§6423 — Title 26 Internal Revenue Code | U.S. Code

Summary

You cannot get a credit or refund for an alcohol or tobacco tax unless you can prove one of three things. You must show that you ultimately paid the tax yourself, or that you repaid the person who really bore the tax, or that the product owner gave you the money for the tax, signed a written consent letting you get the refund, and that owner also meets one of the first two proofs. The person who paid the tax must file the claim, file it on time, and send all proof with the claim. This only covers taxes that were charged or collected by mistake, illegally, without authority, wrongly, or were too high. It does not cover drawback claims or claims allowed by other laws for goods taken off the market, returned to bond, or lost or destroyed. “Alcohol or tobacco tax” means the taxes in chapters 51 and 52 (and similar past laws); “tax” also includes related penalties, additions, and interest. A claimant is treated as having paid the tax only if they did not shift that cost to someone else, there is no agreement to shift it, and if they still own the goods they agree not to shift it and may need to post a bond.

Title 26, §6423

Internal Revenue Code — Source: USLM XML via OLRC

(a)No credit or refund shall be allowed or made, in pursuance of a court decision or otherwise, of any amount paid or collected as an alcohol or tobacco tax unless the claimant establishes (under regulations prescribed by the Secretary)—

(1)that he bore the ultimate burden of the amount claimed; or

(2)that he has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount; or

(3)that (A) the owner of the commodity furnished him the amount claimed for payment of the tax, (B) he has filed with the Secretary the written consent of such owner to the allowance to the claimant of the credit or refund, and (C) such owner satisfies the requirements of paragraph (1) or (2).

(b)No credit or refund of any amount to which subsection (a) applies shall be allowed or made unless a claim therefor has been filed by the person who paid the amount claimed, and unless such claim is filed within the time prescribed by law and in accordance with regulations prescribed by the Secretary. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim.

(c)This section shall apply only if the credit or refund is claimed on the grounds that an amount of alcohol or tobacco tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This section shall not apply to—

(1)any claim for drawback, and

(2)any claim made in accordance with any law expressly providing for credit or refund where a commodity is withdrawn from the market, returned to bond, or lost or destroyed.

(d)For purposes of this section—

(1)The term “alcohol or tobacco tax” means—

(A)any tax imposed by chapter 51 (other than part II of subchapter A, relating to occupational taxes) or by chapter 52 or by any corresponding provision of prior internal revenue laws, and

(B)in the case of any commodity of a kind subject to a tax described in subparagraph (A), any tax equal to any such tax, any additional tax, or any floor stocks tax.

(2)The term “tax” includes a tax and an exaction denominated a “tax”, and any penalty, addition to tax, additional amount, or interest applicable to any such tax.

(3)The claimant shall be treated as having borne the ultimate burden of an amount of an alcohol or tobacco tax for purposes of subsection (a)(1), and the owner referred to in subsection (a)(3) shall be treated as having borne such burden for purposes of such subsection, only if—

(A)he has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person,

(B)no understanding or agreement exists for any such relief or shifting, and

(C)if he has neither sold nor contracted to sell the commodities involved in such claim, he agrees that there will be no such relief or shifting, and furnishes such bond as the Secretary may require to insure faithful compliance with his agreement.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing. Subsec. (b). Pub. L. 94–455, § 1906(a)(29)(A), among other changes, struck out provisions allowing any claimant who has on or before Apr. 30, 1958, filed a claim for any amount to which subsec. (a) applies, may file a superseding claim after Apr. 30, 1958, conforming to the requirements of this section and covering the amount claimed in such prior claim. Subsec. (c). Pub. L. 94–455, § 1906(a)(29)(B), (C), redesignated subsec. (d) as (c) and struck out par. (3) relating to any amount claimed with respect to a commodity which has been lost, where a suit or proceeding was instituted before June 15, 1957. Former subsec. (c), relating to disallowance of any suit or proceeding which was barred on Apr. 30, 1958, was struck out. Subsecs. (d), (e). Pub. L. 94–455, § 1906(a)(29)(B), (b)(13)(A), redesignated subsec. (e) as (d) and struck out “or his delegate” after “Secretary”. Former subsec. (d) redesignated (c).

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 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title.

Effective Date

Pub. L. 85–323, § 3, Feb. 11, 1958, 72 Stat. 10, provided that this section shall not apply to any credit or refund allowed or made before May 1, 1958.

§6423 Conditions to allowance in the case of alcohol and tobacco taxes

Summary

Title 26, §6423

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata