§5236 — Title 26 Internal Revenue Code | U.S. Code

§5236 Discontinuance of storage facilities and transfer of distilled spirits

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter C— - Operation of Distilled Spirits Plants › Part PART II— - OPERATIONS ON BONDED PREMISES › Subpart Subpart C— - Storage › § 5236

Last updated Apr 6, 2026|Official source

Summary

When the Secretary finds bonded storage for distilled spirits unsafe or likely to cause big loss or waste, he can order that storage closed and the spirits moved to other facilities he picks. The move must happen when and under the supervision he requires, and the owner or warehouse operator must pay the costs. If they fail to move the spirits in time or to pay the costs as he decides, he may seize and sell them like property taken for unpaid taxes. Sale money pays the taxes and sale/removal costs, and any leftover is given to the owner.

Title 26, §5236

Internal Revenue Code — Source: USLM XML via OLRC

When the Secretary finds any facilities for the storage of distilled spirits on bonded premises to be unsafe or unfit for use, or the spirits contained therein subject to great loss or wastage he may require the discontinuance of the use of such facilities and require the spirits contained therein to be transferred to such other storage facilities as he may designate. Such transfer shall be made at such time and under such supervision as the Secretary may require and the expense of the transfer shall be paid by the owner or the warehouseman of the distilled spirits. Whenever the owner of such distilled spirits or the warehouseman fails to make such transfer within the time prescribed, or to pay the just and proper expense of such transfer, as ascertained and determined by the Secretary, such distilled spirits may be seized and sold by the Secretary in the same manner as goods are sold on distraint for taxes, and the proceeds of such sale shall be applied to the payment of the taxes due thereon and the cost and expenses of such sale and removal, and the balance paid over to the owner of such distilled spirits.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those comprising this section were contained in prior section 5252, act Aug. 16, 1954, ch. 736, 68A Stat. 649, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.