, weighing and gauging instruments, or other means or
methods for ascertaining the quantity, gravity, and producing
capacity of any mash, wort, or beer used, or to be used, in the
production of distilled spirits, and the strength and quantity of
spirits subject to tax, as he may deem necessary; and he may
prescribe regulations to secure a uniform and correct system of
inspection, weighing, marking, and gauging of spirits.
(c) Gauging, marking, and branding by proprietors
The Secretary may by regulations require the proprietor of a
distilled spirits plant, at the proprietor's expense and under such
supervision as the Secretary may require, to do such gauging,
marking, and branding and such mechanical labor pertaining thereto
as the Secretary deems proper and determines may be done without
danger to the revenue.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1358; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(23),
July 26, 1979, 93 Stat. 283; Pub. L. 98-369, div. A, title IV, Sec.
454(c)(4), July 18, 1984, 98 Stat. 821.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior sections of act Aug. 16, 1954, prior to the
general revision of this chapter by Pub. L. 85-859, as follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5193(a), 5194(g), 5245, 5282(b).
(b) 5212.
(c) 5193(d), 5250(b), 5282(b), 5306.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 633, 634, 636, 639, 647, 649, 652, 657.
AMENDMENTS
1984 - Subsec. (c). Pub. L. 98-369 struck out "stamping," before
"marking" in heading and text.
1979 - Subsec. (a). Pub. L. 96-39 struck out ", in addition to
those specified in section 5202(f)," after "spirits for such
purposes".
1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5206 of this title.
-End-
-CITE-
26 USC Sec. 5205 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 C - Operation of Distilled Spirits Plants
PART I - GENERAL PROVISIONS
-HEAD-
[Sec. 5205. Repealed. Pub. L. 98-369, div. A, title IV, Sec.
454(a), July 18, 1984, 98 Stat. 820]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1358; amended Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 94-569, Sec.
1, Oct. 20, 1976, 90 Stat. 2699; Pub. L. 95-176, Sec. 2(c), Nov.
14, 1977, 91 Stat. 1364; Pub. L. 96-39, title VIII, Sec.
807(a)(24), July 26, 1979, 93 Stat. 283, related to stamps for
containers of distilled spirits.
EFFECTIVE DATE OF REPEAL
Repeal effective July 1, 1985, see section 456(b) of Pub. L.
98-369, set out as an Effective Date note under section 5101 of
this title.
-End-
-CITE-
26 USC Sec. 5206 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 C - Operation of Distilled Spirits Plants
PART I - GENERAL PROVISIONS
-HEAD-
Sec. 5206. Containers
-STATUTE-
(a) Authority to prescribe
The Secretary shall by regulations prescribe the types or kinds
of containers which may be used to contain, store, transfer,
convey, remove, or withdraw distilled spirits.
(b) Standards of fill
The Secretary may by regulations prescribe the standards of fill
for approved containers.
(c) Marking, branding, or identification
Containers of distilled spirits (and cases containing bottles or
other containers of such spirits) shall be marked, branded, or
identified in such manner as the Secretary shall by regulations
prescribe.
(d) Effacement of marks and brands on emptied containers
Every person who empties, or causes to be emptied, any container
of distilled spirits bearing any mark or brand required by law (or
regulations pursuant thereto) shall at the time of emptying such
container efface and obliterate such mark or brand; except that the
Secretary may, by regulations, waive any requirement of this
subsection where he determines that no jeopardy to the revenue will
be involved.
(e) Applicability
This section shall be applicable exclusively with respect to
containers of distilled spirits for industrial use, with respect to
containers of distilled spirits of a capacity of more than one
gallon for other than industrial use, and with respect to cases
containing bottles or other containers of distilled spirits.
(f) Cross references
(1) For other provisions relating to regulation of containers
of distilled spirits, see section 5301.
(2) For provisions relating to labeling containers of
distilled spirits of one gallon or less for nonindustrial uses,
see section 105(e) of the Federal Alcohol Administration Act
(27 U.S.C. 205(e)).
(3) For provisions relating to the marking and branding of
containers of distilled spirits by proprietors, see section
5204(c).
(4) For penalties and forfeitures relating to marks and
brands, see sections 5604 and 5613.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1360; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec.
454(c)(5), July 18, 1984, 98 Stat. 821; Pub. L. 104-188, title I,
Sec. 1704(t)(13), Aug. 20, 1996, 110 Stat. 1888.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising subsecs. (a) to (c) of
this section were contained in prior sections of act Aug. 16, 1954,
prior to the general revision of this chapter by Pub. L. 85-859, as
follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5193(a), (b), 5194, 5247(a), (d), 5302.
(b) 5193(c).
(c) 5009(a), 5193(a), 5194, 5243(d), (e),
5250(a), 5282(b).
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 603, 633 to 635, 646 to 649, 652, 654.
AMENDMENTS
1996 - Subsec. (f)(2). Pub. L. 104-188 substituted "section
105(e)" for "section 5(e)".
1984 - Subsecs. (d) to (f). Pub. L. 98-369 added subsec. (d),
redesignated existing subsecs. (d) and (e) as (e) and (f),
respectively, and in subsec. (f) added pars. (3) and (4).
1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
delegate" after "Secretary".
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5116, 5604 of this title.
-End-
-CITE-
26 USC Sec. 5207 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 C - Operation of Distilled Spirits Plants
PART I - GENERAL PROVISIONS
-HEAD-
Sec. 5207. Records and reports
-STATUTE-
(a) Records of distilled spirits plant proprietors
Every distilled spirits plant proprietor shall keep records in
such form and manner as the Secretary shall by regulations
prescribe of:
(1) The following production activities -
(A) the receipt of materials intended for use in the
production of distilled spirits, and the use thereof,
(B) the receipt and use of distilled spirits received for
redistillation, and
(C) the kind and quantity of distilled spirits produced.
(2) The following storage activities -
(A) the kind and quantity of distilled spirits, wines, and
alcoholic ingredients entered into storage,
(B) the kind and quantity of distilled spirits, wines, and
alcoholic ingredients removed, and the purpose for which
removed, and
(C) the kind and quantity of distilled spirits returned to
storage.
(3) The following denaturation activities -
(A) the kind and quantity of denaturants received and used or
otherwise disposed of,
(B) the kind and quantity of distilled spirits denatured, and
(C) the kind and quantity of denatured distilled spirits
removed.
(4) The following processing activities -
(A) all distilled spirits, wines, and alcoholic ingredients
received or transferred,
(B) the kind and quantity of distilled spirits packaged or
bottled, and
(C) the kind and quantity of distilled spirits removed from
his premises.
(5) Such additional information with respect to activities
described in paragraphs (1), (2), (3), and (4), and with respect
to other activities, as may by regulations be required.
(b) Reports
Every person required to keep records under subsection (a) shall
render such reports covering his operations, at such times and in
such form and manner and containing such information, as the
Secretary shall by regulations prescribe.
(c) Preservation and inspection
The records required by subsection (a) and a copy of each report
required by subsection (b) shall be available for inspection by any
internal revenue officer during business hours, and shall be
preserved by the person required to keep such records and reports
for such period as the Secretary shall by regulations prescribe.
(d) Penalty
For penalty and forfeiture for refusal or neglect to keep
records required under this section, or for false entries
therein, see sections 5603 and 5615(5).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1361; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 2(e), Nov. 14, 1977,
91 Stat. 1364; Pub. L. 96-39, title VIII, Sec. 807(a)(25), July 26,
1979, 93 Stat. 283; Pub. L. 98-369, div. A, title IV, Sec.
454(c)(6), July 18, 1984, 98 Stat. 821; Pub. L. 105-34, title XIV,
Sec. 1413(a), Aug. 5, 1997, 111 Stat. 1046.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior sections of act Aug. 16, 1954, prior to the
general revision of this chapter by Pub. L. 85-859, as follows:
Present subsecs.: Prior sections:
--------------------------------------------------------------------
(a) 5197(a)(1)(A), (a)(2), 5305, 5331(a)(3).
(b) 5285, 5555(a).
(c) 5197(b), 5285, 5305, 5331(a)(3),
5555(a).
(d) 5197(a)(1)(B), 5285, 5305, 5331(a)(3),
5555(a).
(e) 5197(c)(2), 5285.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 637, 638, 652, 657, 662, 681.
AMENDMENTS
1997 - Subsec. (c). Pub. L. 105-34 struck out "shall be kept on
the premises where the operations covered by the record are carried
on and" after "required by subsection (b)".
1984 - Subsec. (a)(4)(D). Pub. L. 98-369, Sec. 454(c)(6), struck
out subpar. (D) which required every distilled spirits plant
proprietor to keep records in such form and manner as prescribed by
the Secretary of the receipt, use, and balance on hand of all
stamps required by law or regulations to be used by the proprietor.
1979 - Subsec. (a). Pub. L. 96-39 struck out provisions relating
to the bottling of distilled spirits in bond and relating to the
kind and quantity of distilled spirits returned to bonded premises
and inserted provisions relating to the kind and quantity of
distilled spirits returned to storage and relating to receipt, use,
and balance on hand of all stamps required by law or regulations to
be used by the Secretary.
Subsec. (b). Pub. L. 96-39 redesignated subsec. (c) as (b) and
struck out "or (b)" after "subsection (a)". Former subsec. (b),
relating to records of rectifiers and bottlers, was struck out.
Subsec. (c). Pub. L. 96-39 redesignated subsec. (d) as (c),
struck out "and (b)," after "subsection (a)", and substituted
"subsection (b)" for "subsection (c)". Former subsec. (c)
redesignated (b).
Subsecs. (d), (e). Pub. L. 96-39 redesignated subsec. (e) as (d).
Former subsec. (d) redesignated (c).
1977 - Subsec. (a)(10), (11). Pub. L. 95-176, Sec. 2(e)(2), (3),
added par. (10) and redesignated former par. (10) as (11).
1976 - Subsecs. (a) to (d). Pub. L. 94 - 455 struck out "or his
delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1413(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 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5114, 5615 of this title.
-End-
-CITE-
26 USC PART II - OPERATIONS ON BONDED PREMISES 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
-HEAD-
PART II - OPERATIONS ON BONDED PREMISES
-MISC1-
Subpart
A. General
B. Production.
C. Storage.
D. Denaturation.
PRIOR PROVISIONS
A prior part II, Operation, consisted of sections 5241 to 5252,
prior to the general revision of this chapter by Pub. L. 85-859,
title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Subpart A - General 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart A - General
-HEAD-
SUBPART A - GENERAL
-MISC1-
Sec.
5211. Production and entry of distilled spirits.
5212. Transfer of distilled spirits between bonded premises.
5213. Withdrawal of distilled spirits from bonded premises
on determination of tax.
5214. Withdrawal of distilled spirits from bonded premises
free of tax or without payment of tax.
5215. Return of tax determined distilled spirits to bonded
premises.
5216. Regulation of operations.
-End-
-CITE-
26 USC Sec. 5211 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart A - General
-HEAD-
Sec. 5211. Production and entry of distilled spirits
-STATUTE-
Distilled spirits in the process of production in a distilled
spirits plant may be held prior to the production gauge only for so
long as is reasonably necessary to complete the process of
production. Under such regulations as the Secretary shall
prescribe, all distilled spirits produced in a distilled spirits
plant shall be gauged and a record made of such gauge within a
reasonable time after the production thereof has been completed.
The proprietor shall, pursuant to such production gauge and in
accordance with such regulations as the Secretary shall prescribe,
make appropriate entry for -
(1) deposit of such spirits on bonded premises for storage or
processing;
(2) withdrawal upon determination of tax as authorized by law;
(3) withdrawal under the provisions of section 5214; and
(4) transfer for redistillation under the provisions of section
5223.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1362; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(26),
July 26, 1979, 93 Stat. 284.)
-MISC1-
PRIOR PROVISIONS
A prior section 5211, act Aug. 16, 1954, ch. 736, 68A Stat. 638,
related to detention of casks, packages, or containers on
suspicion, prior to the general revision of this chapter by Pub. L.
85-859. See section 5311 of this title.
Provisions similar to those comprising this section were
contained in prior sections 5193(a), 5194(a), (e) to (g), 5242(a),
5305, act Aug. 16, 1954, ch. 736, 68A Stat. 633 to 636, 645, 657,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pars. (1), (5). Pub. L. 96-39 substituted in par. (1) "on
bonded premises for storage or processing" for "in storage on
bonded premises" and struck out par. (5) which related to an
appropriate entry by the proprietor for immediate denaturation.
1976 - 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.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5231 of this title.
-End-
-CITE-
26 USC Sec. 5212 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart A - General
-HEAD-
Sec. 5212. Transfer of distilled spirits between bonded premises
-STATUTE-
Bulk distilled spirits on which the internal revenue tax has not
been paid or determined as authorized by law may, under such
regulations as the Secretary shall prescribe, be transferred in
bond between bonded premises in any approved container. For the
purposes of this chapter, the removal of bulk distilled spirits for
transfer in bond between bonded premises shall not be construed to
be a withdrawal from bonded premises. The provisions of this
section restricting transfers to bulk distilled spirits shall not
apply to alcohol bottled under the provisions of section 5235 which
is to be withdrawn for industrial purposes.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1362; amended 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(b)(2),
July 26, 1979, 93 Stat. 276; Pub. L. 96-598, Sec. 6(d), Dec. 24,
1980, 94 Stat. 3490.)
-MISC1-
PRIOR PROVISIONS
A prior section 5212, act Aug. 16, 1954, ch. 736, 68A Stat. 639,
related to the prevention and detection of fraud and contained a
cross reference to provisions for gauging and marking of spirits,
prior to the general revision of this chapter by Pub. L. 85-859.
See section 5204(b) of this title.
Provisions similar to those comprising this section were
contained in prior sections 5194(a), (e) to (g), 5217(a), 5246,
5308, act Aug. 16, 1954, ch. 736, 68A Stat. 634 to 636, 641, 647,
657, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1980 - Pub. L. 96-598 inserted provision that restriction on
transfers to bulk distilled spirits not apply to alcohol bottled
under section 5235 of this title which is to be withdrawn for
industrial purposes.
1979 - Pub. L. 96-39 substituted "Bulk distilled spirits" for
"Distilled spirits" and "bulk distilled spirits" for "distilled
spirits".
1976 - 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5005, 5181 of this title.
-End-
-CITE-
26 USC Sec. 5213 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart A - General
-HEAD-
Sec. 5213. Withdrawal of distilled spirits from bonded premises on
determination of tax
-STATUTE-
Subject to the provisions of section 5173, distilled spirits may
be withdrawn from the bonded premises of a distilled spirits plant
on payment or determination of tax thereon, in approved containers,
under such regulations as the Secretary shall prescribe.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1362; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(27),
July 26, 1979, 93 Stat. 285.)
-MISC1-
PRIOR PROVISIONS
A prior section 5213, act Aug. 16, 1954, ch. 736, 68A Stat. 639,
related to return of materials used in the manufacture of distilled
spirits, prior to the general revision of this chapter by Pub. L.
85-859. See sections 5002(a)(6) and 5291 of this title.
Provisions similar to those comprising this section were
contained in prior sections 5194(a), (e) and 5244, act Aug. 16,
1954, ch. 736, 68A Stat. 634, 647, prior to the general revision of
this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 substituted "Subject to the provisions of
section 5173" for "On application to the Secretary and subject to
the provisions of section 5174(a)".
1976 - 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5006 of this title.
-End-
-CITE-
26 USC Sec. 5214 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart A - General
-HEAD-
Sec. 5214. Withdrawal of distilled spirits from bonded premises
free of tax or without payment of tax
-STATUTE-
(a) Purposes
Distilled spirits on which the internal revenue tax has not been
paid or determined may, subject to such regulations as the
Secretary shall prescribe, be withdrawn from the bonded premises of
any distilled spirits plant in approved containers -
(1) free of tax after denaturation of such spirits in the
manner prescribed by law for -
(A) exportation;
(B) use in the manufacture of ether, chloroform, or other
definite chemical substance where such distilled spirits are
changed into some other chemical substance and do not appear in
the finished product; or
(C) any other use in the arts and industries (except for uses
prohibited by section 5273(b) or (d)) and for fuel, light, and
power; or
(2) free of tax by, and for the use of, the United States or
any governmental agency thereof, any State, any political
subdivision of a State, or the District of Columbia, for
nonbeverage purposes; or
(3) free of tax for nonbeverage purposes and not for resale or
use in the manufacture of any product for sale -
(A) for the use of any educational organization described in
section 170(b)(1)(A)(ii) which is exempt from income tax under
section 501(a), or for the use of any scientific university or
college of learning;
(B) for any laboratory for use exclusively in scientific
research;
(C) for use at any hospital, blood bank, or sanitarium),
(including use in making any analysis or test at such hospital,
blood bank, or sanitarium), or at any pathological laboratory
exclusively engaged in making analyses, or tests, for hospitals
or sanitariums; or
(D) for the use of any clinic operated for charity and not
for profit (including use in the compounding of bona fide
medicines for treatment outside of such clinics of patients
thereof); or
(4) without payment of tax for exportation, after making such
application and entries, filing such bonds as are required by
section 5175, and complying with such other requirements as may
by regulations be prescribed; or
(5) without payment of tax for use in wine production, as
authorized by section 5373; or
(6) without payment of tax for transfer to manufacturing bonded
warehouses for manufacturing in such warehouses for export, as
authorized by law; or
(7) without payment of tax for use of certain vessels and
aircraft, as authorized by law; or
(8) without payment of tax for transfer to foreign-trade zones,
as authorized by law; or
(9) without payment of tax, for transfer (for the purpose of
storage pending exportation) to any customs bonded warehouse from
which distilled spirits may be exported, and distilled spirits
transferred to a customs bonded warehouse under this paragraph
shall be entered, stored, and accounted for under such
regulations and bonds as the Secretary may prescribe; or
(10) without payment of tax by a proprietor of bonded premises
for use in research, development, or testing (other than consumer
testing or other market analysis) of processes, systems,
materials, or equipment, relating to distilled spirits or
distilled spirits operations, under such limitations and
conditions as to quantities, use, and accountability as the
Secretary may by regulations require for the protection of the
revenue; or
(11) free of tax when contained in an article (within the
meaning of section 5002(a)(14)); or
(12) free of tax in the case of distilled spirits produced
under section 5181; or
(13) without payment of tax for use on bonded wine cellar
premises in the production of wine or wine products which will be
rendered unfit for beverage use and removed pursuant to section
5362(d).
(b) Cross references
(1) For provisions relating to denaturation, see sections
5241 and 5242.
(2) For provisions requiring permit for users of distilled
spirits withdrawn free of tax and for users of specially
denatured distilled spirits, see section 5271.
(3) For provisions relating to withdrawal of distilled
spirits without payment of tax for use of certain vessels and
aircraft, as authorized by law, see 19 U.S.C. 1309.
(4) For provisions relating to withdrawal of distilled
spirits without payment of tax for manufacture in manufacturing
bonded warehouse, see 19 U.S.C. 1311.
(5) For provisions relating to foreign-trade zones, see 19
U.S.C. 81c.
(6) For provisions authorizing regulations for withdrawal of
distilled spirits free of tax for use of the United States, see
section 7510.
(7) For provisions authorizing removal of distillates to
bonded wine cellars for use in the production of distilling
material, see section 5373(c).
(8) For provisions relating to distilled spirits for use of
foreign embassies, legations, etc., see section 5066.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1362; amended Pub. L. 91-172, title I, Sec. 101(j)(29), Dec. 30,
1969, 83 Stat. 529; Pub. L. 94-455, title XIX, Secs. 1905(c)(2),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 95-176,
Secs. 3(a), (d), 4(a), Nov. 14, 1977, 91 Stat. 1365; Pub. L. 96-39,
title VIII, Sec. 807(a)(28), July 26, 1979, 93 Stat. 285; Pub. L.
96-223, title II, Sec. 232(e)(2)(B), Apr. 2, 1980, 94 Stat. 280;
Pub. L. 98-369, div. A, title IV, Sec. 455(a), July 18, 1984, 98
Stat. 823.)
-MISC1-
PRIOR PROVISIONS
A prior section 5214, act Aug. 16, 1954, ch. 736, 68A Stat. 639,
related to regulation of traffic in containers of distilled
spirits, prior to the general revision of this chapter by Pub. L.
85-859. See section 5301(a), (c), (d) of this title.
Provisions similar to those comprising subsecs. (a)(1) to (4),
(9) and (b)(3) to (5) of this section were contained in prior
sections of act Aug. 16, 1954, prior to the general revision of
this chapter by Pub. L. 85-859, as follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5243(e), 5247, 5310(a)-(c), 5331
(a)(1), (b), 5373(b)(4), 5522(a).
(a)(1) 5310(a), 5331(a)(1), (b).
(a)(2), (3) 5310(b), (c).
(a)(4) 5243(e), 5247.
(a)(9) 5373(b)(4).
(b)(3) 5248(2).
(b)(4) 5248(4).
(b)(5) 5248(3).
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 646-648, 658, 661, 662, 667.
AMENDMENTS
1984 - Subsec. (a)(13). Pub. L. 98-369 added par. (13).
1980 - Subsec. (a)(12). Pub. L. 96-223 added par. (12).
1979 - Subsec. (a)(6). Pub. L. 96-39, Sec. 807(a)(28)(A),
inserted "for manufacturing in such warehouses for export" after
"bonded warehouses" and substituted "by law" for "by section
5522(a)".
Subsec. (a)(9). Pub. L. 96-39, Sec. 807(a)(28)(B), struck out "in
the case of distilled spirits bottled in bond for export under
section 5233 or distilled spirits returned to bonded premises under
section 5215(b)," after "payment of tax,".
Subsec. (a)(10). Pub. L. 96-39, Sec. 807(a)(28)(C), (D),
substituted "distilled spirits operations" for "distillery
operations".
Subsec. (a)(11). Pub. L. 96-39, Sec. 807(a)(28)(D), added par.
(11).
Subsec. (b)(4) to (8). Pub. L. 96-39, Sec. 807(a)(28)(E), added
par. (4) and redesignated former pars. (4) to (7) as (5) to (8),
respectively.
1977 - Subsec. (a)(9). Pub. L. 95-176, Sec. 3(a), substituted
provisions for withdrawal of distilled spirits from bonded premises
without payment of tax where the distilled spirits are bottled in
bond for export or are returned to bonded premises for transfer
(for the purpose of storage pending exportation) to any customs
bonded warehouse for exportation and requiring the transferred
distilled spirits to be entered, stored, and accounted for, for
prior provision for tax free withdrawals for use as samples in
making tests or laboratory analyses.
Subsec. (a)(10). Pub. L. 95-176, Sec. 4(a), added par. (10).
Subsec. (b)(7). Pub. L. 95-176, Sec. 3(d), added par. (7).
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary" in introductory provisions and struck out "or
Territory" after "State" in par. (2).
1969 - Subsec. (a)(3)(A). Pub. L. 91-172 substituted "section
170(b)(1)(A)(ii)" for "section 503(b)(2)".
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
Amendment by section 1905(c)(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 1969 AMENDMENT
Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section
101(k)(1) of Pub. L. 91-172, set out as an Effective Date note
under section 4940 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5001, 5002, 5003, 5004,
5005, 5008, 5066, 5173, 5181, 5211, 5244, 5271, 5273, 5275, 5314,
5607 of this title.
-End-
-CITE-
26 USC Sec. 5215 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart A - General
-HEAD-
Sec. 5215. Return of tax determined distilled spirits to bonded
premises
-STATUTE-
(a) General rule
Under such regulations as the Secretary may prescribe, distilled
spirits on which tax has been determined or paid may be returned to
the bonded premises of a distilled spirits plant but only for
destruction, denaturation, redistillation, reconditioning, or
rebottling.
(b) Applicability of chapter to distilled spirits returned to a
distilled spirits plant
All provisions of this chapter applicable to distilled spirits in
bond shall be applicable to distilled spirits returned to bonded
premises under the provisions of this section on such return.
(c) Return of bottled distilled spirits for relabeling and
reclosing
Under such regulations as the Secretary shall prescribe, bottled
distilled spirits withdrawn from bonded premises may be returned to
bonded premises for relabeling or reclosing, and the tax under
section 5001 shall not again be collected on such spirits.
(d) Cross reference
For provisions relating to the abatement, credit, or refund
of tax on distilled spirits returned to a distilled spirits
plant under this section, see section 5008(c).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1364; amended Pub. L. 89-44, title VIII, Sec. 805(c), June 21,
1965, 79 Stat. 161; Pub. L. 91-659, Sec. 2(c), Jan. 8, 1971, 84
Stat. 1964; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,
1976, 90 Stat. 1834; Pub. L. 95-176, Sec. 2(a), Nov. 14, 1977, 91
Stat. 1363; Pub. L. 96-39, title VIII, Sec. 807(a)(29), July 26,
1979, 93 Stat. 285; Pub. L. 98-369, div. A, title IV, Sec.
454(c)(7), July 18, 1984, 98 Stat. 821.)
-MISC1-
PRIOR PROVISIONS
A prior section 5215, act Aug. 16, 1954, ch. 736, 68A Stat. 640,
related to exemption of distillers of fruit brandy from certain
requirements, prior to the general revision of this chapter by Pub.
L. 85-859. See sections 5201(c), 5312(a), (c), 5373(a) and 5562 of
this title.
AMENDMENTS
1984 - Subsec. (c). Pub. L. 98-369 substituted "reclosing" for
"restamping" in heading and text.
1979 - Pub. L. 96-39 amended section generally thereby
authorizing the return of distilled spirits to the bonded premises
of the distilled spirits plant for certain enumerated purposes
except mere storage.
1977 - Subsec. (a). Pub. L. 95-176 reenacted existing provisions
but struck out last sentence relating to applicability of chapter
to distilled spirits returned to bonded premises, which was covered
in subsec. (d).
Subsecs. (b), (c). Pub. L. 95-176 added subsecs. (b) and (c) and
redesignated former subsec. (b) as (e).
Subsec. (d). Pub. L. 95-176 redesignated last sentence of former
subsec. (a) as subsec. (d) and inserted introductory phrase "Except
as otherwise provided in this section,".
Subsec. (e). Pub. L. 95-176 redesignated former subsec. (b) as
par. (1) and added par. (2).
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary".
1971 - Subsec. (a). Pub. L. 91-659, Sec. 2(c)(1), struck out
requirements that withdrawn distilled spirits be returned when
found unsuitable, in bulk containers, before processing and before
removal from the original container and permitted return of
withdrawn distilled spirits other than products to which any
alcoholic ingredients other than such distilled spirits have been
added and made additional authorization under section 5234(a)(1)(B)
for mingling returned distilled spirits.
Subsec. (b). Pub. L. 91-659, Sec. 2(c)(2), (3), repealed subsec.
(b) which provided for definition of "original container in which
such distilled spirits were withdrawn from bonded premises" in the
case of distilled spirits withdrawn by pipeline. Former subsec. (c)
redesignated (b).
1965 - Subsec. (a). Pub. L. 89-44 inserted reference to
destruction to redistillation, denaturation, and mingling in second
sentence on list of options which might be used in disposing of
returned distilled spirits.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 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 1971 AMENDMENT
Amendment by Pub. L. 91-659 effective on first day of first
calendar month which begins more than 90 days after January 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 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective July 1, 1965, see section
805(g)(1) of Pub. L. 89-44, set out as a note under section 5008 of
this title.
DISTILLED SPIRITS TO WHICH ALCOHOLIC INGREDIENTS OTHER THAN
DISTILLED SPIRITS HAVE BEEN ADDED AND WHICH HAVE BEEN WITHDRAWN
FROM DISTILLED SPIRITS PLANTS BEFORE JANUARY 1, 1980
Subsec. (a) of this section to apply to distilled spirits to
which alcoholic ingredients other than distilled spirits have been
added and which have been withdrawn from a distilled spirits plant
before Jan. 1, 1980, only if such spirits are returned to the
distilled spirits plant from which withdrawn, see section 808(e) 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 5008, 5612 of this title.
-End-
-CITE-
26 USC Sec. 5216 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart A - General
-HEAD-
Sec. 5216. Regulation of operations
-STATUTE-
For general provisions relating to operations on bonded
premises see part I of this subchapter.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1364.)
-MISC1-
PRIOR PROVISIONS
A prior section 5216, act Aug. 16, 1954, ch. 736, 68A Stat. 640,
related to "mash, wort and vinegar; vinegar factories", prior to
the general revision of this chapter by Pub. L. 85-859. See
sections 5178(c)(4), 5222(a)(1), (2)(D), (d), 5501, 5502(a), 5503,
5504(a), (b), 5505(a), (c) and 5601(a)(7), (8), (9)(A) of this
title.
A prior section 5217, acts Aug. 16, 1954, ch. 736, 68A Stat. 641;
July 11, 1956, ch. 573, Sec. 1, 70 Stat. 530; July 11, 1958, Pub.
L. 85-517, 72 Stat. 357, related to national emergency transfers,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC Subpart B - Production 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart B - Production
-HEAD-
SUBPART B - PRODUCTION
-MISC1-
Sec.
5221. Commencement, suspension, and resumption of
operations.
5222. Production, receipt, removal, and use of distilling
materials.
5223. Redistillation of spirits, articles, and residues.
AMENDMENTS
1965 - Pub. L. 89-44, title VIII, Sec. 805(f)(9), June 21, 1965,
79 Stat. 161, inserted reference to articles and residues in item
5223.
-End-
-CITE-
26 USC Sec. 5221 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart B - Production
-HEAD-
Sec. 5221. Commencement, suspension, and resumption of operations
-STATUTE-
(a) Commencement, suspension, and resumption
The proprietor of a distilled spirits plant authorized to produce
distilled spirits shall not commence production operations until
written notice has been given to the Secretary stating when
operations will begin. Any proprietor of a distilled spirits plant
desiring to suspend production of distilled spirits shall give
notice in writing to the Secretary, stating when he will suspend
such operations. Pursuant to such notice, an internal revenue
officer shall take such action as the Secretary shall prescribe to
prevent the production of distilled spirits. No proprietor, after
having given such notice, shall, after the time stated therein,
produce distilled spirits on such premises until he again gives
notice in writing to the Secretary stating the time when he will
resume operations. At the time stated in the notice of resuming
such operations an internal revenue officer shall take such action
as is necessary to permit operations to be resumed. The notices
submitted under this section shall be in such form and submitted in
such manner as the Secretary may by regulations require. Nothing in
this section shall apply to suspensions caused by unavoidable
accidents; and the Secretary shall prescribe regulations to govern
such cases of involuntary suspension.
(b) Penalty
For penalty and forfeiture for carrying on the business of
distiller after having given notice of suspension, see sections
5601(a)(14) and 5615(3).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1364; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 806(b),
July 26, 1979, 93 Stat. 279.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising subsec. (a) of this
section were contained in prior section 5191(a), act Aug. 16, 1954,
ch. 736, 68A Stat. 632, prior to the general revision of this
chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Subsec. (a). Pub. L. 96-39 substituted "until written
notice has been given to the Secretary stating when operations will
begin" for "until an internal revenue officer has been assigned to
the premises".
1976 - Subsec. (a). 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.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5601, 5615 of this title.
-End-
-CITE-
26 USC Sec. 5222 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart B - Production
-HEAD-
Sec. 5222. Production, receipt, removal, and use of distilling
materials
-STATUTE-
(a) Production, removal, and use
(1) No mash, wort, or wash fit for distillation or for the
production of distilled spirits shall be made or fermented in any
building or on any premises other than on the bonded premises of a
distilled spirits plant duly authorized to produce distilled
spirits according to law; and no mash, wort, or wash so made or
fermented shall be removed from any such premises before being
distilled, except as authorized by the Secretary; and no person
other than an authorized distiller shall, by distillation or any
other process, produce distilled spirits from any mash, wort, wash,
or other material.
(2) Nothing in this subsection shall be construed to apply to -
(A) authorized operations performed on the premises of vinegar
plants established under part I of subchapter H;
(B) authorized production and removal of fermented materials
produced on authorized brewery or bonded wine cellar premises as
provided by law;
(C) products exempt from tax under the provisions of section
5042 or 5053(e); or
(D) fermented materials used in the manufacture of vinegar by
fermentation.
(b) Receipt
Under such regulations as the Secretary may prescribe, fermented
materials to be used in the production of distilled spirits may be
received on the bonded premises of a distilled spirits plant
authorized to produce distilled spirits as follows -
(1) from the premises of a bonded wine cellar authorized to
remove such material by section 5362(c)(6);
(2) beer conveyed without payment of tax from brewery premises,
beer which has been lawfully removed from brewery premises upon
determination of tax, or
(3) cider exempt from tax under the provisions of section
5042(a)(1).
(c) Processing of distilled spirits containing extraneous
substances
The Secretary may by regulations provide for the removal from the
distilling system, and the addition to the fermented or unfermented
distilling material, of distilled spirits containing substantial
quantities of fusel oil or aldehydes, or other extraneous
substances.
(d) Penalty
For penalty and forfeiture for unlawful production, removal,
or use of material fit for distillation or for the production
of distilled spirits, and for penalty and forfeiture for
unlawful production of distilled spirits, see sections
5601(a)(7), 5601(a)(8), and 5615(4).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1365; amended Pub. L. 94-455, title XIX, Secs. 1905(b)(6)(D),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 95-458,
Sec. 2(b)(4), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 96-39, title
VIII, Sec. 807(a)(30), July 26, 1979, 93 Stat. 286; Pub. L. 105-34,
title XIV, Sec. 1414(a), Aug. 5, 1997, 111 Stat. 1047.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising subsecs. (a)(1), (2)(D),
(b), and (d) of this section were contained in prior sections of
act Aug. 16, 1954, prior to the general revision of this chapter by
Pub. L. 85-859, as follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a)(1), (2)(D) 5216(a)(1), (4).
(b) 5309, 5362(7), 5412.
(d) 5216(b).
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 640, 641, 658, 665, 675.
AMENDMENTS
1997 - Subsec. (b)(2). Pub. L. 105-34 amended par. (2) generally.
Prior to amendment, par. (2) read as follows: "conveyed without
payment of tax from contiguous brewery premises where produced;
or".
1979 - Subsec. (c). Pub. L. 96-39 struck out ", in the production
facilities of a distilled spirits plant" after "distilling
material".
1978 - Subsec. (a)(2)(C). Pub. L. 95-458 inserted reference to
section 5053(e).
1976 - Subsecs. (a)(1), (b), (c). Pub. L. 94-455, Sec.
1906(b)(13)(A), struck out "or his delegate" after "Secretary".
Subsec. (d). Pub. L. 94-455, Sec. 1905(b)(6)(D), struck out
"5601(b)(3), 5601(b)(4)," after "5601(a)(8),".
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 effective on the 1st day of the 1st
calendar quarter that begins at least 180 days after Aug. 5, 1997,
see section 1414(d) of Pub. L. 105-34, set out as a note under
section 5053 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 1978 AMENDMENT
Amendment by Pub. L. 95-458 effective on first day of first
calendar month beginning more than 90 days after Oct. 14, 1978, see
section 2(c) of Pub. L. 95-458, set out as a note under section
5042 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(b)(6)(D) 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5056, 5412 of this title.
-End-
-CITE-
26 USC Sec. 5223 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart B - Production
-HEAD-
Sec. 5223. Redistillation of spirits, articles, and residues
-STATUTE-
(a) Spirits on bonded premises
The proprietor of a distilled spirits plant authorized to produce
distilled spirits may, under such regulations as the Secretary
shall prescribe, redistill any distilled spirits which have not
been withdrawn from bonded premises.
(b) Distilled spirits returned for redistillation
Distilled spirits which have been lawfully removed from bonded
premises free of tax or without payment of tax may, under such
regulations as the Secretary may prescribe, be returned for
redistillation to the bonded premises of a distilled spirits plant
authorized to produce distilled spirits.
(c) Redistillation of articles and residues
Articles, containing denatured distilled spirits, which were
manufactured under the provisions of subchapter D or on the bonded
premises of a distilled spirits plant, and the spirits residues of
manufacturing processes related thereto, may be received, and the
distilled spirits therein recovered by redistillation, on the
bonded premises of a distilled spirits plant authorized to produce
distilled spirits, under such regulations as the Secretary may
prescribe.
(d) Denatured distilled spirits, articles, and residues
Distilled spirits recovered by the redistillation of denatured
distilled spirits, or by the redistillation of the articles or
residues described in subsection (c), may not be withdrawn from
bonded premises except for industrial use or after denaturation
thereof in the manner prescribed by law.
(e) Products of redistillation
All distilled spirits redistilled on bonded premises subsequent
to production gauge shall be treated the same as if such spirits
had been originally produced by the redistiller and all provisions
of this chapter applicable to the original production of distilled
spirits shall be applicable thereto. Any prior obligation as to
taxes, liens, and bonds with respect to such distilled spirits
shall be extinguished on redistillation. Nothing in this subsection
shall be construed as affecting any provision of law relating to
the labeling of distilled spirits or as limiting the authority of
the Secretary to regulate the marking, branding, or identification
of distilled spirits redistilled under this section.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1365; amended Pub. L. 89-44, title VIII, Sec. 805(d), (f)(8), (10),
June 21, 1965, 79 Stat. 161, 162; Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title
VIII, Sec. 807(a)(31), July 26, 1979, 93 Stat. 286.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising subsecs. (a) and (d) of
this section were contained in prior sections of act Aug. 16, 1954,
prior to the general revision of this chapter by Pub. L. 85-859, as
follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5194(f), 5217(a), 5305, 5308.
(d) 5194(f).
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 635, 641, 657.
AMENDMENTS
1979 - Subsec. (c). Pub. L. 96-39, Sec. 807(a)(31)(A), inserted
"or on the bonded premises of a distilled spirits plant" after
"subchapter D,".
Subsec. (e). Pub. L. 96-39, Sec. 807(a)(31)(B), struck out
provisions relating to the treatment of the processing of distilled
spirits, subsequent to production gauge, in the manufacture of
vodka in the production facilities of a distilled spirits plant as
a redistillation of the spirits for purposes of this subsection,
subsection (a), and sections 5025(d) and 5215.
1976 - Subsecs. (a) to (c), (e). Pub. L. 94-455 struck out "or
his delegate" after "Secretary" wherever appearing.
1965 - Pub. L. 89-44, Sec. 805(f)(8), substituted "spirits,
articles, and residues" for "spirits" in section catchline.
Subsec. (c). Pub. L. 89-44, Sec. 805(d), added subsec. (c).
Former subsecs. (c) redesignated (d).
Subsec. (d). Pub. L. 89-44, Sec. 805(d), (f)(10), redesignated
subsec. (c) as (d), inserted ", articles, and residues" after
"distilled spirits" in heading, and inserted ", or by the
redistillation of the articles or residues described in subsection
(c)," after "denatured distilled spirits" in text. Former subsec.
(d) redesignated (e).
Subsec. (e). Pub. L. 89-11, Sec. 805(d), redesignated former
subsec. (d) as (e).
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
Amendment by Pub. L. 89-44 effective Oct. 1, 1965, see section
805(g)(2) of Pub. L. 89-44, set out as a note under section 5004 of
this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5004, 5005, 5211, 5607 of
this title.
-End-
-CITE-
26 USC Subpart C - Storage 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart C - Storage
-HEAD-
SUBPART C - STORAGE
-MISC1-
Sec.
5231. Entry for deposit.
5232. Imported distilled spirits.
[5233, 5234. Repealed.]
5235. Bottling of alcohol for industrial purposes.
5236. Discontinuance of storage facilities and transfer of
distilled spirits.
AMENDMENTS
1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(6), July 26, 1979,
93 Stat. 290, substituted "Entry for deposit" for "Entry for
deposit in storage" in item 5231 and struck out items 5233
"Bottling of distilled spirits in bond" and 5234 "Mingling and
blending of distilled spirits".
-End-
-CITE-
26 USC Sec. 5231 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart C - Storage
-HEAD-
Sec. 5231. Entry for deposit
-STATUTE-
All distilled spirits entered for deposit on the bonded premises
of a distilled spirits plant under section 5211 shall, under such
regulations as the Secretary shall prescribe, be deposited in the
facilities on the bonded premises designated in the entry for
deposit.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1366; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(32),
July 26, 1979, 93 Stat. 286.)
-MISC1-
PRIOR PROVISIONS
A prior section 5231, act Aug. 16, 1954, ch. 736, 68A Stat. 643,
related to authority to establish internal revenue bonded
warehouses, prior to the general revision of this chapter by Pub.
L. 85-859. See sections 5171(a), 5172, 5173(a), and
5178(a)(1)(A)(B), (3)(A)(B) of this title.
Provisions similar to those comprising this section were
contained in prior section 5242(a), (b)(5), act Aug. 16, 1954, ch.
736, 68A Stat. 645, prior to the general revision of this chapter
by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 struck out in section catchline "in storage"
after "for deposit" and subsec. (a) catchline and in text
substituted "on the bonded premises of a distilled spirits plant"
for "in storage" and "in the facilities" for "in storage
facilities" and repealed subsec. (b) which related to a cross
reference to section 5006(a)(2) for provisions requiring that all
distilled spirits entered for deposit be withdrawn within 20 years
from date of original entry for deposit.
1976 - Subsec. (a). 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.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-End-
-CITE-
26 USC Sec. 5232 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart C - Storage
-HEAD-
Sec. 5232. Imported distilled spirits
-STATUTE-
(a) Transfer to distilled spirits plant without payment of tax
Distilled spirits imported or brought into the United States in
bulk containers may, under such regulations as the Secretary shall
prescribe, be withdrawn from customs custody and transferred in
such bulk containers or by pipeline to the bonded premises of a
distilled spirits plant without payment of the internal revenue tax
imposed on such distilled spirits. The person operating the bonded
premises of the distilled spirits plant to which such spirits are
transferred shall become liable for the tax on distilled spirits
withdrawn from customs custody under this section upon release of
the spirits from customs custody, and the importer, or the person
bringing such distilled spirits into the United States, shall
thereupon be relieved of his liability for such tax.
(b) Withdrawals, etc.
Distilled spirits transferred pursuant to subsection (a) -
(1) may be redistilled or denatured only if of 185 degrees or
more of proof, and
(2) may be withdrawn for any purpose authorized by this
chapter, in the same manner as domestic distilled spirits.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1366; amended Pub. L. 90-630, Sec. 3(a), Oct. 22, 1968, 82 Stat.
1328; Pub. L. 91-659, Sec. 7, Jan. 8, 1971, 84 Stat. 1967; Pub. L.
94-455, title XIX, Sec. 1905(a)(15), Oct. 4, 1976, 90 Stat. 1820;
Pub. L. 96-39, title VIII, Sec. 807(a)(33), July 26, 1979, 93 Stat.
286.)
-MISC1-
PRIOR PROVISIONS
A prior section 5232, acts Aug. 16, 1954, ch. 736, 68A Stat. 643;
Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 206(b), 72 Stat.
1431, related to bond requirements of internal revenue bonded
warehouses, prior to the general revision of this chapter by Pub.
L. 85-859. See sections 5005(c)(1), 5006(a)(2), 5173(a), (c)(1),
5174(a)(1), 5176(a), (b), and 5177(b)(1) of this title.
Provisions similar to those comprising this section were
contained in prior section 5311, act Aug. 16, 1954, ch. 736, 68A
Stat. 658, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1979 - Subsec. (b). Pub. L. 96-39 redesignated par. (2) and (3)
as (1) and (2). Former par. (1), which prohibited distilled spirits
transferred pursuant to subsection (a) from being bottled in bond
under section 5233, was struck out.
1976 - Subsec. (a). Pub. L. 94-455 inserted ", or the person
bringing such distilled spirits into the United States," after "and
the importer".
1971 - Subsec. (a). Pub. L. 91-659, Sec. 7(a), extended privilege
of transfer of distilled spirits to the plant without payment of
tax to distilled spirits imported, or brought into the United
States, and struck out reference to section 5001.
Subsec. (b). Pub. L. 91-659, Sec. 7(b), struck out "Imported"
before "distilled spirits" and thus applied subsection to all
distilled spirits.
1968 - Pub. L. 90-630 permitted withdrawal in bulk containers or
by pipeline from customs custody to internal revenue bond without
payment of internal revenue taxes of all imported distilled spirits
in bulk containers, regardless of proof, extended to all such
imported distilled spirits the withdrawal privileges already
available to imported distilled spirits of at least 185 proof,
whether or not they have been redistilled or denatured, provided
that transferor's liability for the internal revenue tax ceases
when the transferee's liability attaches, and established that
imported bulk spirits are not eligible for the bottled in bond
privileges available to domestic spirits.
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 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
Amendment by Pub. L. 90-630 applicable only to withdrawals from
customs custody on or after first day of first calendar month which
begins more than 90 days after Oct. 22, 1968, see section 4 of Pub.
L. 90-630, set out as a note under section 5008 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5001, 5003, 5007 of this
title.
-End-
-CITE-
26 USC Sec. 5233 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart C - Storage
-HEAD-
[Sec. 5233. Repealed. Pub. L. 96-39, title VIII, Sec. 807(a)(34),
July 26, 1979, 93 Stat. 286]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1366; amended Pub. L. 94-455, title XIX, Secs.
1905(a)(16), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834,
related to the bottling of distilled spirits in bond.
A prior section 5233, act Aug. 16, 1954, ch. 736, 68A Stat. 644,
made a cross reference provision to establishment of bottling in
bond department, prior to the general revision of this chapter by
Pub. L. 85-859.
Provisions similar to those comprising subsecs. (a) to (d) and
(e)(1) of section 5233 added by Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1366, were contained in prior section
5243(a) to (c), (g), act Aug. 16, 1954, ch. 736, 68A Stat. 645, as
amended by Pub. L. 85-859, title II, Sec. 206(c), Sept. 2, 1958, 72
Stat. 1431.
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. 5234 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart C - Storage
-HEAD-
[Sec. 5234. Repealed. Pub. L. 96-39, title VIII, Sec. 807(a)(35),
July 26, 1979, 93 Stat. 286]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1367; amended Pub. L. 89-44, title VIII, Sec. 805(f)(11),
June 21, 1965, 79 Stat. 162; Pub. L. 94-455, title XIX, Secs.
1905(a)(17), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834;
Pub. L. 95-176, Sec. 5(a), Nov. 14, 1977, 91 Stat. 1366, related to
the mingling and blending of distilled spirits.
Provisions similar to those comprising section 5234(a)(1)(A) and
(b) to (d) of this title were contained in prior sections of act
Aug. 16, 1954, ch. 736, prior to the general revision of this
chapter by Pub. L. 85-859, as follows:
Subsecs.: Prior sections
--------------------------------------------------------------------
(a)(1)(A) 5306.
(b) 5217(a).
(c) 5023.
(d) 5251.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 606, 641, 649, 657.
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. 5235 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart C - Storage
-HEAD-
Sec. 5235. Bottling of alcohol for industrial purposes
-STATUTE-
Alcohol for industrial purposes may be bottled, labeled, and
cased on bonded premises of a distilled spirits plant prior to
payment or determination of tax, under such regulations as the
Secretary may prescribe.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1369; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(36),
July 26, 1979, 93 Stat. 286; Pub. L. 98-369, div. A, title IV, Sec.
454(c)(8), July 18, 1984, 98 Stat. 821.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior section 5305, act Aug. 16, 1954, ch. 736, 68A
Stat. 657, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1984 - Pub. L. 98-369 struck out "stamped," before "labeled," and
struck out provision that section 5205(a)(1) shall not apply to
alcohol bottled, stamped, and labeled as such under this section.
1979 - Pub. L. 96-39 substituted "section 5205(a)(1) shall not
apply" for "sections 5178(a)(4)(A), 5205(a)(1), and 5233 (relating
to the bottling of distilled spirits in bond) shall not be
applicable".
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5178, 5212 of this title.
-End-
-CITE-
26 USC Sec. 5236 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart C - Storage
-HEAD-
Sec. 5236. Discontinuance of storage facilities and transfer of
distilled spirits
-STATUTE-
When the Secretary finds any facilities for the storage of
distilled spirits on bonded premises to be unsafe or unfit for use,
or the spirits contained therein subject to great loss or wastage
he may require the discontinuance of the use of such facilities and
require the spirits contained therein to be transferred to such
other storage facilities as he may designate. Such transfer shall
be made at such time and under such supervision as the Secretary
may require and the expense of the transfer shall be paid by the
owner or the warehouseman of the distilled spirits. Whenever the
owner of such distilled spirits or the warehouseman fails to make
such transfer within the time prescribed, or to pay the just and
proper expense of such transfer, as ascertained and determined by
the Secretary, such distilled spirits may be seized and sold by the
Secretary in the same manner as goods are sold on distraint for
taxes, and the proceeds of such sale shall be applied to the
payment of the taxes due thereon and the cost and expenses of such
sale and removal, and the balance paid over to the owner of such
distilled spirits.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1369; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior section 5252, act Aug. 16, 1954, ch. 736, 68A
Stat. 649, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-End-
-CITE-
26 USC Subpart D - Denaturation 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart D - Denaturation
-HEAD-
SUBPART D - DENATURATION
-MISC1-
Sec.
5241. Authority to denature.
5242. Denaturing materials.
5243. Sale of abandoned spirits for denaturation without
collection of tax.
5244. Cross references.
-End-
-CITE-
26 USC Sec. 5241 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart D - Denaturation
-HEAD-
Sec. 5241. Authority to denature
-STATUTE-
Under such regulations as the Secretary shall prescribe,
distilled spirits may be denatured on the bonded premises of a
distilled spirits plant qualified for the processing of distilled
spirits. Distilled spirits to be denatured under this section shall
be of such kind and such degree of proof as the Secretary shall by
regulations prescribe. Distilled spirits denatured under this
section may be used on the bonded premises of a distilled spirits
plant in the manufacture of any article.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1369; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(37),
July 26, 1979, 93 Stat. 286.)
-MISC1-
PRIOR PROVISIONS
A prior section 5241, act Aug. 16, 1954, ch. 736, 68A Stat. 644,
related to supervision of operations of internal revenue bonded
warehouses, prior to the general revision of this chapter by Pub.
L. 85-859. See sections 5201(a), 5202 (a), (c), (d), and 7803 of
this title and section 22 of former Title 5, Executive Departments
and Government Officers and Employees.
Provisions similar to those comprising this section were
contained in prior sections 5194(c), 5303, 5310(a), 5331(a)(1), act
Aug. 16, 1954, ch. 736, 68A Stat. 635, 655, 658, 661, prior to the
general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 substituted "a distilled spirits plant
qualified for the processing of distilled spirits" for "any
distilled spirits plant operated by a proprietor who is authorized
to produce distilled spirits at such plant or on other bonded
premises", struck out provision that any other person operating
bonded premises may, at the discretion of the Secretary and under
such regulations as he may prescribe, be authorized to denature
distilled spirits on such bonded premises, and inserted provision
that distilled spirits denatured under this section may be used on
the bonded premises of a distilled spirits plant in the manufacture
of any article.
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5214 of this title.
-End-
-CITE-
26 USC Sec. 5242 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart D - Denaturation
-HEAD-
Sec. 5242. Denaturing materials
-STATUTE-
Methanol or other denaturing materials suitable to the use for
which the denatured distilled spirits are intended to be withdrawn
shall be used for the denaturation of distilled spirits. Denaturing
materials shall be such as to render the spirits with which they
are admixed unfit for beverage or internal human medicinal use. The
character and the quantity of denaturing materials used shall be as
prescribed by the Secretary by regulations.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1369; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5242, acts Aug. 16, 1954, ch. 736, 68A Stat. 645;
Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 206(e), 72 Stat.
1431, related to deposit of spirits in warehouses, prior to the
general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising this section were
contained in prior sections 5303, 5310(a) and 5331(a)(1), (2), act
Aug. 16, 1954, ch. 736, 68A Stat. 655, 658, 661, prior to the
general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5214 of this title.
-End-
-CITE-
26 USC Sec. 5243 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart D - Denaturation
-HEAD-
Sec. 5243. Sale of abandoned spirits for denaturation without
collection of tax
-STATUTE-
Notwithstanding any other provision of law, any distilled spirits
abandoned to the United States may be sold, in such cases as the
Secretary may by regulation provide, to the proprietor of any
distilled spirits plant for denaturation, or redistillation and
denaturation, without the payment of the internal revenue tax
thereon.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1370; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5243, acts Aug. 16, 1954, ch. 736, 68A Stat. 645;
Sept. 2, 1958, Pub. L. 85-859, Sec. 206(c), 72 Stat. 1431, related
to bottling of distilled spirits in bond, prior to the general
revision of this chapter by Pub. L. 85-859. See sections 5171,
5172, 5175, 5178(a)(3)(C), (4)(A), 5202(g), 5206(c), 5214(a)(4),
and 5233(a) to (c), (e)(1) of this title and section 121 of Title
27, Intoxicating Liquors.
Provisions similar to those comprising this section were
contained in prior section 5333, act Aug. 16, 1954, ch. 736, 68A
Stat. 662, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5688 of this title.
-End-
-CITE-
26 USC Sec. 5244 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 C - Operation of Distilled Spirits Plants
PART II - OPERATIONS ON BONDED PREMISES
Subpart D - Denaturation
-HEAD-
Sec. 5244. Cross references
-STATUTE-
(1) For provisions authorizing the withdrawal from the bonded
premises of a distilled spirits plant of denatured distilled
spirits, see section 5214(a)(1).
(2) For provisions requiring a permit to procure specially
denatured distilled spirits, see section 5271.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1370.)
-MISC1-
PRIOR PROVISIONS
A prior section 5244, act Aug. 16, 1954, ch. 736, 68A Stat. 647,
related to withdrawal of spirits from bonded warehouse on
determination of tax, prior to the general revision of this chapter
by Pub. L. 85-859. See section 5213 of this title.
-End-
-CITE-
26 USC [PART III - 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 C - Operation of Distilled Spirits Plants
[PART III - REPEALED]
-HEAD-
[PART III - REPEALED]
-End-
-CITE-
26 USC Secs. 5251, 5252 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 C - Operation of Distilled Spirits Plants
[PART III - REPEALED]
-HEAD-
[Secs. 5251, 5252. Repealed. Pub. L. 96-39, title VIII, Sec.
807(a)(38), July 26, 1979, 93 Stat. 286]
-MISC1-
Section 5251, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1370; amended Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, required proprietors
of distilled spirits plants to give notice of their intention to
rectify or compound any distilled spirits or wines.
A prior section 5251, act Aug. 16, 1954, ch. 736, 68A Stat. 649,
made a cross reference provision to "blending of beverage brandies
in internal revenue bonded warehouses", prior to the general
revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising section 5251 of this title
were contained in prior section 5282(a), act Aug. 16, 1954, ch.
736, 68A Stat. 651, prior to the general revision of this chapter
by Pub. L. 85-859.
Section 5252, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1370, set out cross references to other sections
with regard to the regulation of operations.
A prior section 5252, act Aug. 16, 1954, ch. 736, 68A Stat. 649,
related to "discontinuance of warehouse and transfer of
merchandise", prior to the general revision of this chapter by Pub.
L. 85-859. See section 5236 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 Subchapter D - Industrial Use of 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 D - Industrial Use of Distilled Spirits
-HEAD-
SUBCHAPTER D - INDUSTRIAL USE OF DISTILLED SPIRITS
-MISC1-
Sec.
5271. Permits.
5272. Bonds.
5273. Sale, use, and recovery of denatured distilled
spirits.
5274. Applicability of other laws.
5275. Records and reports.
5276. Occupational tax.
PRIOR PROVISIONS
A prior subchapter D, Rectifying Plants, consisted of part I,
Establishment, and part II, Operation, and comprised sections 5271
to 5275 and 5281 to 5285, respectively, prior to the general
revision of this chapter by Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1987 - Pub. L. 100-203, title X, Sec. 10512(e)(2), Dec. 22, 1987,
101 Stat. 1330-449, added item 5276.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in section 5223 of this title.
-End-
-CITE-
26 USC Sec. 5271 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 D - Industrial Use of Distilled Spirits
-HEAD-
Sec. 5271. Permits
-STATUTE-
(a) Requirements
No person shall -
(1) procure or use distilled spirits free of tax under the
provisions of section 5214(a)(2) or (3); or
(2) procure, deal in, or use specially denatured distilled
spirits; or
(3) recover specially or completely denatured distilled
spirits, until he has filed an application with and received a
permit to do so from the Secretary.
(b) Form of application and permit
(1) The application required by subsection (a) shall be in such
form, shall be submitted at such times, and shall contain such
information, as the Secretary shall by regulations prescribe.
(2) Permits under this section shall, under such regulations as
the Secretary shall prescribe, designate and limit the acts which
are permitted, and the place where and time when such acts may be
performed. Such permits shall be issued in such form and under such
conditions as the Secretary may by regulations prescribe.
(c) Disapproval of application
Any application submitted under this section may be disapproved
and the permit denied if the Secretary, after notice and
opportunity for hearing, finds that -
(1) in case of an application to withdraw and use distilled
spirits free of tax, the applicant is not authorized by law or
regulations issued pursuant thereto to withdraw or use such
distilled spirits; or
(2) the applicant (including, in the case of a corporation, any
officer, director, or principal stockholder, and, in the case of
a partnership, a partner) is, by reason of his business
experience, financial standing, or trade connections, not likely
to maintain operations in compliance with this chapter; or
(3) the applicant has failed to disclose any material
information required, or made any false statement as to any
material fact, in connection with his application; or
(4) the premises on which it is proposed to conduct the
business are not adequate to protect the revenue.
(d) Changes after issuance of permit
With respect to any change relating to the information contained
in the application for a permit issued under this section, the
Secretary may by regulations require the filing of written notice
of such change and, where the change affects the terms of the
permit, require the filing of an amended application.
(e) Suspension or revocation
If, after notice and hearing, the Secretary finds that any person
holding a permit issued under this section -
(1) has not in good faith complied with the provisions of this
chapter or regulations issued thereunder; or
(2) has violated the conditions of such permit; or
(3) has made any false statement as to any material fact in his
application therefor; or
(4) has failed to disclose any material information required to
be furnished; or
(5) has violated or conspired to violate any law of the United
States relating to intoxicating liquor, or has been convicted of
any offense under this title punishable as a felony or of any
conspiracy to commit such offense; or
(6) is, in the case of any person who has a permit under
subsection (a)(1) or (a)(2), by reason of his operations, no
longer warranted in procuring or using the distilled spirits or
specially denatured distilled spirits authorized by his permit;
or
(7) has, in the case of any person who has a permit under
subsection (a)(2), manufactured articles which do not correspond
to the descriptions and limitations prescribed by law and
regulations; or
(8) has not engaged in any of the operations authorized by the
permit for a period of more than 2 years;
such permit may, in whole or in part, be revoked or be suspended
for such period as the Secretary deems proper.
(f) Duration of permits
Permits issued under this section, unless terminated by the terms
of the permit, shall continue in effect until suspended or revoked
as provided in this section, or until voluntarily surrendered.
(g) Posting of permits
Permits issued under this section, to use distilled spirits free
of tax, to deal in, or use specially denatured distilled spirits,
or to recover specially or completely denatured distilled spirits,
shall be kept posted available for inspection on the premises
covered by the permit.
(h) Regulations
The Secretary shall prescribe all necessary regulations relating
to issuance, denial, suspension, or revocation, of permits under
this section, and for the disposition of distilled spirits
(including specially denatured distilled spirits) procured under
permit pursuant to this section which remain unused when such
permit is no longer in effect.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1370; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5271, act Aug. 16, 1954, ch. 736, 68A Stat. 650,
related to "notice of business of rectifier", prior to the general
revision of this chapter by Pub. L. 85-859. See sections 5171(a),
(c), 5172, and 5178(a)(1)(A), (4)(B)-(D) of this title.
Provisions similar to those comprising subsecs. (a) to (f) and
(h) of this section were contained in prior section 5304(a)(1) to
(4), (b), (c), act Aug. 16, 1954, ch. 736, 68A Stat. 655, prior to
the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsecs. (a) to (e), (h). Pub. L. 94-455 struck out "or
his delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5171, 5214, 5244, 5272,
5276 of this title.
-End-
-CITE-
26 USC Sec. 5272 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 D - Industrial Use of Distilled Spirits
-HEAD-
Sec. 5272. Bonds
-STATUTE-
(a) Requirements
Before any permit required by section 5271(a) is granted, the
Secretary may require a bond, in such form and amount as he may
prescribe, to insure compliance with the terms of the permit and
the provisions of this chapter.
(b) Exceptions
No bond shall be required in the case of permits issued to the
United States or any governmental agency thereof, or to the several
States or any political subdivision thereof, or to the District of
Columbia.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1372; amended Pub. L. 94-455, title XIX, Secs. 1905(c)(3),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5272, act Aug. 16, 1954, ch. 736, 68A Stat. 650,
related to requirement and approval of bond as condition to
commencing business of rectifier of spirits, prior to the general
revision of this chapter by Pub. L. 85-859. See section 5173(a),
(d) of this title.
Provisions similar to those comprising this section were
contained in prior sections 5304(a)(5) and 5310(d), act Aug. 16,
1954, ch. 736, 68A Stat. 655, 658, prior to the general revision of
this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary".
Subsec. (b). Pub. L. 94-455, Sec. 1905(c)(3), struck out "and
Territories" after "several States".
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(c)(3) 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. 5273 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 D - Industrial Use of Distilled Spirits
-HEAD-
Sec. 5273. Sale, use, and recovery of denatured distilled spirits
-STATUTE-
(a) Use of specially denatured distilled spirits
Any person using specially denatured distilled spirits in the
manufacture of articles shall file such formulas and statements of
process, submit such samples, and comply with such other
requirements, as the Secretary shall by regulations prescribe, and
no person shall use specially denatured distilled spirits in the
manufacture or production of any article until approval of the
article, formula, and process has been obtained from the Secretary.
(b) Internal medicinal preparations and flavoring extracts
(1) Manufacture
No person shall use denatured distilled spirits in the
manufacture of medicinal preparations or flavoring extracts for
internal human use where any of the spirits remains in the
finished product.
(2) Sale
No person shall sell or offer for sale for internal human use
any medicinal preparations or flavoring extracts manufactured
from denatured distilled spirits where any of the spirits remains
in the finished product.
(c) Recovery of spirits for reuse in manufacturing
Manufacturers employing processes in which denatured distilled
spirits withdrawn under section 5214(a)(1) are expressed,
evaporated, or otherwise removed, from the articles manufactured
shall be permitted to recover such distilled spirits and to have
such distilled spirits restored to a condition suitable solely for
reuse in manufacturing processes under such regulations as the
Secretary may prescribe.
(d) Prohibited withdrawal or sale
No person shall withdraw or sell denatured distilled spirits, or
sell any article containing denatured distilled spirits for
beverage purposes.
(e) Cross references
(1) For penalty and forfeiture for unlawful use or
concealment of denatured distilled spirits, see section 5607.
(2) For applicability of all provisions of law relating to
distilled spirits that are not denatured, including those
requiring payment of tax, to denatured distilled spirits or
articles produced, withdrawn, sold, transported, or used in
violation of law or regulations, see section 5001(a)(6).(!1)
(3) For definition of "articles", see section 5002(a)(14).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1372; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(39),
July 26, 1979, 93 Stat. 286.)
-REFTEXT-
REFERENCES IN TEXT
Section 5001(a)(6), referred to in subsec. (e)(2), was
redesignated section 5001(a)(5) by Pub. L. 103-465, title I, Sec.
136(a), Dec. 8, 1994, 108 Stat. 4841.
-MISC1-
PRIOR PROVISIONS
A prior section 5273, act Aug. 16, 1954, ch. 736, 68A Stat. 650,
related to premises of rectifier, prior to the general revision of
this chapter by Pub. L. 85-859. See section 5178(a)(1)(A), (4)(B),
(D) and (c)(1) of this title.
Provisions similar to those comprising this section were
contained in prior sections of act Aug. 16, 1954, prior to the
general revision of this chapter by Pub. L. 85-859, as follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5331(a), (b).
(b) 5303, 5305, 5310(a), 5331(a)(1), (2),
(b), 5647.
(c) 5332.
(d) 5303, 5305, 5310(a), 5331(a), 5647.
(e)(1), (2) 5334.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 655, 657, 658, 661, 662, 693.
AMENDMENTS
1979 - Subsec. (e)(3). Pub. L. 96-39 substituted "section
5002(a)(14)" for "section 5002(a)(11)".
1976 - Subsecs. (a), (c). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5214, 5607 of this title.
-FOOTNOTE-
(!1) See References in Text note below.
-End-
-CITE-
26 USC Sec. 5274 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 D - Industrial Use of Distilled Spirits
-HEAD-
Sec. 5274. Applicability of other laws
-STATUTE-
The provisions, including penalties, of sections 9, and 10 of the
Federal Trade Commission Act (15 U.S.C., secs. 49, 50), as now or
hereafter amended, shall apply to the jurisdiction, powers, and
duties of the Secretary under this subtitle, and to any person
(whether or not a corporation) subject to the provisions of this
subtitle.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1372; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5274, act Aug. 16, 1954, ch. 736, 68A Stat. 651,
related to sign required on rectifying premises, prior to the
general revision of this chapter by Pub. L. 85-859. See section
5180 of this title.
Provisions similar to those comprising this section were
contained in prior section 5317(b), act Aug. 16, 1954, ch. 736, 68A
Stat. 660, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Sec. 5275 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 D - Industrial Use of Distilled Spirits
-HEAD-
Sec. 5275. Records and reports
-STATUTE-
Every person procuring or using distilled spirits withdrawn under
section 5214(a)(2) or (3), or procuring, dealing in, or using
specially denatured distilled spirits, or recovering specially
denatured or completely denatured distilled spirits, shall keep
such records and file such reports of the receipt and use of
distilled spirits withdrawn free of tax, of the receipt,
disposition, use, and recovery of denatured distilled spirits, the
manufacture and disposition of articles, and such other information
as the Secretary may be regulations require. The Secretary may
require any person reprocessing, bottling or repackaging articles,
or dealing in completely denatured distilled spirits or articles,
to keep such records, submit such reports, and comply with such
other requirements as he may by regulations prescribe. Records
required to be kept under this section and a copy of all reports
required to be filed shall be preserved as regulations shall
prescribe and shall be kept available for inspection by any
internal revenue officer during business hours. Such officer may
also inspect and take samples of distilled spirits, denatured
distilled spirits, or articles (including any substances for use in
the manufacture thereof), to which such records or reports relate.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1373; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5275, act Aug. 16, 1954, ch. 736, 68A Stat. 651,
related to cross references, prior to the general revision of this
chapter by Pub. L. 85-859. See sections 5179(2) and 5181 of this
title.
Provisions similar to those comprising this section were
contained in prior sections 5305, 5313(b), and 5331(a)(3), act Aug.
16, 1954, ch. 736, 68A Stat. 657, 659, 662, prior to the general
revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-End-
-CITE-
26 USC Sec. 5276 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 D - Industrial Use of Distilled Spirits
-HEAD-
Sec. 5276. Occupational tax
-STATUTE-
(a) General rule
Except as otherwise provided in this section, a permit issued
under section 5271 shall not be valid with respect to acts
conducted at any place unless the person holding such permit pays a
special tax of $250 with respect to such place.
(b) Certain occupational tax rules to apply
Rules similar to the rules of subpart G of part II of subchapter
A shall apply for purposes of this section.
(c) Exception for United States
Subsection (a) shall not apply to any permit issued to an agency
or instrumentality of the United States.
(d) Exception for certain educational institutions
Subsection (a) shall not apply with respect to any scientific
university, college of learning, or institution of scientific
research which -
(1) is issued a permit under section 5271, and
(2) with respect to any calendar year during which such permit
is in effect, procures less than 25 gallons of distilled spirits
free of tax for experimental or research use but not for
consumption (other than organoleptic tests) or sale.
-SOURCE-
(Added Pub. L. 100-203, title X, Sec. 10512(e)(1), Dec. 22, 1987,
101 Stat. 1330-448; amended Pub. L. 100-647, title II, Sec.
2004(t)(1), title VI, Sec. 6105(a), (b), Nov. 10, 1988, 102 Stat.
3609, 3711; Pub. L. 101-239, title VII, Sec. 7816(o), Dec. 19,
1989, 103 Stat. 2422.)
-MISC1-
PRIOR PROVISIONS
A prior section 5281, act Aug. 16, 1954, ch. 736, 68A Stat. 651,
related to regulation of business rectifier, prior to the general
revision of this chapter by Pub. L. 85-859.
A prior section 5282, act Aug. 16, 1954, ch. 736, 68A Stat. 651,
related to rectification of spirits, prior to the general revision
of this chapter by Pub. L. 85-859.
A prior section 5283, act Aug. 16, 1954, ch. 736, 68A Stat. 652,
related to examination of rectifying premises, prior to the general
revision of this chapter by Pub. L. 85-859.
A prior section 5284, act Aug. 16, 1954, ch. 736, 68A Stat. 652,
related to prohibited hours for removal of distilled spirits, prior
to the general revision of this chapter by Pub. L. 85-859.
A prior section 5285, act Aug. 16, 1954, ch. 736, 68A Stat. 652,
related to records and returns, prior to the general revision of
this chapter by Pub. L. 85-859.
AMENDMENTS
1989 - Subsec. (a). Pub. L. 101-239, Sec. 7816(o)(2), substituted
"Except as otherwise provided in this section," for "Except as
provided in subsection (c),".
Subsec. (c). Pub. L. 101-239, Sec. 7816(o)(1)(A), redesignated
subsec. (c), relating to exemption for certain educational
institutions, as (d).
Subsec. (d). Pub. L. 101-239, Sec. 7816(o)(1)(A), redesignated
subsec. (c), relating to exemption for certain educational
institutions, as (d) and substituted "Exception" for "Exemption" in
heading.
Subsec. (d)(1). Pub. L. 101-239, Sec. 7816(o)(1)(B), substituted
"section 5271" for "section 5271(a)(2)".
Subsec. (d)(2). Pub. L. 101-239, Sec. 7816(o)(1)(C), substituted
"distilled spirits free of tax" for "specially denatured distilled
spirits".
1988 - Subsec. (a). Pub. L. 100-647, Sec. 6105(b), substituted
"Except as provided in subsection (c), a permit" for "A permit".
Subsec. (c). Pub. L. 100-647, Sec. 6105(a), added subsec. (c)
relating to exemption for certain educational institutions.
Pub. L. 100-647, Sec. 2004(t)(1), added subsec. (c) relating to
exception for United States.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 effective, except as otherwise
provided, as if included in the provision of the Technical and
Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such
amendment relates, see section 7817 of Pub. L. 101-239, set out as
a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 2004(t)(1) of Pub. L. 100-647 effective,
except as otherwise provided, as if included in the provisions of
the Revenue Act of 1987, Pub. L. 100-203, title X, to which such
amendment relates, see section 2004(u) of Pub. L. 100-647, set out
as a note under section 56 of this title.
Section 6105(c) of Pub. L. 100-647 provided that: "The amendments
made by this section [amending this section] shall take effect on
July 1, 1989."
EFFECTIVE DATE
Section effective Jan. 1, 1988, see section 10512(h) of Pub. L.
100-203, set out as a note under section 5081 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5691 of this title.
-End-
-CITE-
26 USC Subchapter E - General Provisions Relating to
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 E - General Provisions Relating to Distilled Spirits
-HEAD-
SUBCHAPTER E - GENERAL PROVISIONS RELATING TO DISTILLED SPIRITS
-MISC1-
Part
I. Return of materials used in the manufacture or
recovery of distilled spirits.
II. Regulation of traffic in containers of distilled
spirits.
III. Miscellaneous provisions.
PRIOR PROVISIONS
A prior subchapter E, Industrial Alcohol Plants, Bonded
Warehouses, Denaturing Plants, and Denaturation, consisted of part
I, Industrial Alcohol Plants, Bonded Warehouses, and Denaturing
Plants and part II, Denaturation, and consisted of sections 5301 to
5320 and 5331 to 5334, respectively, prior to the general revision
of this chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1313.
-End-
-CITE-
26 USC PART I - RETURN OF MATERIALS USED IN THE
MANUFACTURE OR RECOVERY OF
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 E - General Provisions Relating to Distilled Spirits
PART I - RETURN OF MATERIALS USED IN THE MANUFACTURE OR RECOVERY OF
DISTILLED SPIRITS
-HEAD-
PART I - RETURN OF MATERIALS USED IN THE MANUFACTURE OR RECOVERY OF
DISTILLED SPIRITS
-MISC1-
Sec.
5291. General.
PRIOR PROVISIONS
A prior part I, Industrial Alcohol Plants, Bonded Warehouses, and
Denaturing Plants, consisted of sections 5301 to 5320, prior to the
general revision of this chapter by Pub. L. 85-859, title II, Sec.
201, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5291 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 E - General Provisions Relating to Distilled Spirits
PART I - RETURN OF MATERIALS USED IN THE MANUFACTURE OR RECOVERY OF
DISTILLED SPIRITS
-HEAD-
Sec. 5291. General
-STATUTE-
(a) Requirement
Every person disposing of any substance of the character used in
the manufacture of distilled spirits, or disposing of denatured
distilled spirits or articles from which distilled spirits may be
recovered, shall, when required by the Secretary, render a correct
return, in such form and manner as the Secretary may by regulations
prescribe, showing the name and address of the person to whom each
disposition was made, with such details, as to the quantity so
disposed of or other information which the Secretary may require as
to each such disposition, as will enable the Secretary to determine
whether all taxes due with respect to any distilled spirits
manufactured or recovered from any such substance, denatured,
distilled spirits, or articles, have been paid. Every person
required to render a return under this section shall keep such
records as will enable such person to render a correct return. Such
records shall be preserved for such period as the Secretary shall
by regulations prescribe, and shall be kept available for
inspection by any internal revenue officer during business hours.
(b) Cross references
(1) For the definition of distilled spirits, see section
5002(a)(8).
(2) For the definition of articles, see section 5002(a)(14).
(3) For penalty for violation of subsection (a), see section
5605.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1373; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(40),
July 26, 1979, 93 Stat. 286.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior section 5213, act Aug. 16, 1954, ch. 736, 68A
Stat. 639, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1979 - Subsec. (b)(1). Pub. L. 96-39, Sec. 807(a)(40)(A),
substituted "section 5002(a)(8)" for "section 5002(a)(6)".
Subsec. (b)(2). Pub. L. 96-39, Sec. 807(a)(40)(B), substituted
"section 5002(a)(14)" for "section 5002(a)(11)".
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary" wherever appearing.
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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5605 of this title.
-End-
-CITE-
26 USC PART II - REGULATION OF TRAFFIC IN CONTAINERS OF
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 E - General Provisions Relating to Distilled Spirits
PART II - REGULATION OF TRAFFIC IN CONTAINERS OF DISTILLED SPIRITS
-HEAD-
PART II - REGULATION OF TRAFFIC IN CONTAINERS OF DISTILLED SPIRITS
-MISC1-
Sec.
5301. General.
PRIOR PROVISIONS
A prior part II, Denaturation, consisted of section 5331 to 5334,
prior to the general revision of this chapter by Pub. L. 85-859,
title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5301 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 E - General Provisions Relating to Distilled Spirits
PART II - REGULATION OF TRAFFIC IN CONTAINERS OF DISTILLED SPIRITS
-HEAD-
Sec. 5301. General
-STATUTE-
(a) Requirements
Whenever in his judgment such action is necessary to protect the
revenue, the Secretary is authorized, by the regulations prescribed
by him and permits issued thereunder if required by him -
(1) to regulate the kind, size, branding, marking, sale,
resale, possession, use, and reuse of containers (of a capacity
of not more than 5 wine gallons) designed or intended for use for
the sale of distilled spirits (within the meaning of such term as
it is used in section 5002(a)(8) for other than industrial use;
and
(2) to require, of persons manufacturing, dealing in, or using
any such containers, the submission to such inspection, the
keeping of such records, and the filing of such reports as may be
deemed by him reasonably necessary in connection therewith.
Any requirements imposed under this section shall be in addition to
any other requirements imposed by, or pursuant to, law and shall
apply as well to persons not liable for tax under the internal
revenue laws as to persons so liable.
(b) Disposition
Every person disposing of containers of the character used for
the packaging of distilled spirits shall, when required by the
Secretary for protection of the revenue, render a correct return,
in such form and manner as the Secretary may by regulations
prescribe, showing the name and address of the person to whom each
disposition was made, with such details as to the quantities so
disposed of or other information which the Secretary may require as
to each such disposition. Every person required to render a return
under this section shall keep such records as will enable such
person to render a correct return. Such records shall be preserved
for such period as the Secretary shall by regulations prescribe,
and shall be kept available for inspection by any internal revenue
officer during business hours.
(c) Refilling of liquor bottles
No person who sells, or offers for sale, distilled spirits, or
agent or employee of such person, shall -
(1) place in any liquor bottle any distilled spirits whatsoever
other than those contained in such bottle at the time of tax
determination under the provisions of this chapter; or
(2) possess any liquor bottle in which any distilled spirits
have been placed in violation of the provisions of paragraph (1);
or
(3) by the addition of any substance whatsoever to any liquor
bottle, in any manner alter or increase any portion of the
original contents contained in such bottle at the time of tax
determination under the provisions of this chapter; or
(4) possess any liquor bottle, any portion of the contents of
which has been altered or increased in violation of the
provisions of paragraph (3);
except that the Secretary may by regulations authorize the reuse of
liquor bottles, under such conditions as he may by regulations
prescribe. When used in this subsection the term "liquor bottle"
shall mean a liquor bottle or other container which has been used
for the bottling or packaging of distilled spirits under
regulations issued pursuant to subsection (a).
(d) Closures
The immediate container of distilled spirits withdrawn from
bonded premises, or from customs custody, on determination of tax
shall bear a closure or other device which is designed so as to
require breaking in order to gain access to the contents of such
container. The preceding sentence shall not apply to containers of
bulk distilled spirits.
(e) Penalty
For penalty for violation of this section, see section 5606.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1374; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(41),
July 26, 1979, 93 Stat. 287; Pub. L. 98-369, div. A, title IV, Sec.
454(b), (c)(9), July 18, 1984, 98 Stat. 820, 821.)
-MISC1-
PRIOR PROVISIONS
A prior section 5301, act Aug. 16, 1954, ch. 736, 68A Stat. 654,
related to establishment of industrial alcohol plants, prior to the
general revision of this chapter by Pub. L. 85-859. See sections
5171(a), (b)(1), 5172, 5173(a), (b) of this title.
Provisions similar to those comprising subsecs. (a), (c), and (d)
of this section were contained in prior section 5214, act Aug. 16,
1954, ch. 736, 68A Stat. 639, prior to the general revision of this
chapter by Pub. L. 85-859.
A prior section 5302, act Aug. 16, 1954, ch. 736, 68A Stat. 645,
related to the establishment of industrial alcohol warehouses,
prior to the general revision of this chapter by Pub. L. 85-859.
See sections 5171(a), (b)(1), 5172, 5173(a), (c), 5178(a)(3)(A),
(B), 5201(a), and 5206(a) of this title.
A prior section 5303, act Aug. 16, 1954, ch. 736, 68A Stat. 655,
related to establishment of industrial alcohol denaturing plants,
prior to the general revision of this chapter by Pub. L. 85-859.
See sections 5171(a), (b)(1), 5172, 5173(a), (c), 5178(a)(5), 5241,
5242, and 5273(b)(1), (2), (d) of this title.
A prior section 5304, act Aug. 16, 1954, ch. 736, 68A Stat. 655,
related to alcohol permits, prior to the general revision of this
chapter by Pub. L. 85-859. See sections 5171(b)(1), 5173(a),
(e)(1), 5271(a) to (c), (e), (f), (h), and 5272(a) of this title.
A prior section 5305, act Aug. 16, 1954, ch. 736, 68A Stat. 657,
related to regulations for establishing, bonding, and operations of
plants and warehouses, prior to the general revision of this
chapter by Pub. L. 85-859. See sections 5171, 5172, 5173(a),
5178(a)(1)(A), (5), 5201(a), (b), 5207(a), (c), (d), 5211, 5223(a),
5235, 5273(b)(1), (2), (d), 5275, and 5312(b) of this title.
A prior section 5306, act Aug. 16, 1954, ch. 736, 68A Stat. 657,
related to exemption of industrial alcohol plants and warehouses
from certain laws, prior to the general revision of this chapter by
Pub. L. 85-859. See sections 5025(d), (e)(1), 5103, 5113(a),
5173(c), 5201(a), (c), 5204(c), 5234(a)(1)(A), 5306, and 5312(c) of
this title.
A prior section 5307, act Aug. 16, 1954, ch. 736, 68A Stat. 657,
related to production, use, or sale of alcohol, prior to the
general revision of this chapter by Pub. L. 85-859. See sections
5178(a)(2)(A) and 5201(a) of this title.
A prior section 5308, act Aug. 16, 1954, ch. 736, 68A Stat. 657,
related to transfer of alcohol to other plants or warehouses, prior
to the general revision of this chapter by Pub. L. 85-859. See
sections 5212 and 5223(a) of this title.
A prior section 5309, act Aug. 16, 1954, ch. 736, 68A Stat. 658,
related to withdrawal of fermented liquors to industrial alcohol
plants, prior to the general revision of this chapter by Pub. L.
85-859. See section 5222(b) of this title.
A prior section 5310, act Aug. 16, 1954, ch. 736, 68A Stat. 658,
related to withdrawal of alcohol free of tax, prior to the general
revision of this chapter by Pub. L. 85-859. See sections 5214(a),
(a)(1) to (3), 5241, 5242, 5272(b), 5273(b)(1), (2), (d), and 5313
of this title.
AMENDMENTS
1984 - Subsec. (c). Pub. L. 98-369, Sec. 454(c)(9), substituted
"tax determination" for "stamping" in pars. (1) and (3), and struck
out ", if the liquor bottles are to be again stamped under the
provisions of this chapter" after "by regulations prescribe" in
provisions following par. (4).
Subsec. (d). Pub. L. 98-369, Sec. 454(b), added subsec. (d) and
redesignated former subsec. (d) as (e).
1979 - Subsec. (a)(1). Pub. L. 96-39 substituted "section
5002(a)(8)" for "section 5002(a)(6)".
1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5206, 5604, 5606 of this
title.
-End-
-CITE-
26 USC PART III - MISCELLANEOUS PROVISIONS 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 E - General Provisions Relating to Distilled Spirits
PART III - MISCELLANEOUS PROVISIONS
-HEAD-
PART III - MISCELLANEOUS PROVISIONS
-MISC1-
Sec.
5311. Detention of containers.
5312. Production and use of distilled spirits for
experimental research.
5313. Withdrawal of distilled spirits from customs custody
free of tax for use of the United States.
5314. Special applicability of certain provisions.
[5315. Repealed.]
AMENDMENTS
1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(4), Oct. 4, 1976,
90 Stat. 1822, struck out item 5315 "Status of certain distilled
spirits on July 1, 1959".
-End-
-CITE-
26 USC Sec. 5311 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 E - General Provisions Relating to Distilled Spirits
PART III - MISCELLANEOUS PROVISIONS
-HEAD-
Sec. 5311. Detention of containers
-STATUTE-
It shall be lawful for any internal revenue officer to detain any
container, containing or supposed to contain, distilled spirits,
wines, or beer, when he has reason to believe that the tax imposed
by law on such distilled spirits, wines, or beer has not been paid
or determined as required by law, or that such container is being
removed in violation of law; and every such container may be held
by him at a safe place until it shall be determined whether the
property so detained is liable by law to be proceeded against for
forfeiture; but such summary detention shall not continue in any
case longer than 72 hours without process of law or intervention of
the officer to whom such detention is to be reported.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1375.)
-MISC1-
PRIOR PROVISIONS
A prior section 5311, act Aug. 16, 1954, ch. 736, 68A Stat. 658,
related to importation of alcohol for industrial purposes, prior to
the general revision of this chapter by Pub. L. 85-859. See section
5232 of this title.
Provisions similar to those comprising this section were
contained in prior section 5211, act Aug. 16, 1954, ch. 736, 68A
Stat. 638, prior to the general revision of this chapter by Pub. L.
85-859.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-End-
-CITE-
26 USC Sec. 5312 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 E - General Provisions Relating to Distilled Spirits
PART III - MISCELLANEOUS PROVISIONS
-HEAD-
Sec. 5312. Production and use of distilled spirits for experimental
research
-STATUTE-
(a) Scientific institutions and colleges of learning
Under such regulations as the Secretary may prescribe and on the
filing of such bonds and applications as he may require, any
scientific university, college of learning, or institution of
scientific research may produce, receive, blend, treat, test, and
store distilled spirits, without payment of tax, for experimental
or research use but not for consumption (other than organoleptic
tests) or sale, in such quantities as may be reasonably necessary
for such purposes.
(b) Experimental distilled spirits plants
Under such regulations as the Secretary may prescribe and on the
filing of such bonds and applications as he may require,
experimental distilled spirits plants may, at the discretion of the
Secretary, be established and operated for specific and limited
periods of time solely for experimentation in, or development of -
(1) sources of materials from which distilled spirits may be
produced;
(2) processes by which distilled spirits may be produced or
refined; or
(3) industrial uses of distilled spirits.
(c) Authority to exempt
The Secretary may by regulations provide for the waiver of any
provision of this chapter (other than this section) to the extent
he deems necessary to effectuate the purposes of this section,
except that he may not waive the payment of any tax on distilled
spirits removed from any such university, college, institution, or
plant.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1375; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5312, act Aug. 16, 1954, ch. 736, 68A Stat. 659,
made a cross reference to remission and refund of tax on alcohol
for loss or leakage, prior to the general revision of this chapter
by Pub. L. 85-859.
Provisions similar to those comprising this section were
contained in prior sections of act Aug. 16, 1954, prior to the
general revision of this chapter by Pub. L. 85-859, as follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5215.
(b) 5305.
(c) 5215, 5306.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 640, 657.
AMENDMENTS
1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
-End-
-CITE-
26 USC Sec. 5313 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 E - General Provisions Relating to Distilled Spirits
PART III - MISCELLANEOUS PROVISIONS
-HEAD-
Sec. 5313. Withdrawal of distilled spirits from customs custody
free of tax for use of the United States
-STATUTE-
Distilled spirits may be withdrawn free of tax from customs
custody by the United States or any governmental agency thereof for
its own use for nonbeverage purposes, under such regulations as may
be prescribed by the Secretary.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1375; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5313, act Aug. 16, 1954, ch. 736, 68A Stat. 659,
related to powers and duties of persons enforcing provisions
respecting industrial alcohol plants, bonded warehouses, and
denaturing plants, prior to the general revision of this chapter by
Pub. L. 85-859. See section 5275 of this title.
Provisions similar to those comprising this section were
contained in prior section 5310(b), act Aug. 16, 1954, ch. 736, 68A
Stat. 658, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5003 of this title.
-End-
-CITE-
26 USC Sec. 5314 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 E - General Provisions Relating to Distilled Spirits
PART III - MISCELLANEOUS PROVISIONS
-HEAD-
Sec. 5314. Special applicability of certain provisions
-STATUTE-
(a) Puerto Rico
(1) Applicability
The provisions of this subsection shall not apply to the
Commonwealth of Puerto Rico unless the Legislative Assembly of
the Commonwealth of Puerto Rico expressly consents thereto in the
manner prescribed in the constitution of the Commonwealth of
Puerto Rico, for the enactment of a law.
(2) In general
Distilled spirits for the purposes authorized in section
5214(a)(2) and (3), denatured distilled spirits, and articles, as
described in this paragraph, produced or manufactured in Puerto
Rico, may be brought into the United States free of any tax
imposed by section 5001(a)(10) (!1) or 7652(a)(1) for disposal
under the same conditions as like spirits, denatured spirits, and
articles, produced or manufactured in the United States; and the
provisions of this chapter and regulations promulgated thereunder
(and all other provisions of the internal revenue laws applicable
to the enforcement thereof, including the penalties of special
application thereto) relating to the production, bonded
warehousing, and denaturation of distilled spirits, to the
withdrawal of distilled spirits or denatured distilled spirits,
and to the manufacture of articles from denatured distilled
spirits, shall, insofar as applicable, extend to and apply in
Puerto Rico in respect of -
(A) distilled spirits for shipment to the United States for
the purposes authorized in section 5214(a)(2) and (3);
(B) distilled spirits for denaturation;
(C) denatured distilled spirits for shipment to the United
States;
(D) denatured distilled spirits for use in the manufacture of
articles for shipment to the United States; and
(E) articles, manufactured from denatured distilled spirits,
for shipment to the United States.
(3) Withdrawals authorized by Puerto Rico
Distilled spirits (including denatured distilled spirits) may
be withdrawn from the bonded premises of a distilled spirits
plant in Puerto Rico pursuant to authorization issued under the
laws of the Commonwealth of Puerto Rico; such spirits so
withdrawn, and products containing such spirits so withdrawn, may
not be brought into the United States free of tax.
(4) Costs of administration
Any expenses incurred by the Treasury Department in connection
with the enforcement in Puerto Rico of the provisions of this
subtitle and section 7652(a), and regulations promulgated
thereunder, shall be charged against and retained out of taxes
collected under this title in respect of commodities of Puerto
Rican manufacture brought into the United States. The funds so
retained shall be deposited as a reimbursement to the
appropriation to which such expenses were originally charged.
(b) Virgin Islands
(1) In general
Distilled spirits for the purposes authorized in section
5214(a)(2) and (3), denatured distilled spirits, and articles, as
described in this paragraph, produced or manufactured in the
Virgin Islands, may be brought into the United States free of any
tax imposed by section 7652(b)(1) for disposal under the same
conditions as like spirits, denatured spirits, and articles,
produced or manufactured in the United States; and the provisions
of this chapter and regulations promulgated thereunder (and all
other provisions of the internal revenue laws applicable to the
enforcement thereof, including the penalties of special
application thereto) relating to the production, bonded
warehousing, and denaturation of distilled spirits, to the
withdrawal of distilled spirits or denatured distilled spirits,
and to the manufacture of articles from denatured distilled
spirits, shall, insofar as applicable, extend to and apply in the
Virgin Islands in respect of -
(A) distilled spirits for shipment to the United States for
the purposes authorized in section 5214(a)(2) and (3);
(B) distilled spirits for denaturation;
(C) denatured distilled spirits for shipment to the United
States;
(D) denatured distilled spirits for use in the manufacture of
articles for shipment to the United States; and
(E) articles, manufactured from denatured distilled spirits,
for shipment to the United States.
(2) Advance of funds
The insular government of the Virgin Islands shall advance to
the Treasury of the United States such funds as may be required
from time to time by the Secretary for the purpose of defraying
all expenses incurred by the Treasury Department in connection
with the enforcement in the Virgin Islands of paragraph (1) and
regulations promulgated thereunder. The funds so advanced shall
be deposited in a separate trust fund in the Treasury of the
United States and shall be available to the Treasury Department
for the purposes of this subsection.
(3) Regulations issued by Virgin Islands
The Secretary may authorize the Governor of the Virgin Islands,
or his duly authorized agents, to issue or adopt such
regulations, to approve such bonds, and to issue, suspend, or
revoke such permits, as are necessary to carry out the provisions
of this subsection. When regulations have been issued or adopted
under this paragraph with concurrence of the Secretary he may
exempt the Virgin Islands from any provisions of law and
regulations otherwise made applicable by the provisions of
paragraph (1), except that denatured distilled spirits, articles
and distilled spirits for tax-free purposes which are brought
into the United States from the Virgin Islands under the
provisions of this subsection shall in all respects conform to
the requirements of law and regulations imposed on like products
of domestic manufacture.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1375; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(18),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834.)
-REFTEXT-
REFERENCES IN TEXT
Section 5001(a)(10), referred to in subsec. (a)(2), was
redesignated section 5001(a)(9) by Pub. L. 103-465, title I, Sec.
136(a), Dec. 8, 1994, 108 Stat. 4841.
-MISC1-
PRIOR PROVISIONS
A prior section 5314, act Aug. 16, 1954, ch. 736, 68A Stat. 659,
related to officers and agents authorized to investigate, issue
search warrants, and prosecute for violations, prior to the general
revision of this chapter by Pub. L. 85-859. See sections 5557 of
this title.
Provisions similar to those comprising subsec. (a)(2) of this
section were contained in prior section 5318, act Aug. 16, 1954,
ch. 736, 68A Stat. 660, prior to the general revisions of this
chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsec. (a)(2). Pub. L. 94-455, Sec. 1905(a)(18),
substituted "section 5001(a)(10)" for "section 5001(a)(4)".
Subsec. (b)(2), (3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck
out "or his delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(18) 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5001, 7652 of this title.
-FOOTNOTE-
(!1) See References in Text note below.
-End-
-CITE-
26 USC Sec. 5315 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 E - General Provisions Relating to Distilled Spirits
PART III - MISCELLANEOUS PROVISIONS
-HEAD-
[Sec. 5315. Repealed. Pub. L. 94-455, title XIX, Sec. 1905(a)(19),
Oct. 4, 1976, 90 Stat. 1820]
-MISC1-
Section 5315, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1377, related to status of certain distilled spirits
on July 1, 1959.
A prior section 5316, act Aug. 16, 1954, ch. 736, 68A Stat. 660,
related to form of affidavit, information or indictment, prior to
the general revision of this chapter by Pub. L. 85-859. See Fed.
Rules Cr. Proc., rules 7(c), (f), and 8(a), Title 18, Appendix,
Crimes and Criminal Procedure.
A prior section 5317, act Aug. 16, 1954, ch. 736, 68A Stat. 660,
related to applicability of other laws, prior to the general
revision of this chapter by Pub. L. 85-859. See section 5274 of
this title.
A prior section 5318, act Aug. 16, 1954, ch. 736, 68A Stat. 660,
related to application of this part to Puerto Rico and the Virgin
Islands, prior to the general revision of this chapter by Pub. L.
85-859. See section 5314(a)(2) of this title.
A prior section 5319, act Aug. 16, 1954, ch. 736, 68A Stat. 661,
related to definitions, etc., prior to the general revision of this
chapter by Pub. L. 85-859. See sections 5002(a)(6)(A), (9), (11)
and 5201(a) of this title.
A prior section 5320, act Aug. 16, 1954, ch. 736, 68A Stat. 661,
related to cross references, prior to the general revision of this
chapter by Pub. L. 85-859.
A prior section 5331, act Aug. 16, 1954, ch. 736, 68A Stat. 661,
related to withdrawal from bond free of tax, prior to the general
revision of this chapter by Pub. L. 85-859. See sections 5171(a),
5172, 5173(a), (c), 5178(a)(5), 5202(e), 5207(a), (c), (d),
5214(a), (a)(1), 5241, 5242, 5273(a), (b)(1), (2), (d), and 5275 of
this title.
A prior section 5332, act Aug. 16, 1954, ch. 736, 68A Stat. 662,
related to recovery of spirits for reuse in manufacturing, prior to
the general revision of this chapter by Pub. L. 85-859. See section
5273(c) of this title.
A prior section 5333, act Aug. 16, 1954, ch. 736, 68A Stat. 662,
related to sale of abandoned spirits for denaturation without
collection of tax, prior to the general revision of this chapter by
Pub. L. 85-859. See section 5243 of this title.
A prior section 5334, act Aug. 16, 1954, ch. 736, 68A Stat. 662,
related to cross references, prior to the general revision of this
chapter by Pub. L. 85-859. See section 5273(e)(1), (2) of this
title.
EFFECTIVE DATE OF REPEAL
Repeal 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 an Effective Date of 1976 Amendment note under
section 5005 of this title.
-End-
-CITE-
26 USC Subchapter F - Bonded and Taxpaid Wine Premises 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 F - Bonded and Taxpaid Wine Premises
-HEAD-
SUBCHAPTER F - BONDED AND TAXPAID WINE PREMISES
-MISC1-
Part
I. Establishment.
II. Operations.
III. Cellar treatment and classification of wine.
IV. General.
PRIOR PROVISIONS
A prior subchapter F, Bonded and Taxpaid Wine Premises, consisted
of part I, Establishment, part II, Operations, part III, Cellar
Treatment and Classification of Wine, and part IV, General, and
comprised sections 5351 to 5357, 5361 to 5373, 5381 to 5388, and
5391 to 5392, respectively, prior to the general revision of this
chapter by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72
Stat. 1313.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 5042, 5345, 5603,
5661, 5662 of this title.
-End-
-CITE-
26 USC PART I - ESTABLISHMENT 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 F - Bonded and Taxpaid Wine Premises
PART I - ESTABLISHMENT
-HEAD-
PART I - ESTABLISHMENT
-MISC1-
Sec.
5351. Bonded wine cellar.
5352. Taxpaid wine bottling house.
5353. Bonded wine warehouse.
5354. Bond.
5355. General provisions relating to bonds.
5356. Application.
5357. Premises.
PRIOR PROVISIONS
A prior part I consisted of sections 5351 to 5357 of this title,
prior to the general revision of this chapter by Pub. L. 85-859,
title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5351 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 F - Bonded and Taxpaid Wine Premises
PART I - ESTABLISHMENT
-HEAD-
Sec. 5351. Bonded wine cellar
-STATUTE-
Any person establishing premises for the production, blending,
cellar treatment, storage, bottling, packaging, or repackaging of
untaxpaid wine (other than wine produced exempt from tax under
section 5042), including the use of wine spirits in wine
production, shall, before commencing operations, make application
to the Secretary and file bond and receive permission to operate.
Such premises shall be known as "bonded wine cellars"; except that
any such premises engaging in production operations may, in the
discretion of the Secretary, be designated as a "bonded winery".
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1378; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5351, act Aug. 16, 1954, ch. 736, 68A Stat. 663,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5361 of this title.
-End-
-CITE-
26 USC Sec. 5352 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 F - Bonded and Taxpaid Wine Premises
PART I - ESTABLISHMENT
-HEAD-
Sec. 5352. Taxpaid wine bottling house
-STATUTE-
Any person bottling, packaging, or repackaging taxpaid wines
shall, before commencing such operations, make application to the
Secretary and receive permission to operate. Such premises shall be
known as "tax-paid wine bottling houses."
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1378; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(42),
July 26, 1979, 93 Stat. 287.)
-MISC1-
PRIOR PROVISIONS
A prior section 5352, act Aug. 16, 1954, ch. 736, 68A Stat. 663,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 struck out "at premises other than the
bottling premises of a distilled spirits plant" after "taxpaid
wines".
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5363 of this title.
-End-
-CITE-
26 USC Sec. 5353 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 F - Bonded and Taxpaid Wine Premises
PART I - ESTABLISHMENT
-HEAD-
Sec. 5353. Bonded wine warehouse
-STATUTE-
Any responsible warehouse company or other responsible person
may, upon filing application with the Secretary and consent of the
proprietor and the surety on the bond of any bonded wine cellar,
under regulations prescribed by the Secretary, establish on such
premises facilities for the storage of wines and allied products
for credit purposes, to be known as a "bonded wine warehouse". The
proprietor of the bonded wine cellar shall remain responsible in
all respects for operations in the warehouse and the tax on the
wine or wine spirit stored therein.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1379; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5353, act Aug. 16, 1954, ch. 736, 68A Stat. 663,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-End-
-CITE-
26 USC Sec. 5354 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 F - Bonded and Taxpaid Wine Premises
PART I - ESTABLISHMENT
-HEAD-
Sec. 5354. Bond
-STATUTE-
The bond for a bonded wine cellar shall be in such form, on such
conditions, and with such adequate surety, as regulations issued by
the Secretary shall prescribe, and shall be in a penal sum not less
than the tax on any wine or distilled spirits possessed or in
transit at any one time (taking into account the appropriate amount
of credit with respect to such wine under section 5041(c)), but not
less than $1,000 nor more than $50,000; except that where the tax
on such wine and on such distilled spirits exceeds $250,000, the
penal sum of the bond shall be not more than $100,000. Where
additional liability arises as a result of deferral of payment of
tax payable on any return, the Secretary may require the proprietor
to file a supplemental bond in such amount as may be necessary to
protect the revenue. The liability of any person on any such bond
shall apply whether the transaction or operation on which the
liability of the proprietor is based occurred on or off the
proprietor's premises.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1379; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec.
455(c), July 18, 1984, 98 Stat. 823; Pub. L. 104-188, title I, Sec.
1702(b)(7), Aug. 20, 1996, 110 Stat. 1869.)
-MISC1-
PRIOR PROVISIONS
A prior section 5354, act Aug. 16, 1954, ch. 736, 68A Stat. 663,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1996 - Pub. L. 104-188 inserted "(taking into account the
appropriate amount of credit with respect to such wine under
section 5041(c))" after "any one time".
1984 - Pub. L. 98-369 substituted "distilled spirits" for "wine
spirits" in two places.
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188 effective, except as otherwise
expressly provided, as if included in the provision of the Revenue
Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which
such amendment relates, see section 1702(i) of Pub. L. 104-188, set
out as a note under section 38 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5173, 5355 of this title.
-End-
-CITE-
26 USC Sec. 5355 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 F - Bonded and Taxpaid Wine Premises
PART I - ESTABLISHMENT
-HEAD-
Sec. 5355. General provisions relating to bonds
-STATUTE-
The provisions of section 5551 (relating to bonds) shall be
applicable to the bonds required under section 5354.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1379.)
-MISC1-
PRIOR PROVISIONS
A prior section 5355, act Aug. 16, 1954, ch. 736, 68A Stat. 664,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC Sec. 5356 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 F - Bonded and Taxpaid Wine Premises
PART I - ESTABLISHMENT
-HEAD-
Sec. 5356. Application
-STATUTE-
The application required by this part shall disclose, as
regulations issued by the Secretary shall provide, such information
as may be necessary to enable the Secretary to determine the
location and extent of the premises, the type of operations to be
conducted on such premises, and whether the operations will be in
conformity with law and regulations.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1379; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5356, act Aug. 16, 1954, ch. 736, 68A Stat. 664,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-End-
-CITE-
26 USC Sec. 5357 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 F - Bonded and Taxpaid Wine Premises
PART I - ESTABLISHMENT
-HEAD-
Sec. 5357. Premises
-STATUTE-
Bonded wine cellar premises, including noncontiguous portions
thereof, shall be so located, constructed, and equipped, as to
afford adequate protection to the revenue, as regulations
prescribed by the Secretary may provide.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1379; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5357, act Aug. 16, 1954, ch. 736, 68A Stat. 664,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC PART II - OPERATIONS 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
PART II - OPERATIONS
-MISC1-
Sec.
5361. Bonded wine cellar operations.
5362. Removals of wine from bonded wine cellars.
5363. Taxpaid wine bottling house operations.
5364. Wine imported in bulk.
5365. Segregation of operations.
5366. Supervision.
5367. Records.
5368. Gauging and marking.
5369. Inventories.
5370. Losses.
5371. Insurance coverage, etc.
5372. Sampling.
5373. Wine spirits.
PRIOR PROVISIONS
A prior part II consisted of sections 5361 to 5373 of this title,
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. 1422(b), Aug. 5, 1997, 111
Stat. 1050, added item 5364.
1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(7), July 26, 1979,
93 Stat. 290, struck out item 5364 "Standard wine premises".
1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(5), Oct. 4, 1976,
90 Stat. 1822, substituted "and marking" for ", marking, and
stamping" in item 5368.
-End-
-CITE-
26 USC Sec. 5361 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5361. Bonded wine cellar operations
-STATUTE-
In addition to the operations described in section 5351, the
proprietor of a bonded wine cellar may, subject to regulations
prescribed by the Secretary, on such premises receive taxpaid wine
for return to bond, reconditioning, or destruction; prepare for
market and store commercial fruit products and by-products not
taxable as wines; produce or receive distilling material or vinegar
stock; produce (with or without added wine spirits, and without
added sugar) or receive on wine premises, subject to tax as wine
but not for sale or consumption as beverage wine, (1) heavy bodied
blending wines and Spanish-type blending sherries, and (2) other
wine products made from natural wine for nonbeverage purposes; and
such other operations as may be conducted in a manner that will not
jeopardize the revenue or conflict with wine operations.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1380; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(43),
July 26, 1979, 93 Stat. 287; Pub. L. 105-34, title XIV, Sec.
1416(b)(1), Aug. 5, 1997, 111 Stat. 1048.)
-MISC1-
PRIOR PROVISIONS
A prior section 5361, act Aug. 16, 1954, ch. 736, 68A Stat. 664,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1997 - Pub. L. 105-34 struck out "unmerchantable" after "premises
receive".
1979 - Pub. L. 96-39 substituted "or receive on wine premises"
for "or receive on standard wine premises only".
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 effective on the 1st day of the 1st
calendar quarter that begins at least 180 days after Aug. 5, 1997,
see section 1416(c) of Pub. L. 105-34, set out as a note under
section 5044 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5044 of this title.
-End-
-CITE-
26 USC Sec. 5362 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5362. Removals of wine from bonded wine cellars
-STATUTE-
(a) Withdrawals on determination of tax
Wine may be withdrawn from bonded wine cellars on payment or
determination of the tax thereon, under such regulations as the
Secretary shall prescribe.
(b) Transfers of wine between bonded premises
(1) In general
Wine on which the tax has not been paid or determined may,
under such regulations as the Secretary shall prescribe, be
transferred in bond between bonded premises.
(2) Wine transferred to a distilled spirits plant may not be
removed for consumption or sale as wine
Any wine transferred to the bonded premises of a distilled
spirits plant -
(A) may be used in the manufacture of a distilled spirits
product, and
(B) may not be removed from such bonded premises for
consumption or sale as wine.
(3) Continued liability for tax
The liability for tax on wine transferred to the bonded
premises of a distilled spirits plant pursuant to paragraph (1)
shall (except as otherwise provided by law) continue until the
wine is used in a distilled spirits product.
(4) Transfer in bond not treated as removal for consumption or
sale
For purposes of this chapter, the removal of wine for transfer
in bond between bonded premises shall not be treated as a removal
for consumption or sale.
(5) Bonded premises
For purposes of this subsection, the term "bonded premises"
means a bonded wine cellar or the bonded premises of a distilled
spirits plant.
(c) Withdrawals of wine free of tax or without payment of tax
Wine on which the tax has not been paid or determined may, under
such regulations and bonds as the Secretary may deem necessary to
protect the revenue, be withdrawn from bonded wine cellars -
(1) without payment of tax for export by the proprietor or by
any authorized exporter;
(2) without payment of tax for transfer to any foreign-trade
zone;
(3) without payment of tax for use of certain vessels and
aircraft as authorized by law;
(4) without payment of tax for transfer to any customs bonded
warehouse;
(5) without payment of tax for use in the production of
vinegar;
(6) without payment of tax for use in distillation in any
distilled spirits plant authorized to produce distilled spirits;
(7) free of tax for experimental or research purposes by any
scientific university, college of learning, or institution of
scientific research;
(8) free of tax for use by or for the account of the proprietor
or his agents for analysis or testing, organoleptic or otherwise;
and
(9) free of tax for use by the United States or any agency
thereof, and for use for analysis, testing, research, or
experimentation by the governments of the several States and the
District of Columbia or of any political subdivision thereof or
by any agency of such governments. No bond shall be required of
any such government or agency under this paragraph.
(d) Withdrawal free of tax of wine and wine products unfit for
beverage use
Under such regulations as the Secretary may deem necessary to
protect the revenue, wine, or wine products made from wine, when
rendered unfit for beverage use, on which the tax has not been paid
or determined, may be withdrawn from bonded wine cellars free of
tax. The wine or wine products to be so withdrawn may be treated
with methods or materials which render such wine or wine products
suitable for their intended use. No wine or wine products so
withdrawn shall contain more than 21 percent of alcohol by volume,
or be used in the compounding of distilled spirits or wine for
beverage use or in the manufacture of any product intended to be
used in such compounding.
(e) Withdrawal from customs bonded warehouses for use of foreign
embassies, legations, etc.
(1) In general
Notwithstanding any other provision of law, wine entered into
customs bonded warehouses under subsection (c)(4) may, under such
regulations as the Secretary may prescribe, be withdrawn from
such warehouses for consumption in the United States by and for
the official or family use of such foreign governments,
organizations, and individuals who are entitled to withdraw
imported wines from such warehouses free of tax. Wines
transferred to customs bonded warehouses under subsection (c)(4)
shall be entered, stored, and accounted for in such warehouses
under such regulations and bonds as the Secretary may prescribe,
and may be withdrawn therefrom by such governments,
organizations, and individuals free of tax under the same
conditions and procedures as imported wines.
(2) Withdrawal for domestic use
Wine entered into customs bonded warehouses under subsection
(c)(4) for purposes of removal under paragraph (1) may be
withdrawn therefrom for domestic use. Wines so withdrawn shall be
treated as American goods exported and returned.
(3) Sale or unauthorized use prohibited
Wine withdrawn from customs bonded warehouses or otherwise
brought into the United States free of tax for the official or
family use of foreign governments, organizations, or individuals
authorized to obtain wine free of tax shall not be sold and shall
not be disposed of or possessed for any use other than an
authorized use. The provisions of paragraphs (1)(B) and (3) of
section 5043(a) are hereby extended and made applicable to any
person selling, disposing of, or possessing any wine in violation
of the preceding sentence, and to the wine involved in any such
violation.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1380; amended Pub. L. 90-73, Sec. 1(a), Aug. 29, 1967, 81 Stat.
175; Pub. L. 94-455, title XIX, Secs. 1905(c)(4), 1906(b)(13)(A),
Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 96-39, title VIII, Sec.
807(a)(44), July 26, 1979, 93 Stat. 287; Pub. L. 96-601, Sec. 2(a),
(b), Dec. 24, 1980, 94 Stat. 3495.)
-MISC1-
PRIOR PROVISIONS
A prior section 5362, act Aug. 16, 1954, ch. 736, 68A Stat. 665,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1980 - Subsec. (c)(4). Pub. L. 96-601, Sec. 2(a), substituted
"customs bonded" for "class 6 customs manufacturing".
Subsec. (e). Pub. L. 96-601, Sec. 2(b), added subsec. (e).
1979 - Subsec. (b). Pub. L. 96-39 substituted references to
bonded premises for references to bonded wine cellars and inserted
provisions relating to wine transferred in bond to a distilled
spirits plant which may not be removed for consumption or sale as
wine, provisions relating to continued liability for tax on wine
transferred to bonded premises, and provisions defining "bonded
premises".
1976 - Subsecs. (a) to (c). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary" wherever appearing.
Subsec. (c)(9). Pub. L. 94-455, Sec. 1905(c)(4), struck out "and
Territories" after "the several States".
Subsec. (d). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out "or
his delegate" after "Secretary".
1967 - Subsec. (d). Pub. L. 90-73 added subsec. (d).
EFFECTIVE DATE OF 1980 AMENDMENT
Section 2(c) of Pub. L. 96-601 provided that: "The amendments
made by this section [amending this section] 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 [Dec. 24, 1980]."
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(c)(4) 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 1967 AMENDMENT
Section 1(b) of Pub. L. 90-73 provided that: "The amendment made
by subsection (a) [amending this section] shall become effective on
the first day of the first month which begins 90 days or more after
the date of the enactment of this Act [Aug. 29, 1967]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5042, 5043, 5053, 5214,
5222 of this title.
-End-
-CITE-
26 USC Sec. 5363 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5363. Taxpaid wine bottling house operations
-STATUTE-
In addition to the operations described in section 5352, the
proprietor of a taxpaid wine bottling house may, subject to
regulations issued by the Secretary, on such premises mix wine of
the same kind and taxable grade to facilitate handling; preserve,
filter, or clarify wine; and conduct operations not involving wine
where such operations will not jeopardize the revenue or conflict
with wine operations.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(45),
July 26, 1979, 93 Stat. 287.)
-MISC1-
PRIOR PROVISIONS
A prior section 5363, act Aug. 16, 1954, ch. 736, 68A Stat. 665,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 struck out provision that this subchapter
apply to any wine received on the bottling premises of any
distilled spirits plant for bottling, packaging, or repackaging,
and to all operations relative thereto and provision that sections
5021, 5081, and 5082, not apply to the mixing or treatment of
taxpaid wine under this section.
1976 - 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.
-End-
-CITE-
26 USC Sec. 5364 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5364. Wine imported in bulk
-STATUTE-
Natural wine (as defined in section 5381) imported or brought
into the United States in bulk containers may, under such
regulations as the Secretary may prescribe, be withdrawn from
customs custody and transferred in such bulk containers to the
premises of a bonded wine cellar without payment of the internal
revenue tax imposed on such wine. The proprietor of a bonded wine
cellar to which such wine is transferred shall become liable for
the tax on the wine withdrawn from customs custody under this
section upon release of the wine from customs custody, and the
importer, or the person bringing such wine into the United States,
shall thereupon be relieved of the liability for such tax.
-SOURCE-
(Added Pub. L. 105-34, title XIV, Sec. 1422(a), Aug. 5, 1997, 111
Stat. 1050; amended Pub. L. 105-206, title VI, Sec. 6014(b)(3),
July 22, 1998, 112 Stat. 820.)
-MISC1-
PRIOR PROVISIONS
A prior section 5364, added Pub. L. 85-859, title II, Sec. 201,
Sept. 2, 1958, 72 Stat. 1381, limited proprietors of bonded wine
cellars or taxpaid wine bottling houses to the production,
reception, storage, or use of only standard wine, prior to repeal
by Pub. L. 96-39, title VIII, Secs. 807(a)(46), 810, July 26, 1979,
93 Stat. 287, 292, eff. Jan. 1, 1980.
Another prior section 5364, act Aug. 16, 1954, ch. 736, 68A Stat.
665, consisted of provisions similar to those comprising this
section, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1998 - Pub. L. 105-206 substituted "Natural wine (as defined in
section 5381) imported or brought into" for "Wine imported or
brought into" in first sentence.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE
Section 1422(c) of Pub. L. 105-34 provided that: "The amendments
made by this section [enacting 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]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5043 of this title.
-End-
-CITE-
26 USC Sec. 5365 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5365. Segregation of operations
-STATUTE-
The Secretary may require by regulations such segregation of
operations within the premises, by partitions or otherwise, as may
be necessary to prevent jeopardy to the revenue, to prevent
confusion between untaxpaid wine operations and such other
operations as are authorized in this subchapter, to prevent
substitution with respect to the several methods of producing
effervescent wines, and to prevent the commingling of standard
wines with other than standard wines.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(47),
July 26, 1979, 93 Stat. 287.)
-MISC1-
PRIOR PROVISIONS
A prior section 5365, act Aug. 16, 1954, ch. 736, 68A Stat. 665,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 authorized segregation of operations to
prevent the commingling of standard wines with other than standard
wines.
1976 - 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.
-End-
-CITE-
26 USC Sec. 5366 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5366. Supervision
-STATUTE-
The Secretary may by regulations require that operations at a
bonded wine cellar or taxpaid wine bottling house be supervised by
an internal revenue officer where necessary for the protection of
the revenue or for the proper enforcement of this subchapter.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5366, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Sec. 5367 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5367. Records
-STATUTE-
The proprietor of a bonded wine cellar or a tax-paid wine
bottling house shall keep such records and file such returns, in
such form and containing such information, as the Secretary may by
regulations provide.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5367, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Sec. 5368 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5368. Gauging and marking
-STATUTE-
(a) Gauging and marking
All wine or wine spirits shall be locked, sealed, and gauged, and
shall be marked, branded, labeled, or otherwise identified, in such
manner as the Secretary may by regulations prescribe.
(b) Marking
Wines shall be removed in such containers (including vessels,
vehicles, and pipelines) bearing such marks and labels evidencing
compliance with this chapter, as the Secretary may by regulations
prescribe.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1381; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(20),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5368, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 substituted "Gauging and marking" for
"Gauging, marking, and stamping" in section catchline, substituted
"Marking" for "Stamping" in heading for subsec. (b), and, in text
of subsec. (b), substituted "marks and labels" for "marks, labels,
and stamps" and struck out "or his delegate" after "Secretary"
wherever appearing.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(20) 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. 5369 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5369. Inventories
-STATUTE-
Each proprietor of premises subject to the provisions of this
subchapter shall take and report such inventories as the Secretary
may by regulations prescribe.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5369, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Sec. 5370 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5370. Losses
-STATUTE-
(a) General
No tax shall be collected in respect of any wines lost or
destroyed while in bond, except that tax shall be collected -
(1) Theft
In the case of loss by theft, unless the Secretary shall find
that the theft occurred without connivance, collusion, fraud, or
negligence on the part of the proprietor or other person
responsible for the tax, or the owner, consignor, consignee,
bailee, or carrier, or the agents or employees of any of them;
and
(2) Voluntary destruction
In the case of voluntary destruction, unless the wine was
destroyed under Government supervision, or on such adequate
notice to, and approval by, the Secretary as regulations shall
provide.
(b) Proof of loss
In any case in which the wine is lost or destroyed, whether by
theft or otherwise, the Secretary may require by regulations the
proprietor of the bonded wine cellar 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 on the proprietor or other
person liable for the 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, owner, consignor, consignee, bailee, or carrier, or the
agents or employees of any of them.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1381; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5370, act Aug. 16, 1954, ch. 736, 68A Stat. 666,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5042 of this title.
-End-
-CITE-
26 USC Sec. 5371 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5371. Insurance coverage, etc.
-STATUTE-
Any remission, abatement, refund, or credit of, or other relief
from, taxes on wines or wine spirits authorized by law shall be
allowed only to the extent that the claimant is not indemnified or
recompensed for the tax.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1382.)
-MISC1-
PRIOR PROVISIONS
A prior section 5371, act Aug. 16, 1954, ch. 736, 68A Stat. 667,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC Sec. 5372 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5372. Sampling
-STATUTE-
Under regulations prescribed by the Secretary, wine may be
utilized in any bonded wine cellar for testing, tasting, or
sampling, free of tax.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1382; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5372, act Aug. 16, 1954, ch. 736, 68A Stat. 667,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5042 of this title.
-End-
-CITE-
26 USC Sec. 5373 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 F - Bonded and Taxpaid Wine Premises
PART II - OPERATIONS
-HEAD-
Sec. 5373. Wine spirits
-STATUTE-
(a) In general
The wine spirits authorized to be used in wine production shall
be brandy or wine spirits produced in a distilled spirits plant
(with or without the use of water to facilitate extraction and
distillation) exclusively from -
(1) fresh or dried fruit, or their residues,
(2) the wine or wine residues, therefrom, or
(3) special natural wine under such conditions as the Secretary
may by regulations prescribe;
except that where, in the production of natural wine or special
natural wine, sugar has been used, the wine or the residuum thereof
may not be used if the unfermented sugars therein have been
refermented. Such wine spirits shall not be reduced with water from
distillation proof, nor be distilled, unless regulations otherwise
provide, at less than 140 degrees of proof (except that commercial
brandy aged in wood for a period of not less than 2 years, and
barreled at not less than 100 degrees of proof, shall be deemed
wine spirits for the purpose of this subsection).
(b) Withdrawal of wine spirits
(1) The proprietor of any bonded wine cellar may withdraw and
receive wine spirits without payment of tax from the bonded
premises of any distilled spirits plant, or from any bonded wine
cellar as provided in paragraph (2), for use in the production of
natural wine, for addition to concentrated or unconcentrated juice
for use in wine production, or for such other uses as may be
authorized in this subchapter.
(2) Wine spirits so withdrawn, and not used in wine production or
as otherwise authorized in this subchapter, may, as provided by
regulations prescribed by the Secretary, be transferred to the
bonded premises of any distilled spirits plant or bonded wine
cellar, or may be taxpaid and removed as provided by law.
(3) On such use, transfer, or taxpayment, the Secretary shall
credit the proprietor with the amount of wine spirits so used or
transferred or taxpaid and, in addition, with such portion of wine
spirits so withdrawn as may have been lost either in transit or on
the bonded wine cellar premises, to the extent allowable under
section 5008(a). Where the proprietor has used wine spirits in
actual wine production but in violation of the requirements of this
subchapter, the Secretary shall also extend such credit to the wine
spirits so used if the proprietor satisfactorily shows that such
wine spirits were not knowingly used in violation of law.
(4) Suitable samples of brandy or wine spirits may, under
regulations prescribed by the Secretary, be withdrawn free of tax
from the bonded premises of any distilled spirits plant, bonded
wine cellar, or authorized experimental premises, for analysis or
testing.
(c) Distillates containing aldehydes
When the Secretary deems such removal and use will not jeopardize
the revenue nor unduly increase administrative supervision,
distillates containing aldehydes may, under such regulations as the
Secretary may prescribe, be removed without payment of tax from the
bonded premises of a distilled spirits plant to an adjacent bonded
wine cellar and used therein in fermentation of wine to be used as
distilling material at the distilled spirits plant from which such
unfinished distilled spirits were removed.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1382; amended Pub. L. 90-619, Sec. 1, Oct. 22, 1968, 82 Stat. 1236;
Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5373, act Aug. 16, 1954, ch. 736, 68A Stat. 667,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1968 - Subsec. (a). Pub. 90-619 inserted special natural wine,
under conditions prescribed by regulations, as one of the materials
from which wine spirits may be produced and extended to special
natural wines the existing prohibition on the use of natural wine
whose sugars have been refermented.
EFFECTIVE DATE OF 1968 AMENDMENT
Section 6 of Pub. L. 90-619 provided that: "The amendments made
by this Act [amending this section and sections 5382 to 5387 of
this title] shall take effect on the first day of the first month
which begins 90 days or more after the date of the enactment of
this Act [Oct. 22, 1968]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5003, 5008, 5214 of this
title.
-End-
-CITE-
26 USC PART III - CELLAR TREATMENT AND CLASSIFICATION OF
WINE 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 F - Bonded and Taxpaid Wine Premises
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-HEAD-
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-MISC1-
Sec.
5381. Natural wine.
5382. Cellar treatment of natural wine.
5383. Amelioration and sweetening limitations for natural
grape wines.
5384. Amelioration and sweetening limitations for natural
fruit and berry wines.
5385. Specially sweetened natural wines.
5386. Special natural wines.
5387. Agricultural wines.
5388. Designation of wines.
PRIOR PROVISIONS
A prior part III consisted of sections 5381 to 5388 of this
title, prior to the general revision of this chapter by Pub. L.
85-859, title II, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5381 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 F - Bonded and Taxpaid Wine Premises
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-HEAD-
Sec. 5381. Natural wine
-STATUTE-
Natural wine is the product of the juice or must of sound, ripe
grapes or other sound, ripe fruit, made with such cellar treatment
as may be authorized under section 5382 and containing not more
than 21 percent by weight of total solids. Any wine conforming to
such definition except for having become substandard by reason of
its condition shall be deemed not to be natural wine, unless the
condition is corrected.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1383; amended Pub. L. 96-39, title VIII, Sec. 807(a)(48), July 26,
1979, 93 Stat. 288.)
-MISC1-
PRIOR PROVISIONS
A prior section 5381, act Aug. 16, 1954, ch. 736, 68A Stat. 668,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 struck out provisions authorizing removal
for distillation of wine deemed not to be natural wine, destruction
of such wine under government supervision, and transfer of such
wine to premises in which other than natural wine may be stored or
used.
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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5364, 5392 of this title.
-End-
-CITE-
26 USC Sec. 5382 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 F - Bonded and Taxpaid Wine Premises
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-HEAD-
Sec. 5382. Cellar treatment of natural wine
-STATUTE-
(a) General
Proper cellar treatment of natural wine constitutes those
practices and procedures in the United States and elsewhere,
whether historical or newly developed, of using various methods and
materials to correct or stabilize the wine, or the fruit juice from
which it is made, so as to produce a finished product acceptable in
good commercial practice. Where a particular treatment has been
used in customary commercial practice, it shall continue to be
recognized as a proper cellar treatment in the absence of
regulations prescribed by the Secretary finding such treatment not
to be a proper cellar treatment within the meaning of this
subsection.
(b) Specifically authorized treatments
The practices and procedures specifically enumerated in this
subsection shall be deemed proper cellar treatment for natural
wine:
(1) The preparation and use of pure concentrated or
unconcentrated juice or must. Concentrated juice or must reduced
with water to its original density or to not less than 22 degrees
Brix or unconcentrated juice or must reduced with water to not
less than 22 degrees Brix shall be deemed to be juice or must,
and shall include such amounts of water to clear crushing
equipment as regulations prescribed by the Secretary may provide.
(2) The addition to natural wine, or to concentrated or
unconcentrated juice or must, from one kind of fruit, of wine
spirits (whether or not tax-paid) distilled in the United States
from the same kind of fruit; except that (A) the wine, juice, or
concentrate shall not have an alcoholic content in excess of 24
percent by volume after the addition of wine spirits, and (B) in
the case of still wines, wine spirits may be added in any State
only to natural wines produced by fermentation in bonded wine
cellars located within the same State.
(3) Amelioration and sweetening of natural grape wines in
accordance with section 5383.
(4) Amelioration and sweetening of natural wines from fruits
other than grapes in accordance with section 5384.
(5) In the case of effervescent wines, such preparations for
refermentation and for dosage as may be acceptable in good
commercial practice, but only if the alcoholic content of the
finished product does not exceed 14 percent by volume.
(6) The natural darkening of the sugars or other elements in
juice, must, or wine due to storage, concentration, heating
processes, or natural oxidation.
(7) The blending of natural wines with each other or with
heavy-bodied blending wine or with concentrated or unconcentrated
juice, whether or not such juice contains wine spirits, if the
wines, juice, or wine spirits are from the same kind of fruit.
(8) Such use of acids to correct natural deficiencies and
stabilize the wine as may be acceptable in good commercial
practice.
(9) The addition -
(A) to natural grape or berry wine of the winemaker's own
production, of volatile fruit-flavor concentrate produced from
the same kind and variety of grape or berry at a plant
qualified under section 5511, or
(B) to natural fruit wine (other than grape or berry) of the
winemaker's own production, of volatile fruit-flavor
concentrate produced from the same kind of fruit at such a
plant,
so long as the proportion of the volatile fruit-flavor
concentrate to the wine does not exceed the proportion of the
volatile fruit-flavor concentrate to the original juice or must
from which it was produced. The transfer of volatile fruit-flavor
concentrate from a plant qualified under section 5511 to a bonded
wine cellar and its storage and use in such a cellar shall be
under such applications and bonds, and under such other
requirements, as may be provided in regulations prescribed by the
Secretary.
(c) Other authorized treatment
The Secretary may by regulations prescribe limitations on the
preparation and use of clarifying, stabilizing, preserving,
fermenting, and corrective methods or materials, to the extent that
such preparation or use is not acceptable in good commercial
practice.
(d) Use of juice or must from which volatile fruit flavor has been
removed
For purposes of this part, juice, concentrated juice, or must
processed at a plant qualified under section 5511 may be deemed to
be pure juice, concentrated juice, or must even though volatile
fruit flavor has been removed if, at a plant qualified under
section 5511 or at the bonded wine cellar, there is added to such
juice, concentrated juice, or must, or (in the case of a bonded
wine cellar) to wine of the winemaker's own production made
therefrom, either the identical volatile flavor removed or -
(1) in the case of natural grape or berry wine of the
winemaker's own production, an equivalent quantity of volatile
fruit-flavor concentrate produced at such a plant and derived
from the same kind and variety of grape or berry, or
(2) in the case of natural fruit wine (other than grape or
berry wine) of the winemaker's own production, an equivalent
quantity of volatile fruit-flavor concentrate produced at such a
plant and derived from the same kind of fruit.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1383; amended Pub. L. 88-653, Secs. 1, 2, Oct. 13, 1964, 78 Stat.
1085; Pub. L. 89-44, title VIII, Sec. 806(c)(1), June 21, 1965, 79
Stat. 164; Pub. L. 90-619, Sec. 2, Oct. 22, 1968, 82 Stat. 1237;
Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5382, act Aug. 16, 1954, ch. 736, 68A Stat. 668,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1968 - Subsec. (b)(2)(B). Pub. L. 90-619 permitted wine spirits
to be added to natural wine produced by fermentation in any bonded
wine cellars located within the same State in which the addition is
to take place.
1965 - Subsec. (b)(2). Pub. L. 89-44 struck out "made without
added sugar or reserved as provided in sections 5383(b) and
5384(b)" after "winemaker's own production".
1964 - Subsec. (b)(9). Pub. L. 88-653, Sec. 1, added par. (9).
Subsec. (d). Pub. L. 88-653, Sec. 2, added subsec. (d).
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-619 effective on first day of first month
which begins 90 days or more after Oct. 22, 1968, see section 6 of
Pub. L. 90-619, set out as a note under section 5373 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective Jan. 1, 1966, see section
806(d)(2) of Pub. L. 89-44, set out as a note under section 5383 of
this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 4 of Pub. L. 88-653 provided that: "The amendments made
by the first section [amending this section] and sections 2 and 3
of this Act [amending this section and section 5511 of this title]
shall take effect on the first day of the second month which begins
more than 10 days after the date on which this Act is enacted [Oct.
13, 1964]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5381, 5385 to 5387 of
this title.
-End-
-CITE-
26 USC Sec. 5383 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 F - Bonded and Taxpaid Wine Premises
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-HEAD-
Sec. 5383. Amelioration and sweetening limitations for natural
grape wines
-STATUTE-
(a) Sweetening of grape wines
Any natural grape wine may be sweetened after fermentation and
before taxpayment with pure dry sugar or liquid sugar if the total
solids content of the finished wine does not exceed 12 percent of
the weight of the wine and the alcoholic content of the finished
wine after sweetening is not more than 14 percent by volume; except
that the use under this subsection of liquid sugar shall be limited
so that the resultant volume will not exceed the volume which could
result from the maximum authorized use of pure dry sugar only.
(b) High acid wines
(1) Amelioration
Before, during, and after fermentation, ameliorating materials
consisting of pure dry sugar or liquid sugar, water, or a
combination of sugar and water, may be added to natural grape
wines of a winemaker's own production when such wines are made
from juice having a natural fixed acid content of more than five
parts per thousand (calculated before fermentation and as
tartaric acid). Ameliorating material so added shall not reduce
the natural fixed acid content of the juice to less than five
parts per thousand, nor exceed 35 percent of the volume of juice
(calculated exclusive of pulp) and ameliorating material
combined.
(2) Sweetening
Any wine produced under this subsection may be sweetened by the
producer thereof, after amelioration and fermentation, with pure
dry sugar or liquid sugar if the total solids content of the
finished wine does not exceed (A) 17 percent by weight if the
alcoholic content is more than 14 percent by volume, or (B) 21
percent by weight if the alcoholic content is not more than 14
percent by volume. The use under this paragraph of liquid sugar
shall be limited to cases where the resultant volume does not
exceed the volume which could result from the maximum authorized
use of pure dry sugar only.
(3) Wine spirits
Wine spirits may be added (whether or not wine spirits were
previously added) to wine produced under this subsection only if
the wine contains not more than 14 percent of alcohol by volume
derived from fermentation.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1384; amended Pub. L. 89-44, title VIII, Sec. 806(b)(1), June 21,
1965, 79 Stat. 162; Pub. L. 90-619, Sec. 3, Oct. 22, 1968, 82 Stat.
1237.)
-MISC1-
PRIOR PROVISIONS
A prior section 5383, act Aug. 16, 1954, ch. 736, 68A Stat. 669,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1968 - Subsec. (a). Pub. L. 90-619, Sec. 3(b), substituted "not
more than 14 percent" for "less than 14 percent".
Subsec. (b). Pub. L. 90-619, Sec. 3(a), simplified production
procedures and calculations, provided that the limitation on
sweetening high acid wine is to be based upon the total solids
content of the finished wine, authorized the use of liquid sugar
but only to the extent that it did not increase the total volume of
the finished wine above what it would be if the maximum authorized
use had been made of dry sugar only, and inserted provisions making
it clear that wine spirits may be added at more than one stage in
the process of wine production.
1965 - Pub. L. 89-44 divided subsec. (b) relating to high acid
wines into pars. (1) and (2) and par. (2) into subpars. (A) to (E),
struck out reserve inventory requirement with respect to the
amelioration and sweetening of wines, authorized use of other than
pure, dry sugar, and allowed limited use of liquid sugar at
appropriate points where use of pure dry sugar had formerly been
prescribed.
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-619 effective on first day of first month
which begins 90 days or more after Oct. 22, 1968, see section 6 of
Pub. L. 90-619, set out as a note under section 5373 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Section 806(d)(2) of Pub. L. 89-44 provided that: "The amendments
made by subsections (b) and (c) [amending this section and sections
5382, 5384, 5385, and 5392] shall take effect on January 1, 1966."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5382, 5384 of this title.
-End-
-CITE-
26 USC Sec. 5384 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 F - Bonded and Taxpaid Wine Premises
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-HEAD-
Sec. 5384. Amelioration and sweetening limitations for natural
fruit and berry wines
-STATUTE-
(a) In general
To natural wine made from berries or fruit other than grapes,
pure dry sugar or liquid sugar may be added to the juice in the
fermenter, or to the wine after fermentation; but only if such wine
has not more than 14 percent alcohol by volume after complete
fermentation, or after complete fermentation and sweetening, and a
total solids content not in excess of 21 percent by weight; and
except that the use under this subsection of liquid sugar shall be
limited so that the resultant volume will not exceed the volume
which could result from the maximum authorized use of pure dry
sugar only.
(b) Ameliorated fruit and berry wines
(1) Any natural fruit or berry wine (other than grape wine) of a
winemaker's own production may, if not made under subsection (a) of
this section, be ameliorated to correct high acid content.
Ameliorating material calculations and accounting shall be separate
for wines made from each different kind of fruit.
(2) Pure dry sugar or liquid sugar may be used in the production
of wines under this subsection for the purpose of correcting
natural deficiencies, but not to such an extent as would reduce the
natural fixed acid in the corrected juice or wine to five parts per
thousand. The quantity of sugar so used shall not exceed the
quantity which would have been required to adjust the juice, prior
to fermentation, to a total solids content of 25 degrees (Brix).
Such sugar shall be added prior to the completion of fermentation
of the wine. After such addition of the sugar, the wine or juice
shall be treated and accounted for as provided in section 5383(b),
covering the production of high acid grape wines, except that -
(A) Natural fixed acid shall be calculated as malic acid for
apple wine and as citric acid for other fruit and berry wines,
instead of tartaric acid;
(B) Juice adjusted with pure dry sugar or liquid sugar as
provided in this paragraph shall be treated in the same manner as
original natural juice under the provisions of section 5383(b);
except that if liquid sugar is used, the volume of water
contained therein must be deducted from the volume of
ameliorating material authorized;
(C) Wines made under this subsection shall have a total solids
content of not more than 21 percent by weight, whether or not
wine spirits have been added; and
(D) Wines made exclusively from any fruit or berry with a
natural fixed acid of 20 parts per thousand or more (before any
correction of such fruit or berry) shall be entitled to a volume
of ameliorating material not in excess of 60 percent (in lieu of
35 percent).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1385; amended Pub. L. 89-44, title VIII, Sec. 806(b)(2), (c)(2),
(3), June 21, 1965, 79 Stat. 163, 164; Pub. L. 90-619, Sec. 3(b),
Oct. 22, 1968, 82 Stat. 1237; Pub. L. 105-34, title XIV, Sec.
1417(a), Aug. 5, 1997, 111 Stat. 1048.)
-MISC1-
PRIOR PROVISIONS
A prior section 5384, act Aug. 16, 1954, ch. 736, 68A Stat. 670,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1997 - Subsec. (b)(2)(D). Pub. L. 105-34 substituted "any fruit
or berry with a natural fixed acid of 20 parts per thousand or more
(before any correction of such fruit or berry)" for "loganberries,
currants, or gooseberries,".
1968 - Subsec. (a). Pub. 90-619 substituted "not more than 14
percent" for "less than 14 percent".
1965 - Subsec. (a). Pub. L. 89-44, Sec. 806(b)(2)(A), authorized
addition of liquid sugar provided resultant volume will not exceed
volume which could result from maximum authorized use of pure dry
sugar only.
Subsec. (b). Pub. L. 89-44, Sec. 806(c)(3), substituted
"Ameliorated" for "Reserve" in heading.
Subsec. (b)(1). Pub. L. 89-44, Sec. 806(b)(2)(B), struck out
references to reserves and reserve inventories.
Subsec. (b)(2). Pub. L. 89-44, Sec. 806(b)(2)(C), amended first
sentence by authorizing use of liquid sugar but limiting use of any
sugar if it reduced natural fixed acid in corrected juice or wine
to five parts per thousand.
Pub. L. 89-44, Sec. 806(c)(2), struck out "reserved" after
"covering the production of" in fourth sentence.
Subsec. (b)(2)(B). Pub. L. 89-44, Sec. 806(b)(2)(D), required
that, if liquid sugar is used, the volume of water contained
therein be deducted from the volume of ameliorating material
authorized.
Subsec. (b)(2)(C). Pub. L. 89-44, Sec. 806(b)(2)(E), substituted
"shall have" for "may be withdrawn from reserve inventory with".
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1417(b) of Pub. L. 105-34 provided that: "The amendment
made by this section [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 1968 AMENDMENT
Amendment by Pub. L. 90-619 effective on first day of first month
which begins 90 days or more after Oct. 22, 1968, see section 6 of
Pub. 90-619, set out as a note under section 5373 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective Jan. 1, 1966, see section
806(d)(2) of Pub. L. 89-44, set out as a note under section 5383 of
this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5382 of this title.
-End-
-CITE-
26 USC Sec. 5385 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 F - Bonded and Taxpaid Wine Premises
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-HEAD-
Sec. 5385. Specially sweetened natural wines
-STATUTE-
(a) Definition
Specially sweetened natural wine is the product made by adding to
natural wine of the winemaker's own production a sufficient
quantity of pure dry sugar, or juice or concentrated juice from the
same kind of fruit, separately or in combination, to produce a
finished product having a total solids content in excess of 17
percent by weight and an alcoholic content of not more than 14
percent by volume, and shall include extra sweet kosher wine and
similarly heavily sweetened wines.
(b) Cellar treatment
Specially sweetened natural wines may be blended with each other,
or with natural wine or heavy bodied blending wine in the further
production of specially sweetened natural wine only, if the wines
so blended are made from the same kind of fruit. Wines produced
under this section may be cellar treated under the provisions of
section 5382(a) and (c). Wine spirits may not be added to specially
sweetened natural wine.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1386; amended Pub. L. 89-44, title VIII, Sec. 806(c)(4), June 21,
1965, 79 Stat. 164; Pub. L. 90-619, Secs. 3(b), 4, Oct. 22, 1968,
82 Stat. 1237.)
-MISC1-
PRIOR PROVISIONS
A prior section 5385, act Aug. 16, 1954, ch. 736, 68A Stat. 671,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1968 - Subsec. (a). Pub. L. 90-619, Sec. 3(b), substituted "not
more than 14 percent" for "less than 14 percent".
Subsec. (b). Pub. L. 90-619, Sec. 4, authorized cellar treatment
of specially sweetened natural wines, special natural wines, and
agricultural wines.
1965 - Subsec. (a). Pub. L. 89-44 substituted "total solids
content in excess of 17" for "sugar solids content in excess of
15".
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-619 effective on first day of first month
which begins 90 days or more after Oct. 22, 1968, see section 6 of
Pub. L. 90-619, set out as a note under section 5373 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective Jan. 1, 1966, see section
806(d)(2) of Pub. L. 89-44, set out as a note under section 5383 of
this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5392 of this title.
-End-
-CITE-
26 USC Sec. 5386 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 F - Bonded and Taxpaid Wine Premises
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-HEAD-
Sec. 5386. Special natural wines
-STATUTE-
(a) In general
Special natural wines are the products made, pursuant to a
formula approved under this section, from a base of natural wine
(including heavy-bodied blending wine) exclusively, with the
addition, before, during or after fermentation, of natural herbs,
spices, fruit juices, aromatics, essences, and other natural
flavorings in such quantities or proportions as to enable such
products to be distinguished from any natural wine not so treated,
and with or without carbon dioxide naturally or artificially added,
and with or without the addition, separately or in combination, of
pure dry sugar or a solution of pure dry sugar and water, or
caramel. No added wine spirits or alcohol or other spirits shall be
used in any wine under this section except as may be contained in
the natural wine (including heavy-bodied blending wine) used as a
base or except as may be necessary in the production of approved
essences or similar approved flavorings. The Brix degree of any
solution of pure dry sugar and water used may be limited by
regulations prescribed by the Secretary in accordance with good
commercial practice.
(b) Cellar treatment
Special natural wines may be cellar treated under the provisions
of section 5382(a) and (c).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1386; amended Pub. L. 90-619, Sec. 5, Oct. 22, 1968, 82 Stat. 1237;
Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5386, act Aug. 16, 1954, ch. 736, 68A Stat. 671,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1968 - Subsec. (b). Pub. L. 90-619 inserted reference to subsec.
(a) of section 5382.
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-619 effective on first day of first month
which begins 90 days or more after Oct. 22, 1968, see section 6 of
Pub. L. 90-619, set out as a note under section 5373 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5392 of this title.
-End-
-CITE-
26 USC Sec. 5387 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 F - Bonded and Taxpaid Wine Premises
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-HEAD-
Sec. 5387. Agricultural wines
-STATUTE-
(a) In general
Wines made from agricultural products other than the juice of
fruit shall be made in accordance with good commercial practice as
may be prescribed by the Secretary by regulations. Wines made in
accordance with such regulations shall be classed as "standard
agricultural wines". Wines made under this section may be cellar
treated under the provisions of section 5382(a) and (c).
(b) Limitations
No wine spirits may be added to wines produced under this
section, nor shall any coloring material or herbs or other
flavoring material (except hops in the case of honey wine) be used
in their production.
(c) Restriction on blending
Wines from different agricultural commodities shall not be
blended together.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1386; amended Pub. L. 90-619, Sec. 5, Oct. 22, 1968, 82 Stat. 1237;
Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5387, act Aug. 16, 1954, ch. 736, 68A Stat. 671,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1968 - Subsec. (a). Pub. L. 90-619 inserted reference to subsec.
(a) of section 5382.
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-619 effective on first day of first month
which begins 90 days or more after Oct. 22, 1968, see section 6 of
Pub. L. 90-619, set out as a note under section 5373 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5392 of this title.
-End-
-CITE-
26 USC Sec. 5388 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 F - Bonded and Taxpaid Wine Premises
PART III - CELLAR TREATMENT AND CLASSIFICATION OF WINE
-HEAD-
Sec. 5388. Designation of wines
-STATUTE-
(a) Standard wines
Standard wines may be removed from premises subject to the
provisions of this subchapter and be marked, transported, and sold
under their proper designation as to kind and origin, or, if there
is no such designation known to the trade or consumers, then under
a truthful and adequate statement of composition.
(b) Other wines
Wines other than standard wines may be removed for consumption or
sale and be marked, transported, or sold only under such
designation as to kind and origin as adequately describes the true
composition of such products and as adequately distinguish them
from standard wines, as regulations prescribed by the Secretary
shall provide.
(c) Use of semi-generic designations
(1) In general
Semi-generic designations may be used to designate wines of an
origin other than that indicated by such name only if -
(A) there appears in direct conjunction therewith an
appropriate appellation of origin disclosing the true place of
origin of the wine, and
(B) the wine so designated conforms to the standard of
identity, if any, for such wine contained in the regulations
under this section or, if there is no such standard, to the
trade understanding of such class or type.
(2) Determination of whether name is semi-generic
(A) In general
Except as provided in subparagraph (B), a name of geographic
significance, which is also the designation of a class or type
of wine, shall be deemed to have become semi-generic only if so
found by the Secretary.
(B) Certain names treated as semi-generic
The following names shall be treated as semi-generic:
Angelica, Burgundy, Claret, Chablis, Champagne, Chianti,
Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine or Hock,
Sauterne, Haut Sauterne, Sherry, Tokay.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1387; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 105-34, title IX, Sec. 910(a), Aug.
5, 1997, 111 Stat. 877.)
-MISC1-
PRIOR PROVISIONS
A prior section 5388, act Aug. 16, 1954, ch. 736, 68A Stat. 672,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1997 - Subsec. (c). Pub. L. 105-34 added subsec. (c).
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
EFFECTIVE DATE OF 1997 AMENDMENT
Section 910(b) of Pub. L. 105-34 provided that: "The amendment
made by this section [amending this section] shall take effect on
the date of the enactment of this Act [Aug. 5, 1997]."
-End-
-CITE-
26 USC PART IV - GENERAL 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 F - Bonded and Taxpaid Wine Premises
PART IV - GENERAL
-HEAD-
PART IV - GENERAL
-MISC1-
Sec.
5391. Exemption from distilled spirits taxes.
5392. Definitions.
PRIOR PROVISIONS
A prior part IV consisted of sections 5391 and 5392 of this
title, prior to the general revision of this chapter by Pub. L.
85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(8), July 26, 1979,
93 Stat. 290, substituted "Exemption from distilled spirits taxes"
for "Exemption from rectifying and spirits taxes" in item 5391.
-SECREF-
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in section 5663 of this title.
-End-
-CITE-
26 USC Sec. 5391 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 F - Bonded and Taxpaid Wine Premises
PART IV - GENERAL
-HEAD-
Sec. 5391. Exemption from distilled spirits taxes
-STATUTE-
Notwithstanding any other provision of law, the tax imposed by
section 5001 on distilled spirits shall not, except as provided in
this subchapter, be assessed, levied, or collected from the
proprietor of any bonded wine cellar with respect to his use of
wine spirits in wine production, in such premises; except that,
whenever wine or wine spirits are used in violation of this
subchapter, the applicable tax imposed by section 5001 shall be
collected unless the proprietor satisfactorily shows that such wine
or wine spirits were not knowingly used in violation of law.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1387; amended Pub. L. 96-39, title VIII, Sec. 807(a)(49), July 26,
1979, 93 Stat. 288.)
-MISC1-
PRIOR PROVISIONS
A prior section 5391, act Aug. 16, 1954, ch. 736, 68A Stat. 672,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 substituted "distilled" for "rectifying and"
in section catchline and struck out provisions relating to
exemption from taxes imposed on rectified spirits and wines and the
status of any proprietor of a bonded wine cellar as a rectifier of
such spirits in text.
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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5005 of this title.
-End-
-CITE-
26 USC Sec. 5392 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 F - Bonded and Taxpaid Wine Premises
PART IV - GENERAL
-HEAD-
Sec. 5392. Definitions
-STATUTE-
(a) Standard wine
For purposes of this subchapter the term "standard wine" means
natural wine, specially sweetened natural wine, special natural
wine, and standard agricultural wine, produced in accordance with
the provisions of sections 5381, 5385, 5386, and 5387,
respectively.
(b) Heavy bodied blending wine
For purposes of this subchapter the term "heavy bodied blending
wine" means wine made from fruit without added sugar, and with or
without added wine spirits, and conforming to the definition of
natural wine in all respects except as to maximum total solids
content.
(c) Pure sugar
For purposes of this subchapter the term "pure sugar" means pure
refined sugar, suitable for human consumption, having a dextrose
equivalent of not less than 95 percent on a dry basis, and produced
from cane, beets, or fruit, or from grain or other sources of
starch. Invert sugar syrup produced from such pure sugar by
recognized methods of inversion may be used to prepare any sugar
syrup, or solution of water and pure sugar, authorized in this
subchapter.
(d) Total solids
For purposes of this subchapter the term "total solids", in the
case of wine, means the degrees Brix of the dealcoholized wine.
(e) Same kind of fruit
For purposes of this subchapter the term "same kind of fruit"
includes, in the case of grapes, all of the several species and
varieties of grapes. In the case of fruits other than grapes, this
term includes all of the several species and varieties of any given
kind; except that this shall not preclude a more precise
identification of the composition of the product for the purpose of
its designation.
(f) Own production
For purposes of this subchapter the term "own production", when
used with reference to wine in a bonded wine cellar, means wine
produced by fermentation in the same bonded wine cellar, whether or
not produced by a predecessor in interest at such bonded wine
cellar. This term may also include, under regulations, wine
produced by fermentation in bonded wine cellars owned or controlled
by the same or affiliated persons or firms when located within the
same State; the term "affiliated" shall be deemed to include any
one or more bonded wine cellar proprietors associated as members of
any farm cooperative, or any one or more bonded wine cellar
proprietors affiliated within the meaning of section 17(a)(5) of
the Federal Alcohol Administration Act, as amended (27 U.S.C.
211).(!1)
(g) Liquid sugar
For purposes of this subchapter the term "liquid sugar" means a
substantially colorless pure sugar and water solution containing
not less than 60 percent pure sugar by weight (60 degrees Brix.)
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1387; amended Pub. L. 89-44, title VIII, Sec. 806(b)(3), June 21,
1965, 79 Stat. 163; Pub. L. 94-455, title XIX, Sec. 1905(a)(21),
Oct. 4, 1976, 90 Stat. 1820.)
-REFTEXT-
REFERENCES IN TEXT
Section 17(a)(5) of the Federal Alcohol Administration Act, as
amended (27 U.S.C. 211), referred to in subsec. (f), was renumbered
section 117(a)(5) of the Federal Alcohol Administration Act by Pub.
L. 100-690, title VIII, Sec. 8001(a)(2), Nov. 18, 1988, 102 Stat.
4517, and is classified to section 211(a)(5) of Title 27,
Intoxicating Liquors.
-MISC1-
PRIOR PROVISIONS
A prior section 5392, act Aug. 16, 1954, ch. 736, 68A Stat. 672,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsec. (f). Pub. L. 94-455 struck out "49 Stat. 990;"
before "27 U.S.C. 211".
1965 - Subsec. (c). Pub. L. 89-44, Sec. 806(b)(3)(A), added
fruit, grain, or other sources of starch to cane and beets as
sources of "pure sugar".
Subsec. (g). Pub. L. 89-44, Sec. 806(b)(3)(B), added subsec. (g).
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective Jan. 1, 1966, see section
806(d)(2) of Pub. L. 89-44, set out as a note under section 5383 of
this title.
-FOOTNOTE-
(!1) See References in Text note below.
-End-
-CITE-
26 USC Subchapter G - Breweries 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 G - Breweries
-HEAD-
SUBCHAPTER G - BREWERIES
-MISC1-
Part
I. Establishment.
II. Operations.
PRIOR PROVISIONS
A prior subchapter G consisted of parts I and II, contained
sections 5401 to 5403 and 5411 to 5416, respectively, prior to the
general revision of this chapter by Pub. L. 85-859, title II, Sec.
201, Sept. 2, 1958, 72 Stat. 1313.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 5051, 5054, 5603,
5672, 5674 of this title.
-End-
-CITE-
26 USC PART I - ESTABLISHMENT 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 G - Breweries
PART I - ESTABLISHMENT
-HEAD-
PART I - ESTABLISHMENT
-MISC1-
Sec.
5401. Qualifying documents.
5402. Definitions.
5403. Cross references.
PRIOR PROVISIONS
A prior part I consisted of sections 5401 to 5403 of this title,
prior to the general revision of this chapter by Pub. L. 85-859,
title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5401 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 G - Breweries
PART I - ESTABLISHMENT
-HEAD-
Sec. 5401. Qualifying documents
-STATUTE-
(a) Notice
Every brewer shall, before commencing or continuing business,
file with the officer designated for that purpose by the Secretary
a notice in writing, in such form and containing such information
as the Secretary shall by regulations prescribe as necessary to
protect and insure collection of the revenue.
(b) Bonds
Every brewer, on filing notice as provided by subsection (a) of
his intention to commence business, shall execute a bond to the
United States in such reasonable penal sum as the Secretary shall
by regulation prescribe as necessary to protect and insure
collection of the revenue. The bond shall be conditioned (1) that
the brewer shall pay, or cause to be paid, as herein provided, the
tax required by law on all beer, including all beer removed for
transfer to the brewery from other breweries owned by him as
provided in section 5414; (2) that he shall pay or cause to be paid
the tax on all beer removed free of tax for export as provided in
section 5053(a), which beer is not exported or returned to the
brewery; and (3) that he shall in all respects faithfully comply,
without fraud or evasion, with all requirements of law relating to
the production and sale of any beer aforesaid. Once in every 4
years, or whenever required so to do by the Secretary, the brewer
shall execute a new bond or a continuation certificate, in the
penal sum prescribed in pursuance of this section, and conditioned
as above provided, which bond or continuation certificate shall be
in lieu of any former bond or bonds, or former continuation
certificate or certificates, of such brewer in respect to all
liabilities accruing after its approval. If the contract of surety
between the brewer and the surety on an expiring bond or
continuation certificate is continued in force between the parties
for a succeeding period of not less than 4 years, the brewer may
submit, in lieu of a new bond, a certificate executed, under
penalties of perjury, by the brewer and the surety attesting to
continuation of the bond, which certificate shall constitute a bond
subject to all provisions of law applicable to bonds given pursuant
to this section.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1388; amended Pub. L. 91-673, Sec. 3(a), Jan. 12, 1971, 84 Stat.
2056; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5401, act Aug. 16, 1954, ch. 736, 68A Stat. 674,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1971 - Subsec. (b). Pub. L. 91-673 permitted bonding requirement
to be satisfied by continuation of an existing bond, with such
continuation being subject to Government approval in the same
manner as a new bond and required that the continuation certificate
be executed by both the brewer and the surety, under penalties of
perjury.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-673 effective on first day of first
calendar month which begins more than 90 days after Jan. 12, 1971,
see section 5 of Pub. L. 91-673, set out as a note under section
5056 of this title.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-End-
-CITE-
26 USC Sec. 5402 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 G - Breweries
PART I - ESTABLISHMENT
-HEAD-
Sec. 5402. Definitions
-STATUTE-
(a) Brewery
The brewery shall consist of the land and buildings described in
the brewer's notice. The continuity of the brewery must be unbroken
except where separated by public passageways, streets, highways,
waterways, or carrier rights-of-way, or partitions; and if parts of
the brewery are so separated they must abut on the dividing medium
and be adjacent to each other. Notwithstanding the preceding
sentence, facilities under the control of the brewer for case
packing, loading, or storing which are located within reasonable
proximity to the brewery packaging facilities may be approved by
the Secretary as a part of the brewery if the revenue will not be
jeopardized thereby.
(b) Brewer
For definition of brewer, see section 5092.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1389; amended Pub. L. 91-673, Sec. 3(b), Jan. 12, 1971, 84 Stat.
2057; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5402, act Aug. 16, 1954, ch. 736, 68A Stat. 674,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
1971 - Subsec. (a). Pub. L. 91-673 inserted proviso to definition
of "Brewery" that the continuity of the brewery must be unbroken
except where separated by public passageways, streets, highways,
waterways, or carrier rights-of-way, or partitions, with the
exception that the Secretary approve facilities under the control
of the brewer for case packing, loading, or storing, which are
located within reasonable proximity to the brewery as a part of the
brewery if the revenue will not be jeopardized thereby.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-673 effective on first day of first
calendar month which begins more than 90 days after Jan. 12, 1971,
see section 5 of Pub. L. 91-673, set out as a note under section
5056 of this title.
-End-
-CITE-
26 USC Sec. 5403 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 G - Breweries
PART I - ESTABLISHMENT
-HEAD-
Sec. 5403. Cross references
-STATUTE-
(1) For authority of Secretary to disapprove brewers' bonds,
see section 5551.
(2) For authority of Secretary to require the installation
and use of meters, tanks, and other apparatus, see section
5552.
(3) For deposit of United States bonds or notes in lieu of
sureties, see section 9303 of title 31, United States Code.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1389; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 97-258, Sec. 3(f)(3), Sept. 13,
1982, 96 Stat. 1064.)
-MISC1-
PRIOR PROVISIONS
A prior section 5403, act Aug. 16, 1954, ch. 736, 68A Stat. 674,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1982 - Par. (3). Pub. L. 97-258 substituted "section 9303 of
title 31, United States Code" for "6 U.S.C. 15".
1976 - Par. (1). Pub. L. 94-455 struck out "or his delegate"
after "Secretary".
-End-
-CITE-
26 USC PART II - OPERATIONS 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 G - Breweries
PART II - OPERATIONS
-HEAD-
PART II - OPERATIONS
-MISC1-
Sec.
5411. Use of brewery.
5412. Removal of beer in containers or by pipeline.
5413. Brewers procuring beer from other brewers.
5414. Removals from one brewery to another belonging to the
same brewer.
5415. Records and returns.
5416. Definitions of package and packaging.
5417. Pilot brewing plants.
5418. Beer imported in bulk.
PRIOR PROVISIONS
A prior part II consisted of sections 5411 to 5416, 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. 1421(b), Aug. 5, 1997, 111
Stat. 1049, added item 5418.
1971 - Pub. L. 91-673, Sec. 4(b), Jan. 12, 1971, 84 Stat. 2058,
substituted "Definitions of package and packaging" for "Definitions
of bottle and bottling" in item 5416 and added item 5417.
-End-
-CITE-
26 USC Sec. 5411 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 G - Breweries
PART II - OPERATIONS
-HEAD-
Sec. 5411. Use of brewery
-STATUTE-
The brewery shall be used under regulations prescribed by the
Secretary only for the purpose of producing, packaging, and storing
beer, cereal beverages containing less than one-half of 1 percent
of alcohol by volume, vitamins, ice, malt, malt sirup, and other
byproducts and of soft drinks; for the purpose of processing spent
grain, carbon dioxide, and yeast; and for such other purposes as
the Secretary by regulation may find will not jeopardize the
revenue.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1389; amended Pub. L. 91-673, Sec. 3(c), Jan. 12, 1971, 84 Stat.
2057; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5411, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
1971 - Pub. L. 91-673 struck out requirement of separate
facilities for bottling of beer and cereal beverages and permitted
use of brewery for packaging and storing beer and other cereal
beverages.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-673 effective on first day of first
calendar month which begins more than 90 days after Jan. 12, 1971,
see section 5 of Pub. L. 91-673, set out as a note under section
5056 of this title.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 7851 of this title.
-End-
-CITE-
26 USC Sec. 5412 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 G - Breweries
PART II - OPERATIONS
-HEAD-
Sec. 5412. Removal of beer in containers or by pipeline
-STATUTE-
Beer may be removed from the brewery for consumption or sale only
in hogsheads, packages, and similar containers, marked, branded, or
labeled in such manner as the Secretary may by regulation require,
except that beer may be removed from the brewery by pipeline to
contiguous distilled spirits plants under section 5222.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1389; amended Pub. L. 91-673, Sec. 3(d), Jan. 12, 1971, 84 Stat.
2057; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5412, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
1971 - Pub. L. 91-673 substituted "packages," for "barrels, kegs,
bottles,".
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-673 effective on first day of first
calendar month which begins more than 90 days after Jan. 12, 1971,
see section 5 of Pub. L. 91-673, set out as a note under section
5056 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5675 of this title.
-End-
-CITE-
26 USC Sec. 5413 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 G - Breweries
PART II - OPERATIONS
-HEAD-
Sec. 5413. Brewers procuring beer from other brewers
-STATUTE-
A brewer, under such regulations as the Secretary shall
prescribe, may obtain beer in his own hogsheads, barrels, and kegs,
marked with his name and address, from another brewer, with
taxpayment thereof to be by the producer in the manner prescribed
by section 5054.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1389; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5413, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Sec. 5414 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 G - Breweries
PART II - OPERATIONS
-HEAD-
Sec. 5414. Removals from one brewery to another belonging to the
same brewer
-STATUTE-
Beer may be removed from one brewery to another brewery belonging
to the same brewer, without payment of tax, and may be mingled with
beer at the receiving brewery, subject to such conditions,
including payment of the tax, and in such containers, as the
Secretary by regulations shall prescribe. The removal from one
brewery to another brewery belonging to the same brewer shall be
deemed to include any removal from a brewery owned by one
corporation to a brewery owned by another corporation when (1) one
such corporation owns the controlling interest in the other such
corporation, or (2) the controlling interest in each such
corporation is owned by the same person or persons.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1389; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5414, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5401 of this title.
-End-
-CITE-
26 USC Sec. 5415 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 G - Breweries
PART II - OPERATIONS
-HEAD-
Sec. 5415. Records and returns
-STATUTE-
(a) Records
Every brewer shall keep records, in such form and containing such
information as the Secretary shall prescribe by regulations as
necessary for protection of the revenue. These records shall be
preserved by the person required to keep such records for such
period as the Secretary shall by regulations prescribe, and shall
be available during business hours for examination and taking of
abstracts therefrom by any internal revenue officer.
(b) Returns
Every brewer shall make true and accurate returns of his
operations and transactions in the form, at the times, and for such
periods as the Secretary shall by regulation prescribe.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1390; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5415, act Aug. 16, 1954, ch. 736, 68A Stat. 675,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5671, 5672 of this title.
-End-
-CITE-
26 USC Sec. 5416 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 G - Breweries
PART II - OPERATIONS
-HEAD-
Sec. 5416. Definitions of package and packaging
-STATUTE-
For purposes of this subchapter, the term "package" means a
bottle, can, keg, barrel, or other original consumer container, and
the term "packaging" means the filling of any package.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1390; amended Pub. L. 91-673, Sec. 3(e), Jan. 12, 1971, 84 Stat.
2057.)
-MISC1-
PRIOR PROVISIONS
A prior section 5416, act Aug. 16, 1954, ch. 736, 68A Stat. 676,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1971 - Pub. L. 91-673 substituted definitions of package and
packaging for definitions of bottle and bottling.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-673 effective on first day of first
calendar month which begins more than 90 days after Jan. 12, 1971,
see section 5 of Pub. L. 91-673, set out as a note under section
5056 of this title.
-End-
-CITE-
26 USC Sec. 5417 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 G - Breweries
PART II - OPERATIONS
-HEAD-
Sec. 5417. Pilot brewing plants
-STATUTE-
Under such regulations as the Secretary may prescribe, and on the
filing of such bonds and applications as he may require, pilot
brewing plants may, at the discretion of the Secretary be
established and operated off the brewery premises for research,
analytical, experimental, or development purposes with regard to
beer or brewery operations. Nothing in this section shall be
construed as authority to waive the filing of any bond or the
payment of any tax provided for in this chapter.
-SOURCE-
(Added Pub. L. 91-673, Sec. 4(a), Jan. 12, 1971, 84 Stat. 2057;
amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4,
1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
EFFECTIVE DATE
Section effective on first day of first calendar month which
begins more than 90 days after Jan. 12, 1971, see section 5 of Pub.
L. 91-673, set out as an Effective Date of 1971 Amendment note
under section 5056 of this title.
-End-
-CITE-
26 USC Sec. 5418 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 G - Breweries
PART II - OPERATIONS
-HEAD-
Sec. 5418. Beer imported in bulk
-STATUTE-
Beer imported or brought into the United States in bulk
containers may, under such regulations as the Secretary may
prescribe, be withdrawn from customs custody and transferred in
such bulk containers to the premises of a brewery without payment
of the internal revenue tax imposed on such beer. The proprietor of
a brewery to which such beer is transferred shall become liable for
the tax on the beer withdrawn from customs custody under this
section upon release of the beer from customs custody, and the
importer, or the person bringing such beer into the United States,
shall thereupon be relieved of the liability for such tax.
-SOURCE-
(Added Pub. L. 105-34, title XIV, Sec. 1421(a), Aug. 5, 1997, 111
Stat. 1049.)
-MISC1-
EFFECTIVE DATE
Section 1421(c) of Pub. L. 105-34 provided that: "The amendments
made by this section [enacting 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]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5054 of this title.
-End-
-CITE-
26 USC Subchapter H - Miscellaneous Plants and Warehouses 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 H - Miscellaneous Plants and Warehouses
-HEAD-
SUBCHAPTER H - MISCELLANEOUS PLANTS AND WAREHOUSES
-MISC1-
Part
I. Vinegar plants.
II. Volatile fruit-flavor concentrate plants.
[III. Repealed.]
PRIOR PROVISIONS
A prior subchapter H consisted of parts I to III, prior to the
general revision of this chapter by Pub. L. 85-859, title II, Sec.
201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1979 - Pub. L. 96-39, title VIII, Sec. 807(b)(9), July 26, 1979,
93 Stat. 291, struck out item relating to Part III "Manufacturing
bonded warehouses" in table of Parts comprising Subchapter H.
-End-
-CITE-
26 USC PART I - VINEGAR PLANTS 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 H - Miscellaneous Plants and Warehouses
PART I - VINEGAR PLANTS
-HEAD-
PART I - VINEGAR PLANTS
-MISC1-
Sec.
5501. Establishment.
5502. Qualification.
5503. Construction and equipment.
5504. Operation.
5505. Applicability of provisions of this chapter.
PRIOR PROVISIONS
A prior part I consisted of sections 5501 and 5502, prior to the
general revision of this chapter by Pub. L. 85-859, title II, Sec.
201, Sept. 2, 1958, 72 Stat. 1313.
-SECREF-
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in section 5222 of this title.
-End-
-CITE-
26 USC Sec. 5501 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 H - Miscellaneous Plants and Warehouses
PART I - VINEGAR PLANTS
-HEAD-
Sec. 5501. Establishment
-STATUTE-
Plants for the production of vinegar by the vaporizing process,
where distilled spirits of not more than 15 percent of alcohol by
volume are to be produced exclusively for use in the manufacture of
vinegar on the premises, may be established under this part.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1390.)
-MISC1-
PRIOR PROVISIONS
A prior section 5501, act Aug. 16, 1954, ch. 736, 68A Stat. 677,
made a cross reference to provisions pertaining to establishment
and operation of vinegar factories, prior to the general revision
of this chapter by Pub. L. 85-859.
Provisions similar to those comprising this section were
contained in prior section 5216(a)(1), act Aug. 16, 1954, ch. 736,
68A Stat. 640, prior to the general revision of this chapter by
Pub. L. 85-859.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5505 of this title.
-End-
-CITE-
26 USC Sec. 5502 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 H - Miscellaneous Plants and Warehouses
PART I - VINEGAR PLANTS
-HEAD-
Sec. 5502. Qualification
-STATUTE-
(a) Requirements
Every person, before commencing the business of manufacturing
vinegar by the vaporizing process, and at such other times as the
Secretary may by regulations prescribe, shall make application to
the Secretary for the registration of his plant and receive
permission to operate. No application required under this section
shall be approved until the applicant has complied with all
requirements of law, and regulations prescribed by the Secretary,
in relation to such business. With respect to any change in such
business after approval of an application, the Secretary may by
regulations authorize the filing of written notice of such change
or require the filing of an application to make such change.
(b) Form of application
The application required by subsection (a) shall be in such form
and contain such information as the Secretary shall by regulations
prescribe to enable him to determine the identity of the applicant,
the location and extent of the premises, the type of operations to
be conducted on such premises, and whether the operations will be
in conformity with law and regulations.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1390; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5502, act Aug. 16, 1954, ch. 736, 68A Stat. 677,
related to distilled vinegar, prior to the general revision of this
chapter by Pub. L. 85-859.
Provisions similar to those comprising subsec. (a) of this
section were contained in prior section 5216(a)(1), act Aug. 16,
1954, ch. 736, 68A Stat. 640, prior to the general revision of this
chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
-End-
-CITE-
26 USC Sec. 5503 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 H - Miscellaneous Plants and Warehouses
PART I - VINEGAR PLANTS
-HEAD-
Sec. 5503. Construction and equipment
-STATUTE-
Plants established under this part for the manufacture of vinegar
by the vaporizing process shall be constructed and equipped in
accordance with such regulations as the Secretary shall prescribe.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1391; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior sections 5216(a)(1) and 5552, act Aug. 16, 1954,
ch. 736, 68A Stat. 640, 680, prior to the general revision of this
chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Sec. 5504 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 H - Miscellaneous Plants and Warehouses
PART I - VINEGAR PLANTS
-HEAD-
Sec. 5504. Operation
-STATUTE-
(a) General
Any manufacturer of vinegar qualified under this part may, under
such regulations as the Secretary shall prescribe, separate by a
vaporizing process the distilled spirits from the mash produced by
him, and condense the vapor by introducing it into the water or
other liquid used in making vinegar in his plant.
(b) Removals
No person shall remove, or cause to be removed, from any plant
established under this part any vinegar or other fluid or material
containing a greater proportion than 2 percent of proof spirits.
(c) Records
Every person manufacturing vinegar by the vaporizing process
shall keep such records and file such reports as the Secretary
shall by regulations prescribe of the kind and quantity of
materials received on his premises and fermented or mashed, the
quantity of low wines produced, the quantity of such low wines used
in the manufacture of vinegar, the quantity of vinegar produced,
the quantity of vinegar removed from the premises, and such other
information as may by regulations be required. Such records, and a
copy of such reports, shall be preserved as regulations shall
prescribe, and shall be kept available for inspection by any
internal revenue officer during business hours.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1391; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising subsecs. (a) and (b) of
this section were contained in prior section 5216(a)(1)(2), act
Aug. 16, 1954, ch. 736, 68A Stat. 640, prior to the general
revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsecs. (a), (c). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5505 of this title.
-End-
-CITE-
26 USC Sec. 5505 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 H - Miscellaneous Plants and Warehouses
PART I - VINEGAR PLANTS
-HEAD-
Sec. 5505. Applicability of provisions of this chapter
-STATUTE-
(a) Tax
The taxes imposed by subchapter A shall be applicable to any
distilled spirits produced in violation of section 5501 or removed
in violation of section 5504(b).
(b) Prohibited premises
Plants established under this part shall not be located on any
premises where distilling is prohibited under section 5601(a)(6).
(c) Entry and examination of premises
The provisions of section 5203(b), (c), and (d), relating to
right of entry and examination, furnishing facilities and
assistance, and authority to break up grounds or walls, shall be
applicable to all premises established under this part, and to all
proprietors thereof, and their workmen or other persons employed by
them.
(d) Registration of stills
Stills on the premises of plants established under this part
shall be registered as provided in section 5179.
(e) Installation of meters, tanks, and other apparatus
The provisions of section 5552 relating to the installation of
meters, tanks, and other apparatus shall be applicable to plants
established under this part.
(f) Assignment of internal revenue officers
The provisions of section 5553(a) relating to the assignment of
internal revenue officers shall be applicable to plants established
under this part.
(g) Authority to waive records, statements, and returns
The provisions of section 5555(b) relating to the authority of
the Secretary to waive records, statements, and returns shall be
applicable to records, statements, or returns required by this
part.
(h) Regulations
The provisions of section 5556 relating to the prescribing of
regulations shall be applicable to this part.
(i) Penalties
The penalties and forfeitures provided in sections 5601(a)(1),
(6), and (12), 5603, 5615(1) and (4), 5686, and 5687 shall be
applicable to this part.
(j) Other provisions
This chapter (other than this part and the provisions referred to
in subsection (a), (b), (c), (d), (e), (f), (g), (h), (i) shall not
be applicable with respect to plants established or operations
conducted under this part.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1391; amended Pub. L. 94-455, title XIX, Sec. 1905(b)(6)(E), Oct.
4, 1976, 90 Stat. 1823.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising subsecs. (a) to (i) of
this section were contained in prior sections of act Aug. 16, 1954,
prior to the general revision of this chapter by Pub. L. 85-859, as
follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a) 5216(a)(1).
(b) 5171.
(c) 5216(a)(3).
(d) 5174.
(e) 5552.
(f) 5553(a).
(g) 5555(b).
(h) 5556.
(i) 5601, 5607, 5608, 5686(b).
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 627, 630, 640, 680, 681, 683-685, 700.
AMENDMENTS
1976 - Subsec. (i). Pub. L. 94-455 struck out "5601(b)(1)," after
"5601(a)(1), (6), and (12),".
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5003, 5061 of this title.
-End-
-CITE-
26 USC PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS 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 H - Miscellaneous Plants and Warehouses
PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS
-HEAD-
PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS
-MISC1-
Sec.
5511. Establishment and operation.
5512. Control of products after manufacture.
PRIOR PROVISIONS
A prior part II consisted of sections 5511 and 5512, prior to the
general revision of this chapter by Pub. L. 85-859, title II, Sec.
201, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5511 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 H - Miscellaneous Plants and Warehouses
PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS
-HEAD-
Sec. 5511. Establishment and operation
-STATUTE-
This chapter (other than sections 5178(a)(2)(C), 5179, 5203(b),
(c), and (d), and 5552) shall not be applicable with respect to the
manufacture, by any process which includes evaporations from the
mash or juice of any fruit, of any volatile fruit-flavor
concentrate if -
(1) such concentrate, and the mash or juice from which it is
produced, contains no more alcohol than is reasonably unavoidable
in the manufacture of such concentrate; and
(2) such concentrate is rendered unfit for use as a beverage
before removal from the place of manufacture, or (in the case of
a concentrate which does not exceed 24 percent alcohol by volume)
such concentrate is transferred to a bonded wine cellar for use
in production of natural wine as provided in section 5382; and
(3) the manufacturer thereof makes such application, keeps such
records, renders such reports, files such bonds, and complies
with such other requirements with respect to the production,
removal, sale, transportation, and use of such concentrate and of
the mash or juice from which such concentrate is produced, as the
Secretary may by regulations prescribe as necessary for the
protection of the revenue.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1392; amended Pub. L. 88-653, Sec. 3, Oct. 13, 1964, 78 Stat. 1085;
Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5511, act Aug. 16, 1954, ch. 736, 68A Stat. 677,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Par. (3). Pub. L. 94-455 struck out "or his delegate"
after "Secretary".
1964 - Par. (2). Pub. L. 88-653 inserted "or (in the case of a
concentrate which does not exceed 24 percent alcohol by volume)
such concentrate is transferred to a bonded wine cellar for use in
production of natural wine as provided in section 5382".
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-653 effective on first day of second
month which begins more than 10 days after Oct. 13, 1964, see
section 4 of Pub. L. 88-653, set out as a note under section 5383
of this title.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5001, 5003, 5382 of this
title.
-End-
-CITE-
26 USC Sec. 5512 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 H - Miscellaneous Plants and Warehouses
PART II - VOLATILE FRUIT-FLAVOR CONCENTRATE PLANTS
-HEAD-
Sec. 5512. Control of products after manufacture
-STATUTE-
For applicability of all provisions of this chapter
pertaining to distilled spirits and wines, including those
requiring payment of tax, to volatile fruit-flavor concentrates
sold, transported, or used in violation of law or regulations,
see section 5001(a)(7).(!1)
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1392.)
-REFTEXT-
REFERENCES IN TEXT
Section 5001(a)(7), referred to in text, was redesignated section
5001(a)(6) by Pub. L. 103-465, title I, Sec. 136(a), Dec. 8, 1994,
108 Stat. 4841.
-MISC1-
PRIOR PROVISIONS
A prior section 5512, act Aug. 16, 1954, ch. 736, 68A Stat. 677,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-FOOTNOTE-
(!1) See References in Text note below.
-End-
-CITE-
26 USC [PART III - 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 H - Miscellaneous Plants and Warehouses
[PART III - REPEALED]
-HEAD-
[PART III - REPEALED]
-End-
-CITE-
26 USC Secs. 5521 to 5523 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 H - Miscellaneous Plants and Warehouses
[PART III - REPEALED]
-HEAD-
[Secs. 5521 to 5523. Repealed. Pub. L. 96-39, title VIII, Sec.
807(a)(50), July 26, 1979, 93 Stat. 288]
-MISC1-
Section 5521, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1392; amended Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to
establishment and operation of manufacturing bonded warehouses.
A prior section 5521, act Aug. 16, 1954, ch. 736, 68A Stat. 678,
related to establishment and operation of manufacturing bonded
warehouses, prior to the general revision of this chapter by Pub.
L. 85-859.
Section 5522, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1393; amended Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to withdrawal
of distilled spirits to manufacturing bonded warehouses.
A prior section 5522, act Aug. 16, 1954, ch. 736, 68A Stat. 679,
related to withdrawal of distilled spirits to manufacturing bonded
warehouses, prior to general revision of this chapter by Pub. L.
85-859. See sections 5008(f)(2) and 5214(a) of this title.
Section 5523, added Pub. L. 85-859, title II, Sec. 201, Sept. 2,
1958, 72 Stat. 1394; amended Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, made special provision
for distilled spirits and wines rectified in manufacturing bonded
warehouses.
A prior section 5523, act Aug. 16, 1954, ch. 736, 68A Stat. 679,
made special provision for distilled spirits and wines rectified in
manufacturing bonded warehouses, prior to 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 Subchapter I - Miscellaneous General Provisions 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 I - Miscellaneous General Provisions
-HEAD-
SUBCHAPTER I - MISCELLANEOUS GENERAL PROVISIONS
-MISC1-
Sec.
5551. General provisions relating to bonds.
5552. Installation of meters, tanks, and other apparatus.
5553. Supervision of premises and operations.
5554. Pilot operations.
5555. Records, statements, and returns.
5556. Regulations.
5557. Officers and agents authorized to investigate, issue
search warrants, and prosecute for violations.
5558. Authority of enforcement officers.
5559. Determinations.
5560. Other provisions applicable.
5561. Exemptions to meet the requirements of the national
defense.
5562. Exemptions from certain requirements in cases of
disaster.
PRIOR PROVISIONS
A prior subchapter I consisted of sections 5551 to 5557, prior to
the general revision of this chapter by Pub. L. 85-859, title II,
Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5551 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5551. General provisions relating to bonds
-STATUTE-
(a) Approval as condition to commencing business
No individual, firm, partnership, corporation, or association,
intending to commence or to continue the business of a distiller,
warehouseman, processor, brewer, or winemaker, shall commence or
continue the business of a distiller, warehouseman, processor,
brewer, or winemaker until all bonds in respect of such a business,
required by any provision of law, have been approved by the
Secretary of the Treasury or the officer designated by him.
(b) Disapproval
The Secretary of the Treasury or any officer designated by him
may disapprove any such bond or bonds if the individual, firm,
partnership, or corporation, or association giving such bond or
bonds, or owning, controlling, or actively participating in the
management of the business of the individual, firm, partnership,
corporation, or association giving such bond or bonds, shall have
been previously convicted, in a court of competent jurisdiction, of
-
(1) any fraudulent noncompliance with any provision of any law
of the United States, if such provision related to internal
revenue or customs taxation of distilled spirits, wines, or beer,
or if such an offense shall have been compromised with the
individual, firm, partnership, corporation, or association on
payment of penalties or otherwise, or
(2) any felony under a law of any State, or the District of
Columbia, or the United States, prohibiting the manufacture,
sale, importation, or transportation of distilled spirits, wine,
beer, or other intoxicating liquor.
(c) Appeal from disapproval
In case the disapproval is by an officer designated by the
Secretary of the Treasury to approve or disapprove such bonds, the
individual, firm, partnership, corporation, or association giving
the bond may appeal from such disapproval to the Secretary of the
Treasury or an officer designated by him to hear such appeals, and
the disapproval of the bond by the Secretary of the Treasury or
officer designated to hear such appeals shall be final.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1394; amended Pub. L. 94-455, title XIX, Secs. 1905(c)(5),
1906(b)(13)(B), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 96-39,
title VIII, Sec. 807(a)(51), July 26, 1979, 93 Stat. 288.)
-MISC1-
PRIOR PROVISIONS
A prior section 5551, act Aug. 16, 1954, ch. 736, 68A Stat. 680,
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) of this
section were contained in prior section 5177(c), act Aug. 16, 1954,
ch. 736, 68A Stat. 630, prior to the general revision of this
chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Subsec. (a). Pub. L. 96-39 substituted "warehouseman,
processor" for "bonded warehouseman, rectifier" in two places.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(B),
substituted "Secretary of the Treasury" for "Secretary".
Subsec. (b). Pub. L. 94-455, Secs. 1905(c)(5), 1906(b)(13)(B),
substituted "Secretary of the Treasury" for "Secretary" in
provisions preceding par. (1) and struck out "Territory, or" after
"State," in par. (2).
Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(B), substituted
"Secretary of the Treasury" for "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.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(c)(5) 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5177, 5355, 5403 of this
title.
-End-
-CITE-
26 USC Sec. 5552 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5552. Installation of meters, tanks, and other apparatus
-STATUTE-
The Secretary is authorized to require at distilled spirits
plants, breweries, and at any other premises established pursuant
to this chapter as in his judgment may be deemed advisable, the
installation of meters, tanks, pipes, or any other apparatus for
the purpose of protecting the revenue, and such meters, tanks, and
pipes and all necessary labor incident thereto shall be at the
expense of the person on whose premises the installation is
required. Any such person refusing or neglecting to install such
apparatus when so required by the Secretary shall not be permitted
to conduct business on such premises.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1395; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5552, act Aug. 16, 1954, ch. 736, 68A Stat. 680,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
For application to vinegar plants of provisions of prior section
5552 relating to installation of meters, tanks, and other
apparatus, see also sections 5503 and 5505(e) of this title.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5178, 5403, 5505, 5511 of
this title.
-End-
-CITE-
26 USC Sec. 5553 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5553. Supervision of premises and operations
-STATUTE-
(a) Assignment of internal revenue officers
The Secretary is authorized to assign to any premises established
under the provisions of this chapter such number of internal
revenue officers as may be deemed necessary.
(b) Functions of internal revenue officer
When used in this chapter, the term "internal revenue officer
assigned to the premises" means the internal revenue officer
assigned by the Secretary to duties at premises established and
operated under the provisions of this chapter.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1395; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5553, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
For application to vinegar plants of provisions of prior section
5553(a) relating to assignment of storekeeper-gaugers, see also
section 5505(f) of this title.
AMENDMENTS
1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5505 of this title.
-End-
-CITE-
26 USC Sec. 5554 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5554. Pilot operations
-STATUTE-
For the purpose of facilitating the development and testing of
improved methods of governmental supervision (necessary for the
protection of the revenue) over distilled spirits plants
established under this chapter, the Secretary is authorized to
waive any regulatory provisions of this chapter for temporary pilot
or experimental operations. Nothing in this section shall be
construed as authority to waive the filing of any bond or the
payment of any tax provided for in this chapter.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1395; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5554, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 7851 of this title.
-End-
-CITE-
26 USC Sec. 5555 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5555. Records, statements, and returns
-STATUTE-
(a) General
Every person liable to any tax imposed by this chapter, or for
the collection thereof, shall keep such records, render such
statements, make such returns, and comply with such rules and
regulations as the Secretary may prescribe.
(b) Authority to waive
Whenever in this chapter any record is required to be made or
kept, or statement or return is required to be made by any person,
the Secretary may by regulation waive, in whole or in part, such
requirement when he deems such requirement to no longer serve a
necessary purpose. This subsection shall not be construed as
authorizing the waiver of the payment of any tax.
(c) Photographic copies
Whenever in this chapter any record is required to be made and
preserved by any person, the Secretary may by regulations authorize
such person to record, copy, or reproduce by any photographic,
photostatic, microfilm, microcard, miniature photographic, or other
process, which accurately reproduces or forms a durable medium for
so reproducing the original of such record and to retain such
reproduction in lieu of the original. Every person who is
authorized to retain such reproduction in lieu of the original
shall, under such regulations as the Secretary may prescribe,
preserve such reproduction in conveniently accessible files and
make provision for examining, viewing, and using such reproduction
the same as if it were the original. Such reproduction shall be
treated and considered for all purposes as though it were the
original record and all provisions of law applicable to the
original shall be applicable to such reproduction. Such
reproduction, or enlargement or facsimile thereof, shall be
admissible in evidence in the same manner and under the same
conditions as provided for the admission of reproductions,
enlargements, or facsimiles of records made in the regular course
of business under section 1732(b) of title 28 of the United States
Code.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1395; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, Sec.
454(c)(10), July 18, 1984, 98 Stat. 821.)
-MISC1-
PRIOR PROVISIONS
A prior section 5555, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
consisted of provisions similar to those comprising subsecs. (a)
and (b) of this section, prior to the general revision of this
chapter by Pub. L. 85-859.
Prior section 5555(a), relating to general provisions respecting
records, statements, and returns, is also incorporated in section
5207(b) to (d) of this title.
Prior section 5555(b), relating to authority to waive records,
statements, and returns, is also incorporated in section 5505(g) of
this title.
AMENDMENTS
1984 - Subsec. (a). Pub. L. 98-369 struck out "or for the
affixing of any stamp required to be affixed by this chapter,"
after "the collection thereof,".
1976 - Subsecs. (a) to (c). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5505 of this title.
-End-
-CITE-
26 USC Sec. 5556 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5556. Regulations
-STATUTE-
The regulations prescribed by the Secretary for enforcement of
this chapter may make such distinctions in requirements relating to
construction, equipment, or methods of operation as he deems
necessary or desirable due to differences in materials or
variations in methods used in production, processing, or storage of
distilled spirits.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1396; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5556, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
authorized the Secretary to prescribe regulations, prior to the
general revision of this chapter by Pub. L. 85-859.
For application to vinegar plants of regulatory provisions of
prior section 5556, see also section 5505(h) of this title.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
APPLICABILITY OF RULES AND REGULATIONS
Section 210(e) of title II of Pub. L. 85-859 provided that:
"Until regulations are promulgated under any provision of 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
notes set out under sections 5001, 5006, 5025, 5064, 5175, 5304 and
5601 of this title] which depends for its application upon the
promulgation of regulations (or which is to be applied in such
manner as may be prescribed by regulations) all instructions,
rules, or regulations which are in effect immediately prior to the
effective date of such provision shall, to the extent such
instructions, rules, or regulations could be prescribed as
regulations under authority of such provision, be applied as is
promulgated as regulations under such provision."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5505 of this title.
-End-
-CITE-
26 USC Sec. 5557 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5557. Officers and agents authorized to investigate, issue
search warrants, and prosecute for violations
-STATUTE-
(a) General
The Secretary shall investigate violations of this subtitle and
in any case in which prosecution appears warranted the Secretary
shall report the violation to the United States Attorney for the
district in which such violation was committed, who is hereby
charged with the duty of prosecuting the offenders, subject to the
direction of the Attorney General, as in the case of other offenses
against the laws of the United States; and the Secretary may swear
out warrants before United States magistrate judges or other
officers or courts authorized to issue warrants for the
apprehension of such offenders, and may, subject to the control of
such United States Attorney, conduct the prosecution at the
committing trial for the purpose of having the offenders held for
the action of a grand jury. Section 3041 of title 18 of the United
States Code is hereby made applicable in the enforcement of this
subtitle.
(b) Cross reference
For provisions relating to the issuance of search warrants,
see the Federal Rules of Criminal Procedure.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1396; amended Pub. L. 90-578, title IV, Sec. 402(b)(2), Oct. 17,
1968, 82 Stat. 1118; Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 101-650, title
III, Sec. 321, Dec. 1, 1990, 104 Stat. 5117.)
-REFTEXT-
REFERENCES IN TEXT
The Federal Rules of Criminal Procedure, referred to in subsec.
(b), are set out in the Appendix of Title 18, Crimes and Criminal
Procedure.
-MISC1-
PRIOR PROVISIONS
A prior section 5557, act Aug. 16, 1954, ch. 736, 68A Stat. 681,
related to applicability of other provisions, prior to the general
revision of this chapter by Pub. L. 85-859. See section 5560 of
this title.
Provisions similar to those comprising this section were
contained in prior section 5314, act Aug. 16, 1954, ch. 736, 68A
Stat. 659, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1976 - Subsec. (a). Pub. L. 94-455 struck out "or his delegate"
after "Secretary" wherever appearing.
-CHANGE-
CHANGE OF NAME
"United States magistrate judges" substituted for "United States
magistrates" in subsec. (a) pursuant to section 321 of Pub. L.
101-650, set out as a note under section 631 of Title 28, Judiciary
and Judicial Procedure. Previously, "United States magistrates"
substituted for "United States commissioners" pursuant to Pub. L.
90-578. See chapter 43 (Sec. 631 et seq.) of Title 28.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5604, 7613 of this title.
-End-
-CITE-
26 USC Sec. 5558 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5558. Authority of enforcement officers
-STATUTE-
For provisions relating to the authority of internal revenue
enforcement officers, see section 7608.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1396.)
-End-
-CITE-
26 USC Sec. 5559 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5559. Determinations
-STATUTE-
Whenever the Secretary is required or authorized, in this
chapter, to make or verify any quantitative determination, such
determination or verification may be made by actual count, weight,
or measurement, or by the application of statistical methods, or by
other means, under such regulations as the Secretary may prescribe.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1396; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-End-
-CITE-
26 USC Sec. 5560 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5560. Other provisions applicable
-STATUTE-
All provision of subtitle F, insofar as applicable and not
inconsistent with the provisions of this subtitle, are hereby
extended to and made a part of this subtitle.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1396.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior section 5557, act Aug. 16, 1954, ch. 736, 68A
Stat. 681, prior to the general revision of this chapter by Pub. L.
85-859.
-End-
-CITE-
26 USC Sec. 5561 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5561. Exemptions to meet the requirements of the national
defense
-STATUTE-
The Secretary may temporarily exempt proprietors of distilled
spirits plants from any provision of the internal revenue laws
relating to distilled spirits, except those requiring payment of
the tax thereon, whenever in his judgment it may seem expedient to
do so to meet the requirements of the national defense. Whenever
the Secretary shall exercise the authority conferred by this
section he may prescribe such regulations as may be necessary to
accomplish the purpose which caused him to grant the exemption.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1397; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior section 5217(b), act Aug. 16, 1954, ch. 736, 68A
Stat. 641, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" wherever appearing.
-End-
-CITE-
26 USC Sec. 5562 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 I - Miscellaneous General Provisions
-HEAD-
Sec. 5562. Exemptions from certain requirements in cases of
disaster
-STATUTE-
Whenever the Secretary finds that it is necessary or desirable,
by reason of disaster, to waive provisions of internal revenue law
with regard to distilled spirits, he may temporarily exempt
proprietors of distilled spirits plants from any provision of the
internal revenue laws relating to distilled spirits, except those
requiring payment of the tax thereon, to the extent he may deem
necessary or desirable.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1397; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
Provisions similar to those comprising this section were
contained in prior section 5215, act Aug. 16, 1954, ch. 736, 68A
Stat. 640, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary".
-End-
-CITE-
26 USC Subchapter J - Penalties, Seizures, and
Forfeitures Relating to Liquors 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
-HEAD-
SUBCHAPTER J - PENALTIES, SEIZURES, AND FORFEITURES RELATING TO
LIQUORS
-MISC1-
Part
I. Penalty, seizure, and forfeiture provisions applicable
to distilling, rectifying, and distilled and
rectified products.
II. Penalty and forfeiture provisions applicable to wine
and wine production.
III. Penalty, seizure, and forfeiture provisions applicable
to beer and brewing.
IV. Penalty, seizure, and forfeiture provisions common to
liquors.
V. Penalties applicable to occupational taxes.
PRIOR PROVISIONS
A prior subchapter J consisted of parts I to V, prior to the
general revision of this chapter by Pub. L. 85-859, title II, Sec.
201, Sept. 2, 1958, 72 Stat. 1313.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 5045, 5148 of this
title.
-End-
-CITE-
26 USC PART I - PENALTY, SEIZURE, AND FORFEITURE
PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND
DISTILLED AND RECTIFIED PRODUCTS 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED PRODUCTS
-MISC1-
Sec.
5601. Criminal penalties.
5602. Penalty for tax fraud by distiller.
5603. Penalty relating to records, returns, and reports.(!1)
5604. Penalties relating to marks, brands, and containers.
5605. Penalty relating to return of materials used in the
manufacture of distilled spirits, or from which
distilled spirits may be recovered.
5606. Penalty relating to containers of distilled spirits.
5607. Penalty and forfeiture for unlawful use, recovery, or
concealment of denatured distilled spirits, or
articles.
5608. Penalty and forfeiture for fraudulent claims for
export drawback or unlawful relanding.
5609. Destruction of unregistered stills, distilling
apparatus, equipment, and materials.
5610. Disposal of forfeited equipment and material for
distilling.
5611. Release of distillery before judgment.
5612. Forfeiture of taxpaid distilled spirits remaining on
bonded premises.
5613. Forfeiture of distilled spirits not closed, marked, or
branded as required by law.
5614. Burden of proof in cases of seizure of spirits.
5615. Property subject to forfeiture.
PRIOR PROVISIONS
A prior part I consisted of sections 5601 to 5650, prior to the
general revision of this chapter by Pub. L. 85-859, title II, Sec.
201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1984 - Pub. L. 98-369, div. A, title IV, Sec. 454(c)(11)(B),
(12)(C), July 18, 1984, 98 Stat. 822, struck out "stamps," in item
5604, and substituted "closed" for "stamped" in item 5613.
-FOOTNOTE-
(!1) So in original. Does not conform to section catchline.
-End-
-CITE-
26 USC Sec. 5601 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5601. Criminal penalties
-STATUTE-
(a) Offenses
Any person who -
(1) Unregistered stills
has in his possession or custody, or under his control, any
still or distilling apparatus set up which is not registered, as
required by section 5179(a); or
(2) Failure to file application
engages in the business of a distiller or processor without
having filed application for and received notice of registration,
as required by section 5171(c); or
(3) False or fraudulent application
engages, or intends to engage, in the business of distiller,
warehouseman, or processor of distilled spirits, and files a
false or fraudulent application under section 5171; or
(4) Failure or refusal of distiller, warehouseman, or processor
to give bond
carries on the business of a distiller, warehouseman, or
processor without having given bond as required by law; or
(5) False, forged, or fraudulent bond
engages, or intends to engage, in the business of distiller,
warehouseman, or processor of distilled spirits, and gives any
false, forged, or fraudulent bond, under subchapter B; or
(6) Distilling on prohibited premises
uses, or possesses with intent to use, any still, boiler, or
other utensil for the purpose of producing distilled spirits, or
aids or assists therein, or causes or procures the same to be
done, in any dwelling house, or in any shed, yard, or inclosure
connected with such dwelling house (except as authorized under
section 5178(a)(1)(C)), or on board any vessel or boat, or on any
premises where beer or wine is made or produced, or where liquors
of any description are retailed, or on premises where any other
business is carried on (except when authorized under section
5178(b)); or
(7) Unlawful production, removal, or use of material fit for
production of distilled spirits
except as otherwise provided in this chapter, makes or ferments
mash, wort, or wash, fit for distillation or for the production
of distilled spirits, in any building or on any premises other
than the designated premises of a distilled spirits plant
lawfully qualified to produce distilled spirits, or removes,
without authorization by the Secretary, any mash, wort, or wash,
so made or fermented, from the designated premises of such
lawfully qualified plant before being distilled; or
(8) Unlawful production of distilled spirits
not being a distiller authorized by law to produce distilled
spirits, produces distilled spirits by distillation or any other
process from any mash, wort, wash, or other material; or
(9) Unauthorized use of distilled spirits in manufacturing
processes
except as otherwise provided in this chapter, uses distilled
spirits in any process of manufacture unless such spirits -
(A) have been produced in the United States by a distiller
authorized by law to produce distilled spirits and withdrawn in
compliance with law; or
(B) have been imported (or otherwise brought into the United
States) and withdrawn in compliance with law; or
(10) Unlawful processing
engages in or carries on the business of a processor -
(A) with intent to defraud the United States of any tax on
the distilled spirits processed by him; or
(B) with intent to aid, abet, or assist any person or persons
in defrauding the United States of the tax on any distilled
spirits; or
(11) Unlawful purchase, receipt, or processing of distilled
spirits
purchases, receives, or processes any distilled spirits,
knowing or having reasonable grounds to believe that any tax due
on such spirits has not been paid or determined as required by
law; or
(12) Unlawful removal or concealment of distilled spirits
removes, other than as authorized by law, any distilled spirits
on which the tax has not been paid or determined, from the place
of manufacture or storage, or from any instrument of
transportation, or conceals spirits so removed; or
(13) Creation of fictitious proof
adds, or causes to be added, any ingredient or substance (other
than ingredients or substances authorized by law to be added) to
any distilled spirits before the tax is paid thereon, or
determined as provided by law, for the purpose of creating
fictitious proof; or
(14) Distilling after notice of suspension
after the time fixed in the notice given under section 5221(a)
to suspend operations as a distiller, carries on the business of
a distiller on the premises covered by the notice of suspension,
or has mash, wort, or beer on such premises, or on any premises
connected therewith, or has in his possession or under his
control any mash, wort, or beer, with intent to distill the same
on such premises; or
(15) Unauthorized withdrawal, use, sale, or distribution of
distilled spirits for fuel use
Withdraws,(!1) uses, sells, or otherwise disposes of distilled
spirits produced under section 5181 for other than fuel use;
shall be fined not more than $10,000, or imprisoned not more than 5
years, or both, for each such offense.
(b) Presumptions
Whenever on trial for violation of subsection (a)(4) the
defendant is shown to have been at the site or place where, and at
the time when, the business of a distiller or processor was so
engaged in or carried on, such presence of the defendant shall be
deemed sufficient evidence to authorize conviction, unless the
defendant explains such presence to the satisfaction of the jury
(or of the court when tried without jury).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1398; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(22),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834; Pub. L. 96-39,
title VIII, Sec. 807(a)(52), July 26, 1979, 93 Stat. 288; Pub. L.
96-223, title II, Sec. 232(e)(2)(A), Apr. 2, 1980, 94 Stat. 280.)
-MISC1-
PRIOR PROVISIONS
A prior section 5601, act Aug. 16, 1954, ch. 736, 68A Stat. 683,
consisted of provisions similar to those comprising subsec. (a)(1)
of this section, and also related to forfeiture for possession of
unregistered still or distilling apparatus, prior to the general
revision of this chapter by Pub. L. 85-859. See section 5615(1) of
this title.
Provisions similar to those comprising subsecs. (a)(2) to (8),
(9)(A), (10) to (14) of this section were contained in prior
sections of act Aug. 16, 1954, prior to the general revision of
this chapter by Pub. L. 85-859, as follows:
Present subd. of subsec. Prior sections
(a):
--------------------------------------------------------------------
(2) 5172, 5603.
(3) 5603.
(4) 5172, 5604, 5606.
(5) 5604.
(6) 5171, 5607.
(7) 5216(a)(1), (4), 5608(a).
(8) 5216(a)(1), 5608(a).
(9) 5216(a)(1), 5608(a).
(10) 5628, 5629.
(11) 5629.
(12) 5608(a), 5631, 5632, 5643, 5647.
(13) 5634.
(14) 5650.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 627, 640, 641, 684, 685, 689, 690, 692, 693, 695.
AMENDMENTS
1980 - Subsec. (a)(15). Pub. L. 96-223 added par. (15).
1979 - Subsec. (a)(2). Pub. L. 96-39, Sec. 807(a)(52)(A), struck
out "distiller or rectifier" in heading and substituted "processor"
for "rectifier" and "section 5171(c)" for "section 5171(a)" in
text.
Subsec. (a)(3). Pub. L. 96-39, Sec. 807(a)(52)(B), substituted
"warehouseman, or processor" for "bonded warehouseman, rectifier,
or bottler".
Subsec. (a)(4). Pub. L. 96-39, Sec. 807(a)(52)(C), substituted
"warehouseman, or processor" for "or rectifier" in heading and in
text.
Subsec. (a)(5). Pub. L. 96-39, Sec. 807(a)(52)(B), substituted
"warehouseman, or processor" for "bonded warehouseman, rectifier,
or bottler".
Subsec. (a)(10). Pub. L. 96-39, Sec. 807(a)(52)(D), substituted
"processing" for "rectifying or bottling" in par. (10) heading,
"processor" for "rectifier, or a bottler of distilled spirits" in
text preceding subpar. (A), and "processed" for "rectified or
bottled" in subpar. (A).
Subsec. (a)(11). Pub. L. 96-39, Sec. 807(a)(52)(E), substituted
"or processing" for "rectification, or bottling" in heading and "or
processes" for "rectifies, or bottles" in text.
Subsec. (b). Pub. L. 96-39, Sec. 807(a)(52)(F), substituted
"processor" for "rectifier".
1976 - Subsec. (a)(7). Pub. L. 94-455, Sec. 1906(b)(13)(A),
struck out "or his delegate" after "Secretary".
Subsec. (b). Pub. L. 94-455, Sec. 1905(a)(22), struck out par.
(1) relating to presumptions in the matter of unregistered stills,
par. (3) relating to presumptions in the matter of unlawful
production, removal, or use of material fit for production of
distilled spirits, and par. (4) relating to presumptions in the
matter of unlawful production of distilled spirits, and struck out
the number designation "(2)" and heading for former par. (2),
leaving only the text for former par. (2) relating to presumptions
in the matter of failure or refusal of distiller or rectifier to
give bond.
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 1976 AMENDMENT
Amendment by 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
PROSECUTION AND PUNISHMENT OF OFFENSES COMMITTED AND PENALTIES OR
FORFEITURES INCURRED; SAVINGS PROVISION
Section 210(c) of title II of Pub. L. 85-859 provided that: "All
offenses committed, and all penalties or forfeitures incurred,
under any provision of law amended 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, 7272, 7301,
7224 to 7326, 7609, 7652 and 7655 of this title, and enacting notes
set out under this section and sections 5001, 5006, 5025, 5064,
5175, and 5304 of this title], may be prosecuted and punished in
the same manner and with the same effect as if this title had not
been enacted."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5101, 5171, 5177, 5178,
5179, 5221, 5222, 5505 of this title.
-FOOTNOTE-
(!1) So in original. Probably should not be capitalized.
-End-
-CITE-
26 USC Sec. 5602 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5602. Penalty for tax fraud by distiller
-STATUTE-
Whenever any person engaged in or carrying on the business of a
distiller defrauds, attempts to defraud, or engages in such
business with intent to defraud the United States of the tax on the
spirits distilled by him, or of any part thereof, he shall be fined
not more than $10,000, or imprisoned not more than 5 years, or
both. No discontinuance or nolle prosequi of any prosecution under
this section shall be allowed without the permission in writing of
the Attorney General.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1400.)
-MISC1-
PRIOR PROVISIONS
A prior section 5602, act Aug. 16, 1954, ch. 736, 68A Stat. 863,
related to penalty and forfeiture for setting up still without a
permit, prior to the general revision of this chapter by Pub. L.
85-859. See sections 5615(2) and 5687 of this title.
Provisions similar to those comprising this section were
contained in prior sections 5606, 5626, act Aug. 16, 1954, ch. 736,
68A Stat. 684, 688, prior to the general revision of this chapter
by Pub. L. 85-859.
-End-
-CITE-
26 USC Sec. 5603 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5603. Penalty relating to records, returns and reports
-STATUTE-
(a) Fraudulent noncompliance
Any person required by this chapter (other than subchapters F and
G) or regulations issued pursuant thereto to keep or file any
record, return, report, summary, transcript, or other document,
who, with intent to defraud the United States, shall -
(1) fail to keep any such document or to make required entries
therein; or
(2) make any false entry in such document; or
(3) cancel, alter, or obliterate any part of such document or
any entry therein, or destroy any part of such document or any
entry therein; or
(4) hinder or obstruct any internal revenue officer from
inspecting any such document or taking any abstracts therefrom;
or
(5) fail or refuse to preserve or produce any such document, as
required by this chapter or regulations issued pursuant thereto;
or who shall, with intent to defraud the United States, cause or
procure the same to be done, shall be fined not more than $10,000,
or imprisoned not more than 5 years, or both, for each such
offense.
(b) Failure to comply
Any person required by this chapter (other than subchapters F and
G) or regulations issued pursuant thereto to keep or file any
record, return, report, summary, transcript, or other document,
who, otherwise than with intent to defraud the United States, shall
-
(1) fail to keep any such document or to make required entries
therein; or
(2) make any false entry in such document; or
(3) cancel, alter, or obliterate any part of such document or
any entry therein, or destroy any part of such document, or any
entry therein, except as provided by this title or regulations
issued pursuant thereto; or
(4) hinder or obstruct any internal revenue officer from
inspecting any such document or taking any abstracts therefrom;
or
(5) fail to refuse to preserve or produce any such document, as
required by this chapter or regulations issued pursuant thereto;
or who shall, otherwise than with intent to defraud the United
States, cause or procure the same to be done, shall be fined not
more than $1,000, or imprisoned not more than 1 year, or both, for
each such offense.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1400.)
-MISC1-
PRIOR PROVISIONS
A prior section 5603, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
related to penalty for failure or refusal of distiller or rectifier
to give notice of intention to engage in such business, prior to
the general revision of this chapter by Pub. L. 85-859. See section
5601(a)(2), (3) of this title.
Provisions similar to those comprising this section were
contained in prior sections 5610, 5611, 5620, 5621, 5692, act Aug.
16, 1954, ch. 736, 68A Stat. 685 to 687, 703, prior to the general
revision of this chapter by Pub. L. 85-859.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5114, 5207, 5505 of this
title.
-End-
-CITE-
26 USC Sec. 5604 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5604. Penalties relating to marks, brands, and containers
-STATUTE-
(a) In general
Any person who shall -
(1) transport, possess, buy, sell, or transfer any distilled
spirits unless the immediate container bears the type of closure
or other device required by section 5301(d),
(2) with intent to defraud the United States, empty a container
bearing the closure or other device required by section 5301(d)
without breaking such closure or other device,
(3) empty, or cause to be emptied, any distilled spirits from
an immediate container bearing any mark or brand required by law
without effacing and obliterating such mark or brand as required
by section 5206(d),
(4) place any distilled spirits in any bottle, or reuse any
bottle for the purpose of containing distilled spirits, which has
once been filled and fitted with a closure or other device under
the provisions of this chapter, without removing and destroying
such closure or other device,
(5) willfully and unlawfully remove, change, or deface any
mark, brand, label, or seal affixed to any case of distilled
spirits, or to any bottle contained therein,
(6) with intent to defraud the United States, purchase, sell,
receive with intent to transport, or transport any empty cask or
package having thereon any mark or brand required by law to be
affixed to any cask or package containing distilled spirits, or
(7) change or alter any mark or brand on any cask or package
containing distilled spirits, or put into any cask or package
spirits of greater strength than is indicated by the inspection
mark thereon, or fraudulently use any cask or package having any
inspection mark thereon, for the purpose of selling other
spirits, or spirits of quantity or quality different from the
spirits previously inspected,
shall be fined not more than $10,000 or imprisoned not more than 5
years, or both, for each such offense.
(b) Cross references
For provisions relating to the authority of internal revenue
officers to enforce provisions of this section, see sections
5203, 5557, and 7608.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1401; amended Pub. L. 96-39, title VIII, Sec. 807(a)(53), July 26,
1979, 93 Stat. 289; Pub. L. 98-369, div. A, title IV, Sec.
454(c)(11)(A), July 18, 1984, 98 Stat. 821.)
-MISC1-
PRIOR PROVISIONS
A prior section 5604, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
related to penalty and forfeiture for failure or refusal of
distiller to give bond, prior to the general revision of this
chapter by Pub. L. 85-859. See sections 5601(a)(4), (5) and 5615(3)
of this title.
Provisions similar to those comprising this section were
contained in prior sections of act Aug. 16, 1954, prior to the
general revision of this chapter by Pub. L. 85-859, as follows:
Present subsecs.: Prior sections
--------------------------------------------------------------------
(a)(1) 5008(b)(1), 5642.
(a)(2), (3) 5636.
(a)(4), (5) 5642, 5644.
(a)(6) 5642.
(a)(7) to (9) 5636.
(a)(10) 5642, 5644.
(a)(11) 5643.
(a)(12) 5642, 5643.
(a)(13) to (15) 5642.
(a)(16) 5643.
(a)(17) 5635, 5636.
(a)(18) 5637.
(a)(19) 5638.
(b) 5642.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 602, 690 to 693.
AMENDMENTS
1984 - Subsec. (a). Pub. L. 98-369, Sec. 454(c)(11)(A), in
amending subsec. (a) generally, struck out references to stamps in
pars. (1) to (3), redesignated pars. (12), (16), (17), (18) as
pars. (4)-(7), respectively, in pars. (4) to (7) as so
redesignated, struck out all references to stamps, and struck out
former pars. (4) to (11), (13) to (15), and (19), which had
consisted of additional provisions concerning penalties relating to
stamps, marks, brands and containers.
Subsec. (b). Pub. L. 98-369, Sec. 454(c)(11)(A), in amending
subsec. (b) generally, substituted provisions relating to cross
references for provisions relating to officers authorized to
enforce this section.
1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 807(a)(53)(A),
substituted "section 5205(a)(1)" for "section 5205(a)(2)".
Subsec. (a)(2). Pub. L. 96-39, Sec. 807(a)(53)(B), substituted
"section 5205(a)(1)" for "section 5205(a)(1) or (2)" and "section
5205(a)(2)" for "section 5205(a)(3)".
Subsec. (a)(3). Pub. L. 96-39, Sec. 807(a)(53)(C), substituted
"section 5205(f)" for "section 5205(g)".
Subsec. (a)(6). Pub. L. 96-39, Sec. 807(a)(53)(D), substituted
"section 5205(a)(2)" for "section 5205(a)(3)".
Subsec. (a)(13). Pub. L. 96-39, Sec. 807(a)(53)(E), substituted
"section 5205(a)" for "section 5205(a)(2) and (3)".
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5206 of this title.
-End-
-CITE-
26 USC Sec. 5605 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5605. Penalty relating to return of materials used in the
manufacture of distilled spirits, or from which distilled spirits
may be recovered
-STATUTE-
Any person who willfully violates any provision of section
5291(a), or of any regulation issued pursuant thereto, and any
officer, director, or agent of any such person who knowingly
participates in such violation, shall be fined not more than
$1,000, or imprisoned not more than 2 years, or both.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1402.)
-MISC1-
PRIOR PROVISIONS
A prior section 5605, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
related to penalty for improper approval of distiller's bond, prior
to the general revision of this chapter by Pub. L. 85-859. See
section 7214 of this title.
Provisions similar to those comprising this section were
contained in prior section 5609, act Aug. 16, 1954, ch. 736, 68A
Stat. 685, prior to the general revision of this chapter by Pub. L.
85-859.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5291 of this title.
-End-
-CITE-
26 USC Sec. 5606 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5606. Penalty relating to containers of distilled spirits
-STATUTE-
Whoever violates any provision of section 5301, or of any
regulation issued pursuant thereto, or the terms or conditions of
any permit issued pursuant to the authorization contained in such
section, and any officer, director, or agent of any corporation who
knowingly participates in such violation, shall, upon conviction,
be fined not more than $1,000, or imprisoned not more than 1 year,
or both, for each such offense.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1402.)
-MISC1-
PRIOR PROVISIONS
A prior section 5606, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
related to penalty and forfeiture for distilling without giving
bond, prior to the general revision of this chapter by Pub. L.
85-859. See sections 5601(a)(4), 5602, and 5615(3) of this title.
Provisions similar to those comprising this section were
contained in prior section 5641, act Aug. 16, 1954, ch. 736, 68A
Stat. 692, prior to the general revision of this chapter by Pub. L.
85-859.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5301 of this title.
-End-
-CITE-
26 USC Sec. 5607 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5607. Penalty and forfeiture for unlawful use, recovery, or
concealment of denatured distilled spirits, or articles
-STATUTE-
Any person who -
(1) uses denatured distilled spirits withdrawn free of tax
under section 5214(a)(1) in the manufacture of any medicinal
preparation or flavoring extract in violation of the provisions
of section 5273(b)(1) or knowingly sells, or offers for sale, any
such medicinal preparation or flavoring extract in violation of
section 5273(b)(2); or
(2) knowingly withdraws any denatured distilled spirits free of
tax under section 5214(a)(1) for beverage purposes; or
(3) knowingly sells any denatured distilled spirits withdrawn
free of tax under section 5214(a)(1), or any articles containing
such denatured distilled spirits, for beverage purposes; or
(4) recovers or attempts to recover by redistillation or by any
other process or means (except as authorized in section 5223 or
in section 5273(c)) any distilled spirits from any denatured
distilled spirits withdrawn free of tax under section 5214(a)(1),
or from any articles manufactured therefrom, or knowingly uses,
sells, conceals, or otherwise disposes of distilled spirits so
recovered or redistilled;
shall be fined not more than $10,000, or imprisoned not more than 5
years, or both, for each such offense; and all personal property
used in connection with his business, together with the buildings
and ground constituting the premises on which such unlawful acts
are performed or permitted to be performed shall be forfeited to
the United States.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1402.)
-MISC1-
PRIOR PROVISIONS
A prior section 5607, act Aug. 16, 1954, ch. 736, 68A Stat. 684,
related to penalty for distilling on prohibited premises, prior to
the general revision of this chapter by Pub. L. 85-859. See
sections 5505(i) and 5601(a)(6) of this title.
Provisions similar to those comprising this section were
contained in prior section 5647, act Aug. 16, 1954, ch. 736, 68A
Stat. 693, prior to the general revision of this chapter by Pub. L.
85-859.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5273 of this title.
-End-
-CITE-
26 USC Sec. 5608 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5608. Penalty and forfeiture for fraudulent claims for export
drawback or unlawful relanding
-STATUTE-
(a) Fraudulent claim for drawback
Every person who fraudulently claims, or seeks, or obtains an
allowance of drawback on any distilled spirits, or fraudulently
claims any greater allowance or drawback than the tax actually paid
or determined thereon, shall forfeit and pay to the Government of
the United States triple the amount wrongfully and fraudulently
sought to be obtained, and shall be imprisoned not more than 5
years; and every owner, agent, or master of any vessel or other
person who knowingly aids or abets in the fraudulent collection or
fraudulent attempts to collect any drawback upon, or knowingly aids
or permits any fraudulent change in the spirits so shipped, shall
be fined not more than $5,000, or imprisoned not more than 3 years,
or both, and the ship or vessel on board of which such shipment was
made or pretended to be made shall be forfeited to the United
States, whether a conviction of the master or owner be had or
otherwise, and proceedings may be had in admiralty by libel for
such forfeiture.
(b) Unlawful relanding
Every person who, with intent to defraud the United States,
relands within the jurisdiction of the United States any distilled
spirits which have been shipped for exportation under the
provisions of this chapter, or who receives such relanded distilled
spirits, and every person who aids or abets in such relanding or
receiving of such spirits, shall be fined not more than $5,000, or
imprisoned not more than 3 years, or both; and all distilled
spirits so relanded, together with the vessel from which the same
were relanded within the jurisdiction of the United States, and all
vessels, vehicles, or aircraft used in relanding and removing such
distilled spirits, shall be forfeited to the United States.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1403; amended Pub. L. 89-44, title VIII, Sec. 805(e), June 21,
1965, 79 Stat. 161.)
-MISC1-
PRIOR PROVISIONS
A prior section 5608, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
related to penalty for making or fermenting mash on unauthorized
premises, illegal use of spirits, unlawful removal of vinegar,
etc., prior to the general revision of this chapter by Pub. L.
85-859. See sections 5505(i), 5601(a)(7), (8), (9)(A), (12),
5615(4), and 5687 of this title.
Provisions similar to those comprising this section were
contained in prior section 5648, act Aug. 16, 1954, ch. 736, 68A
Stat. 694, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1965 - Subsec. (b). Pub. L. 89-44 substituted ", with intent to
defraud the United States," for "intentionally" after "Every person
who".
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective July 1, 1965, see section
805(g)(1) of Pub. L. 89-44, set out as a note under section 5008 of
this title.
-End-
-CITE-
26 USC Sec. 5609 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5609. Destruction of unregistered stills, distilling
apparatus, equipment, and materials
-STATUTE-
(a) General
In the case of seizure elsewhere than on premises qualified under
this chapter of any unregistered still, distilling or fermenting
equipment or apparatus, or distilling or fermenting material, for
any offense involving forfeiture of the same, where it shall be
impracticable to remove the same to a place of safe storage from
the place where seized, the seizing officer is authorized to
destroy the same. In the case of seizure, other than on premises
qualified under this chapter or in transit thereto or therefrom, of
any distilled spirits on which the tax has not been paid or
determined, for any offense involving forfeiture of the same, the
seizing officer is authorized to destroy the distilled spirits
forthwith. Any destruction under this subsection shall be in the
presence of at least one credible witness. The seizing officer
shall make such report of said seizure and destruction and take
such samples as the Secretary may require.
(b) Claims
Within 1 year after destruction made pursuant to subsection (a)
the owner of, including any person having an interest in, the
property so destroyed may make application to the Secretary for
reimbursement of the value of such property. If the claimant
establishes to the satisfaction of the Secretary that -
(1) such property had not been used in violation of law; or
(2) any unlawful use of such property had been without his
consent or knowledge,
the Secretary shall make an allowance to such claimant not
exceeding the value of the property destroyed.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1403; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5609, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
related to penalty in connection to return of materials used in the
manufacture of distilled spirits, prior to the general revision of
this chapter by Pub. L. 85-859. See section 5605 of this title.
Provisions similar to those comprising this section were
contained in prior section 5623, act Aug. 16, 1954, ch. 736, 68A
Stat. 687, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1976 - Subsecs. (a), (b). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
-End-
-CITE-
26 USC Sec. 5610 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5610. Disposal of forfeited equipment and material for
distilling
-STATUTE-
All boilers, stills, or other vessels, tools and implements, used
in distilling or processing, and forfeited under any of the
provisions of this chapter, and all condemned material, together
with any engine or other machinery connected therewith, and all
empty barrels, and all grain or other material suitable for
fermentation or distillation, shall be sold at public auction or
otherwise disposed of as the court in which forfeiture was
recovered shall in its discretion direct.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1404; amended Pub. L. 96-39, title VIII, Sec. 807(a)(54), July 26,
1979, 93 Stat. 289.)
-MISC1-
PRIOR PROVISIONS
A prior section 5610, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
related to penalty for using unregistered materials for producing
spirits, prior to the general revision of this chapter by Pub. L.
85-859. See section 5603 of this title.
Provisions similar to those comprising this section were
contained in prior section 5622, act Aug. 16, 1954, ch. 736, 68A
Stat. 687, prior to the general revision of this chapter by Pub. L.
85-859.
AMENDMENTS
1979 - Pub. L. 96-39 substituted "or processing" for "or
rectifying".
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.
-End-
-CITE-
26 USC Sec. 5611 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5611. Release of distillery before judgment
-STATUTE-
Any distillery or distilling apparatus seized on any premises
qualified under this chapter, for any violation of law, may, in the
discretion of the court, be released before final judgment to a
receiver appointed by the court to operate such distillery or
apparatus. Such receiver shall give bond, which shall be approved
in open court, with corporate surety, for the full appraised value
of all the property seized, to be ascertained by three competent
appraisers designated and appointed by the court. Funds obtained
from such operation shall be impounded as the court shall direct
pending such final judgment.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1404.)
-MISC1-
PRIOR PROVISIONS
A prior section 5611, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
related to penalty for using false weights and measures, prior to
the general revision of this chapter by Pub. L. 85-859. See section
5603 of this title.
Provisions similar to those comprising this section were
contained in prior section 5624, act Aug. 16, 1954, ch. 736, 68A
Stat. 688, prior to the general revision of this chapter by Pub. L.
85-859.
-End-
-CITE-
26 USC Sec. 5612 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5612. Forfeiture of taxpaid distilled spirits remaining on
bonded premises
-STATUTE-
(a) General
No distilled spirits on which tax has been paid or determined
shall be stored or allowed to remain on the bonded premises of any
distilled spirits plant, under the penalty of forfeiture of all
spirits so found.
(b) Exceptions
Subsection (a) shall not apply in the case of -
(1) distilled spirits in the process of prompt removal from
bonded premises on payment or determination of the tax; or
(2) distilled spirits returned to bonded premises in accordance
with the provisions of section 5215.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1404; amended Pub. L. 96-39, title VIII, Sec. 807(a)(55), July 26,
1979, 93 Stat. 289.)
-MISC1-
PRIOR PROVISIONS
A prior section 5612, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
related to penalty for using material or removing spirits without
supervision, prior to the general revision of this chapter by Pub.
L. 85-859. See section 5687 of this title.
Provisions similar to those comprising subsec. (a) of this
section were contained in prior section 5625, act Aug. 16, 1954,
ch. 736, 68A Stat. 688, prior to the general revision of this
chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Subsec. (b). Pub. L. 96-39 redesignated subpars. (2) and
(3) as (1) and (2), respectively, and struck out former subpars.
(1) and (4) which excepted distilled spirits which were bottled in
bond under section 5233 of this title and which were returned to
bonded premises for rebottling, relabeling, or restamping in
accordance with subsec. (d) of section 5233, and excepted such
spirits, held on bonded premises, on which the tax had become
payable by operation of law, but on which the tax had not been
paid.
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.
SUSPENSION OF SUBSECTION (A) DURING 1980
Pub. L. 96-39, title VIII, Sec. 808(c)(1), July 26, 1979, 93
Stat. 291, set out as a note under section 5061 of this title,
provided that subsec. (a) of this section was not to apply during
1980.
-End-
-CITE-
26 USC Sec. 5613 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5613. Forfeiture of distilled spirits not closed, marked, or
branded as required by law
-STATUTE-
(a) Unmarked or unbranded casks or packages
All distilled spirits found in any cask or package required by
this chapter or any regulation issued pursuant thereto to bear a
mark, brand, or identification, which cask or package is not
marked, branded, or identified in compliance with this chapter and
regulations issued pursuant thereto, shall be forfeited to the
United States.
(b) Containers without closures
All distilled spirits found in any container which is required by
this chapter to bear a closure or other device and which does not
bear a closure or other device in compliance with this chapter
shall be forfeited to the United States.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 21, 1958, 72 Stat.
1404; amended Pub. L. 98-369, div. A, title IV, Sec. 454(c)(12)(A),
(B), July 18, 1984, 98 Stat. 822.)
-MISC1-
PRIOR PROVISIONS
A prior section 5613, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
related to penalty for distilling during prohibited hours, prior to
the general revision of this chapter by Pub. L. 85-859. See section
5687 of this title.
Provisions similar to those comprising this section were
contained in prior sections 5639 and 5640, act Aug. 16, 1954, ch.
736, 68A Stat. 691, prior to the general revision of this chapter
by Pub. L. 85-859.
AMENDMENTS
1984 - Pub. L. 98-369, Sec. 454(c)(12)(B), substituted "closed"
for "stamped" in section catchline.
Subsec. (b). Pub. L. 98-369, Sec. 454(c)(12)(A), amended subsec.
(b) generally, substituting provisions relating to forfeitures of
containers without closures for provisions relating to forfeitures
of unstamped containers.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section
456(b) of Pub. L. 98-369, set out as an Effective Date note under
section 5101 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5206 of this title.
-End-
-CITE-
26 USC Sec. 5614 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5614. Burden of proof in cases of seizure of spirits
-STATUTE-
Whenever seizure is made of any distilled spirits found elsewhere
than on the premises of a distilled spirits plant, or than in any
warehouse authorized by law, or than in the store or place of
business of a wholesale liquor dealer, or than in transit from any
one of said places; or of any distilled spirits found in any one of
the places aforesaid, or in transit therefrom, which have not been
received into or sent out therefrom in conformity to law, or in
regard to which any of the entries required by law, or regulations
issued pursuant thereto, to be made in respect of such spirits,
have not been made at the time or in the manner required, or in
respect to which any owner or person having possession, control, or
charge of said spirits, has omitted to do any act required to be
done, or has done or committed any act prohibited in regard to said
spirits, the burden of proof shall be upon the claimant of said
spirits to show that no fraud has been committed, and that all the
requirements of the law in relation to the payment of the tax have
been complied with.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1405.)
-MISC1-
PRIOR PROVISIONS
A prior section 5614, act Aug. 16, 1954, ch. 736, 68A Stat. 685,
related to penalty and forfeiture for removal of spirits during
prohibited hours, prior to the general revision of this chapter by
Pub. L. 85-859. See sections 5687 and 7301 of this title.
Provisions similar to those comprising this section were
contained in prior section 5649, act Aug. 16, 1954, ch. 736, 68A
Stat. 694, prior to the general revision of this chapter by Pub. L.
85-859.
-End-
-CITE-
26 USC Sec. 5615 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
PRODUCTS
-HEAD-
Sec. 5615. Property subject to forfeiture
-STATUTE-
The following property shall be forfeited to the United States:
(1) Unregistered still or distilling apparatus
Every still or distilling apparatus not registered as required
by section 5179, together with all personal property in the
possession or custody or under the control of the person required
by section 5179 to register the still or distilling apparatus,
and found in the building or in any yard or inclosure connected
with the building in which such still or distilling apparatus is
set up; and
(2) Distilling apparatus removed without notice or set up without
notice
Any still, boiler, or other vessel to be used for the purpose
of distilling -
(A) which is removed without notice having been given when
required by section 5101(a)(1), or
(B) which is set up without notice having been given when
required by section 5101(a)(2); and
(3) Distilling without giving bond or with intent to defraud
Whenever any person carries on the business of a distiller
without having given bond as required by law or gives any false,
forged, or fraudulent bond; or engages in or carries on the
business of a distiller with intent to defraud the United States
of the tax on the distilled spirits distilled by him, or any part
thereof; or after the time fixed in the notice declaring his
intention to suspend work, filed under section 5221(a), carries
on the business of a distiller on the premises covered by such
notice, or has mash, wort, or beer on such premises, or on any
premises connected therewith, or has in his possession or under
his control any mash, wort, or beer, with intent to distill the
same on such premises -
(A) all distilled spirits or wines, and all stills or other
apparatus fit or intended to be used for the distillation or
rectification of spirits, or for the compounding of liquors,
owned by such person, wherever found; and
(B) all distilled spirits, wines, raw materials for the
production of distilled spirits, and personal property found in
the distillery or in any building, room, yard, or inclosure
connected therewith and used with or constituting a part of the
premises; and
(C) all the right, title, and interest of such person in the
lot or tract of land on which the distillery is situated; and
(D) all the right, title, and interest in the lot or tract of
land on which the distillery is located of every person who
knowingly has suffered or permitted the business of a distiller
to be there carried on, or has connived at the same; and
(E) all personal property owned by or in possession of any
person who has permitted or suffered any building, yard, or
inclosure, or any part thereof, to be used for purposes of
ingress or egress to or from the distillery, which shall be
found in any such building, yard, or inclosure; and
(F) all the right, title, and interest of every person in any
premises used for ingress or egress to or from the distillery
who knowingly has suffered or permitted such premises to be
used for such ingress or egress; and
(4) Unlawful production and removals from vinegar plants
(A) all distilled spirits in excess of 15 percent of alcohol by
volume produced on the premises of a vinegar plant; and
(B) all vinegar or other fluid or other material containing a
greater proportion than 2 percent of proof spirits removed from
any vinegar plant; and
(5) False or omitted entries in records, returns, and reports
Whenever any person required by section 5207 to keep or file
any record, return, report, summary, transcript, or other
document, shall, with intent to defraud the United States -
(A) fail to keep any such document or to make required
entries therein; or
(B) make any false entry in such document; or
(C) cancel, alter, or obliterate any part of such document,
or any entry therein, or destroy any part of such document, or
entry therein; or
(D) hinder or obstruct any internal revenue officer from
inspecting any such document or taking any abstracts therefrom;
or
(E) fail or refuse to preserve or produce any such document,
as required by this chapter or regulations issued pursuant
thereto; or
(F) permit any of the acts described in the preceding
subparagraphs to be performed;
all interest of such person in the distilled spirits plant where
such acts or omissions occur, and in the equipment thereon, and
in the lot or tract of land on which such distilled spirits plant
stands, and in all personal property on the premises of the
distilled spirits plant where such acts or omissions occur, used
in the business there carried on; and
(6) Unlawful removal of distilled spirits
All distilled spirits on which the tax has not been paid or
determined which have been removed, other than as authorized by
law, from the place of manufacture, storage, or instrument of
transportation; and
(7) Creation of fictitious proof
All distilled spirits on which the tax has not been paid or
determined as provided by law to which any ingredient or
substance has been added for the purpose of creating fictitious
proof.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1405; amended Pub. L. 96-39, title VIII, Sec. 807(a)(56), July 26,
1979, 93 Stat. 289; Pub. L. 98-369, div. A, title IV, Sec.
451(b)(2), July 18, 1984, 98 Stat. 819.)
-MISC1-
PRIOR PROVISIONS
A prior section 5615, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
related to penalty for refusal or neglect of distillers and
rectifiers to give assistance to officers, prior to the general
revision of this chapter by Pub. L. 85-859. See sections 5203(e)
and 5687 of this title.
Provisions similar to those comprising this section were
contained in prior sections of act Aug. 16, 1954, prior to the
general revision of this chapter by Pub. L. 85-859, as follows:
Present subds.: Prior sections
--------------------------------------------------------------------
(1) 5601.
(2) 5602.
(3) 5604, 5606, 5626, 5650.
(4) 5608(b).
(5) 5620.
(6) 5631, 5632, 5643, 5647.
(7) 5634.
--------------------------------------------------------------------
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
68A Stat. 683 to 690, 692, 693, 695.
A prior section 5616, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
related to penalty for obstructing or refusing to admit officer to
distillery premises, prior to the general revision of this chapter
by Pub. L. 85-859. See section 5687 of this title.
A prior section 5617, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
related to penalty for failure to keep distillery accessible, prior
to the general revision of this chapter by Pub. L. 85-859. See
section 5687 of this title.
A prior section 5618, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
related to penalty for failure of distiller to identify fixed
pipes, prior to the general revision of this chapter by Pub. L.
85-859. See section 5687 of this title.
A prior section 5619, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
related to penalty for refusal or neglect to draw off water and
clean condensers or worm tanks, prior to the general revision of
this chapter by Pub. L. 85-859. See section 5687 of this title.
A prior section 5620, act Aug. 16, 1954, ch. 736, 68A Stat. 686,
related to penalty and forfeiture for false or omitted entries in
distiller's books and records, prior to the general revision of
this chapter by Pub. L. 85-859. See sections 5603 and 5615(5) of
this title.
A prior section 5621, act Aug. 16, 1954, ch. 736, 68A Stat. 687,
related to penalty concerning records and returns of distiller as
wholesale dealers, rectifiers, prior to the general revision of
this chapter by Pub. L. 85-859. See section 5603 of this title.
A prior section 5622, act Aug. 16, 1954, ch. 736, 68A Stat. 687,
related to disposal of forfeited equipment and material for
distilling, prior to the general revision of this chapter by Pub.
L. 85-859. See section 5610 of this title.
A prior section 5623, act Aug. 16, 1954, ch. 736, 68A Stat. 687,
related to destruction of distilling apparatus, prior to the
general revision of this chapter by Pub. L. 85-859. See section
5609 of this title.
A prior section 5624, act Aug. 16, 1954, ch. 736, 68A Stat. 688,
related to release of distillery before judgment, prior to the
general revision of this chapter by Pub. L. 85-859. See section
5611 of this title.
A prior section 5625, act Aug. 16, 1954, ch. 736, 68A Stat. 688,
related to forfeiture of tax-paid distilled spirits remaining on
distillery premises, prior to the general revision of this chapter
by Pub. L. 85-859. See section 5612(a) of this title.
A prior section 5626, act Aug. 16, 1954, ch. 736, 68A Stat. 688,
related to penalty and forfeiture for tax fraud by distiller, prior
to the general revision of this chapter by Pub. L. 85-859. See
sections 5602 and 5615(3) of this title.
A prior section 5627, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
related to penalty for unlawful use of rectifying premises, prior
to the general revision of this chapter by Pub. L. 85-859. See
section 5687 of this title.
A prior section 5628, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
related to penalty for rectification without payment of tax,
increasing volume, etc., prior to the general revision of this
chapter by Pub. L. 85-859. See section 5601(a)(10) and 5687 of this
title.
A prior section 5629, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
related to penalty for unlawful rectifying, prior to the general
revision of this chapter by Pub. L. 85-859. See section
5601(a)(10), (11) of this title.
A prior section 5630, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
related to penalty for noncompliance by rectifiers with provisions
relating to rectifying, gauging, branding, and stamping, prior to
the general revision of this chapter by Pub. L. 85-859. See section
5687 of this title.
A prior section 5631, act Aug. 16, 1954, ch. 736, 68A Stat. 689,
related to penalty and forfeiture for failure to comply with
warehousing and removal requirements, prior to the general revision
of this chapter by Pub. L. 85-859. See sections 5601(a)(12),
5615(6), and 5687 of this title.
A prior section 5632, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
related to penalty or forfeiture for unlawful removal or
concealment of spirits, prior to the general revision of this
chapter by Pub. L. 85-859. See sections 5601 and 5615 of this
title.
A prior section 5633, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
related to penalty of officer in charge of warehouse for unlawful
removal of spirits, prior to the general revision of this chapter
by Pub. L. 85-859. See section 7214 of this title.
A prior section 5634, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
related to penalty and forfeiture for creation of fictitious proof,
prior to the general revision of this chapter by Pub. L. 85-859.
See sections 5601 and 5615 of this title.
A prior section 5635, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
related to penalty for buying or selling used casks bearing
inspection marks, prior to the general revision of this chapter by
Pub. L. 85-859. See section 5604 of this title.
A prior section 5636, act Aug. 16, 1954, ch. 736, 68A Stat. 690,
related to penalty and forfeiture for failure to efface, etc.,
stamps and brands on emptied packages, prior to the general
revision of this chapter by Pub. L. 85-859. See sections 5604 and
7301 of this title.
A prior section 5637, act Aug. 16, 1954, ch. 736, 68A Stat. 691,
related to penalty for changing stamps or shifting spirits, prior
to the general revision of this chapter by Pub. L. 85-859. See
section 5604 of this title.
A prior section 5638, act Aug. 16, 1954, ch. 736, 68A Stat. 691,
related to penalty and forfeiture for affixing imitation stamps on
packages of distilled spirits, prior to the general revision of
this chapter by Pub. L. 85-859. See sections 5604, 5613, 7301, and
7302 of this title.
A prior section 5639, act Aug. 16, 1954, ch. 736, 68A Stat. 691,
related to forfeiture of distilled spirits in unstamped casks or
packages, prior to the general revision of this chapter by Pub. L.
85-859. See section 5613 of this title.
A prior section 5640, act Aug. 16, 1954, ch. 736, 68A Stat. 691,
related to forfeiture of spirits in unstamped containers, prior to
the general revision of this chapter by Pub. L. 85-859. See section
5613 of this title.
A prior section 5641, act Aug. 16, 1954, ch. 736, 68A Stat. 692,
related to penalty and forfeiture relating to containers of
distilled spirits, prior to the general revision of this chapter by
Pub. L. 85-859. See sections 5606, 5613, 7301, 7302, and 7321 to
7323 of this title.
A prior section 5642, act Aug. 16, 1954, ch. 736, 68A Stat. 692,
related to penalties for transporting, possessing, etc., distilled
spirits in unstamped containers or counterfeiting of stamps, etc.,
prior to the general revision of this chapter by Pub. L. 85-859.
See section 5604 of this title.
A prior section 5643, act Aug. 16, 1954, ch. 736, 68A Stat. 692,
related to penalty and forfeiture for reuse of stamps or bottles,
tampering and unlawful removal, prior to the general revision of
this chapter by Pub. L. 85-859. See sections 5601, 5604, 5613,
5615, 5687, 7301 and 7302 of this title.
A prior section 5644, act Aug. 16, 1954, ch. 736, 68A Stat. 693,
related to penalty for counterfeiting bottled in bond stamps, prior
to the general revision of this chapter by Pub. L. 85-859. See
section 5604 of this title.
A prior section 5645, act Aug. 16, 1954, ch. 736, 68A Stat. 693,
related to penalty for unlawful affixing, canceling, or issue of
stamps by officer, prior to the general revision of this chapter by
Pub. L. 85-859. See section 7214 of this title.
A prior section 5646, act Aug. 16, 1954, ch. 736, 68A Stat. 693,
related to penalty for evasion of distilled spirits tax, prior to
the general revision of this chapter by Pub. L. 85-859.
A prior section 5647, act Aug. 16, 1954, ch. 736, 68A Stat. 693,
related to penalty and forfeiture for unlawful use or concealment
of denatured alcohol, prior to the general revision of this chapter
by Pub. L. 85-859. See sections 5273, 5601, 5607, and 5615 of this
title.
A prior section 5648, act Aug. 16, 1954, ch. 736, 68A Stat. 694,
related to penalty and forfeiture for fraudulent claims for export
drawback or unlawful relanding, prior to the general revision of
this chapter by Pub. L. 85-859. See section 5608 of this title.
A prior section 5649, act Aug. 16, 1954, ch. 736, 68A Stat. 694,
related to burden of proof in cases of seizure of spirits, prior to
the general revision of this chapter by Pub. L. 85-859. See section
5614 of this title.
A prior section 5650, act Aug. 16, 1954, ch. 736, 68A Stat. 695,
related to penalty and forfeiture for operating distillery after
giving notice of suspension, prior to the general revision of this
chapter by Pub. L. 85-859. See sections 5601 and 5615 of this
title.
AMENDMENTS
1984 - Par. (2). Pub. L. 98-369 amended par. (2) generally. Prior
to amendment, par. (2) read as follows: "Any still, boiler, or
other vessel to be used for the purpose of distilling which is
removed without notice having been given as required by section
5105(a) or which is set up without permit first having been
obtained as required by such section; and".
1979 - Par. (5). Pub. L. 96-39 substituted "distilled spirits
plant" for "distillery, bonded warehouse, or rectifying or bottling
establishment" in three places.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective on first day of first
calendar month which begins more than 90 days after July 18, 1984,
see section 456(a) of Pub. L. 98-369, set out as an Effective Date
note under section 5101 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.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5101, 5177, 5179, 5207,
5221, 5222, 5305, 5505 of this title.
-End-
-CITE-
26 USC PART II - PENALTY AND FORFEITURE PROVISIONS
APPLICABLE TO WINE AND WINE PRODUCTION 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
WINE PRODUCTION
-HEAD-
PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
WINE PRODUCTION
-MISC1-
Sec.
5661. Penalty and forfeiture for violation of laws and
regulations relating to wine.
5662. Penalty for alteration of wine labels.
5663. Cross reference.
PRIOR PROVISIONS
A prior part II consisted of sections 5661 to 5663 of this title,
prior to the general revision of this chapter by Pub. L. 85-859,
title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
-End-
-CITE-
26 USC Sec. 5661 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
WINE PRODUCTION
-HEAD-
Sec. 5661. Penalty and forfeiture for violation of laws and
regulations relating to wine
-STATUTE-
(a) Fraudulent offenses
Whoever, with intent to defraud the United States, fails to pay
any tax imposed upon wine or violates, or fails to comply with, any
provision of subchapter F or subpart C of part I of subchapter A,
or regulations issued pursuant thereto, or recovers or attempts to
recover any spirits from wine, shall be fined not more than $5,000,
or imprisoned not more than 5 years, or both, for each such
offense, and all products and materials used in any such violation
shall be forfeited to the United States.
(b) Other offenses
Any proprietor of premises subject to the provisions of
subchapter F, or any employee or agent of such proprietor, or any
other person, who otherwise than with intent to defraud the United
States violates or fails to comply with any provision of subchapter
F or subpart C of part I of subchapter A, or regulations issued
pursuant thereto, or who aids or abets in any such violation, shall
be fined not more than $1,000, or imprisoned not more than 1 year,
or both, for each such offense.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1407.)
-MISC1-
PRIOR PROVISIONS
A prior section 5661, act Aug. 16, 1954, ch. 736, 68A Stat. 695,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Prior section 5661(a) also provided for an additional penalty "of
double the tax due, to be assessed, levied and collected in the
same manner as taxes are collected". See section 6651 et seq. of
this title.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-End-
-CITE-
26 USC Sec. 5662 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
WINE PRODUCTION
-HEAD-
Sec. 5662. Penalty for alteration of wine labels
-STATUTE-
Any person who, without the permission of the Secretary, so
alters as to materially change the meaning of any mark, brand, or
label required to appear upon any wine upon its removal from
premises subject to the provisions of subchapter F, or from customs
custody, or who, after such removal, represents any wine, whether
in its original containers or otherwise, to be of an identity or
origin other than its proper identity or origin as shown by such
stamp, mark, brand, or label, or who, directly or indirectly, and
whether by manner of packaging or advertising or any other form of
representation, represents any still wine to be an effervescent
wine or a substitute for an effervescent wine, shall be fined not
more than $1,000, or imprisoned not more than 1 year, or both, for
each such offense.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1407; amended Pub. L. 94-455, title XIX, Secs. 1905(b)(2)(D),
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1822, 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5662, act Aug. 16, 1954, ch. 736, 68A Stat. 695,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" and "stamp," before "mark,".
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(b)(2)(D) 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. 5663 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART II - PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND
WINE PRODUCTION
-HEAD-
Sec. 5663. Cross reference
-STATUTE-
For penalties of common application pertaining to liquors,
including wines, see part IV.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1407; amended Pub. L. 96-39, title VIII, Sec. 807(a)(57), July 26,
1979, 93 Stat. 289.)
-MISC1-
PRIOR PROVISIONS
A prior section 5663, act Aug. 16, 1954, ch. 736, 68A Stat. 695,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 struck out reference to penalties for
rectified products under part I of this subchapter.
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.
-End-
-CITE-
26 USC PART III - PENALTY, SEIZURE, AND FORFEITURE
PROVISIONS APPLICABLE TO BEER AND BREWING 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
BEER AND BREWING
-HEAD-
PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE
TO BEER AND BREWING
-MISC1-
Sec.
5671. Penalty and forfeiture for evasion of beer tax and
fraudulent noncompliance with requirements.
5672. Penalty for failure of brewer to comply with
requirements and to keep records and file returns.
5673. Forfeiture for flagrant and willful removal of beer
without taxpayment.
5674. Penalty for unlawful production or removal of beer.
5675. Penalty for intentional removal or defacement of
brewer's marks and brands.
[5676. Repealed.]
PRIOR PROVISIONS
A prior part III consisted of sections 5671 to 5676 of this
title, prior to the general revision of this chapter by Pub. L.
85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1978 - Pub. L. 95-458, Sec. 2(b)(5)(B), Oct. 14, 1978, 92 Stat.
1257, substituted "production or removal" for "removal" in item
5674.
1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(1)(B), Oct. 4,
1976, 90 Stat. 1822, struck out item 5676 "Penalties relating to
beer stamps".
-End-
-CITE-
26 USC Sec. 5671 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
BEER AND BREWING
-HEAD-
Sec. 5671. Penalty and forfeiture for evasion of beer tax and
fraudulent noncompliance with requirements
-STATUTE-
Whoever evades or attempts to evade any tax imposed by section
5051 or 5091, or with intent to defraud the United States fails or
refuses to keep and file true and accurate records and returns as
required by section 5415 and regulations issued pursuant thereto,
shall be fined not more than $5,000, or imprisoned not more than 5
years, or both, for each such offense, and shall forfeit all beer
made by him or for him, and all the vessels, utensils, and
apparatus used in making the same.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1408.)
-MISC1-
PRIOR PROVISIONS
A prior section 5671, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-End-
-CITE-
26 USC Sec. 5672 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
BEER AND BREWING
-HEAD-
Sec. 5672. Penalty for failure of brewer to comply with
requirements and to keep records and file returns
-STATUTE-
Every brewer who, otherwise than with intent to defraud the
United States, fails or refuses to keep the records and file the
returns required by section 5415 and regulations issued pursuant
thereto, or refuses to permit any internal revenue officer to
inspect his records in the manner provided, or violates any of the
provisions of subchapter G or regulations issued pursuant thereto
shall be fined not more than $1,000, or imprisoned not more than 1
year, or both, for each such offense.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1408.)
-MISC1-
PRIOR PROVISIONS
A prior section 5672, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC Sec. 5673 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
BEER AND BREWING
-HEAD-
Sec. 5673. Forfeiture for flagrant and willful removal of beer
without taxpayment
-STATUTE-
For flagrant and willful removal of taxable beer for consumption
or sale, with intent to defraud the United States of the tax
thereon, all the right, title, and interest of each person who
knowingly has suffered or permitted such removal, or has connived
at the same, in the lands and buildings constituting the brewery
shall be forfeited by a proceeding in rem in the District Court of
the United States having jurisdiction thereof.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1408.)
-MISC1-
PRIOR PROVISIONS
A prior section 5673, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC Sec. 5674 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
BEER AND BREWING
-HEAD-
Sec. 5674. Penalty for unlawful production or removal of beer
-STATUTE-
(a) Unlawful production
Any person who brews beer or produces beer shall be fined not
more than $1,000, or imprisoned not more than 1 year, or both,
unless such beer is brewed or produced in a brewery qualified under
subchapter G or such production is exempt from tax under section
5053(e) (relating to beer for personal or family use).
(b) Unlawful removal
Any brewer or other person who removes or in any way aids in the
removal from any brewery of beer without complying with the
provisions of this chapter or regulations issued pursuant thereto
shall be fined not more than $1,000, or imprisoned not more than 1
year, or both.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1408; amended Pub. L. 95-458, Sec. 2(b)(5)(A), Oct. 14, 1978, 92
Stat. 1256.)
-MISC1-
PRIOR PROVISIONS
A prior section 5674, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1978 - Pub. L. 95-458 substituted "production or removal" for
"removal" in section catchline, redesignated existing provision as
subsec. (b), and added subsec. (a).
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-458 effective on first day of first
calendar month beginning more than 90 days after Oct. 14, 1978, see
section 2(c) of Pub. L. 95-458, set out as a note under section
5042 of this title.
-End-
-CITE-
26 USC Sec. 5675 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
BEER AND BREWING
-HEAD-
Sec. 5675. Penalty for intentional removal or defacement of
brewer's marks and brands
-STATUTE-
Every person other than the owner, or his agent authorized so to
do, who intentionally removes or defaces any mark, brand, or label
required by section 5412 and regulations issued pursuant thereto
shall be liable to a penalty of $50 for each barrel or other
container from which such mark, brand, or label is so removed or
defaced.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1408.)
-MISC1-
PRIOR PROVISIONS
A prior section 5675, act Aug. 16, 1954, ch. 736, 68A Stat. 696,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC Sec. 5676 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART III - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
BEER AND BREWING
-HEAD-
[Sec. 5676. Repealed. Pub. L. 94-455, title XIX, Sec.
1905(b)(1)(A), Oct. 4, 1976, 90 Stat. 1822]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1408, set out the penalties for selling, removing, or
receiving beer without a proper stamp or device, withdrawing beer
from an improperly stamped container or without destroying the
stamp, and counterfeiting stamps or devices or trafficking in used
stamps or devices, and provided for the forfeiture of unstamped
containers, and the penalties for removal or defacement of stamps,
devices, or labels.
A prior section 5676, act Aug. 16, 1954, ch. 736, 68A Stat. 697,
consisted of provisions similar to those comprising this section
prior to repeal by Pub. L. 94-455, prior to the general revision of
this chapter by Pub. L. 85-859.
EFFECTIVE DATE OF REPEAL
Repeal 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 an Effective Date of 1976 Amendment note under
section 5005 of this title.
-End-
-CITE-
26 USC PART IV - PENALTY, SEIZURE, AND FORFEITURE
PROVISIONS COMMON TO LIQUORS 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-MISC1-
Sec.
5681. Penalty relating to signs.
5682. Penalty for breaking locks or gaining access.
5683. Penalty and forfeiture for removal of liquors under
improper brands.
5684. Penalties relating to the payment and collection of
liquor taxes.
5685. Penalty and forfeiture relating to possession of
devices for emitting gas, smoke, etc., explosives and
firearms, when violating liquor laws.
5686. Penalty for having, possessing, or using liquor or
property intended to be used in violating provisions
of this chapter.
5687. Penalty for offenses not specifically covered.
5688. Disposition and release of seized property.
[5689. Repealed.]
5690. Definition of the term "person".
PRIOR PROVISIONS
A prior part IV consisted of sections 5681 to 5690 of this title,
prior to the general revision of this chapter by Pub. L. 85-859,
title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1976 - Pub. L. 94-455, title XIX, Sec. 1905(b)(2)(E)(ii), Oct. 4,
1976, 90 Stat. 1822, struck out item 5689 "Penalty and forfeiture
for tampering with a stamp machine".
-SECREF-
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in section 5663 of this title.
-End-
-CITE-
26 USC Sec. 5681 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
Sec. 5681. Penalty relating to signs
-STATUTE-
(a) Failure to post required sign
Every person engaged in distilled spirits operations who fails to
post the sign required by section 5180(a) shall be fined not more
than $1,000, or imprisoned not more than 1 year, or both.
(b) Posting or displaying false sign
Every person, other than a distiller, warehouseman, or processor
of distilled spirits who has received notice of registration of his
plant under the provisions of section 5171(c), or other than a
wholesale dealer in liquors who has paid the special tax (or who is
exempt from payment of such special tax by reason of the provisions
of section 5113(a)), who puts up or keeps up any sign indicating
that he may lawfully carry on the business of a distiller,
warehouseman, or processor of distilled spirits, or wholesale
dealer in liquors, as the case may be, shall be fined not more than
$1,000, or imprisoned not more than 1 year, or both.
(c) Premises where no sign is placed or kept
Every person who works in any distilled spirits plant on which no
sign required by section 5180(a) is placed or kept, and every
person who knowingly receives at, or carries or conveys any
distilled spirits to or from any such distilled spirits plant or
who knowingly carries or delivers any grain, molasses, or other raw
material to any distilled spirits plant on which such a sign is not
placed and kept, shall forfeit all vehicles, aircraft, or vessels
used in carrying or conveying such property and shall be fined not
more than $1,000, or imprisoned not more than 1 year, or both.
(d) Presumption
Whenever on trial for violation of subsection (c) by working in a
distilled spirits plant on which no sign required by section
5180(a) is placed or kept, the defendant is shown to have been
present at such premises, such presence of the defendant shall be
deemed sufficient evidence to authorize conviction, unless the
defendant explains such presence to the satisfaction of the jury
(or of the court when tried without jury).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1410; amended Pub. L. 96-39, title VIII, Sec. 807(a)(58), July 26,
1979, 93 Stat. 289; Pub. L. 105-34, title XIV, Sec. 1415(b)(1),
(2), Aug. 5, 1997, 111 Stat. 1047.)
-MISC1-
PRIOR PROVISIONS
A prior section 5681, act Aug. 16, 1954, ch. 736, 68A Stat. 698,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1997 - Subsec. (a). Pub. L. 105-34, Sec. 1415(b)(1), struck out
", and every wholesale dealer in liquors," after "spirits
operations" and "section 5115(a) or" after "sign required by".
Subsec. (c). Pub. L. 105-34, Sec. 1415(b)(2), substituted "on
which no sign required by" for "or wholesale liquor establishment,
on which no sign required by section 5115(a) or" and substituted
"or who" for "or wholesale liquor establishment, or who".
1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(58)(A),
substituted "distilled spirits operations" for "distilling,
warehousing of distilled spirits, rectifying, or bottling of
distilled spirits".
Subsec. (b). Pub. L. 96-39, Sec. 807(a)(58)(B), substituted
"other than a distiller, warehouseman, or processor of distilled
spirits" for "other than a distiller, warehouseman of distilled
spirits, rectifier, or bottler of distilled spirits", "section
5171(c)" for "section 5171(a)", and "business of a distiller,
warehouseman, or processor of distilled spirits" for "business of a
distiller, bonded warehouseman, rectifier, bottler of distilled
spirits".
Subsec. (c). Pub. L. 96-39, Sec. 807(a)(58)(C), substituted "in
any distilled spirits plant" for "in any distillery, or in any
rectifying, distilled spirits bottling", "such distilled spirits
plant" for "such distillery, or to or from any such rectifying,
distilled spirits bottling", and "to any distilled spirits plant"
for "to any distillery".
Subsec. (d). Pub. L. 96-39, Sec. 807(a)(58)(D), substituted
"distilled spirits plant" for "distillery or rectifying
establishment".
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1415(c) of Pub. L. 105-34 provided that: "The amendments
made by this section [amending this section and repealing section
5115 of this title] shall take effect on 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5180 of this title.
-End-
-CITE-
26 USC Sec. 5682 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
Sec. 5682. Penalty for breaking locks or gaining access
-STATUTE-
Every person, who destroys, breaks, injures, or tampers with any
lock or seal which may be placed on any room, building, tank,
vessel, or apparatus, by any authorized internal revenue officer or
any approved lock or seal placed thereon by a distilled spirits
plant proprietor, or who opens said lock, seal, room, building,
tank, vessel, or apparatus, or in any manner gains access to the
contents therein, in the absence of the proper officer, or
otherwise than as authorized by law, shall be fined not more than
$5,000, or imprisoned not more than 3 years, or both.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1410; amended Pub. L. 96-39, title VIII, Sec. 807(a)(59), July 26,
1979, 93 Stat. 290.)
-MISC1-
PRIOR PROVISIONS
A prior section 5682, act Aug. 16, 1954, ch. 736, 68A Stat. 698,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979 - Pub. L. 96-39 expanded penalty provisions to include
persons tampering with locks or seals affixed by distilled spirits
plant proprietors.
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.
-End-
-CITE-
26 USC Sec. 5683 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
Sec. 5683. Penalty and forfeiture for removal of liquors under
improper brands
-STATUTE-
Whenever any person ships, transports, or removes any distilled
spirits, wines, or beer, under any other than the proper name or
brand known to the trade as designating the kind and quality of the
contents of the casks or packages containing the same, or causes
such act to be done, he shall be fined not more than $1,000, or
imprisoned not more than 1 year, or both, and shall forfeit such
distilled spirits, wines, or beer, and casks or packages.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1410.)
-MISC1-
PRIOR PROVISIONS
A prior section 5683, act Aug. 16, 1954, ch. 736, 68A Stat. 699,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC Sec. 5684 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
Sec. 5684. Penalties relating to the payment and collection of
liquor taxes
-STATUTE-
(a) Failure to pay tax
Whoever fails to pay any tax imposed by part I of subchapter A at
the time prescribed shall, in addition to any other penalty
provided in this title, be liable to a penalty of 5 percent of the
tax due but unpaid.
(b) Applicability of section 6665
The penalties imposed by subsection (a) shall be assessed,
collected, and paid in the same manner as taxes, as provided in
section 6665(a).
(c) Cross references
(1) For provisions relating to interest in the case of taxes
not paid when due, see section 6601.
(2) For penalty for failure to file tax return or pay tax,
see section 6651.
(3) For additional penalties for failure to pay tax, see
section 6653.
(4) For penalty for failure to make deposits or for
overstatement of deposits, see section 6656.
(5) For penalty for attempt to evade or defeat any tax
imposed by this title, see section 7201.
(6) For penalty for willful failure to file return, supply
information, or pay tax, see section 7203.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1410; amended Pub. L. 91-172, title IX, Sec. 943(c)(4), Dec. 30,
1969, 83 Stat. 728; Pub. L. 97-34, title VII, Secs. 722(a)(3),
724(b)(4), Aug. 13, 1981, 95 Stat. 342, 345; Pub. L. 98-369, div.
A, title VII, Secs. 714(h)(1), 722(a)(5), July 18, 1984, 98 Stat.
962, 973; Pub. L. 101-239, title VII, Sec. 7721(c)(3), Dec. 19,
1989, 103 Stat. 2399.)
-MISC1-
PRIOR PROVISIONS
A prior section 5684, act Aug. 16, 1954, ch. 736, 68A Stat. 699,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
See section 5687 of this title and criminal and civil penalties of
subtitle F of this title.
AMENDMENTS
1989 - Subsec. (b). Pub. L. 101-239 substituted "6665" for "6662"
in heading and "6665(a)" for "6662(a)" in text.
1984 - Subsec. (b). Pub. L. 98-369, Sec. 714(h)(1), substituted
in heading "6662" for "6660" and in text "6662(a)" for "6660(a)".
Pub. L. 98-369, Sec. 722(a)(5), substituted "subsection (a)" for
"subsections (a) and (b)".
1981 - Subsec. (b). Pub. L. 97-34, Sec. 724(b)(4)(A),
redesignated subsec. (c) as (b). Former subsec. (b), which related
to penalties for failure to make deposit of taxes, was struck out.
Subsec. (c). Pub. L. 97-34, Sec. 724(b)(4), redesignated subsec.
(d) as (c), added par. (4), and redesignated pars. (5) and (6) as
(4) and (5), respectively. Former subsec. (c) redesignated (b).
Pub. L. 97-34, Sec. 722(a)(3), substituted "6660" for "6659" in
heading and text.
Subsec. (d). Pub. L. 97-34, Sec. 724(b)(4), redesignated subsec.
(d) as (c).
1969 - Subsec. (d)(2). Pub. L. 91-172 inserted "or pay tax" after
"tax return".
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 applicable to returns the due date
for which (determined without regard to extensions) is after Dec.
31, 1989, see section 7721(d) of Pub. L. 101-239, set out as a note
under section 461 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 714(h)(1) of Pub. L. 98-369 effective as if
included in the provision of the Tax Equity and Fiscal
Responsibility Act of 1982, Pub. L. 97-248, to which such amendment
relates, see section 715 of Pub. L. 98-369, set out as a note under
section 31 of this title.
Amendment by section 722(a)(5) of Pub. L. 98-369 effective as if
included in the provisions of the Technical Corrections Act of
1984, Pub. L. 97-448, to which such amendment relates, see section
722(a)(6) of Pub. L. 98-369, set out as a note under section 172 of
this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 722(a)(4) of Pub. L. 97-34 provided that: "The amendments
made by this subsection [enacting section 6659 of this title and
amending this section and section 5761 of this title] shall apply
to returns filed after December 31, 1981."
Amendment by section 724(b)(4) of Pub. L. 97-34 applicable to
returns filed after Aug. 13, 1981, see section 724(c) of Pub. L.
97-34, set out as a note under section 6656 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 applicable with respect to tax
returns the date prescribed by law for filing of which is after
Dec. 31, 1969, see section 943(d) of Pub. L. 91-172, set out as a
note under section 6651 of this title.
-End-
-CITE-
26 USC Sec. 5685 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
Sec. 5685. Penalty and forfeiture relating to possession of devices
for emitting gas, smoke, etc., explosives and firearms, when
violating liquor laws
-STATUTE-
(a) Penalty for possession of devices for emitting gas, smoke, etc.
Whoever, when violating any law of the United States, or of any
possession of the United States, or of the District of Columbia, in
regard to the manufacture, taxation, or transportation of or
traffic in distilled spirits, wines, or beer, or when aiding in any
such violation, has in his possession or in his control any device
capable of causing emission of gas, smoke, or fumes, and which may
be used for the purpose of hindering, delaying, or preventing
pursuit or capture, any explosive, or any firearm (as defined in
section 5845), except a machine gun, or a shotgun having a barrel
or barrels less than 18 inches in length, or a rifle having a
barrel or barrels less than 16 inches in length, shall be fined not
more than $5,000, or imprisoned not more than 10 years, or both,
and all persons engaged in any such violation or in aiding in any
such violation shall be held to be in possession or control of such
device, firearm, or explosive.
(b) Penalty for possession of machine gun, etc.
Whoever, when violating any such law, has in his possession or in
his control a machine gun, or any shotgun having a barrel or
barrels less than 18 inches in length, or a rifle having a barrel
or barrels less than 16 inches in length, shall be imprisoned not
more than 20 years; and all persons engaged in any such violation
or in aiding in any such violation shall be held to be in
possession and control of such machine gun, shotgun, or rifle.
(c) Forfeiture of firearms, devices, etc.
Every such firearm or device for emitting gas, smoke, or fumes,
and every such explosive, machine gun, shotgun, or rifle, in the
possession or control of any person when violating any such law,
shall be seized and shall be forfeited and disposed of in the
manner provided by section 5872.
(d) Definition of machine gun
As used in this section the term "machine gun" means a machine
gun as defined in section 5845(b).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1411; amended Pub. L. 86-478, Sec. 4, June 1, 1960, 74 Stat. 150;
Pub. L. 94-455, title XIX, Sec. 1905(a)(23), (c)(6), Oct. 4, 1976,
90 Stat. 1821, 1823.)
-MISC1-
PRIOR PROVISIONS
A prior section 5685, act Aug. 16, 1954, ch. 736, 68A Stat. 699,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1905(a)(23)(A), (c)(6),
struck out "Territory or" after "United States, or of any" and
substituted "section 5845" for "section 5848".
Subsec. (c). Pub. L. 94-455, Sec. 1905(a)(23)(B), substituted
"section 5872" for "section 5862".
Subsec. (d). Pub. L. 94-455, Sec. 1905(a)(23)(C), substituted
"means a machinegun as defined in section 5845(b)" for "means any
weapon which shoots, or is designed to shoot, automatically or
semiautomatically, more than one shot, without manual reloading, by
a single function of the trigger".
1960 - Subsecs. (a), (b). Pub. L. 86-478 substituted "shotgun
having a barrel or barrels less than 18 inches in length, or a
rifle having a barrel or barrels less than 16 inches in length" for
"shotgun or rifle having a barrel or barrels less than 18 inches in
length".
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by 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 1960 AMENDMENT
Amendment by Pub. L. 86-478 effective on first day of first month
which begins more than 10 days after June 1, 1960, see section 5 of
Pub. L. 86-478.
-End-
-CITE-
26 USC Sec. 5686 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
Sec. 5686. Penalty for having, possessing, or using liquor or
property intended to be used in violating provisions of this
chapter
-STATUTE-
(a) General
It shall be unlawful to have or possess any liquor or property
intended for use in violating any provision of this chapter or
regulations issued pursuant thereto, or which has been so used, and
every person so having or possessing or using such liquor or
property, shall be fined not more than $5,000, or imprisoned not
more than 1 year, or both.
(b) Cross reference
For seizure and forfeiture of liquor and property had,
possessed, or used in violation of subsection (a), see section
7302.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1411.)
-MISC1-
PRIOR PROVISIONS
A prior section 5686, act Aug. 16, 1954, ch. 736, 68A Stat. 700,
consisted in subsecs. (b) and (c) of provisions similar to those
comprising this section, prior to the general revision of this
chapter by Pub. L. 85-859.
Prior section 5686(a) related to offenses as to operation of
industrial alcohol or denaturing plants or unlawful withdrawal of
taxable alcohol. See section 5687 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 5505 of this title.
-End-
-CITE-
26 USC Sec. 5687 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
Sec. 5687. Penalty for offenses not specifically covered
-STATUTE-
Whoever violates any provision of this chapter or regulations
issued pursuant thereto, for which a specific criminal penalty is
not prescribed by this chapter, shall be fined not more than
$1,000, or imprisoned not more than 1 year, or both, for each such
offense.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1412.)
-MISC1-
PRIOR PROVISIONS
A prior section 5687, act Aug. 16, 1954, ch. 736, 68A Stat. 700,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
Prior section 5687 also related to forfeitures applicable to
distillers, rectifiers, and wholesale liquor dealers for offenses
not specifically covered. See sections 7301 and 7302 of this title.
Provisions similar to those comprising this section were
contained in prior sections 5602, 5608(c), 5612 to 5619, 5627,
5628, 5630, 5631, 5643, 5684(a) and 5686(a), act Aug. 16, 1954, ch.
736, 68A Stat. 683, 685, 686, 689, 692, 693, 699, 700, prior to the
general revision of this chapter by Pub. L. 85-859.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5101, 5117, 5203, 5505 of
this title.
-End-
-CITE-
26 USC Sec. 5688 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
Sec. 5688. Disposition and release of seized property
-STATUTE-
(a) Forfeiture
(1) Delivery
All distilled spirits, wines, and beer forfeited, summarily or
by order of court, under any law of the United States, shall be
delivered to the Administrator of General Services to be disposed
of as hereinafter provided.
(2) Disposal
The Administrator of General Services shall dispose of all
distilled spirits, wines, and beer which have been delivered to
him pursuant to paragraph (1) -
(A) by delivery to such Government agencies as, in his
opinion, have a need for such distilled spirits, wines, or beer
for medicinal, scientific, or mechanical purposes, or for any
other official purpose for which appropriated funds may be
expended by a Government agency; or
(B) by gifts to such eleemosynary institutions as, in his
opinion, have a need for such distilled spirits, wines, or beer
for medicinal purposes; or
(C) by destruction.
(3) Limitation on disposal
Except as otherwise provided by law, no distilled spirits,
wines, or beer which have been seized under any law of the United
States may be disposed of in any manner whatsoever except after
forfeiture and as provided in this subsection.
(4) Regulations
The Administrator of General Services is authorized to make all
rules and regulations necessary to carry out the provisions of
this subsection.
(5) Remission or mitigation of forfeitures
Nothing in this section shall affect the authority of the
Secretary, under the customs or internal revenue laws, to remit
or mitigate the forfeiture, or alleged forfeiture, of such
distilled spirits, wines, or beer, or the authority of the
Secretary, to compromise any civil or criminal case in respect of
such distilled spirits, wines, or beer prior to commencement of
suit thereon, or the authority of the Secretary to compromise any
claim under the customs laws in respect to such distilled
spirits, wines, or beer.
(b) Distraint or judicial process
Except as provided in section 5243, all distilled spirits sold by
order of court, or under process of distraint, shall be sold
subject to tax; and the purchaser shall immediately, and before he
takes possession of said spirits, pay the tax thereon, pursuant to
the applicable provisions of this chapter and in accordance with
regulations to be prescribed by the Secretary.
(c) Release of seized vessels or vehicles by courts
Notwithstanding any provisions of law relating to the return on
bond of any vessel or vehicle seized for the violation of any law
of the United States, the court having jurisdiction of the subject
matter may, in its discretion and upon good cause shown by the
United States, refuse to order such return of any such vessel or
vehicle to the claimant thereof. As used in this subsection, the
word "vessel" includes every description of watercraft used, or
capable of being used, as a means of transportation in water or in
water and air; and the word "vehicle" includes every animal and
description of carriage or other contrivance used, or capable of
being used, as a means of transportation on land or through the
air.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1412; amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct.
4, 1976, 90 Stat. 1834.)
-MISC1-
PRIOR PROVISIONS
A prior section 5688, act Aug. 16, 1954, ch. 736, 68A Stat. 701,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1976 - Subsecs. (a)(5), (b). Pub. L. 94-455 struck out "or his
delegate" after "Secretary" wherever appearing.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5007, 6807 of this title.
-End-
-CITE-
26 USC Sec. 5689 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
[Sec. 5689. Repealed. Pub. L. 94-455, title XIX, Sec.
1905(b)(2)(E)(i), Oct. 4, 1976, 90 Stat. 1822]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1413, provided for penalty and forfeiture for tampering
with a stamp machine.
A prior section 5689, act Aug. 16, 1954, ch. 736, 68A Stat. 702,
related to penalty and forfeiture for tampering with a stamp
machine, prior to the general revision of this chapter by Pub. L.
85-859.
EFFECTIVE DATE OF REPEAL
Repeal 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 an Effective Date of 1976 Amendment note under
section 5005 of this title.
-End-
-CITE-
26 USC Sec. 5690 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART IV - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO
LIQUORS
-HEAD-
Sec. 5690. Definition of the term "person"
-STATUTE-
The term "person", as used in this subchapter, includes an
officer or employee of a corporation or a member or employee of a
partnership, who as such officer, employee, or member is under a
duty to perform the act in respect of which the violation occurs.
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1413.)
-MISC1-
PRIOR PROVISIONS
A prior section 5690, act Aug. 16, 1954, ch. 736, 68A Stat. 702,
consisted of provisions similar to those comprising this section,
prior to the general revision of this chapter by Pub. L. 85-859.
-End-
-CITE-
26 USC PART V - PENALTIES APPLICABLE TO 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART V - PENALTIES APPLICABLE TO OCCUPATIONAL TAXES
-HEAD-
PART V - PENALTIES APPLICABLE TO OCCUPATIONAL TAXES
-MISC1-
Sec.
5691. Penalties for nonpayment of special taxes.
[5692. Repealed.]
PRIOR PROVISIONS
A prior part V consisted of sections 5691 to 5693, prior to the
general revision of this chapter by Pub. L. 85-859, title II, Sec.
201, Sept. 2, 1958, 72 Stat. 1313.
AMENDMENTS
1987 - Pub. L. 100-203, title X, Sec. 10512(a)(1)(B)(iii), Dec.
22, 1987, 101 Stat. 1330-448, struck out "relating to liquors"
after "taxes" in item 5691.
1968 - Pub. L. 90-618, title II, Sec. 206(b), Oct. 22, 1968, 82
Stat. 1235, struck out item 5692 "Penalties relating to posting of
special tax stamps".
-End-
-CITE-
26 USC Sec. 5691 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART V - PENALTIES APPLICABLE TO OCCUPATIONAL TAXES
-HEAD-
Sec. 5691. Penalties for nonpayment of special taxes
-STATUTE-
(a) General
Any person who shall carry on a business subject to a special tax
imposed by part II of subchapter A or section 5276 (relating to
occupational taxes) and willfully fail to pay the special tax as
required by law, shall be fined not more than $5,000, or imprisoned
not more than 2 years, or both, for each such offense.
(b) Presumption in case of the sale of 20 wine gallons or more
For the purposes of this chapter, the sale, or offer for sale, of
distilled spirits, wines, or beer, in quantities of 20 wine gallons
or more to the same person at the same time, shall be presumptive
evidence that the person making such sale, or offer for sale, is
engaged in or carrying on the business of a wholesale dealer in
liquors or a wholesale dealer in beer, as the case may be. Such
presumption may be overcome by evidence satisfactorily showing that
such sale, or offer for sale, was made to a person other than a
dealer, as defined in section 5112(a).
-SOURCE-
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1413; amended Pub. L. 96-39, title VIII, Sec. 807(a)(60), July 26,
1979, 93 Stat. 290; Pub. L. 98-369, div. A, title IV, Sec.
451(b)(3), July 18, 1984, 98 Stat. 819; Pub. L. 100-203, title X,
Sec. 10512(a)(1)(B)(i), (ii), Dec. 22, 1987, 101 Stat. 1330-447,
1330-448.)
-MISC1-
PRIOR PROVISIONS
A prior section 5691, act Aug. 16, 1954, ch. 736, 68A Stat. 702,
consisted of provisions similar to those comprising subsec. (a) of
this section, prior to the general revision of this chapter by Pub.
L. 85-859.
Prior section 5691 also related to forfeitures for nonpayment of
special taxes relating to liquors. See sections 5607, 5613, 5615,
5661(a), 5671, 5673, 5676(4), 5683, 7301, and 7302 of this title.
AMENDMENTS
1987 - Pub. L. 100-203 struck out "relating to liquors" after "of
special taxes" in section catchline and substituted "a business
subject to a special tax imposed by part II of subchapter A or
section 5276 (relating to occupational taxes)" for "the business of
a brewer, wholesale dealer in liquors, retail dealer in liquors,
wholesale dealer in beer, retail dealer in beer, or limited retail
dealer," in subsec. (a).
1984 - Subsec. (a). Pub. L. 98-369 substituted "or limited retail
dealer" for "limited retail dealer, or manufacturer of stills".
1979 - Subsec. (a). Pub. L. 96-39 eliminated persons employed as
rectifiers from the penalties imposed by this section.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section
10512(h) of Pub. L. 100-203, set out as an Effective Date note
under section 5081 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective on first day of first
calendar month which begins more than 90 days after July 18, 1984,
see section 456(a) of Pub. L. 98-369, set out as an Effective Date
note under section 5101 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
85-859, set out as a note under section 5001 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5125, 5148 of this title.
-End-
-CITE-
26 USC Sec. 5692 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 J - Penalties, Seizures, and Forfeitures Relating to
Liquors
PART V - PENALTIES APPLICABLE TO OCCUPATIONAL TAXES
-HEAD-
[Sec. 5692. Repealed. Pub. L. 90-618, title II, Sec. 206(a), Oct.
22, 1968, 82 Stat. 1235]
-MISC1-
Section, added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958,
72 Stat. 1413, set forth a cross reference to section 7273(a),
relating to penalties for failure to post special tax stamps.
A prior section 5692, act Aug. 16, 1954, ch. 736, 68A Stat. 703,
related to penalty relating to records of retail liquor dealers,
prior to the general revision of this chapter by Pub. L. 85-859,
title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1313.
A prior section 5693, act Aug. 16, 1954, ch. 736, 68A Stat. 703,
consisted of provisions similar to those comprising section 5692,
prior to the general revision of this chapter by Pub. L. 85-859.
EFFECTIVE DATE OF REPEAL
Repeal effective Oct. 22, 1968, see section 207 of Pub. L.
90-618, set out as an Effective Date note under section 5801 of
this title.
-End-
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