US (United States) Code. Title 26. Subtitle E: Alcohol, tobacco, and certain other Excise Taxes. Chapter 51

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Internal revenue code. Distilled spirits, wines and beer

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-CITE-

26 USC CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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] 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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. 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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-