§5674 — Title 26 Internal Revenue Code | U.S. Code

§5674 Penalty for unlawful production or removal of beer

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter J— - Penalties, Seizures, and Forfeitures Relating to Liquors › Part PART III— - PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO BEER AND BREWING › § 5674

Last updated Apr 6, 2026|Official source

Summary

Making beer or removing beer from a brewery without following the tax rules can get you a fine of up to $1,000, up to one year in jail, or both. The penalty does not apply if the beer is made in a brewery that is properly qualified under subchapter G or if it is tax‑exempt personal or family beer under section 5053(e).

Title 26, §5674

Internal Revenue Code — Source: USLM XML via OLRC

(a)Any person who brews beer or produces beer shall be fined not more than $1,000, or imprisoned not more than 1 year, or both, unless such beer is brewed or produced in a brewery qualified under subchapter G or such production is exempt from tax under section 5053(e) (relating to beer for personal or family use).

(b)Any brewer or other person who removes or in any way aids in the removal from any brewery of beer without complying with the provisions of this chapter or regulations issued pursuant thereto shall be fined not more than $1,000, or imprisoned not more than 1 year, or both.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5674, act Aug. 16, 1954, ch. 736, 68A Stat. 696, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1978—Pub. L. 95–458 substituted “production or removal” for “removal” in section catchline, redesignated existing provision as subsec. (b), and added subsec. (a).

Statutory Notes and Related Subsidiaries

Effective Date

of 1978 AmendmentAmendment by Pub. L. 95–458 effective on first day of first calendar month beginning more than 90 days after Oct. 14, 1978, see section 2(c) of Pub. L. 95–458, set out as a note under section 5042 of this title.