26 U.S.C. § 5132 — Prohibited purchases by dealers

Page 3181 TITLE 26—INTERNAL REVENUE CODE § 5132 11125(c) of Pub. L. 109–59, set out as an Effective Date of 2005 Amendment note under section 5002 of this title. SUBPART D—OTHER PROVISIONS Sec. 5131. Packaging distilled spirits for industrial uses. 5132. Prohibited purchases by dealers. Editorial Notes PRIOR PROVISIONS A prior subpart D, consisting of sections 5111 to 5117, related to wholesale dealers in liquors or beer, prior to repeal, except for sections 5114 and 5116, by Pub. L. 109–59, title XI, § 11125(a)(1)(C), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, effective July 1, 2008, but inapplicable to taxes imposed for periods before such date. Another prior subpart D, consisting of sections 5111 to 5116, related to wholesale dealers, prior to the gen- eral revision of this chapter by Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313. A prior subpart E, consisting of sections 5121 to 5125, related to retail dealers, prior to repeal, except for sec- tion 5124, by Pub. L. 109–59, title XI, § 11125(a)(1)(D), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, effective July 1, 2008, but inapplicable to taxes imposed for periods before such date. Another prior subpart E, consisting of sections 5121 to 5124, related to retail dealers, prior to the general revi- sion of this chapter by Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313. A prior subpart F was redesignated subpart B of this part. Another prior subpart F, consisting of sections 5131 to 5134, related to nonbeverage domestic drawback claim- ants, prior to the general revision of this chapter by Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313. A prior subpart G, consisting of sections 5141 to 5149, related to general provisions, prior to repeal, except for sections 5142, 5143, 5145, and 5146, by Pub. L. 109–59, title XI, § 11125(a)(1)(E), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, effective July 1, 2008, but inapplicable to taxes imposed for periods before such date. Another prior subpart G, consisting of sections 5141 to 5149, related to general provisions, prior to the gen- eral revision of this chapter by Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313. AMENDMENTS 2005—Pub. L. 109–59, title XI, § 11125(b)(10), Aug. 10, 2005, 119 Stat. 1955, added subpart heading and items 5131 and 5132. § 5131. Packaging distilled spirits for industrial uses (a) General The Secretary may, at his discretion and under such regulations as he may prescribe, au- thorize a dealer (as defined in section 5121(c)) en- gaging in the business of supplying distilled spirits for industrial uses to package distilled spirits, on which the tax has been paid or deter- mined, 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. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1343, § 5116; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, § 807(a)(12), July 26, 1979, 93 Stat. 282; Pub. L. 98–369, div. A, title IV, § 454(c)(3), July 18, 1984, 98 Stat. 821; renumbered § 5131 and amended Pub. L. 109–59, title XI, § 11125(b)(11), Aug. 10, 2005, 119 Stat. 1956.) Editorial Notes PRIOR PROVISIONS A prior section 5131 was renumbered section 5111 of this title. Another prior section 5131, act Aug. 16, 1954, ch. 736, 68A Stat. 622, related to eligibility for drawback and rate of tax, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 2005—Pub. L. 109–59, § 11125(b)(11), renumbered section 5116 of this title as this section and transferred section to this subpart so as to appear after subpart analysis. Subsec. (a). Pub. L. 109–59, § 11125(b)(11), inserted ‘‘(as defined in section 5121(c))’’ after ‘‘dealer’’. 1984—Subsec. (b). Pub. L. 98–369 substituted ‘‘ref- erence’’ for ‘‘references’’ in heading, struck out former par. (1) which provided a cross reference to section 5205(a)(1) of this title regarding stamps for immediate containers, and struck out designation ‘‘(2)’’ preceding provisions relating to containers of distilled spirits. 1979—Subsec. (b)(1). Pub. L. 96–39 substituted ‘‘section 5205(a)(1)’’ for ‘‘section 5205(a)(2)’’. 1976—Subsec. (a). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–59 effective July 1, 2008, but inapplicable to taxes imposed for periods before such date, see section 11125(c) of Pub. L. 109–59, set out as a note under section 5002 of this title. 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 Effec- tive 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 sec- tion 5001 of this title. § 5132. Prohibited purchases by dealers (a) In general Except as provided in regulations prescribed by the Secretary, it shall be unlawful for a deal- er to purchase distilled spirits for resale from any person other than a wholesale dealer in liq- uors who is required to keep the records pre- scribed 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. (Added Pub. L. 109–59, title XI, § 11125(b)(12), Aug. 10, 2005, 119 Stat. 1956.) Editorial Notes PRIOR PROVISIONS A prior section 5132 was renumbered section 5112 of this title. Page 3182 TITLE 26—INTERNAL REVENUE CODE § 5171 Another prior section 5132, act Aug. 16, 1954, ch. 736, 68A Stat. 623, related to registration and regulation of persons claiming drawback, prior to the general revi- sion of this chapter by Pub. L. 85–859. A prior section 5133 was renumbered section 5113 of this title. Another prior section 5133, act Aug. 16, 1954, ch. 736, 68A Stat. 623, related to investigation of claims, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5134 was renumbered section 5114 of this title. Another prior section 5134, acts Aug. 16, 1954, ch. 736, 68A Stat. 623; Mar. 30, 1955, ch. 18, § 3(b)(2), 69 Stat. 15; Mar. 29, 1956, ch. 115, § 3(b)(2), 70 Stat. 67; Mar. 29, 1957, Pub. L. 85–12, § 3(b)(2), 71 Stat. 10; June 30, 1958, Pub. L. 85–475, § 3(b)(2), 72 Stat. 259, related to drawbacks, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5141, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1346, related to registration, prior to repeal by Pub. L. 109–59, title XI, § 11125(a)(1)(E), (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 5141, act Aug. 16, 1954, ch. 736, 68A Stat. 624, related to registration, prior to the gen- eral revision of this chapter by Pub. L. 85–859. A prior section 5142 was renumbered section 5732 of this title. Another prior section 5142, act Aug. 16, 1954, ch. 736, 68A Stat. 624, related to payment of tax, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5143 was renumbered section 5733 of this title. Another prior section 5143, act Aug. 16, 1954, ch. 736, 68A Stat. 624, related to time for filing returns and cross-referred to penalty provisions for failure to file returns or for making false or fraudulent returns, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5144, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1348, authorized and directed Secretary or his delegate to procure the necessary stamps for payment of special taxes and to make need- ful regulations relative thereto, prior to repeal by Pub. L. 94–455, title XIX, § 1905(b)(3)(D)(i), Oct. 4, 1976, 90 Stat. 1822. Another prior section 5144, act Aug. 16, 1954, ch. 736, 68A Stat. 624, related to liability for occupational taxes, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5145 was renumbered section 5734 of this title. Another prior section 5145, act Aug. 16, 1954, ch. 736, 68A Stat. 625, related to ‘‘supply of stamps’’, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5146 was renumbered section 5123 of this title. Another prior section 5146, act Aug. 16, 1954, ch. 736, 68A Stat. 625, contained cross references to provisions respecting posting stamp in place of business, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5147, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1348, related to application of former subpart G, prior to repeal by Pub. L. 109–59, title XI, § 11125(a)(1)(E), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, effective July 1, 2008, but inapplicable to taxes im- posed for periods before such date. Another prior section 5147, act Aug. 16, 1954, ch. 736, 68A Stat. 626, made a cross reference to provision re- specting keeping of list of special taxpayers for public inspection, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5148, added Pub. L. 108–357, title II, § 246(a), Oct. 22, 2004, 118 Stat. 1448, related to suspen- sion of occupational tax, prior to repeal by Pub. L. 109–59, title XI, § 11125(a)(1)(E), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, effective July 1, 2008, but inapplicable to taxes imposed for periods before such date. Another prior section 5148 was renumbered section 5149 of this title, prior to repeal by Pub. L. 109–59. Another prior section 5148, act Aug. 16, 1954, ch. 736, 68A Stat. 626, related to ‘‘Application of State laws’’, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5149, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1348, § 5148; amended Pub. L. 94–455, title XIX, § 1905(b)(3)(E), Oct. 4, 1976, 90 Stat. 1822; renumbered § 5149, Pub. L. 108–357, title II, § 246(a), Oct. 22, 2004, 118 Stat. 1448, contained cross references to provisions imposing penalties, prior to repeal by Pub. L. 109–59, title XI, § 11125(a)(1)(E), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, effective July 1, 2008, but inappli- cable to taxes imposed for periods before such date. Another prior section 5149, act Aug. 16, 1954, ch. 736, 68A Stat. 626, related to ‘‘Application of subpart’’, prior to the general revision of this chapter by Pub. L. 85–859. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 1, 2008, but inapplicable to taxes imposed for periods before such date, see section 11125(c) of Pub. L. 109–59, set out as an Effective Date of 2005 Amendment note under section 5002 of this title. Subchapter B—Qualification Requirements for Distilled Spirits Plants Sec. 5171. Establishment. 5172. Application. 5173. Bonds. [5174. Repealed.] 5175. Export bonds. 5176. New or renewed bonds. 5177. Other provisions relating to bonds. 5178. Premises of distilled spirits plants. 5179. Registration of stills. 5180. Signs. 5181. Distilled spirits for fuel use. 5182. Cross references. Editorial Notes PRIOR PROVISIONS A prior subchapter B, Distilleries, consisted of part I, Establishment, part II, Operation, and part III, General Provisions Relating to Distilleries and Distilled Spir- its, and consisted of sections 5171 to 5180, 5191 to 5197, and 5211 to 5217, respectively, prior to the general revi- sion of this chapter by Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1313. AMENDMENTS 2018—Pub. L. 115–141, div. U, title IV, § 401(a)(242), Mar. 23, 2018, 132 Stat. 1195, substituted ‘‘Premises of distilled spirits plants’’ for ‘‘Distilled spirits plants’’ in item 5178. 1980—Pub. L. 96–223, title II, § 232(e)(2)(F), Apr. 2, 1980, 94 Stat. 280, added item 5181 and redesignated former item 5181 as 5182. 1979—Pub. L. 96–39, title VIII, § 807(b)(4), July 26, 1979, 93 Stat. 290, substituted ‘‘Bonds’’ for ‘‘Qualification bonds’’ in item 5173, struck out item 5174 ‘‘Withdrawal bonds’’, and substituted ‘‘Distilled spirits plants’’ for ‘‘Premises of distilled spirits plants’’ in item 5178. § 5171. Establishment (a) Certain operations may be conducted only on bonded premises Except as otherwise provided by law, oper- ations as a distiller, warehouseman, or processor may be conducted only on the bonded premises of a distilled spirits plant by a person who is qualified under this subchapter. (b) Establishment of distilled spirits plant A distilled spirits plant may be established only by a person who intends to conduct at such