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Title 26 — Internal Revenue CodeRelease 119-73

§5401 Qualifying documents

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter G— - Breweries › Part PART I— - ESTABLISHMENT › § 5401

Last updated Apr 6, 2026|Official source

Summary

Brewers must file a written notice with the government official the Secretary names before they start or keep operating. The notice must give the information the Secretary requires to protect tax collection. When they file, brewers must give a bond to the United States in an amount the Secretary sets. The bond must guarantee three things: they will pay the tax on all beer (including transfers from other breweries they own), they will pay tax on beer taken out free for export if it is not actually exported or returned, and they will follow the law on making and selling beer without fraud or evasion. Every 4 years, or whenever the Secretary asks, brewers must give a new bond or a continuation certificate in the same required amount. If the brewer and the surety keep the old surety contract in force for at least 4 years, the brewer may file a sworn certificate from both that the bond continues; that certificate then counts as the bond. The bond rule does not apply during any period described in section 5551(d).

Full Legal Text

Title 26, §5401

Internal Revenue Code — Source: USLM XML via OLRC

(a)Every brewer shall, before commencing or continuing business, file with the officer designated for that purpose by the Secretary a notice in writing, in such form and containing such information as the Secretary shall by regulations prescribe as necessary to protect and insure collection of the revenue.
(b)Every brewer, on filing notice as provided by subsection (a) of his intention to commence business, shall execute a bond to the United States in such reasonable penal sum as the Secretary shall by regulation prescribe as necessary to protect and insure collection of the revenue. The bond shall be conditioned (1) that the brewer shall pay, or cause to be paid, as herein provided, the tax required by law on all beer, including all beer removed for transfer to the brewery from other breweries owned by him as provided in section 5414; (2) that he shall pay or cause to be paid the tax on all beer removed free of tax for export as provided in section 5053(a), which beer is not exported or returned to the brewery; and (3) that he shall in all respects faithfully comply, without fraud or evasion, with all requirements of law relating to the production and sale of any beer aforesaid. Once in every 4 years, or whenever required so to do by the Secretary, the brewer shall execute a new bond or a continuation certificate, in the penal sum prescribed in pursuance of this section, and conditioned as above provided, which bond or continuation certificate shall be in lieu of any former bond or bonds, or former continuation certificate or certificates, of such brewer in respect to all liabilities accruing after its approval. If the contract of surety between the brewer and the surety on an expiring bond or continuation certificate is continued in force between the parties for a succeeding period of not less than 4 years, the brewer may submit, in lieu of a new bond, a certificate executed, under penalties of perjury, by the brewer and the surety attesting to continuation of the bond, which certificate shall constitute a bond subject to all provisions of law applicable to bonds given pursuant to this section.
(c)Subsection (b) shall not apply to any taxpayer for any period described in section 5551(d).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5401, act Aug. 16, 1954, ch. 736, 68A Stat. 674, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

2015—Subsec. (c). Pub. L. 114–113 added subsec. (c). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1971—Subsec. (b). Pub. L. 91–673 permitted bonding requirement to be satisfied by continuation of an existing bond, with such continuation being subject to Government approval in the same manner as a new bond and required that the continuation certificate be executed by both the brewer and the surety, under penalties of perjury.

Statutory Notes and Related Subsidiaries

Effective Date

of 2015 AmendmentAmendment by Pub. L. 114–113 applicable to any calendar quarters beginning more than 1 year after Dec. 18, 2015, see section 332(c) of Pub. L. 114–113, set out as a note under section 5061 of this title.

Effective Date

of 1971 AmendmentAmendment by Pub. L. 91–673 effective on first day of first calendar month which begins more than 90 days after Jan. 12, 1971, see section 5 of Pub. L. 91–673, set out as a note under section 5056 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. § 5401

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73