Title 26 — Internal Revenue CodeRelease 119-73
§5301 General
Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter E— - General Provisions Relating to Distilled Spirits › Part PART II— - REGULATION OF TRAFFIC IN CONTAINERS OF DISTILLED SPIRITS › § 5301
Summary
The Secretary of the Treasury can make rules and issue permits to protect tax revenue about containers that hold no more than 5 wine gallons and are meant for selling distilled spirits (the term "distilled spirits" is defined in section 5002(a)(8)). He can control how those containers are made, labeled, sold, held, used, and reused. He can require people who make, sell, or use them to let officials inspect, to keep records, and to file reports. If someone gives away or transfers such containers when the Secretary asks, that person must file a return showing who got them and how many, keep records for the time the Secretary requires, and let internal revenue officers inspect them during business hours. Anyone who sells distilled spirits, or their agent or employee, must not put any spirits or other substances into a bottle after the tax on its contents was fixed, and must not have or sell bottles that have been so filled or altered. Containers taken from bonded storage or customs custody when tax is determined must have a seal or closure that must be broken to open, except for bulk containers. Penalties for breaking these rules are in section 5606.
Full Legal Text
Title 26, §5301
Internal Revenue Code — Source: USLM XML via OLRC
(a)Whenever in his judgment such action is necessary to protect the revenue, the Secretary is authorized, by the regulations prescribed by him and permits issued thereunder if required by him—
(1)to regulate the kind, size, branding, marking, sale, resale, possession, use, and reuse of containers (of a capacity of not more than 5 wine gallons) designed or intended for use for the sale of distilled spirits (within the meaning of such term as it is used in section 5002(a)(8) for other than industrial use; and
(2)to require, of persons manufacturing, dealing in, or using any such containers, the submission to such inspection, the keeping of such records, and the filing of such reports as may be deemed by him reasonably necessary in connection therewith.
(b)Every person disposing of containers of the character used for the packaging of distilled spirits shall, when required by the Secretary for protection of the revenue, render a correct return, in such form and manner as the Secretary may by regulations prescribe, showing the name and address of the person to whom each disposition was made, with such details as to the quantities so disposed of or other information which the Secretary may require as to each such disposition. Every person required to render a return under this section shall keep such records as will enable such person to render a correct return. Such records shall be preserved for such period as the Secretary shall by regulations prescribe, and shall be kept available for inspection by any internal revenue officer during business hours.
(c)No person who sells, or offers for sale, distilled spirits, or agent or employee of such person, shall—
(1)place in any liquor bottle any distilled spirits whatsoever other than those contained in such bottle at the time of tax determination under the provisions of this chapter; or
(2)possess any liquor bottle in which any distilled spirits have been placed in violation of the provisions of paragraph (1); or
(3)by the addition of any substance whatsoever to any liquor bottle, in any manner alter or increase any portion of the original contents contained in such bottle at the time of tax determination under the provisions of this chapter; or
(4)possess any liquor bottle, any portion of the contents of which has been altered or increased in violation of the provisions of paragraph (3);
(d)The immediate container of distilled spirits withdrawn from bonded premises, or from customs custody, on determination of tax shall bear a closure or other device which is designed so as to require breaking in order to gain access to the contents of such container. The preceding sentence shall not apply to containers of bulk distilled spirits.
(e)For penalty for violation of this section, see section 5606.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 5301, act Aug. 16, 1954, ch. 736, 68A Stat. 654, related to establishment of industrial alcohol plants, prior to the general revision of this chapter by Pub. L. 85–859. See section 5171(a), (b)(1), 5172, 5173(a), (b) of this title. Provisions similar to those comprising subsecs. (a), (c), and (d) of this section were contained in prior section 5214, act Aug. 16, 1954, ch. 736, 68A Stat. 639, prior to the general revision of this chapter by Pub. L. 85–859. A prior section 5302, act Aug. 16, 1954, ch. 736, 68A Stat. 645, related to the establishment of industrial alcohol warehouses, prior to the general revision of this chapter by Pub. L. 85–859. See section 5171(a), (b)(1), 5172, 5173(a), (c), 5178(a)(3)(A), (B), 5201(a), and 5206(a) of this title. A prior section 5303, act Aug. 16, 1954, ch. 736, 68A Stat. 655, related to establishment of industrial alcohol denaturing plants, prior to the general revision of this chapter by Pub. L. 85–859. See section 5171(a), (b)(1), 5172, 5173(a), (c), 5178(a)(5), 5241, 5242, and 5273(b)(1), (2), (d) of this title. A prior section 5304, act Aug. 16, 1954, ch. 736, 68A Stat. 655, related to alcohol permits, prior to the general revision of this chapter by Pub. L. 85–859. See section 5171(b)(1), 5173(a), (e)(1), 5271(a) to (c), (e), (f), (h), and 5272(a) of this title. A prior section 5305, act Aug. 16, 1954, ch. 736, 68A Stat. 657, related to
Regulations
for establishing, bonding, and operations of plants and warehouses, prior to the general revision of this chapter by Pub. L. 85–859. See section 5171, 5172, 5173(a), 5178(a)(1)(A), (5), 5201(a), (b), 5207(a), (c), (d), 5211, 5223(a), 5235, 5273(b)(1), (2), (d), 5275, and 5312(b) of this title. A prior section 5306, act Aug. 16, 1954, ch. 736, 68A Stat. 657, related to exemption of industrial alcohol plants and warehouses from certain laws, prior to the general revision of this chapter by Pub. L. 85–859. See section 5025(d), (e)(1), 5173(c), 5201(a), (c), 5204(c), 5234(a)(1)(A), 5306, and 5312(c) of this title. A prior section 5307, act Aug. 16, 1954, ch. 736, 68A Stat. 657, related to production, use, or sale of alcohol, prior to the general revision of this chapter by Pub. L. 85–859. See section 5178(a)(2)(A) and 5201(a) of this title. A prior section 5308, act Aug. 16, 1954, ch. 736, 68A Stat. 657, related to transfer of alcohol to other plants or warehouses, prior to the general revision of this chapter by Pub. L. 85–859. See section 5212 and 5223(a) of this title. A prior section 5309, act Aug. 16, 1954, ch. 736, 68A Stat. 658, related to withdrawal of fermented liquors to industrial alcohol plants, prior to the general revision of this chapter by Pub. L. 85–859. See section 5222(b) of this title. A prior section 5310, act Aug. 16, 1954, ch. 736, 68A Stat. 658, related to withdrawal of alcohol free of tax, prior to the general revision of this chapter by Pub. L. 85–859. See section 5214(a), (a)(1) to (3), 5241, 5242, 5272(b), 5273(b)(1), (2), (d), and 5313 of this title.
Amendments
1984—Subsec. (c). Pub. L. 98–369, § 454(c)(9), substituted “tax determination” for “stamping” in pars. (1) and (3), and struck out “, if the liquor bottles are to be again stamped under the provisions of this chapter” after “by
Regulations
prescribe” in provisions following par. (4). Subsec. (d). Pub. L. 98–369, § 454(b), added subsec. (d) and redesignated former subsec. (d) as (e). 1979—Subsec. (a)(1). Pub. L. 96–39 substituted “section 5002(a)(8)” for “section 5002(a)(6)”. 1976—Subsecs. (a) to (c). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.
Statutory Notes and Related Subsidiaries
Effective Date
of 1984 AmendmentAmendment by Pub. L. 98–369 effective July 1, 1985, see section 456(b) of Pub. L. 98–369, set out as an
Effective Date
note under section 5101 of this title.
Effective Date
of 1979 AmendmentAmendment 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
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.
Reference
Citations & Metadata
Citation
26 U.S.C. § 5301
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73