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CITE

    26 USC Sec. 5601                                            01/05/2009

EXPCITE

    TITLE 26 - INTERNAL REVENUE CODE
    Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
    CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
    Subchapter J - Penalties, Seizures, and Forfeitures Relating to
                    Liquors
    PART I - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO
              DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED
              PRODUCTS

HEAD

    Sec. 5601. Criminal penalties

STATUTE

    (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,(!1) 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).

SOURCE

    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1398; amended Pub. L. 94-455, title XIX, Secs. 1905(a)(22),
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1820, 1834; Pub. L. 96-39,
    title VIII, Sec. 807(a)(52), July 26, 1979, 93 Stat. 288; Pub. L.
    96-223, title II, Sec. 232(e)(2)(A), Apr. 2, 1980, 94 Stat. 280.)

PRIOR PROVISIONS

      A prior section 5601, act Aug. 16, 1954, ch. 736, 68A Stat. 683,
    consisted of provisions similar to those comprising subsec. (a)(1)
    of this section, and also related to forfeiture for possession of
    unregistered still or distilling apparatus, prior to the general
    revision of this chapter by Pub. L. 85-859. See section 5615(1) of
    this title.
      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 Pub. L. 85-859, as follows:
      Present subd. of subsec.                 Prior sections
                (a):
    --------------------------------------------------------------------
    (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
    68A Stat. 627, 640, 641, 684, 685, 689, 690, 692, 693, 695.
                                AMENDMENTS
      1980 - Subsec. (a)(15). Pub. L. 96-223 added par. (15).
      1979 - Subsec. (a)(2). Pub. L. 96-39, Sec. 807(a)(52)(A), struck
    out "distiller or rectifier" in heading and substituted "processor"
    for "rectifier" and "section 5171(c)" for "section 5171(a)" in
    text.
      Subsec. (a)(3). Pub. L. 96-39, Sec. 807(a)(52)(B), substituted
    "warehouseman, or processor" for "bonded warehouseman, rectifier,
    or bottler".
      Subsec. (a)(4). Pub. L. 96-39, Sec. 807(a)(52)(C), substituted
    "warehouseman, or processor" for "or rectifier" in heading and in
    text.
      Subsec. (a)(5). Pub. L. 96-39, Sec. 807(a)(52)(B), substituted
    "warehouseman, or processor" for "bonded warehouseman, rectifier,
    or bottler".
      Subsec. (a)(10). Pub. L. 96-39, Sec. 807(a)(52)(D), substituted
    "processing" for "rectifying or bottling" in par. (10) heading,
    "processor" for "rectifier, or a bottler of distilled spirits" in
    text preceding subpar. (A), and "processed" for "rectified or
    bottled" in subpar. (A).
      Subsec. (a)(11). Pub. L. 96-39, Sec. 807(a)(52)(E), substituted
    "or processing" for "rectification, or bottling" in heading and "or
    processes" for "rectifies, or bottles" in text.
      Subsec. (b). Pub. L. 96-39, Sec. 807(a)(52)(F), substituted
    "processor" for "rectifier".
      1976 - Subsec. (a)(7). Pub. L. 94-455, Sec. 1906(b)(13)(A),
    struck out "or his delegate" after "Secretary".
      Subsec. (b). Pub. L. 94-455, Sec. 1905(a)(22), struck out par.
    (1) relating to presumptions in the matter of unregistered stills,
    par. (3) relating to presumptions in the matter of unlawful
    production, removal, or use of material fit for production of
    distilled spirits, and par. (4) relating to presumptions in the
    matter of unlawful production of distilled spirits, and struck out
    the number designation "(2)" and heading for former par. (2),
    leaving only the text for former par. (2) relating to presumptions
    in the matter of failure or refusal of distiller or rectifier to
    give bond.
                     EFFECTIVE DATE OF 1980 AMENDMENT
      Amendment by Pub. L. 96-223 effective on first day of first
    calendar month beginning more than 60 days after Apr. 2, 1980, see
    section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date
    note under section 5181 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 section 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.
                              EFFECTIVE DATE
      Section effective July 1, 1959, see section 210(a)(1) of Pub. L.
    85-859, set out as a note under section 5001 of this title.
     PROSECUTION AND PUNISHMENT OF OFFENSES COMMITTED AND PENALTIES OR
                  FORFEITURES INCURRED; SAVINGS PROVISION
      Section 210(c) of title II of Pub. L. 85-859 provided that: "All
    offenses committed, and all penalties or forfeitures incurred,
    under any provision of law amended 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, 7272, 7301,
    7224 to 7326, 7609, 7652 and 7655 of this title, and enacting notes
    set out under this section and sections 5001, 5006, 5025, 5064,
    5175, and 5304 of this title], may be prosecuted and punished in
    the same manner and with the same effect as if this title had not
    been enacted."

FOOTNOTE

    (!1) So in original. Probably should not be capitalized.
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