26 U.S.C. § 5043 — Collection of taxes on wines

Page 3157 TITLE 26—INTERNAL REVENUE CODE § 5043 (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 at- tained 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 Sec- retary, any scientific university, college of learning, or institution of scientific research may produce, receive, blend, treat, and store wine, without payment of tax, for experi- mental or research use but not for consump- tion (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 author- ized 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 sec- tion 5362. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1331; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95–458, § 2(a), Oct. 14, 1978, 92 Stat. 1255.) Editorial Notes PRIOR PROVISIONS A prior section 5042, act Aug. 16, 1954, ch. 736, 68A Stat. 610, consisted of provisions similar to those com- prising 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 reg- istered 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 appear- ing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–458, § 2(c), Oct. 14, 1978, 92 Stat. 1257, pro- vided 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].’’ § 5043. Collection of taxes on wines (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 bond- ed wine cellar, by the proprietor of such bond- ed 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 pro- visions of section 5362(c), the liability for payment of the tax shall become the liabil- ity of such person from the time of the re- moval of the wine from the bonded wine cel- lar, 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 pro- duced, imported, received, removed, or pos- sessed 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 lia- ble for such tax with each other as well as with any proprietor, transferee, or importer who may be liable for the tax under this sub- section. (b) Payment of tax The taxes on wines shall be paid in accordance with section 5061. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1332; amended Pub. L. 94–455, title XIX, § 1905(b)(2)(C), Oct. 4, 1976, 90 Stat. 1822; Pub. L. 96–39, title VIII, § 807(a)(8), July 26, 1979, 93 Stat. 281; Pub. L. 105–206, title VI, § 6014(b)(1), July 22, 1998, 112 Stat. 820.) Editorial Notes PRIOR PROVISIONS A prior section 5043, act Aug. 16, 1954, ch. 736, 68A Stat. 610, consisted of provisions similar to those com- prising 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 ‘‘be- tween bonded wine cellars’’ after ‘‘transfer of wine in bond’’. Page 3158 TITLE 26—INTERNAL REVENUE CODE § 5044 1976—Subsec. (b). Pub. L. 94–455 substituted ‘‘The taxes’’ for ‘‘Except as provided in subsection (a)(3), the taxes’’. Statutory Notes and Related Subsidiaries 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 sec- tion 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. § 5044. Refund of tax on wine (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 quan- tities specified in such regulations. The burden of proof in all such cases shall be on the appli- cant. (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 applica- ble to wine returned to bond under the provi- sions of this section. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1332; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105–34, title XIV, § 1416(a), (b)(2), Aug. 5, 1997, 111 Stat. 1048; Pub. L. 105–206, title VI, § 6014(b)(2), July 22, 1998, 112 Stat. 820.) Editorial Notes PRIOR PROVISIONS A prior section 5044, act Aug. 16, 1954, ch. 736, 68A Stat. 611, consisted of provisions similar to those com- prising this section, prior to the general revision of this chapter by Pub. L. 85–859. AMENDMENTS 1998—Subsec. (a). Pub. L. 105–206 substituted ‘‘re- moved from a bonded wine cellar’’ for ‘‘produced in the United States’’ in introductory provisions. 1997—Pub. L. 105–34, § 1416(b)(2), struck out ‘‘unmerchantable’’ after ‘‘tax on’’ in section catchline. Subsec. (a). Pub. L. 105–34, § 1416(a), struck out ‘‘as unmerchantable’’ after ‘‘to bond’’ in introductory pro- visions. 1976—Subsec. (a). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Statutory Notes and Related Subsidiaries 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 Pub. L. 105–34, title XIV, § 1416(c), Aug. 5, 1997, 111 Stat. 1048, 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 cal- endar quarter that begins at least 180 days after the date of the enactment of this Act [Aug. 5, 1997].’’ § 5045. Cross references For provisions relating to the establishment and operation of wineries, see subchapter F, and for penalties pertaining to wine, see subchapter J. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1333.) Editorial Notes PRIOR PROVISIONS A prior section 5045, act Aug. 16, 1954, ch. 736, 68A Stat. 611, consisted of provisions similar to those com- prising this section, prior to the general revision of this chapter by Pub. L. 85–859. SUBPART D—BEER 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 liabil- ity. Editorial Notes 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, § 201, Sept. 2, 1958, 72 Stat. 1313. § 5051. Imposition and rate of tax (a) Rate of tax (1) In general (A) Imposition of tax A tax is hereby imposed on all beer brewed or produced, and removed for consumption or sale, within the United States, or im- ported into the United States. Except as pro- vided in paragraph (2), the rate of such tax shall be—