§5414 — Title 26 Internal Revenue Code | U.S. Code

Summary

Beer can be moved from one brewery to another and mixed with beer at the receiving brewery without paying tax right away. The Secretary will make rules about how this works, what containers to use, and when the tax must be paid. This tax-free move covers three cases: breweries with the same owner, certain parent-child or commonly owned corporations, and transfers between independent breweries where the sender gives up all interest and the receiver agrees to pay the tax. The protection from tax liability starts when the beer leaves the sender’s premises or when the sender gives up interest, whichever is later.

Title 26, §5414

Internal Revenue Code — Source: USLM XML via OLRC

(a)Beer may be removed from one brewery to another brewery, without payment of tax, and may be mingled with beer at the receiving brewery, subject to such conditions, including payment of the tax, and in such containers, as the Secretary by regulations shall prescribe, which shall include—

(1)any removal from one brewery to another brewery belonging to the same brewer,

(2)any removal from a brewery owned by one corporation to a brewery owned by another corporation when—

(A)one such corporation owns the controlling interest in the other such corporation, or

(B)the controlling interest in each such corporation is owned by the same person or persons, and

(3)any removal from one brewery to another brewery when—

(A)the proprietors of transferring and receiving premises are independent of each other and neither has a proprietary interest, directly or indirectly, in the business of the other, and

(B)the transferor has divested itself of all interest in the beer so transferred and the transferee has accepted responsibility for payment of the tax.

(b)For purposes of subsection (a)(3), such relief from liability shall be effective from the time of removal from the transferor’s premises, or from the time of divestment of interest, whichever is later.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5414, act Aug. 16, 1954, ch. 736, 68A Stat. 675, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

2020—Pub. L. 116–260 amended section generally. Prior to amendment, section related to removals of beer from one brewery to another belonging to the same brewer. 2019—Subsec. (b)(3). Pub. L. 116–94 substituted “

December 31, 2020” for “

December 31, 2019”. 2017—Pub. L. 115–97 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 Amendment Pub. L. 116–260, div. EE, title I, § 106(c)(2), Dec. 27, 2020, 134 Stat. 3043, provided that: “The amendment made by this subsection [amending this section] shall apply to any calendar quarters beginning after December 31, 2020.”

Effective Date

of 2019 Amendment Pub. L. 116–94, div. Q, title I, § 144(c)(2), Dec. 20, 2019, 133 Stat. 3235, provided that: “The amendment made by this subsection [amending this section] shall apply to calendar quarters beginning after December 31, 2019.”

Effective Date

of 2017 AmendmentAmendment by Pub. L. 115–97 applicable to any calendar quarters beginning after Dec. 31, 2017, see section 13803(c) of Pub. L. 115–97, set out as a note under section 5412 of this title.

§5414 Transfer of beer between bonded facilities

Summary

Title 26, §5414

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata