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Title 26 — Internal Revenue CodeRelease 119-73

§5121 Recordkeeping by wholesale dealers

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter A— - Gallonage and Occupational Taxes › Part PART II— - MISCELLANEOUS PROVISIONS › Subpart Subpart C— - Recordkeeping and Registration by Dealers › § 5121

Last updated Apr 6, 2026|Official source

Summary

Wholesale dealers who sell distilled spirits must keep a daily record of the spirits they get and the spirits they sell. A government tax official sets the form, place, and timing for those records. Dealers must send regular summaries and give extracts or copies when asked. The official can excuse a dealer from sending extracts if they are not useful for law enforcement or protecting tax revenue. Wholesale liquor and beer dealers must also keep a book, or keep all invoices, showing wines and beer they received with amounts, who they got them from, and the dates. States, local governments, the District of Columbia, and their liquor stores do not have to follow these rules if they keep records that let tax officers trace all spirits, wines, and beer and provide transcripts or copies when requested. A wholesale liquor dealer sells distilled spirits, wines, or beer to other dealers. A wholesale beer dealer sells only beer to other dealers. “Dealer” means anyone who sells or offers those beverages. Selling or offering 20 wine gallons or more to the same person at the same time is taken as evidence the seller is a wholesale dealer unless proven otherwise.

Full Legal Text

Title 26, §5121

Internal Revenue Code — Source: USLM XML via OLRC

(a)(1)Every wholesale dealer in liquors who sells distilled spirits to other dealers shall keep daily a record of distilled spirits received and disposed of by him, in such form and at such place and containing such information, and shall submit correct summaries of such records to the Secretary at such time and in such form and manner, as the Secretary shall by regulations prescribe. Such dealer shall also submit correct extracts from or copies of such records, at such time and in such form and manner as the Secretary may by regulations prescribe; however, the Secretary may on application by such dealer, in accordance with such regulations, relieve him from this requirement until further notice, whenever the Secretary deems that the submission of such extracts or copies serves no useful purpose in law enforcement or in protection of the revenue.
(2)Every wholesale dealer in liquors and every wholesale dealer in beer shall provide and keep, at such place as the Secretary shall by regulations prescribe, a record in book form of all wines and beer received, showing the quantities thereof and from whom and the dates received, or shall keep all invoices of, and bills for, all wines and beer received.
(b)The provision of subsection (a) shall not apply to a State, to a political subdivision of a State, to the District of Columbia, or to liquor stores operated by any of them, if they maintain and make available for inspection by internal revenue officers such records as will enable such officers to trace all distilled spirits, wines, and beer received, and all distilled spirits disposed of by them. Such States, subdivisions, District, or liquor stores shall, upon the request of the Secretary, furnish him such transcripts, summaries and copies of their records with respect to distilled spirits as he shall require.
(c)For purposes of this part—
(1)The term “wholesale dealer in liquors” means any dealer (other than a wholesale dealer in beer) who sells, or offers for sale, distilled spirits, wines, or beer, to another dealer.
(2)The term “wholesale dealer in beer” means any dealer who sells, or offers for sale, beer, but not distilled spirits or wines, to another dealer.
(3)The term “dealer” means any person who sells, or offers for sale, any distilled spirits, wines, or beer.
(4)The sale, or offer for sale, of distilled spirits, wines, or beer, in quantities of 20 wine gallons or more to the same person at the same time, shall be presumptive evidence that the person making such sale, or offer for sale, is engaged in or carrying on the business of a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be. Such presumption may be overcome by evidence satisfactorily showing that such sale, or offer for sale, was made to a person other than a dealer.
(d)(1)For provisions requiring proprietors of distilled spirits plants to keep records and submit reports of receipts and dispositions of distilled spirits, see section 5207.
(2)For penalty for violation of subsection (a), see section 5603.
(3)For provisions relating to the preservation and inspection of records, and entry of premises for inspection, see section 5123.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5121, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1343; amended Pub. L. 94–455, title XIX, § 1905(a)(9), (b)(3)(C), Oct. 4, 1976, 90 Stat. 1819, 1822; Pub. L. 100–203, title X, § 10512(c), Dec. 22, 1987, 101 Stat. 1330–448, related to special tax on retail dealers in liquors or beer, prior to repeal by Pub. L. 109–59, title XI, § 11125(a)(1)(D), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, effective July 1, 2008, but inapplicable to taxes imposed for periods before such date. Another prior section 5121, act Aug. 16, 1954, ch. 736, 68A Stat. 621, related to tax on retail dealers in liquors or beer, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

2007—Pub. L. 110–172, which directed amendment of this title by redesignating section 5432 as section 5121, was executed by making correction to amendment by Pub. L. 109–59, § 11125(b)(5)(B)(i). See 2005 Amendment note below. 2005—Pub. L. 109–59, § 11125(b)(5)(B)(i), which directed amendment of section 5114 of this title by substituting “§ 5432. Recordkeeping by wholesale dealers” for “§ 5114. Records” in section catchline, was executed by substituting “§ 5121. Recordkeeping by wholesale dealers” for “§ 5114. Records”, to reflect the probable intent of Congress and the subsequent amendment by Pub. L. 110–172. See 2007 Amendment note above. Pub. L. 109–59, § 11125(b)(5)(A), transferred section 5114 of this title to this subpart so as to appear after subpart analysis. Subsecs. (c), (d). Pub. L. 109–59, § 11125(b)(5)(B)(ii), added subsec. (c) and redesignated former subsec. (c) as (d). Subsec. (d)(3). Pub. L. 109–59, § 11125(b)(5)(C), substituted “section 5123” for “section 5146”. 1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing. Subsec. (b). Pub. L. 94–455, §§ 1905(c)(1), 1906(b)(13)(A), struck out “or Territory” after “a State”, “Territories” after “States,”, and “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2005 AmendmentAmendment by Pub. L. 109–59 effective July 1, 2008, but inapplicable to taxes imposed for periods before such date, see section 11125(c) of Pub. L. 109–59, set out as a note under section 5002 of this title.

Effective Date

of 1976 AmendmentAmendment by section 1905(c)(1) of 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.

Reference

Citations & Metadata

Citation

26 U.S.C. § 5121

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73