26 U.S.C. § 5604 — Penalties relating to marks, brands, and

Page 3241 TITLE 26—INTERNAL REVENUE CODE § 5604 shall be fined not more than $10,000, or impris- oned not more than 5 years, or both, for each such offense. (b) Failure to comply Any person required by this chapter (other than subchapters F and G) or regulations issued pursuant thereto to keep or file any record, re- turn, report, summary, transcript, or other doc- ument, who, otherwise than with intent to de- fraud the United States, shall— (1) fail to keep any such document or to make required entries therein; or (2) make any false entry in such document; or (3) cancel, alter, or obliterate any part of such document or any entry therein, or de- stroy any part of such document, or any entry therein, except as provided by this title or reg- ulations issued pursuant thereto; or (4) hinder or obstruct any internal revenue officer from inspecting any such document or taking any abstracts therefrom; or (5) fail to refuse to preserve or produce any such document, as required by this chapter or regulations issued pursuant thereto; or who shall, otherwise than with intent to de- fraud the United States, cause or procure the same to be done, shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, for each such offense. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1400; amended Pub. L. 115–141, div. U, title IV, § 401(a)(249), Mar. 23, 2018, 132 Stat. 1196.) Editorial Notes PRIOR PROVISIONS A prior section 5603, act Aug. 16, 1954, ch. 736, 68A Stat. 684, related to penalty for failure or refusal of dis- tiller or rectifier to give notice of intention to engage in such business, prior to the general revision of this chapter by Pub. L. 85–859. See section 5601(a)(2), (3) of this title. Provisions similar to those comprising this section were contained in prior sections 5610, 5611, 5620, 5621, 5692, act Aug. 16, 1954, ch. 736, 68A Stat. 685 to 687, 703, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 2018—Pub. L. 115–141 inserted comma after ‘‘returns’’ in section catchline. § 5604. Penalties relating to marks, brands, and containers (a) In general Any person who shall— (1) transport, possess, buy, sell, or transfer any distilled spirits unless the immediate con- tainer bears the type of closure or other device required by section 5301(d), (2) with intent to defraud the United States, empty a container bearing the closure or other device required by section 5301(d) without breaking such closure or other device, (3) empty, or cause to be emptied, any dis- tilled spirits from an immediate container bearing any mark or brand required by law without effacing and obliterating such mark or brand as required by section 5206(d), (4) place any distilled spirits in any bottle, or reuse any bottle for the purpose of con- taining distilled spirits, which has once been filled and fitted with a closure or other device under the provisions of this chapter, without removing and destroying such closure or other device, (5) willfully and unlawfully remove, change, or deface any mark, brand, label, or seal af- fixed to any case of distilled spirits, or to any bottle contained therein, (6) with intent to defraud the United States, purchase, sell, receive with intent to trans- port, or transport any empty cask or package having thereon any mark or brand required by law to be affixed to any cask or package con- taining distilled spirits, or (7) change or alter any mark or brand on any cask or package containing distilled spirits, or put into any cask or package spirits of greater strength than is indicated by the inspection mark thereon, or fraudulently use any cask or package having any inspection mark thereon, for the purpose of selling other spirits, or spir- its of quantity or quality different from the spirits previously inspected, shall be fined not more than $10,000 or impris- oned not more than 5 years, or both, for each such offense. (b) Cross references For provisions relating to the authority of inter- nal revenue officers to enforce provisions of this section, see sections 5203, 5557, and 7608. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1401; amended Pub. L. 96–39, title VIII, § 807(a)(53), July 26, 1979, 93 Stat. 289; Pub. L. 98–369, div. A, title IV, § 454(c)(11)(A), July 18, 1984, 98 Stat. 821.) Editorial Notes PRIOR PROVISIONS A prior section 5604, act Aug. 16, 1954, ch. 736, 68A Stat. 684, related to penalty and forfeiture for failure or refusal of distiller to give bond, prior to the general re- vision of this chapter by Pub. L. 85–859. See sections 5601(a)(4), (5) and 5615(3) of this title. Provisions similar to those comprising this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85–859, as follows: Present subsecs.: Prior sections (a)(1) .............................. 5008(b)(1), 5642. (a)(2), (3) ........................ 5636. (a)(4), (5) ........................ 5642, 5644. (a)(6) .............................. 5642. (a)(7) to (9) ..................... 5636. (a)(10) ............................. 5642, 5644. (a)(11) ............................. 5643. (a)(12) ............................. 5642, 5643. (a)(13) to (15) .................. 5642. (a)(16) ............................. 5643. (a)(17) ............................. 5635, 5636. (a)(18) ............................. 5637. (a)(19) ............................. 5638. (b) .................................. 5642. The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 602, 690 to 693. AMENDMENTS 1984—Subsec. (a). Pub. L. 98–369, § 454(c)(11)(A), in amending subsec. (a) generally, struck out references to stamps in pars. (1) to (3), redesignated pars. (12), (16), (17), (18) as pars. (4)–(7), respectively, in pars. (4) to (7) Page 3242 TITLE 26—INTERNAL REVENUE CODE § 5605 as so redesignated, struck out all references to stamps, and struck out former pars. (4) to (11), (13) to (15), and (19), which had consisted of additional provisions con- cerning penalties relating to stamps, marks, brands and containers. Subsec. (b). Pub. L. 98–369, § 454(c)(11)(A), in amending subsec. (b) generally, substituted provisions relating to cross references for provisions relating to officers au- thorized to enforce this section. 1979—Subsec. (a)(1). Pub. L. 96–39, § 807(a)(53)(A), sub- stituted ‘‘section 5205(a)(1)’’ for ‘‘section 5205(a)(2)’’. Subsec. (a)(2). Pub. L. 96–39, § 807(a)(53)(B), substituted ‘‘section 5205(a)(1)’’ for ‘‘section 5205(a)(1) or (2)’’ and ‘‘section 5205(a)(2)’’ for ‘‘section 5205(a)(3)’’. Subsec. (a)(3). Pub. L. 96–39, § 807(a)(53)(C), substituted ‘‘section 5205(f)’’ for ‘‘section 5205(g)’’. Subsec. (a)(6). Pub. L. 96–39, § 807(a)(53)(D), sub- stituted ‘‘section 5205(a)(2)’’ for ‘‘section 5205(a)(3)’’. Subsec. (a)(13). Pub. L. 96–39, § 807(a)(53)(E), sub- stituted ‘‘section 5205(a)’’ for ‘‘section 5205(a)(2) and (3)’’. Statutory Notes and Related Subsidiaries 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. § 5605. Penalty relating to return of materials used in the manufacture of distilled spirits, or from which distilled spirits may be recov- ered Any person who willfully violates any provi- sion of section 5291(a), or of any regulation issued pursuant thereto, and any officer, direc- tor, or agent of any such person who knowingly participates in such violation, shall be fined not more than $1,000, or imprisoned not more than 2 years, or both. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1402.) Editorial Notes PRIOR PROVISIONS A prior section 5605, act Aug. 16, 1954, ch. 736, 68A Stat. 684, related to penalty for improper approval of distiller’s bond, prior to the general revision of this chapter by Pub. L. 85–859. See section 7214 of this title. Provisions similar to those comprising this section were contained in prior section 5609, act Aug. 16, 1954, ch. 736, 68A Stat. 685, prior to the general revision of this chapter by Pub. L. 85–859. § 5606. Penalty relating to containers of distilled spirits Whoever violates any provision of section 5301, or of any regulation issued pursuant thereto, or the terms or conditions of any permit issued pursuant to the authorization contained in such section, and any officer, director, or agent of any corporation who knowingly participates in such violation, shall, upon conviction, be fined not more than $1,000, or imprisoned not more than 1 year, or both, for each such offense. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1402.) Editorial Notes PRIOR PROVISIONS A prior section 5606, act Aug. 16, 1954, ch. 736, 68A Stat. 684, related to penalty and forfeiture for distilling without giving bond, prior to the general revision of this chapter by Pub. L. 85–859. See sections 5601(a)(4), 5602, and 5615(3) of this title. Provisions similar to those comprising this section were contained in prior section 5641, act Aug. 16, 1954, ch. 736, 68A Stat. 692, prior to the general revision of this chapter by Pub. L. 85–859. § 5607. Penalty and forfeiture for unlawful use, recovery, or concealment of denatured dis- tilled spirits, or articles Any person who— (1) uses denatured distilled spirits with- drawn free of tax under section 5214(a)(1) in the manufacture of any medicinal preparation or flavoring extract in violation of the provi- sions of section 5273(b)(1) or knowingly sells, or offers for sale, any such medicinal prepara- tion or flavoring extract in violation of sec- tion 5273(b)(2); or (2) knowingly withdraws any denatured dis- tilled spirits free of tax under section 5214(a)(1) for beverage purposes; or (3) knowingly sells any denatured distilled spirits withdrawn free of tax under section 5214(a)(1), or any articles containing such de- natured distilled spirits, for beverage pur- poses; or (4) recovers or attempts to recover by redis- tillation or by any other process or means (ex- cept as authorized in section 5223 or in section 5273(c)) any distilled spirits from any dena- tured distilled spirits withdrawn free of tax under section 5214(a)(1), or from any articles manufactured therefrom, or knowingly uses, sells, conceals, or otherwise disposes of dis- tilled spirits so recovered or redistilled; shall be fined not more than $10,000, or impris- oned not more than 5 years, or both, for each such offense; and all personal property used in connection with his business, together with the buildings and ground constituting the premises on which such unlawful acts are performed or permitted to be performed shall be forfeited to the United States. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1402.) Editorial Notes PRIOR PROVISIONS A prior section 5607, act Aug. 16, 1954, ch. 736, 68A Stat. 684, related to penalty for distilling on prohibited premises, prior to the general revision of this chapter by Pub. L. 85–859. See sections 5505(i) and 5601(a)(6) of this title. Provisions similar to those comprising this section were contained in prior section 5647, act Aug. 16, 1954, ch. 736, 68A Stat. 693, prior to the general revision of this chapter by Pub. L. 85–859. § 5608. Penalty and forfeiture for fraudulent claims for export drawback or unlawful re- landing (a) Fraudulent claim for drawback Every person who fraudulently claims, or seeks, or obtains an allowance of drawback on