§5751 — Title 26 Internal Revenue Code | U.S. Code

Summary

It is illegal to buy, get, have, offer for sale, sell, or otherwise deal in tobacco products or cigarette papers and tubes after they are removed if you mean to cheat the United States by handling items that were not taxed or had no tax determination as required, or that were removed tax-free under section 5704 and then used for the wrong purpose. It is also illegal, with intent to defraud, to handle such items that are not packaged or labeled as required under section 5723. Even without fraud, handling improperly packaged items is generally prohibited, but selling or delivering directly to consumers from proper packages is allowed. If you possess tobacco products or cigarette papers or tubes in violation of the tax or packaging rules described above (parts (a)(1) or (a)(2)), you must pay a tax equal to the tax that applies to those items.

Title 26, §5751

Internal Revenue Code — Source: USLM XML via OLRC

(a)No person shall—

(1)with intent to defraud the United States, purchase, receive, possess, offer for sale, or sell or otherwise dispose of, after removal, any tobacco products or cigarette papers or tubes—

(A)upon which the tax has not been paid or determined in the manner and at the time prescribed by this chapter or regulations thereunder; or

(B)which, after removal without payment of tax pursuant to section 5704, have been diverted from the applicable purpose or use specified in that section; or

(2)with intent to defraud the United States, purchase, receive, possess, offer for sale, or sell or otherwise dispose of, after removal, any tobacco products or cigarette papers or tubes, which are not put up in packages as required under section 5723 or which are put up in packages not bearing the marks, labels, and notices, as required under such section; or

(3)otherwise than with intent to defraud the United States, purchase, receive, possess, offer for sale, or sell or otherwise dispose of, after removal, any tobacco products or cigarette papers or tubes, which are not put up in packages as required under section 5723 or which are put up in packages not bearing the marks, labels, and notices, as required under such section. This paragraph shall not prevent the sale or delivery of tobacco products or cigarette papers or tubes directly to consumers from proper packages, nor apply to such articles when so sold or delivered.

(b)Any person who possesses tobacco products or cigarette papers or tubes in violation of subsection (a)(1) or (a)(2) shall be liable for a tax equal to the tax on such articles.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Subsec. (a)(2), (3). Pub. L. 94–455 substituted “and notices” for “notices, and stamps”. 1958—Pub. L. 85–859 substituted “tobacco products and cigarette papers and tubes, after removal” for “articles, after removal, not exempt from tax” in section catchline. Subsec. (a) amended generally by Pub. L. 85–859, which included within the restrictions, purchase, receipt, possession, offer for sale, or sale of other disposition of tobacco products or cigarette papers or tubes, after removal, upon which the tax has not been paid or determined, or which after removal without payment of tax have been diverted from the applicable purpose or use specified in section 5704, and to provide that par. (3) shall not prevent the delivery of tobacco products or cigarette papers or tubes directly to consumers from proper packages, nor apply to such articles when so delivered. Subsec. (b). Pub. L. 85–859 substituted “tobacco products or cigarette papers or tubes in violation of subsection (a)(1) or (a)(2) shall be liable for a tax equal to the tax on such articles” or “articles in violation of subsection (a) of this section, shall incur liability to the tax thereon in addition to the penalties prescribed elsewhere in this title”.

Statutory Notes and Related Subsidiaries

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.

Effective Date

of 1958 AmendmentAmendment by Pub. L. 85–859 effective Sept. 3, 1958, see section 210(a)(1) of Pub. L. 85–859, set out as an

Effective Date

note under section 5001 of this title.

§5751 Purchase, receipt, possession, or sale of tobacco products and cigarette papers and tubes, after removal

Summary

Title 26, §5751

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata