Editorial Notes
Prior Provisions
A prior section 5001, acts Aug. 16, 1954, ch. 736, 68A Stat. 595; Mar. 30, 1955, ch. 18, § 3(a)(4), (5), 69 Stat. 14; Mar. 29, 1956, ch. 115, § 3(a)(4), (5), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85–12, § 3(a)(2), (3), 71 Stat. 9; June 30, 1958, Pub. L. 85–475, § 3(a)(2), (3), 72 Stat. 259, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859. See section 5061(d) of this title.
Amendments
2020—Subsec. (c). Pub. L. 116–260, § 106(g)(1)(A), substituted “Reduced Rate” for “Temporary reduced rate” in heading.
Subsec. (c)(2)(D). Pub. L. 116–260, § 110(c), substituted “under a license” for “marketed under a similar brand, license” and inserted “or process” after “that produce”.
Subsec. (c)(3)(B). Pub. L. 116–260, § 106(g)(1)(B), substituted “The Secretary of the Treasury, after consultation with the Secretary of the Department of Homeland Security,” for “The Secretary” in introductory provisions.
Subsec. (c)(4). Pub. L. 116–260, § 107(a)(1), added par. (4).
Pub. L. 116–260, § 106(g)(1)(C), struck out par. (4). Text read as follows: “This subsection shall not apply to distilled spirits removed after December 31, 2020.”
Subsec. (c)(5). Pub. L. 116–260, § 109(a), added par. (5).
2019—Subsec. (c). Pub. L. 116–94, § 144(g)(2), substituted “Temporary reduced rate” for “Reduced rate for 2018 and 2019” in heading.
Subsec. (c)(4). Pub. L. 116–94, § 144(g)(1), substituted “December 31, 2020” for “December 31, 2019”.
2017—Subsec. (c). Pub. L. 115–97, § 13807(a), added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (c)(1). Pub. L. 115–97, § 13807(c)(1), inserted “but only if the importer is an electing importer under paragraph (3) and the proof gallons of distilled spirits have been assigned to the importer pursuant to such paragraph” after “into the United States during the calendar year”
Subsec. (c)(3), (4). Pub. L. 115–97, § 13807(c)(2), added par. (3) and redesignated former par. (3) as (4).
Subsec. (d). Pub. L. 115–97, § 13807(a), redesignated subsec. (c) as (d).
1994—Subsec. (a)(3) to (10). Pub. L. 103–465 redesignated pars. (4) to (10) as (3) to (9), respectively, and struck out former par. (3), “Imported perfumes containing distilled spirits”, which read as follows: “There is hereby imposed on all perfumes imported into the United States containing distilled spirits a tax of $13.50 per wine gallon, and a proportionate tax at a like rate on all fractional parts of such wine gallon.”
1990—Subsec. (a)(1), (3). Pub. L. 101–508 substituted “$13.50” for “$12.50”.
1984—Subsec. (a)(1), (3). Pub. L. 98–369 substituted “$12.50” for “$10.50”.
1979—Subsec. (a)(1). Pub. L. 96–39, § 802, struck out “in bond or” after “distilled spirits” and “or wine gallon when below proof” after “each proof gallon” and substituted “a tax” for “an internal revenue tax” and “proof gallon” for “such proof or wine gallon”.
Subsec. (a)(2). Pub. L. 96–39, § 805(d), inserted “, and any alcoholic ingredient added to such products” after “has not been paid”.
1965—Subsec. (a)(1). Pub. L. 89–44 struck out last sentence which provided that the rate of tax imposed by par. (1) would be $9 on and after July 1, 1965.
Subsec. (a)(3). Pub. L. 89–44 struck out last sentence which provided that the rate of tax imposed by par. (3) would be $9 on and after July 1, 1965.
1964—Subsec. (a)(1). Pub. L. 88–348 substituted “July 1, 1965” for “July 1, 1964”.
Subsec. (a)(3). Pub. L. 88–348 substituted “July 1, 1965” for “July 1, 1964”.
1963—Subsec. (a)(1). Pub. L. 88–52, § 3(a)(4), substituted “July 1, 1964” for “July 1, 1963”.
Subsec. (a)(3). Pub. L. 88–52, § 3(a)(5), substituted “July 1, 1964” for “July 1, 1963”.
1962—Subsec. (a)(1). Pub. L. 87–508, § 3(a)(3), substituted “July 1, 1963” for “July 1, 1962”.
Subsec. (a)(3). Pub. L. 87–508, § 3(a)(4), substituted “July 1, 1963” for “July 1, 1962”.
1961—Subsec. (a)(1). Pub. L. 87–72, § 3(a)(4), substituted “July 1, 1962” for “July 1, 1961”.
Subsec. (a)(3). Pub. L. 87–72, § 3(a)(5), substituted “July 1, 1962” for “July 1, 1961”.
1960—Subsec. (a)(1). Pub. L. 86–564, § 202(a)(4), substituted “July 1, 1961” for “July 1, 1960”.
Subsec. (a)(3). Pub. L. 86–564, § 202(a)(5), substituted “July 1, 1961” for “July 1, 1960”.
1959—Subsec. (a)(1). Pub. L. 86–75, § 3(a)(2), substituted “July 1, 1960” for “July 1, 1959”.
Subsec. (a)(3). Pub. L. 86–75, § 3(a)(3), substituted “July 1, 1960” for “July 1, 1959”.
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Pub. L. 116–260, div. EE, title I, § 106(g)(2), Dec. 27, 2020, 134 Stat. 3045, provided that:
“The amendments made by this subsection [amending this section] shall apply to
distilled spirits removed after
December 31, 2020.”
Pub. L. 116–260, div. EE, title I, § 107(a)(3), Dec. 27, 2020, 134 Stat. 3046, provided that:
“The amendments made by this subsection [amending this section and
section 7652 of this title] shall apply to
distilled spirits brought into the United States and removed after
December 31, 2022.”
Pub. L. 116–260, div. EE, title I, § 109(b), Dec. 27, 2020, 134 Stat. 3049, provided that:
“The amendment made by this section [amending this section] shall apply to
distilled spirits removed after
December 31, 2021.”
Pub. L. 116–260, div. EE, title I, § 110(d), Dec. 27, 2020, 134 Stat. 3050, provided that:
“The amendments made by this section [amending this section and
section 5051 of this title] shall apply to beer, wine, and
distilled spirits removed after
December 31, 2020.”
Effective Date of 1994 Amendment
Pub. L. 103–465, title I, § 136(d), Dec. 8, 1994, 108 Stat. 4842, provided that:
“The amendments made by this section [amending this section and sections
5002,
5005,
5007,
5061,
5131,
5132,
5134, and
7652 of this title] shall take effect on
January 1, 1995.”
Effective Date of 1990 Amendment
Pub. L. 101–508, title XI, § 11201(d), Nov. 5, 1990, 104 Stat. 1388–417, provided that:
“The amendments made by this section [amending this section and sections
5010,
5041,
5051, and
5061 of this title] shall take effect on
January 1, 1991.”
Effective Date of 1984 Amendment
Pub. L. 98–369, div. A, title I, § 27(d), July 18, 1984, 98 Stat. 509, provided that:
“(1) In general.—
Except as provided in paragraph (2), the amendments made by this section [amending this section and
section 5010 of this title and enacting provisions set out as a note under this section] shall take effect on
October 1, 1985.
“(2) Electronic transfer provisions.—
The amendments made by subsection (c) [amending sections
5061 and
5703 of this title] shall apply to taxes required to be paid on or after
September 30, 1984.”
Effective Date of 1979 Amendment
Pub. L. 96–39, title VIII, § 810, July 26, 1979, 93 Stat. 292, provided that:
“The amendments made by this title [amending this section and sections
5002 to
5008,
5043,
5061,
5064,
5066,
5116,
5171 to
5173,
5175 to
5178,
5180,
5181,
5201 to
5205,
5207,
5211 to
5215,
5221 to
5223,
5231,
5232,
5235,
5241,
5273,
5291,
5301,
5352,
5361 to
5363,
5365,
5381,
5391,
5551,
5601,
5604,
5610,
5612,
5615,
5663,
5681,
5682, and
5691 of this title, repealing sections
5009,
5021 to
5026,
5081 to
5084,
5174,
5233,
5234,
5251,
5252,
5364, and
5521 to
5523 of this title, and enacting provisions set out as notes under sections
1,
5061,
5171, and
5173 of this title] shall take effect on
January 1, 1980.”
Effective Date
Pub. L. 85–859, title II, § 210(a)(1), Sept. 2, 1958, 72 Stat. 1435, provided that:
“The amendments made by sections 201 and 205 [amending this chapter and repealing acts
Mar. 3, 1877, 114,
19 Stat. 393, and Oct. 18, 1888, ch. 1194,
25 Stat. 560] shall take effect on
July 1, 1959, except that any provision having the effect of a provision contained in such amendments may be made effective at an earlier date by the promulgation of regulations by the Secretary or his delegate to effectuate such provision, in which case the effective date shall be that prescribed in such regulations. The amendments made by paragraphs (17) and (18) of section 204 [amending
section 7652 of this title] shall take effect on
July 1, 1959. Except as provided in section 206(f), all other provisions of this title [enacting sections
5849,
5854,
5855, and
7608 of this title, amending
chapter 52 of this title and sections
5801,
5811,
5814,
5821,
5843,
5848,
5851,
6071,
6207,
6422,
7214,
7272,
7301,
7324 to
7326,
7609, and
7655 of this title, and repealing former
section 5854 of this title] shall take effect on the day following the date of the enactment of this Act [
Sept. 2, 1958].”
Regulations
Pub. L. 116–260, div. EE, title I, § 107(f), Dec. 27, 2020, 134 Stat. 3048, provided that:
“The Secretary of the Treasury (or the Secretary’s delegate within the
Department of the Treasury) shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section [enacting
section 6038E of this title, amending this section and sections 5041, 5051, and 7652 of this title, and enacting provisions set out as notes under this section and sections 5041, 5051, and 6038E of this title], including regulations to require foreign producers to provide information necessary to enforce the volume limitations under sections 5001(c), 5041(c), and 5051(a) of such Code.”
Savings Provision
Pub. L. 85–859, title II, § 210(b), Sept. 2, 1958, 72 Stat. 1435, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“The amendment of any provision of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954] by this title [enacting sections
5849,
5854,
5855, and
7608 of this title, amending this chapter,
chapter 52 of this title and sections
5801,
5811,
5814,
5821,
5843,
5848,
5851,
6071,
6207,
6422,
7214,
7272,
7301,
7324 to
7326,
7609,
7652, and
7655 of this title, and enacting provisions set out as notes under this section and sections
5006,
5025,
5064,
5175,
5304, and
5601 of this title] shall not affect any act done or any right accruing or accrued, or any suit or proceeding had or commenced in any civil cause before such amendment; but all rights and liabilities under such code prior to such amendment shall continue, and may be enforced in the same manner, as if such amendment had not been made.”
References to Other Provisions of Law
Pub. L. 85–859, title II, § 210(d), Sept. 2, 1958, 72 Stat. 1435, provided that:
“For the purpose of applying any provision of this title [see Savings Provision note above] to any occurrence on or after the effective date of such provision, any reference in this title to another provision thereof shall also be deemed to be a reference to the corresponding provision of prior law, when consistent with the purpose of the provision to be applied.”
Repeal of Acts Mar. 3, 1877 and Oct. 18, 1888
Pub. L. 85–859, title II, § 205, Sept. 2, 1958, 72 Stat. 1430, repealed acts March 3, 1877, ch. 114, 19 Stat. 393 and Oct. 18, 1888, ch. 1194, 25 Stat. 560, which related to production and warehousing of fruit brandy, and are covered by this chapter. For effective date of repeal, see section 210(a)(1) of Pub. L. 85–859, set out as an Effective Date note above.
Administration of Refunds
Pub. L. 116–260, div. EE, title I, § 107(e), Dec. 27, 2020, 134 Stat. 3048, provided that:
“The Secretary of the Treasury (or the Secretary’s delegate within the
Department of the Treasury) shall implement and administer sections 5001(c)(4), 5041(c)(7), and 5051(a)(6) of the
Internal Revenue Code of 1986, as added by this Act [div. EE of
Pub. L. 116–260], in coordination with the
United States Customs and Border Protection of the
Department of Homeland Security.”
Floor Stocks Taxes on Distilled Spirits, Wine, and Beer
Pub. L. 101–508, title XI, § 11201(e), Nov. 5, 1990, 104 Stat. 1388–417, provided that:
“(1) Imposition of tax.—
“(A) In general.—In the case of any tax-increased article—
“(i)
on which tax was determined under part I of subchapter A of chapter 51 of the
Internal Revenue Code of 1986 or section 7652 of such Code before
January 1, 1991, and
“(ii)
which is held on such date for sale by any person,
there shall be imposed a tax at the applicable rate on each such
article.
“(B) Applicable rate.—For purposes of subparagraph (A), the applicable rate is—
“(ii)
$0.90 per
wine gallon in the case of wine described in paragraph (1), (2), (3), or (5) of section 5041(b) of such Code, and
“(iii)
$9 per barrel in the case of beer.
In the case of a fraction of a gallon or barrel, the tax imposed by subparagraph (A) shall be the same fraction as the amount of such tax imposed on a whole gallon or barrel.
“(C) Tax-increased article.—
For purposes of this subsection, the term ‘tax-increased
article’ means
distilled spirits, wine described in paragraph (1), (2), (3), or (5) of section 5041(b) of such Code, and beer.
“(2) Exception for small domestic producers.—
“(A)
In the case of wine held by the producer thereof on
January 1, 1991, if a credit would have been allowable under section 5041(c) of such Code (as added by this section) on such wine had the amendments made by subsection (b) [amending sections
5041 and
5061 of this title] applied to all wine removed during 1990 and had the wine so held been removed for consumption on
December 31, 1990, the tax imposed by paragraph (1) on such wine shall be reduced by the credit which would have been so allowable.
“(B)
In the case of beer held by the producer thereof on January 1, 1991, if the rate of the tax imposed by section 5051 of such Code would have been determined under subsection (a)(2) thereof had the beer so held been removed for consumption on December 31, 1990, the tax imposed by paragraph (1) on such beer shall not apply.
“(C)
For purposes of this paragraph, an
article shall not be treated as held by the producer if title thereto had at any time been transferred to any other person.
“(3) Exception for certain small wholesale or retail dealers.—No tax shall be imposed by paragraph (1) on tax- increased articles held on January 1, 1991, by any dealer if—
“(A)
the aggregate liquid volume of tax-increased
articles held by such dealer on such date does not exceed 500
wine gallons, and
“(B)
such dealer submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph.
“(4) Credit against tax.—Each dealer shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to—
“(B)
$270 to the extent such taxes are attributable to wine, and
“(C)
$87 to the extent such taxes are attributable to beer.
Such credit shall not exceed the amount of taxes imposed by paragraph (1) with respect to
distilled spirits, wine, or beer, as the case may be, for which the dealer is liable.
“(5) Liability for tax and method of payment.—
“(A) Liability for tax.—
A person holding any tax-increased
article on
January 1, 1991, to which the tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) Method of payment.—
The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
“(C) Time for payment.—
The tax imposed by paragraph (1) shall be paid on or before June 30, 1991.
“(6) Controlled groups.—
“(A) Corporations.—In the case of a controlled group—
“(i)
the 500
wine gallon amount specified in paragraph (3), and
“(ii)
the $240, $270, and $87 amounts specified in paragraph (4),
shall be apportioned among the dealers who are component members of such group in such manner as the Secretary shall by regulations prescribe. For purposes of the preceding sentence, the term ‘
controlled group’ has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase ‘more than 50 percent’ shall be substituted for the phrase ‘at least 80 percent’ each place it appears in such subsection.
“(B) Nonincorporated dealers under common control.—
Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of dealers under common control where 1 or more of such dealers is not a corporation.
“(7) Other laws applicable.—
“(A) In general.—
All provisions of law, including penalties, applicable to the comparable excise tax with respect to any tax-increased
article shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by the comparable excise tax.
“(B) Comparable excise tax.—For purposes of subparagraph (A), the term ‘comparable excise tax’ means—
“(ii)
the tax imposed by section 5041 of such Code in the case of wine, and
“(iii)
the tax imposed by section 5051 of such Code in the case of beer.
“(8) Definitions.—For purposes of this subsection—
“(A) In general.—
Terms used in this subsection which are also used in subchapter A of chapter 51 of such Code shall have the respective meanings such terms have in such part.
“(B) Person.—
The term ‘person’ includes any State or political subdivision thereof, or any agency or instrumentality of a State or political subdivision thereof.
“(C) Secretary.—
The term ‘Secretary’ means the Secretary of the Treasury or his delegate.
“(9) Treatment of imported perfumes containing distilled spirits.—
For purposes of this subsection, any
article described in section 5001(a)(3) of such Code shall be treated as
distilled spirits; except that the tax imposed by paragraph (1) shall be imposed on a
wine gallon basis in lieu of a
proof gallon basis. To the extent provided by regulations prescribed by the Secretary, the preceding sentence shall not apply to any
article held on
January 1, 1991, on the premises of a retail establishment.”
Floor Stocks Tax Treatment of Articles in Foreign Trade Zones
Pub. L. 101–508, title XI, § 11218, Nov. 5, 1990, 104 Stat. 1388–438, provided that:
“Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other provision of law, any article which is located in a foreign trade zone on the effective date of any increase in tax under the amendments made by this part or part I [part I (§§ 11201–11203) or part II (§§ 11211–11218) of subtitle B of title XI of Pub. L. 101–508, see Tables for classification] shall be subject to floor stocks taxes imposed by such parts if—
“(1)
internal revenue taxes have been determined, or customs duties liquidated, with respect to such
article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act [
19 U.S.C. 81c(a)], or
“(2)
such
article is held on such date under the supervision of a customs officer pursuant to the 2d proviso of such section 3(a).”
Floor Stocks Taxes on Distilled Spirits
Pub. L. 98–369, div. A, title I, § 27(b), July 18, 1984, 98 Stat. 507, as amended by Pub. L. 99–514, § 2, title XVIII, § 1801(c)(3), Oct. 22, 1986, 100 Stat. 2095, 2786, provided that:
“(1) Imposition of tax.—
On
distilled spirits on which tax was imposed under section 5001 or 7652 of the
Internal Revenue Code of 1986 [formerly I.R.C. 1954] before
October 1, 1985, and which were held on such date for sale by any person, there shall be imposed a tax at the rate of $2.00 for each
proof gallon and a proportionate tax at the like rate on all fractional parts of a
proof gallon.
“(2) Exception for certain small wholesale or retail dealers.—No tax shall be imposed by paragraph (1) on distilled spirits held on October 1, 1985, by any dealer if—
“(B)
such dealer submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph.
“(3) Credit against tax.—
Each dealer shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $800. Such credit shall not exceed the amount of taxes imposed by paragraph (1) for which the dealer is liable.
“(4) Liability for tax and method of payment.—
“(A) Liability for tax.—
A person holding
distilled spirits on
October 1, 1985, to which the tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) Method of payment.—
The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall by regulations prescribe.
“(C) Time for payment.—
“(i) In general.—
Except as provided in clause (ii), the tax imposed by paragraph (1) shall be paid on or before April 1, 1986.
“(ii) Installment payment of tax in case of small or middle-sized dealers.—In the case of any small or middle-sized dealer, the tax imposed by paragraph (1) may be paid in 3 equal installments due as follows:
“(I)
The first installment shall be paid on or before April 1, 1986.
“(II)
The second installment shall be paid on or before July 1, 1986.
“(III)
The third installment shall be paid on or before October 1, 1986.
If the taxpayer does not pay any installment under this clause on or before the date prescribed for its payment, the whole of the unpaid tax shall be paid upon notice and demand from the Secretary.
“(iii) Small or middle-sized dealer.—
For purposes of clause (ii), the term ‘small or middle-sized dealer’ means any dealer if the aggregate gross sales receipts of such dealer for its most recent taxable year ending before October 1, 1985, does not exceed $500,000.
“(5) Controlled groups.—
“(A) Controlled groups of corporations.—In the case of a controlled group—
“(i)
the 500
wine gallon amount specified in paragraph (2),
“(ii)
the $800 amount specified in paragraph (3), and
“(iii)
the $500,000 amount specified in paragraph (4)(C)(iii),
shall be apportioned among the dealers who are component members of such group in such manner as the Secretary shall by regulations prescribe. For purposes of the preceding sentence, the term ‘
controlled group’ has the meaning given to such term by subsection (a) of section 1563 of the
Internal Revenue Code of 1986; except that for such purposes the phrase ‘more than 50 percent’ shall be substituted for the phrase ‘at least 80 percent’ each place it appears in such subsection.
“(B) Nonincorporated dealers under common control.—
Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of dealers under common control where 1 or more of such dealers is not a corporation.
“(6) Other laws applicable.—
All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5001 of the
Internal Revenue Code of 1986 shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply in respect of the taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 5001.
“(7) Definitions and special rules.—For purposes of this subsection—
“(A) Dealer.—The term ‘dealer’ means—
“(ii)
any retail dealer in liquors (as defined in section 5122(a) of such Code).
“(C) Person.—
The term ‘person’ includes any State or political subdivision thereof, or any agency or instrumentality of a State or political subdivision thereof.
“(D) Secretary.—
The term ‘Secretary’ means the Secretary of the Treasury or his delegate.
“(E) Treatment of imported perfumes containing distilled spirits.—
Any
article described in section 5001(a)(3) of such Code shall be treated as
distilled spirits; except that the tax imposed by paragraph (1) shall be imposed on a
wine gallon basis in lieu of a
proof gallon basis. To the extent provided in regulations prescribed by the Secretary, the preceding sentence shall not apply to any
article held on
October 1, 1985, on the premises of a retail establishment.
“(F) Treatment of distilled spirits in foreign trade zones.—Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other provision of law, distilled spirits which are located in a foreign trade zone on October 1, 1985, shall be subject to the tax imposed by paragraph (1) and shall be treated for purposes of this subsection as held on such date for sale if—
“(i)
internal revenue taxes have been determined, or customs duties liquidated, with respect to such
distilled spirits before such date pursuant to a request made under the first proviso of section 3(a) of such Act [
19 U.S.C. 81c(a)], or
“(ii)
such
distilled spirits are held on such date under the supervision of customs pursuant to the second proviso of such section 3(a).
Under regulations prescribed by the Secretary, provisions similar to sections 5062 and 5064 of such Code shall apply to
distilled spirits with respect to which tax is imposed by paragraph (1) by reason of this subparagraph.”