Subchapter J—Penalties, Seizures, and Forfeitures Relating to Liquors
Editorial Notes
Prior Provisions
A prior subchapter J consisted of parts I to V, prior to the general revision of this chapter by
Amendments
2005—
PART I—PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED PRODUCTS
Editorial Notes
Prior Provisions
A prior part I consisted of sections 5601 to 5650, prior to the general revision of this chapter by
Amendments
1984—
§5601. Criminal penalties
(a) Offenses
Any person who—
(1) Unregistered stills
has in his possession or custody, or under his control, any still or distilling apparatus set up which is not registered, as required by section 5179(a); or
(2) Failure to file application
engages in the business of a distiller or processor without having filed application for and received notice of registration, as required by section 5171(c); or
(3) False or fraudulent application
engages, or intends to engage, in the business of distiller, warehouseman, or processor of distilled spirits, and files a false or fraudulent application under section 5171; or
(4) Failure or refusal of distiller, warehouseman, or processor to give bond
carries on the business of a distiller, warehouseman, or processor without having given bond as required by law; or
(5) False, forged, or fraudulent bond
engages, or intends to engage, in the business of distiller, warehouseman, or processor of distilled spirits, and gives any false, forged, or fraudulent bond, under subchapter B; or
(6) Distilling on prohibited premises
uses, or possesses with intent to use, any still, boiler, or other utensil for the purpose of producing distilled spirits, or aids or assists therein, or causes or procures the same to be done, in any dwelling house, or in any shed, yard, or inclosure connected with such dwelling house (except as authorized under section 5178(a)(1)(C)), or on board any vessel or boat, or on any premises where beer or wine is made or produced, or where liquors of any description are retailed, or on premises where any other business is carried on (except when authorized under section 5178(b)); or
(7) Unlawful production, removal, or use of material fit for production of distilled spirits
except as otherwise provided in this chapter, makes or ferments mash, wort, or wash, fit for distillation or for the production of distilled spirits, in any building or on any premises other than the designated premises of a distilled spirits plant lawfully qualified to produce distilled spirits, or removes, without authorization by the Secretary, any mash, wort, or wash, so made or fermented, from the designated premises of such lawfully qualified plant before being distilled; or
(8) Unlawful production of distilled spirits
not being a distiller authorized by law to produce distilled spirits, produces distilled spirits by distillation or any other process from any mash, wort, wash, or other material; or
(9) Unauthorized use of distilled spirits in manufacturing processes
except as otherwise provided in this chapter, uses distilled spirits in any process of manufacture unless such spirits—
(A) have been produced in the United States by a distiller authorized by law to produce distilled spirits and withdrawn in compliance with law; or
(B) have been imported (or otherwise brought into the United States) and withdrawn in compliance with law; or
(10) Unlawful processing
engages in or carries on the business of a processor—
(A) with intent to defraud the United States of any tax on the distilled spirits processed by him; or
(B) with intent to aid, abet, or assist any person or persons in defrauding the United States of the tax on any distilled spirits; or
(11) Unlawful purchase, receipt, or processing of distilled spirits
purchases, receives, or processes any distilled spirits, knowing or having reasonable grounds to believe that any tax due on such spirits has not been paid or determined as required by law; or
(12) Unlawful removal or concealment of distilled spirits
removes, other than as authorized by law, any distilled spirits on which the tax has not been paid or determined, from the place of manufacture or storage, or from any instrument of transportation, or conceals spirits so removed; or
(13) Creation of fictitious proof
adds, or causes to be added, any ingredient or substance (other than ingredients or substances authorized by law to be added) to any distilled spirits before the tax is paid thereon, or determined as provided by law, for the purpose of creating fictitious proof; or
(14) Distilling after notice of suspension
after the time fixed in the notice given under section 5221(a) to suspend operations as a distiller, carries on the business of a distiller on the premises covered by the notice of suspension, or has mash, wort, or beer on such premises, or on any premises connected therewith, or has in his possession or under his control any mash, wort, or beer, with intent to distill the same on such premises; or
(15) Unauthorized withdrawal, use, sale, or distribution of distilled spirits for fuel use
withdraws, uses, sells, or otherwise disposes of distilled spirits produced under section 5181 for other than fuel use;
shall be fined not more than $10,000, or imprisoned not more than 5 years, or both, for each such offense.
(b) Presumptions
Whenever on trial for violation of subsection (a)(4) the defendant is shown to have been at the site or place where, and at the time when, the business of a distiller or processor was so engaged in or carried on, such presence of the defendant shall be deemed sufficient evidence to authorize conviction, unless the defendant explains such presence to the satisfaction of the jury (or of the court when tried without jury).
(Added
Editorial Notes
Prior Provisions
A prior section 5601, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising subsecs. (a)(2) to (8), (9)(A), (10) to (14) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by
| Present subd. of subsec. (a): | Prior sections |
|---|---|
| (2) | 5172, 5603. |
| (3) | 5603. |
| (4) | 5172, 5604, 5606. |
| (5) | 5604. |
| (6) | 5171, 5607. |
| (7) | 5216(a)(1), (4), 5608(a). |
| (8) | 5216(a)(1), 5608(a). |
| (9) | 5216(a)(1), 5608(a). |
| (10) | 5628, 5629. |
| (11) | 5629. |
| (12) | 5608(a), 5631, 5632, 5643, 5647. |
| (13) | 5634. |
| (14) | 5650. |
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
Amendments
2018—Subsec. (a)(15).
1980—Subsec. (a)(15).
1979—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(4).
Subsec. (a)(5).
Subsec. (a)(10).
Subsec. (a)(11).
Subsec. (b).
1976—Subsec. (a)(7).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1980 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1976 Amendment
Amendment by
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
Prosecution and Punishment of Offenses Committed and Penalties or Forfeitures Incurred; Savings Provision
§5602. Penalty for tax fraud by distiller
Whenever any person engaged in or carrying on the business of a distiller defrauds, attempts to defraud, or engages in such business with intent to defraud the United States of the tax on the spirits distilled by him, or of any part thereof, he shall be fined not more than $10,000, or imprisoned not more than 5 years, or both. No discontinuance or nolle prosequi of any prosecution under this section shall be allowed without the permission in writing of the Attorney General.
(Added
Editorial Notes
Prior Provisions
A prior section 5602, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior sections 5606, 5626, act Aug. 16, 1954, ch. 736,
§5603. Penalty relating to records, returns, and reports
(a) Fraudulent noncompliance
Any person required by this chapter (other than subchapters F and G) or regulations issued pursuant thereto to keep or file any record, return, report, summary, transcript, or other document, who, with intent to defraud 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 destroy any part of such document or any entry therein; or
(4) hinder or obstruct any internal revenue officer from inspecting any such document or taking any abstracts therefrom; or
(5) fail or refuse to preserve or produce any such document, as required by this chapter or regulations issued pursuant thereto;
or who shall, with intent to defraud the United States, cause or procure the same to be done, shall be fined not more than $10,000, or imprisoned 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, return, report, summary, transcript, or other document, who, otherwise than with intent to defraud 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 destroy any part of such document, or any entry therein, except as provided by this title or regulations 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 defraud 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
Editorial Notes
Prior Provisions
A prior section 5603, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior sections 5610, 5611, 5620, 5621, 5692, act Aug. 16, 1954, ch. 736,
Amendments
2018—
§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 container 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 distilled 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 containing 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 affixed 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 transport, or transport any empty cask or package having thereon any mark or brand required by law to be affixed to any cask or package containing 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 spirits of quantity or quality different from the spirits previously inspected,
shall be fined not more than $10,000 or imprisoned not more than 5 years, or both, for each such offense.
(b) Cross references
For provisions relating to the authority of internal revenue officers to enforce provisions of this section, see sections 5203, 5557, and 7608.
(Added
Editorial Notes
Prior Provisions
A prior section 5604, act Aug. 16, 1954, ch. 736,
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
| 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
Amendments
1984—Subsec. (a).
Subsec. (b).
1979—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(6).
Subsec. (a)(13).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
§5605. Penalty relating to return of materials used in the manufacture of distilled spirits, or from which distilled spirits may be recovered
Any person who willfully violates any provision of section 5291(a), or of any regulation issued pursuant thereto, and any officer, director, 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
Editorial Notes
Prior Provisions
A prior section 5605, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5609, act Aug. 16, 1954, ch. 736,
§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
Editorial Notes
Prior Provisions
A prior section 5606, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5641, act Aug. 16, 1954, ch. 736,
§5607. Penalty and forfeiture for unlawful use, recovery, or concealment of denatured distilled spirits, or articles
Any person who—
(1) uses denatured distilled spirits withdrawn free of tax under section 5214(a)(1) in the manufacture of any medicinal preparation or flavoring extract in violation of the provisions of section 5273(b)(1) or knowingly sells, or offers for sale, any such medicinal preparation or flavoring extract in violation of section 5273(b)(2); or
(2) knowingly withdraws any denatured distilled 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 denatured distilled spirits, for beverage purposes; or
(4) recovers or attempts to recover by redistillation or by any other process or means (except as authorized in section 5223 or in section 5273(c)) any distilled spirits from any denatured 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 distilled spirits so recovered or redistilled;
shall be fined not more than $10,000, or imprisoned 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
Editorial Notes
Prior Provisions
A prior section 5607, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5647, act Aug. 16, 1954, ch. 736,
§5608. Penalty and forfeiture for fraudulent claims for export drawback or unlawful relanding
(a) Fraudulent claim for drawback
Every person who fraudulently claims, or seeks, or obtains an allowance of drawback on any distilled spirits, or fraudulently claims any greater allowance or drawback than the tax actually paid or determined thereon, shall forfeit and pay to the Government of the United States triple the amount wrongfully and fraudulently sought to be obtained, and shall be imprisoned not more than 5 years; and every owner, agent, or master of any vessel or other person who knowingly aids or abets in the fraudulent collection or fraudulent attempts to collect any drawback upon, or knowingly aids or permits any fraudulent change in the spirits so shipped, shall be fined not more than $5,000, or imprisoned not more than 3 years, or both, and the ship or vessel on board of which such shipment was made or pretended to be made shall be forfeited to the United States, whether a conviction of the master or owner be had or otherwise, and proceedings may be had in admiralty by libel for such forfeiture.
(b) Unlawful relanding
Every person who, with intent to defraud the United States, relands within the jurisdiction of the United States any distilled spirits which have been shipped for exportation under the provisions of this chapter, or who receives such relanded distilled spirits, and every person who aids or abets in such relanding or receiving of such spirits, shall be fined not more than $5,000, or imprisoned not more than 3 years, or both; and all distilled spirits so relanded, together with the vessel from which the same were relanded within the jurisdiction of the United States, and all vessels, vehicles, or aircraft used in relanding and removing such distilled spirits, shall be forfeited to the United States.
(Added
Editorial Notes
Prior Provisions
A prior section 5608, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5648, act Aug. 16, 1954, ch. 736,
Amendments
1965—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1965 Amendment
Amendment by
§5609. Destruction of unregistered stills, distilling apparatus, equipment, and materials
(a) General
In the case of seizure elsewhere than on premises qualified under this chapter of any unregistered still, distilling or fermenting equipment or apparatus, or distilling or fermenting material, for any offense involving forfeiture of the same, where it shall be impracticable to remove the same to a place of safe storage from the place where seized, the seizing officer is authorized to destroy the same. In the case of seizure, other than on premises qualified under this chapter or in transit thereto or therefrom, of any distilled spirits on which the tax has not been paid or determined, for any offense involving forfeiture of the same, the seizing officer is authorized to destroy the distilled spirits forthwith. Any destruction under this subsection shall be in the presence of at least one credible witness. The seizing officer shall make such report of said seizure and destruction and take such samples as the Secretary may require.
(b) Claims
Within 1 year after destruction made pursuant to subsection (a) the owner of, including any person having an interest in, the property so destroyed may make application to the Secretary for reimbursement of the value of such property. If the claimant establishes to the satisfaction of the Secretary that—
(1) such property had not been used in violation of law; or
(2) any unlawful use of such property had been without his consent or knowledge,
the Secretary shall make an allowance to such claimant not exceeding the value of the property destroyed.
(Added
Editorial Notes
Prior Provisions
A prior section 5609, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5623, act Aug. 16, 1954, ch. 736,
Amendments
1976—Subsecs. (a), (b).
§5610. Disposal of forfeited equipment and material for distilling
All boilers, stills, or other vessels, tools and implements, used in distilling or processing, and forfeited under any of the provisions of this chapter, and all condemned material, together with any engine or other machinery connected therewith, and all empty barrels, and all grain or other material suitable for fermentation or distillation, shall be sold at public auction or otherwise disposed of as the court in which forfeiture was recovered shall in its discretion direct.
(Added
Editorial Notes
Prior Provisions
A prior section 5610, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5622, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Amendments
1979—
Effective Date of 1979 Amendment
Amendment by
§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 designated and appointed by the court. Funds obtained from such operation shall be impounded as the court shall direct pending such final judgment.
(Added
Statutory Notes and Related Subsidiaries
Prior Provisions
A prior section 5611, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5624, act Aug. 16, 1954, ch. 736,
§5612. Forfeiture of taxpaid distilled spirits remaining on bonded premises
(a) General
No distilled spirits on which tax has been paid or determined shall be stored or allowed to remain 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 premises in accordance with the provisions of section 5215.
(Added
Editorial Notes
Prior Provisions
A prior section 5612, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising subsec. (a) of this section were contained in prior section 5625, act Aug. 16, 1954, ch. 736,
Amendments
1979—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
Suspension of Subsection (a) 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 package 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 pursuant 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 closure 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
Editorial Notes
Prior Provisions
A prior section 5613, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior sections 5639 and 5640, act Aug. 16, 1954, ch. 736,
Amendments
1984—
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
§5614. Burden of proof in cases of seizure of spirits
Whenever seizure is made of any distilled spirits 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 committed any act prohibited in regard to said spirits, the burden of proof shall be upon the claimant 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
Editorial Notes
Prior Provisions
A prior section 5614, act Aug. 16, 1954, ch. 736,
Provisions similar to those comprising this section were contained in prior section 5649, act Aug. 16, 1954, ch. 736,
§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 registered as required by section 5179, together with all personal property in the possession or custody or under the control of the person required 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 apparatus is set up; and
(2) Distilling apparatus removed without notice 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 having 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 intent to defraud
Whenever any person carries on the business of a distiller without having given bond as required by law or gives any false, forged, or fraudulent bond; or engages in or carries on the business of a distiller with intent to defraud the United States of the tax on the distilled 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 therewith, or has in his possession or under his control 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 materials 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 constituting 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 distiller 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 ingress 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 material containing a greater proportion than 2 percent of proof spirits removed from any vinegar 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, summary, transcript, or other document, shall, with intent to defraud the United States—
(A) fail to keep any such document or to make required entries therein; or
(B) make any false entry in such document; or
(C) cancel, alter, or obliterate any part of such document, or any entry therein, or destroy any part of such document, or entry therein; or
(D) hinder or obstruct any internal revenue officer from inspecting any such document or taking any abstracts therefrom; or
(E) fail or refuse to preserve or produce any such document, as required by this chapter or regulations issued pursuant thereto; or
(F) permit any of the acts described in the preceding subparagraphs to be performed;
all interest of such person in the distilled spirits plant where such acts or omissions occur, and in the equipment thereon, and in the lot or tract of land on which such distilled spirits plant stands, and in all personal property on the premises of the distilled spirits plant where such acts or omissions occur, used in the business there carried on; and
(6) Unlawful removal of distilled spirits
All distilled spirits on which the tax has not been paid or determined which have been removed, other than as authorized by law, from the place of manufacture, storage, or instrument of transportation; and
(7) Creation of fictitious proof
All distilled spirits on which the tax has not been paid or determined as provided by law to which any ingredient or substance has been added for the purpose of creating fictitious proof.
(Added
Editorial Notes
Prior Provisions
A prior section 5615, act Aug. 16, 1954, ch. 736,
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
| Present subds.: | Prior sections |
|---|---|
| (1) | 5601. |
| (2) | 5602. |
| (3) | 5604, 5606, 5626, 5650. |
| (4) | 5608(b). |
| (5) | 5620. |
| (6) | 5631, 5632, 5643, 5647. |
| (7) | 5634. |
The prior sections, act Aug. 16, 1954, ch. 736, are set out in
A prior section 5616, act Aug. 16, 1954, ch. 736,
A prior section 5617, act Aug. 16, 1954, ch. 736,
A prior section 5618, act Aug. 16, 1954, ch. 736,
A prior section 5619, act Aug. 16, 1954, ch. 736,
A prior section 5620, act Aug. 16, 1954, ch. 736,
A prior section 5621, act Aug. 16, 1954, ch. 736,
A prior section 5622, act Aug. 16, 1954, ch. 736,
A prior section 5623, act Aug. 16, 1954, ch. 736,
A prior section 5624, act Aug. 16, 1954, ch. 736,
A prior section 5625, act Aug. 16, 1954, ch. 736,
A prior section 5626, act Aug. 16, 1954, ch. 736,
A prior section 5627, act Aug. 16, 1954, ch. 736,
A prior section 5628, act Aug. 16, 1954, ch. 736,
A prior section 5629, act Aug. 16, 1954, ch. 736,
A prior section 5630, act Aug. 16, 1954, ch. 736,
A prior section 5631, act Aug. 16, 1954, ch. 736,
A prior section 5632, act Aug. 16, 1954, ch. 736,
A prior section 5633, act Aug. 16, 1954, ch. 736,
A prior section 5634, act Aug. 16, 1954, ch. 736,
A prior section 5635, act Aug. 16, 1954, ch. 736,
A prior section 5636, act Aug. 16, 1954, ch. 736,
A prior section 5637, act Aug. 16, 1954, ch. 736,
A prior section 5638, act Aug. 16, 1954, ch. 736,
A prior section 5639, act Aug. 16, 1954, ch. 736,
A prior section 5640, act Aug. 16, 1954, ch. 736,
A prior section 5641, act Aug. 16, 1954, ch. 736,
A prior section 5642, act Aug. 16, 1954, ch. 736,
A prior section 5643, act Aug. 16, 1954, ch. 736,
A prior section 5644, act Aug. 16, 1954, ch. 736,
A prior section 5645, act Aug. 16, 1954, ch. 736,
A prior section 5646, act Aug. 16, 1954, ch. 736,
A prior section 5647, act Aug. 16, 1954, ch. 736,
A prior section 5648, act Aug. 16, 1954, ch. 736,
A prior section 5649, act Aug. 16, 1954, ch. 736,
A prior section 5650, act Aug. 16, 1954, ch. 736,
Amendments
1984—Par. (2).
1979—Par. (5).
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
PART II—PENALTY AND FORFEITURE PROVISIONS APPLICABLE TO WINE AND WINE PRODUCTION
Editorial Notes
Prior Provisions
A prior part II consisted of
§5661. Penalty and forfeiture for violation of laws and regulations relating to wine
(a) Fraudulent offenses
Whoever, with intent to defraud the United States, fails to pay any tax imposed upon wine or violates, or fails to comply with, any provision of subchapter F or subpart C of part I of subchapter A, or regulations issued pursuant thereto, or recovers or attempts to recover any spirits from wine, shall be fined not more than $5,000, or imprisoned not more than 5 years, or both, for each such offense, and all products and materials used in any such violation shall be forfeited to the United States.
(b) Other offenses
Any proprietor of premises subject to the provisions of subchapter F, or any employee or agent of such proprietor, or any other person, who otherwise than with intent to defraud the United States violates or fails to comply with any provision of subchapter F or subpart C of part I of subchapter A, or regulations issued pursuant thereto, or who aids or abets in any such violation, shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, for each such offense.
(Added
Editorial Notes
Prior Provisions
A prior section 5661, act Aug. 16, 1954, ch. 736,
Prior section 5661(a) also provided for an additional penalty "of double the tax due, to be assessed, levied and collected in the same manner as taxes are collected". See
Statutory Notes and Related Subsidiaries
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
§5662. Penalty for alteration of wine labels
Any person who, without the permission of the Secretary, so alters as to materially change the meaning of any mark, brand, or label required to appear upon any wine upon its removal from premises subject to the provisions of subchapter F, or from customs custody, or who, after such removal, represents any wine, whether in its original containers or otherwise, to be of an identity or origin other than its proper identity or origin as shown by such stamp, mark, brand, or label, or who, directly or indirectly, and whether by manner of packaging or advertising or any other form of representation, represents any still wine to be an effervescent wine or a substitute for an effervescent wine, shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, for each such offense.
(Added
Editorial Notes
Prior Provisions
A prior section 5662, act Aug. 16, 1954, ch. 736,
Amendments
1976—
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
Amendment by section 1905(b)(2)(D) of
§5663. Cross reference
For penalties of common application pertaining to liquors, including wines, see part IV.
(Added
Editorial Notes
Prior Provisions
A prior section 5663, act Aug. 16, 1954, ch. 736,
Amendments
1979—
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
PART III—PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO BEER AND BREWING
Editorial Notes
Prior Provisions
A prior part III consisted of
Amendments
1978—
1976—
§5671. Penalty and forfeiture for evasion of beer tax and fraudulent noncompliance with requirements
Whoever evades or attempts to evade any tax imposed by section 5051, or with intent to defraud the United States fails or refuses to keep and file true and accurate records and returns as required by section 5415 and regulations issued pursuant thereto, shall be fined not more than $5,000, or imprisoned not more than 5 years, or both, for each such offense, and shall forfeit all beer made by him or for him, and all the vessels, utensils, and apparatus used in making the same.
(Added
Editorial Notes
Prior Provisions
A prior section 5671, act Aug. 16, 1954, ch. 736,
Amendments
2005—
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
§5672. Penalty for failure of brewer to comply with requirements and to keep records and file returns
Every brewer who, otherwise than with intent to defraud the United States, fails or refuses to keep the records and file the returns required by section 5415 and regulations issued pursuant thereto, or refuses to permit any internal revenue officer to inspect his records in the manner provided, or violates any of the provisions of subchapter G or regulations issued pursuant thereto shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, for each such offense.
(Added
Editorial Notes
Prior Provisions
A prior section 5672, act Aug. 16, 1954, ch. 736,
§5673. Forfeiture for flagrant and willful removal of beer without taxpayment
For flagrant and willful removal of taxable beer for consumption or sale, with intent to defraud the United States of the tax thereon, all the right, title, and interest of each person who knowingly has suffered or permitted such removal, or has connived at the same, in the lands and buildings constituting the brewery shall be forfeited by a proceeding in rem in the District Court of the United States having jurisdiction thereof.
(Added
Editorial Notes
Prior Provisions
A prior section 5673, act Aug. 16, 1954, ch. 736,
§5674. Penalty for unlawful production or removal of beer
(a) Unlawful production
Any person who brews beer or produces beer shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, unless such beer is brewed or produced in a brewery qualified under subchapter G or such production is exempt from tax under section 5053(e) (relating to beer for personal or family use).
(b) Unlawful removal
Any brewer or other person who removes or in any way aids in the removal from any brewery of beer without complying with the provisions of this chapter or regulations issued pursuant thereto shall be fined not more than $1,000, or imprisoned not more than 1 year, or both.
(Added
Editorial Notes
Prior Provisions
A prior section 5674, act Aug. 16, 1954, ch. 736,
Amendments
1978—
Statutory Notes and Related Subsidiaries
Effective Date of 1978 Amendment
Amendment by
§5675. Penalty for intentional removal or defacement of brewer's marks and brands
Every person other than the owner, or his agent authorized so to do, who intentionally removes or defaces any mark, brand, or label required by section 5412 and regulations issued pursuant thereto shall be liable to a penalty of $50 for each barrel or other container from which such mark, brand, or label is so removed or defaced.
(Added
Editorial Notes
Prior Provisions
A prior section 5675, act Aug. 16, 1954, ch. 736,
[§5676. Repealed. Pub. L. 94–455, title XIX, §1905(b)(1)(A), Oct. 4, 1976, 90 Stat. 1822 ]
Section, added
A prior section 5676, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of
PART IV—PENALTY, SEIZURE, AND FORFEITURE PROVISIONS COMMON TO LIQUORS
Editorial Notes
Prior Provisions
A prior part IV consisted of
Amendments
1976—
§5681. Penalty relating to signs
(a) Failure to post required sign
Every person engaged in distilled spirits operations who fails to post the sign required by section 5180(a) shall be fined not more than $1,000, or imprisoned not more than 1 year, or both.
(b) Posting or displaying false sign
Every person, other than a distiller, warehouseman, or processor of distilled spirits who has received notice of registration of his plant under the provisions of section 5171(c), or other than a wholesale dealer in liquors who meets the requirements of section 5121(a) and section 5124 (or who is exempt from such requirements by reason of section 5121(b)), who puts up or keeps up any sign indicating that he may lawfully carry on the business of a distiller, warehouseman, or processor of distilled spirits, or wholesale dealer in liquors, as the case may be, shall be fined not more than $1,000, or imprisoned not more than 1 year, or both.
(c) Premises where no sign is placed or kept
Every person who works in any distilled spirits plant on which no sign required by section 5180(a) is placed or kept, and every person who knowingly receives at, or carries or conveys any distilled spirits to or from any such distilled spirits plant or who knowingly carries or delivers any grain, molasses, or other raw material to any distilled spirits plant on which such a sign is not placed and kept, shall forfeit all vehicles, aircraft, or vessels used in carrying or conveying such property and shall be fined not more than $1,000, or imprisoned not more than 1 year, or both.
(d) Presumption
Whenever on trial for violation of subsection (c) by working in a distilled spirits plant on which no sign required by section 5180(a) is placed or kept, the defendant is shown to have been present at such premises, such presence of the defendant shall be deemed sufficient evidence to authorize conviction, unless the defendant explains such presence to the satisfaction of the jury (or of the court when tried without jury).
(Added
Editorial Notes
Prior Provisions
A prior section 5681, act Aug. 16, 1954, ch. 736,
Amendments
2018—Subsec. (b).
1997—Subsec. (a).
Subsec. (c).
1979—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Effective Date of 1997 Amendment
Effective Date of 1979 Amendment
Amendment by
Effective Date
Section effective July 1, 1959, see section 210(a)(1) of
§5682. Penalty for breaking locks or gaining access
Every person, who destroys, breaks, injures, or tampers with any lock or seal which may be placed on any room, building, tank, vessel, or apparatus, by any authorized internal revenue officer or any approved lock or seal placed thereon by a distilled spirits plant proprietor, or who opens said lock, seal, room, building, tank, vessel, or apparatus, or in any manner gains access to the contents therein, in the absence of the proper officer, or otherwise than as authorized by law, shall be fined not more than $5,000, or imprisoned not more than 3 years, or both.
(Added
Editorial Notes
Prior Provisions
A prior section 5682, act Aug. 16, 1954, ch. 736,
Amendments
1979—
Statutory Notes and Related Subsidiaries
Effective Date of 1979 Amendment
Amendment by
§5683. Penalty and forfeiture for removal of liquors under improper brands
Whenever any person ships, transports, or removes any distilled spirits, wines, or beer, under any other than the proper name or brand known to the trade as designating the kind and quality of the contents of the casks or packages containing the same, or causes such act to be done, he shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, and shall forfeit such distilled spirits, wines, or beer, and casks or packages.
(Added
Editorial Notes
Prior Provisions
A prior section 5683, act Aug. 16, 1954, ch. 736,
§5684. Penalties relating to the payment and collection of liquor taxes
(a) Failure to pay tax
Whoever fails to pay any tax imposed by part I of subchapter A at the time prescribed shall, in addition to any other penalty provided in this title, be liable to a penalty of 5 percent of the tax due but unpaid.
(b) Applicability of section 6665
The penalties imposed by subsection (a) shall be assessed, collected, and paid in the same manner as taxes, as provided in section 6665(a).
(c) Cross references
(1) For provisions relating to interest in the case of taxes not paid when due, see section 6601.
(2) For penalty for failure to file tax return or pay tax, see section 6651.
(3) For additional penalties for failure to pay tax, see section 6653.
(4) For penalty for failure to make deposits or for overstatement of deposits, see section 6656.
(5) For penalty for attempt to evade or defeat any tax imposed by this title, see section 7201.
(6) For penalty for willful failure to file return, supply information, or pay tax, see section 7203.
(Added
Editorial Notes
Prior Provisions
A prior section 5684, act Aug. 16, 1954, ch. 736,
Amendments
1989—Subsec. (b).
1984—Subsec. (b).
1981—Subsec. (b).
Subsec. (c).
Subsec. (d).
1969—Subsec. (d)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 1989 Amendment
Amendment by
Effective Date of 1984 Amendment
Amendment by section 714(h)(1) of
Amendment by section 722(a)(5) of
Effective Date of 1981 Amendment
Amendment by section 724(b)(4) of
Effective Date of 1969 Amendment
Amendment by
§5685. Penalty and forfeiture relating to possession of devices for emitting gas, smoke, etc., explosives and firearms, when violating liquor laws
(a) Penalty for possession of devices for emitting gas, smoke, etc.
Whoever, when violating any law of the United States, or of any possession of the United States, or of the District of Columbia, in regard to the manufacture, taxation, or transportation of or traffic in distilled spirits, wines, or beer, or when aiding in any such violation, has in his possession or in his control any device capable of causing emission of gas, smoke, or fumes, and which may be used for the purpose of hindering, delaying, or preventing pursuit or capture, any explosive, or any firearm (as defined in section 5845), except a machine gun, or a shotgun having a barrel or barrels less than 18 inches in length, or a rifle having a barrel or barrels less than 16 inches in length, shall be fined not more than $5,000, or imprisoned not more than 10 years, or both, and all persons engaged in any such violation or in aiding in any such violation shall be held to be in possession or control of such device, firearm, or explosive.
(b) Penalty for possession of machine gun, etc.
Whoever, when violating any such law, has in his possession or in his control a machine gun, or any shotgun having a barrel or barrels less than 18 inches in length, or a rifle having a barrel or barrels less than 16 inches in length, shall be imprisoned not more than 20 years; and all persons engaged in any such violation or in aiding in any such violation shall be held to be in possession and control of such machine gun, shotgun, or rifle.
(c) Forfeiture of firearms, devices, etc.
Every such firearm or device for emitting gas, smoke, or fumes, and every such explosive, machine gun, shotgun, or rifle, in the possession or control of any person when violating any such law, shall be seized and shall be forfeited and disposed of in the manner provided by section 5872.
(d) Definition of machine gun
As used in this section the term "machine gun" means a machine gun as defined in section 5845(b).
(Added
Editorial Notes
Prior Provisions
A prior section 5685, act Aug. 16, 1954, ch. 736,
Amendments
1976—Subsec. (a).
Subsec. (c).
Subsec. (d).
1960—Subsecs. (a), (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1976 Amendment
Amendment by
Effective Date of 1960 Amendment
Amendment by
§5686. Penalty for having, possessing, or using liquor or property intended to be used in violating provisions of this chapter
(a) General
It shall be unlawful to have or possess any liquor or property intended for use in violating any provision of this chapter or regulations issued pursuant thereto, or which has been so used, and every person so having or possessing or using such liquor or property, shall be fined not more than $5,000, or imprisoned not more than 1 year, or both.
(b) Cross reference
For seizure and forfeiture of liquor and property had, possessed, or used in violation of subsection (a), see section 7302.
(Added
Editorial Notes
Prior Provisions
A prior section 5686, act Aug. 16, 1954, ch. 736,
Prior section 5686(a) related to offenses as to operation of industrial alcohol or denaturing plants or unlawful withdrawal of taxable alcohol. See
§5687. Penalty for offenses not specifically covered
Whoever violates any provision of this chapter or regulations issued pursuant thereto, for which a specific criminal penalty is not prescribed by this chapter, shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, for each such offense.
(Added
Editorial Notes
Prior Provisions
A prior section 5687, act Aug. 16, 1954, ch. 736,
Prior section 5687 also related to forfeitures applicable to distillers, rectifiers, and wholesale liquor dealers for offenses not specifically covered. See
Provisions similar to those comprising this section were contained in prior sections 5602, 5608(c), 5612 to 5619, 5627, 5628, 5630, 5631, 5643, 5684(a) and 5686(a), act Aug. 16, 1954, ch. 736,
§5688. Disposition and release of seized property
(a) Forfeiture
(1) Delivery
All distilled spirits, wines, and beer forfeited, summarily or by order of court, under any law of the United States, shall be delivered to the Administrator of General Services to be disposed of as hereinafter provided.
(2) Disposal
The Administrator of General Services shall dispose of all distilled spirits, wines, and beer which have been delivered to him pursuant to paragraph (1)—
(A) by delivery to such Government agencies as, in his opinion, have a need for such distilled spirits, wines, or beer for medicinal, scientific, or mechanical purposes, or for any other official purpose for which appropriated funds may be expended by a Government agency; or
(B) by gifts to such eleemosynary institutions as, in his opinion, have a need for such distilled spirits, wines, or beer for medicinal purposes; or
(C) by destruction.
(3) Limitation on disposal
Except as otherwise provided by law, no distilled spirits, wines, or beer which have been seized under any law of the United States may be disposed of in any manner whatsoever except after forfeiture and as provided in this subsection.
(4) Regulations
The Administrator of General Services is authorized to make all rules and regulations necessary to carry out the provisions of this subsection.
(5) Remission or mitigation of forfeitures
Nothing in this section shall affect the authority of the Secretary, under the customs or internal revenue laws, to remit or mitigate the forfeiture, or alleged forfeiture, of such distilled spirits, wines, or beer, or the authority of the Secretary, to compromise any civil or criminal case in respect of such distilled spirits, wines, or beer prior to commencement of suit thereon, or the authority of the Secretary to compromise any claim under the customs laws in respect to such distilled spirits, wines, or beer.
(b) Distraint or judicial process
Except as provided in section 5243, all distilled spirits sold by order of court, or under process of distraint, shall be sold subject to tax; and the purchaser shall immediately, and before he takes possession of said spirits, pay the tax thereon, pursuant to the applicable provisions of this chapter and in accordance with regulations to be prescribed by the Secretary.
(c) Release of seized vessels or vehicles by courts
Notwithstanding any provisions of law relating to the return on bond of any vessel or vehicle seized for the violation of any law of the United States, the court having jurisdiction of the subject matter may, in its discretion and upon good cause shown by the United States, refuse to order such return of any such vessel or vehicle to the claimant thereof. As used in this subsection, the word "vessel" includes every description of watercraft used, or capable of being used, as a means of transportation in water or in water and air; and the word "vehicle" includes every animal and description of carriage or other contrivance used, or capable of being used, as a means of transportation on land or through the air.
(Added
Editorial Notes
Prior Provisions
A prior section 5688, act Aug. 16, 1954, ch. 736,
Amendments
1976—Subsecs. (a)(5), (b).
[§5689. Repealed. Pub. L. 94–455, title XIX, §1905(b)(2)(E)(i), Oct. 4, 1976, 90 Stat. 1822 ]
Section, added
A prior section 5689, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of
§5690. Definition of the term "person"
The term "person", as used in this subchapter, includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.
(Added
Editorial Notes
Prior Provisions
A prior section 5690, act Aug. 16, 1954, ch. 736,
[PART V—REPEALED]
Editorial Notes
Prior Provisions
A prior part V consisted of sections 5691 to 5693, prior to the general revision of this chapter by
[§5691. Repealed. Pub. L. 109–59, title XI, §11125(b)(19)(A), Aug. 10, 2005, 119 Stat. 1956 ]
Section, added
Editorial Notes
Prior Provisions
A prior section 5691, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective July 1, 2008, but inapplicable to taxes imposed for periods before such date, see section 11125(c) of
[§5692. Repealed. Pub. L. 90–618, title II, §206(a), Oct. 22, 1968, 82 Stat. 1235 ]
Section, added
A prior section 5692, act Aug. 16, 1954, ch. 736,
A prior section 5693, act Aug. 16, 1954, ch. 736,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective Oct. 22, 1968, see section 207 of