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):
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(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.
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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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