26 U.S.C. § 5613 — Forfeiture of distilled spirits not closed,

Page 3244 TITLE 26—INTERNAL REVENUE CODE § 5611 Editorial Notes PRIOR PROVISIONS A prior section 5610, act Aug. 16, 1954, ch. 736, 68A Stat. 685, related to penalty for using unregistered ma- terials for producing spirits, prior to the general revi- sion of this chapter by Pub. L. 85–859. See section 5603 of this title. Provisions similar to those comprising this section were contained in prior section 5622, act Aug. 16, 1954, ch. 736, 68A Stat. 687, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 1979—Pub. L. 96–39 substituted ‘‘or processing’’ for ‘‘or rectifying’’. Statutory Notes and Related Subsidiaries 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. § 5611. Release of distillery before judgment Any distillery or distilling apparatus seized on any premises qualified under this chapter, for any violation of law, may, in the discretion of the court, be released before final judgment to a receiver appointed by the court to operate such distillery or apparatus. Such receiver shall give bond, which shall be approved in open court, with corporate surety, for the full appraised value of all the property seized, to be ascertained by three competent appraisers des- ignated and appointed by the court. Funds ob- tained from such operation shall be impounded as the court shall direct pending such final judg- ment. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1404.) Editorial Notes PRIOR PROVISIONS A prior section 5611, act Aug. 16, 1954, ch. 736, 68A Stat. 685, related to penalty for using false weights and measures, prior to the general revision of this chapter by Pub. L. 85–859. See section 5603 of this title. Provisions similar to those comprising this section were contained in prior section 5624, act Aug. 16, 1954, ch. 736, 68A Stat. 688, prior to the general revision of this chapter by Pub. L. 85–859. § 5612. Forfeiture of taxpaid distilled spirits re- maining on bonded premises (a) General No distilled spirits on which tax has been paid or determined shall be stored or allowed to re- main on the bonded premises of any distilled spirits plant, under the penalty of forfeiture of all spirits so found. (b) Exceptions Subsection (a) shall not apply in the case of— (1) distilled spirits in the process of prompt removal from bonded premises on payment or determination of the tax; or (2) distilled spirits returned to bonded prem- ises in accordance with the provisions of sec- tion 5215. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1404; amended Pub. L. 96–39, title VIII, § 807(a)(55), July 26, 1979, 93 Stat. 289.) Editorial Notes PRIOR PROVISIONS A prior section 5612, act Aug. 16, 1954, ch. 736, 68A Stat. 685, related to penalty for using material or re- moving spirits without supervision, prior to the general revision of this chapter by Pub. L. 85–859. See section 5687 of this title. Provisions similar to those comprising subsec. (a) of this section were contained in prior section 5625, act Aug. 16, 1954, ch. 736, 68A Stat. 688, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 1979—Subsec. (b). Pub. L. 96–39 redesignated subpars. (2) and (3) as (1) and (2), respectively, and struck out former subpars. (1) and (4) which excepted distilled spir- its which were bottled in bond under section 5233 of this title and which were returned to bonded premises for rebottling, relabeling, or restamping in accordance with subsec. (d) of section 5233, and excepted such spir- its, held on bonded premises, on which the tax had be- come payable by operation of law, but on which the tax had not been paid. Statutory Notes and Related Subsidiaries 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. SUSPENSION OF SUBSECTION (a) DURING 1980 Pub. L. 96–39, title VIII, § 808(c)(1), July 26, 1979, 93 Stat. 291, set out as a note under section 5061 of this title, provided that subsec. (a) of this section was not to apply during 1980. § 5613. Forfeiture of distilled spirits not closed, marked, or branded as required by law (a) Unmarked or unbranded casks or packages All distilled spirits found in any cask or pack- age required by this chapter or any regulation issued pursuant thereto to bear a mark, brand, or identification, which cask or package is not marked, branded, or identified in compliance with this chapter and regulations issued pursu- ant thereto, shall be forfeited to the United States. (b) Containers without closures All distilled spirits found in any container which is required by this chapter to bear a clo- sure or other device and which does not bear a closure or other device in compliance with this chapter shall be forfeited to the United States. (Added Pub. L. 85–859, title II, § 201, Sept. 21, 1958, 72 Stat. 1404; amended Pub. L. 98–369, div. A, title IV, § 454(c)(12)(A), (B), July 18, 1984, 98 Stat. 822.) Editorial Notes PRIOR PROVISIONS A prior section 5613, act Aug. 16, 1954, ch. 736, 68A Stat. 685, related to penalty for distilling during pro- hibited hours, prior to the general revision of this chap- ter by Pub. L. 85–859. See section 5687 of this title. Provisions similar to those comprising this section were contained in prior sections 5639 and 5640, act Aug. 16, 1954, ch. 736, 68A Stat. 691, prior to the general revi- sion of this chapter by Pub. L. 85–859. AMENDMENTS 1984—Pub. L. 98–369, § 454(c)(12)(B), substituted ‘‘closed’’ for ‘‘stamped’’ in section catchline. Page 3245 TITLE 26—INTERNAL REVENUE CODE § 5615 Subsec. (b). Pub. L. 98–369, § 454(c)(12)(A), amended subsec. (b) generally, substituting provisions relating to forfeitures of containers without closures for provi- sions relating to forfeitures of unstamped containers. 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. § 5614. Burden of proof in cases of seizure of spir- its Whenever seizure is made of any distilled spir- its found elsewhere than on the premises of a distilled spirits plant, or than in any warehouse authorized by law, or than in the store or place of business of a wholesale liquor dealer, or than in transit from any one of said places; or of any distilled spirits found in any one of the places aforesaid, or in transit therefrom, which have not been received into or sent out therefrom in conformity to law, or in regard to which any of the entries required by law, or regulations issued pursuant thereto, to be made in respect of such spirits, have not been made at the time or in the manner required, or in respect to which any owner or person having possession, control, or charge of said spirits, has omitted to do any act required to be done, or has done or com- mitted any act prohibited in regard to said spir- its, the burden of proof shall be upon the claim- ant of said spirits to show that no fraud has been committed, and that all the requirements of the law in relation to the payment of the tax have been complied with. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1405.) Editorial Notes PRIOR PROVISIONS A prior section 5614, act Aug. 16, 1954, ch. 736, 68A Stat. 685, related to penalty and forfeiture for removal of spirits during prohibited hours, prior to the general revision of this chapter by Pub. L. 85–859. See sections 5687 and 7301 of this title. Provisions similar to those comprising this section were contained in prior section 5649, act Aug. 16, 1954, ch. 736, 68A Stat. 694, prior to the general revision of this chapter by Pub. L. 85–859. § 5615. Property subject to forfeiture The following property shall be forfeited to the United States: (1) Unregistered still or distilling apparatus Every still or distilling apparatus not reg- istered as required by section 5179, together with all personal property in the possession or custody or under the control of the person re- quired by section 5179 to register the still or distilling apparatus, and found in the building or in any yard or inclosure connected with the building in which such still or distilling appa- ratus is set up; and (2) Distilling apparatus removed without no- tice or set up without notice Any still, boiler, or other vessel to be used for the purpose of distilling— (A) which is removed without notice hav- ing been given when required by section 5101(a)(1), or (B) which is set up without notice having been given when required by section 5101(a)(2); and (3) Distilling without giving bond or with in- tent to defraud Whenever any person carries on the business of a distiller without having given bond as re- quired by law or gives any false, forged, or fraudulent bond; or engages in or carries on the business of a distiller with intent to de- fraud the United States of the tax on the dis- tilled spirits distilled by him, or any part thereof; or after the time fixed in the notice declaring his intention to suspend work, filed under section 5221(a), carries on the business of a distiller on the premises covered by such notice, or has mash, wort, or beer on such premises, or on any premises connected there- with, or has in his possession or under his con- trol any mash, wort, or beer, with intent to distill the same on such premises— (A) all distilled spirits or wines, and all stills or other apparatus fit or intended to be used for the distillation or rectification of spirits, or for the compounding of liquors, owned by such person, wherever found; and (B) all distilled spirits, wines, raw mate- rials for the production of distilled spirits, and personal property found in the distillery or in any building, room, yard, or inclosure connected therewith and used with or consti- tuting a part of the premises; and (C) all the right, title, and interest of such person in the lot or tract of land on which the distillery is situated; and (D) all the right, title, and interest in the lot or tract of land on which the distillery is located of every person who knowingly has suffered or permitted the business of a dis- tiller to be there carried on, or has connived at the same; and (E) all personal property owned by or in possession of any person who has permitted or suffered any building, yard, or inclosure, or any part thereof, to be used for purposes of ingress or egress to or from the distillery, which shall be found in any such building, yard, or inclosure; and (F) all the right, title, and interest of every person in any premises used for in- gress or egress to or from the distillery who knowingly has suffered or permitted such premises to be used for such ingress or egress; and (4) Unlawful production and removals from vinegar plants (A) all distilled spirits in excess of 15 percent of alcohol by volume produced on the premises of a vinegar plant; and (B) all vinegar or other fluid or other mate- rial containing a greater proportion than 2 percent of proof spirits removed from any vin- egar plant; and (5) False or omitted entries in records, returns, and reports Whenever any person required by section 5207 to keep or file any record, return, report,