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Title 26 — Internal Revenue CodeRelease 119-73

§5732 Payment of tax

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 52— - TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES › Subchapter Subchapter D— - Occupational Tax › § 5732

Last updated Apr 6, 2026|Official source

Summary

You must pay the special tax before you operate any trade or business that is taxed under this subchapter. The tax is fixed as of the first day of July each year or when you start the business. If set on July 1 it covers 1 year. If you start later it covers from the first day of that month through the 30th day of June and is prorated. You must file a return and pay the tax under rules the Secretary sets. After a correct return and payment are received, the Secretary will issue a stamp as proof of payment. No stamp is issued for returns that cover a past period.

Full Legal Text

Title 26, §5732

Internal Revenue Code — Source: USLM XML via OLRC

(a)No person shall be engaged in or carry on any trade or business subject to tax under this subchapter until he has paid the special tax therefor.
(b)All special taxes under this subchapter shall be imposed as of on the first day of July in each year, or on commencing any trade or business on which such tax is imposed. In the former case the tax shall be reckoned for 1 year, and in the latter case it shall be reckoned proportionately, from the first day of the month in which the liability to a special tax commenced, to and including the 30th day of June following.
(c)(1)The special taxes imposed by this subchapter shall be paid on the basis of a return under such regulations as the Secretary shall prescribe.
(2)After receiving a properly executed return and remittance of any special tax imposed by this subchapter, the Secretary shall issue to the taxpayer an appropriate stamp as a receipt denoting payment of the tax. This paragraph shall not apply in the case of a return covering liability for a past period.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5732, acts Aug. 16, 1954, ch. 736, 68A Stat. 714; Sept. 2, 1958, Pub. L. 85–859, title II, § 202, 72 Stat. 1423, required that a dealer in tobacco materials make a statement of shipments and deliveries or give an inventory upon demand, prior to repeal by Pub. L. 89–44, title V, § 502(b)(7), title VII, § 701(d), June 21, 1965, 79 Stat. 151, 157, applicable on and after Jan. 1, 1966.

Amendments

2007—Subsec. (c)(2). Pub. L. 110–172, which directed amendment of section 5732 of this title, as redesignated by Pub. L. 109–59, § 11125(b)(20)(A), by substituting “this subchapter” for “this subpart” in subsec. (c)(2) effective Dec. 29, 2007, was executed to this section to reflect the probable intent of Congress even though the redesignation of section 5142 of this title as this section was not effective until July 1, 2008. See 2005 Amendment and

Effective Date

of 2005 Amendment notes below. 2005—Pub. L. 109–59, § 11125(b)(20)(A), renumbered section 5142 of this title as this section and transferred section to this subchapter. Subsecs. (a), (b). Pub. L. 109–59, § 11125(b)(20)(B), struck out “(except the tax imposed by section 5131)” before “until he has paid” in subsec. (a) and before “shall be imposed” in subsec. (b). Pub. L. 109–59, § 11125(b)(20)(A), substituted “this subchapter” for “this part”. Subsec. (c)(1). Pub. L. 109–59, § 11125(b)(20)(A), substituted “this subchapter” for “this part”. 1976—Subsec. (c). Pub. L. 94–455 substituted provisions under which the special taxes would be paid on the basis of a return for provisions under which the special taxes were paid by stamps denoting the tax.

Statutory Notes and Related Subsidiaries

Effective Date

of 2005 AmendmentAmendment by Pub. L. 109–59 effective July 1, 2008, but inapplicable to taxes imposed for periods before such date, see section 11125(c) of Pub. L. 109–59, set out as a note under section 5002 of this title.

Effective Date

of 1976 AmendmentAmendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1905(d) of Pub. L. 94–455, set out as a note under section 5005 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 5732

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73