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26 U.S.C. § 5114 — Drawback
Federal law — U.S. Code and appendices · legal_authorities
**(a) Rate of drawback** In the case of distilled spirits on which the tax has been paid or determined, and which have been used as provided in this subpart, a drawback shall be allowed on each proof gallon at a rate of $1 less than the rate at which the distilled spirits tax has been paid or determined.
**(b) Claims** Such drawback shall be due and payable quarterly upon filing of a proper claim with the Secretary; except that, where any person entitled to such drawback shall elect in writing to file monthly claims therefor, such drawback shall be due and payable monthly upon filing of a proper claim with the Secretary. The Secretary may require persons electing to file monthly drawback claims to file with him a bond or other security in such amount and with such conditions as he shall by regulations prescribe. Any such election may be revoked on filing of notice thereof with the Secretary. No claim under this subpart shall be allowed unless filed with the Secretary within the 6 months next succeeding the quarter in which the distilled spirits covered by the claim were used as provided in this subpart.
**(c) Allowance of drawback even where certain requirements not met**
(1) **In general** — No claim for drawback under this section shall be denied in the case of a failure to comply with any requirement imposed under this subpart or any rule or regulation issued thereunder upon the claimant’s establishing to the satisfaction of the Secretary that distilled spirits on which the tax has been paid or determined were in fact used in the manufacture or production of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which were unfit for beverage purposes.
(2) **Penalty**
(A) *In general* — In the case of a failure to comply with
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Source location: Title 26, Chapter 51, § 5114; chapter-051-distilled-spirits-wines-and-beer.md
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**(a) Rate of drawback** In the case of distilled spirits on which the tax has been paid or determined, and which have been used as provided in this subpart, a drawback shall be allowed on each proof gallon at a rate of $1 less than the rate at which the distilled spirits tax has been paid or determined.
**(b) Claims** Such drawback shall be due and payable quarterly upon filing of a proper claim with the Secretary; except that, where any person entitled to such drawback shall elect in writing to file monthly claims therefor, such drawback shall be due and payable monthly upon filing of a proper claim with the Secretary. The Secretary may require persons electing to file monthly drawback claims to file with him a bond or other security in such amount and with such conditions as he shall by regulations prescribe. Any such election may be revoked on filing of notice thereof with the Secretary. No claim under this subpart shall be allowed unless filed with the Secretary within the 6 months next succeeding the quarter in which the distilled spirits covered by the claim were used as provided in this subpart.
**(c) Allowance of drawback even where certain requirements not met**
(1) **In general** — No claim for drawback under this section shall be denied in the case of a failure to comply with any requirement imposed under this subpart or any rule or regulation issued thereunder upon the claimant’s establishing to the satisfaction of the Secretary that distilled spirits on which the tax has been paid or determined were in fact used in the manufacture or production of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which were unfit for beverage purposes.
(2) **Penalty**
(A) *In general* — In the case of a failure to comply with any requirement imposed under this subpart or any rule or regulation issued thereunder, the claimant shall be liable for a penalty of $1,000 for each failure to comply unless it is shown that the failure to comply was due to reasonable cause.
(B) *Penalty may not exceed amount of claim* — The aggregate amount of the penalties imposed under subparagraph (A) for failures described in paragraph (1) in respect of any claim shall not exceed the amount of such claim (determined without regard to subparagraph (A)).
(3) **Penalty treated as tax** — The penalty imposed by paragraph (2) shall be assessed, collected, and paid in the same manner as taxes, as provided in section 6665(a).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Notice requirements**
(1) **Notice of manufacture of still** — The Secretary may, pursuant to regulations, require any person who manufactures any still, boiler, or other vessel to be used for the purpose of distilling, to give written notice, before the still, boiler, or other vessel is removed from the place of manufacture, setting forth by whom it is to be used, its capacity, and the time of removal from the place of manufacture.
(2) **Notice of set up of still** — The Secretary may, pursuant to regulations, require that no still, boiler, or other vessel be set up without the manufacturer of the still, boiler, or other vessel first giving written notice to the Secretary of that purpose.
**(b) Penalties, etc.**
(1) For penalty and forfeiture for failure to give notice of manufacture, or for setting up a still without first giving notice, when required by the Secretary, see sections 5615(2) and 5687.
(2) For penalty and forfeiture for failure to register still or distilling apparatus when set up, see section 5601(a)(1) and 5615(1).
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5101
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General** The Secretary may, at his discretion and under such regulations as he may prescribe, authorize a dealer (as defined in section 5121(c)) engaging in the business of supplying distilled spirits for industrial uses to package distilled spirits, on which the tax has been paid or determined, for such uses in containers of a capacity in excess of 1 wine gallon and not more than 5 wine gallons.
**(b) Cross reference** For provisions relating to containers of distilled spirits, see section 5206.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5131
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Federal law — U.S. Code and appendices · legal_authorities
**(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 dena
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirements**
(1) **Distilled spirits** — Every wholesale dealer in liquors who sells distilled spirits to other dealers shall keep daily a record of distilled spirits received and disposed of by him, in such form and at such place and containing such information, and shall submit correct summaries of such records to the Secretary at such time and in such form and manner, as the Secretary shall by regulations prescribe. Such dealer shall also submit correct extracts from or copies of such records, at such time and in such form and manner as the Secretary may by regulations prescribe; however, the Secretary may on application by such dealer, in accordance with such regulations, relieve him from this requirement until further notice, whenever the Secretary deems that the submission of such extracts or copies serves no useful purpose in law enforcement or in protection of the revenue.
(2) **Wines and beer** — Every wholesale dealer in liquors and every wholesale dealer in beer shall provide and keep, at such place as the Secretary shall by regulations prescribe, a record in book form of all wines and beer received, showing the quantities thereof and from whom and the dates received, or shall keep all invoices of, and bills for, all wines and beer received.
**(b) Exemption of States, political subdivisions, etc.** The provision of subsection (a) shall not apply to a State, to a political subdivision of a State, to the District of Columbia, or to liquor stores operated by any of them, if they maintain and make available for inspection by internal revenue officers such records as will enable such officers to trace all distilled spirits, wines, and beer received, and all distilled spirits disposed of by them. Such States, subdivisions, District, or liquor stores shal
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5121
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Except as provided in regulations prescribed by the Secretary, it shall be unlawful for a dealer to purchase distilled spirits for resale from any person other than a wholesale dealer in liquors who is required to keep the records prescribed by section 5121.
**(b) Limited retail dealers** A limited retail dealer may lawfully purchase distilled spirits for resale from a retail dealer in liquors.
**(c) Penalty and forfeiture** For penalty and forfeiture provisions applicable to violations of subsection (a), see sections 5687 and 7302.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 5132
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Federal law — U.S. Code and appendices · legal_authorities
Page 3177
TITLE 26—INTERNAL REVENUE CODE
§ 5114
Editorial Notes
PRIOR PROVISIONS
A prior section 5112, added Pub. L. 85–859, title II,
§ 201, Sept. 2, 1958, 72 Stat. 1340, defined ‘‘dealer’’,
‘‘wholesale dealer in liquors’’, and ‘‘wholesale dealer in
beer’’, prior to repeal by Pub. L. 109–59, title XI,
§ 11125(a)(1)(C), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, ef-
fective July 1, 2008, but inapplicable to taxes imposed
for periods before such date.
Another prior section 5112, act Aug. 16, 1954, ch. 736,
68A Stat. 618, contained definitions of wholesale deal-
ers, prior to the general revision of this chapter by
Pub. L. 85–859.
AMENDMENTS
2005—Pub. L. 109–59 renumbered section 5132 of this
title as this section.
1994—Pub. L. 103–465 substituted ‘‘flavoring extracts,
or perfume’’ for ‘‘or flavoring extracts’’.
1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after
‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
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.
§ 5113. Investigation of claims
For the purpose of ascertaining the correct-
ness of any claim filed under this subpart, the
Secretary is authorized to examine any books,
papers, records, or memoranda bearing upon the
matters required to be alleged in the claim, to
require the attendance of the person filing the
claim or of any officer or employee of such per-
son or the attendance of any other person hav-
ing knowledge in the premises, to take testi-
mony with reference to any matter covered by
the claim, and to administer oaths to any person
giving such testimony.
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958,
72 Stat. 1
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 5114
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