Title 26 — Internal Revenue CodeRelease 119-73not60
§5056 Refund and Credit of Tax, or Relief From Liability
Title 26 › Subtitle Subtitle E— Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter 51— DISTILLED SPIRITS, WINES, AND BEER › Subchapter A— Gallonage and Occupational Taxes › Part I— GALLONAGE TAXES › Subpart D— Beer › § 5056
Summary
Lets brewers get a tax refund, a credit, or relief from owing the tax (without interest) in certain cases. If beer is sent back to the brewery or destroyed under rules set by the tax official, the brewer can get the tax back or not have to pay it. If beer is returned the amount returned can be subtracted from that day’s removals. The same relief is available if beer is lost, stolen, destroyed, or made unmarketable by fire, accident, or act of God before ownership passes to anyone, but the tax official can require a claim and proof. If the loss was by theft, the brewer must show it happened before removal and that no one connected with the brewer or carrier was involved. The rule also covers beer sent to the bonded part of a distilled spirits plant to be used in making spirits. Claims must be filed within 6 months of the return, loss, destruction, unmarketable finding, or receipt at the spirits plant. No refund or relief is allowed if the brewer was paid back by insurance or other indemnity.
Full Legal Text
Title 26, §5056
Internal Revenue Code — Source: USLM XML via OLRC
(a)Any tax paid by any brewer on beer removed for consumption or sale may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, under such regulations as the Secretary may prescribe, if such beer is returned to any brewery of the brewer or is destroyed under the supervision required by such regulations. In determining the amount of tax due on beer removed on any day, the quantity of beer returned to the same brewery from which removed shall be allowed, under such regulations as the Secretary may prescribe, as an offset against or deduction from the total quantity of beer removed from that brewery on the day of such return.
(b)Subject to regulations prescribed by the Secretary, the tax paid by any brewer on beer removed for consumption or sale may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, if such beer is lost, whether by theft or otherwise, or is destroyed or otherwise rendered unmerchantable by fire, casualty, or act of God before the transfer of title thereto to any other person. In any case in which beer is lost or destroyed, whether by theft or otherwise, the Secretary may require the brewer to file a claim for relief from the tax and submit proof as to the cause of such loss. In every case where it appears that the loss was by theft, the first sentence shall not apply unless the brewer establishes to the satisfaction of the Secretary that such theft occurred before removal from the brewery and occurred without connivance, collusion, fraud, or negligence on the part of the brewer, consignor, consignee, bailee, or carrier, or the employees or agents of any of them.
(c)Any tax paid by any brewer on beer removed for consumption or sale may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, under regulations as the Secretary may prescribe, if such beer is received on the bonded premises of a distilled spirits plant pursuant to the provisions of section 5222(b)(2), for use in the production of distilled spirits.
(d)No claim under this section shall be allowed (1) unless filed within 6 months after the date of the return, loss, destruction, rendering unmerchantable, or receipt on the bonded premises of a distilled spirits plant or (2) if the claimant was indemnified by insurance or otherwise in respect of the tax.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 5056, act Aug. 16, 1954, ch. 736, 68A Stat. 613, related to “drawback of tax” prior to the general revision of this chapter by Pub. L. 85–859. See section 5055 of this title. A prior section 5057, act Aug. 16, 1954, ch. 736, 68A Stat. 613, related to refund and credit of tax or relief from liability, prior to the general revision of this chapter by Pub. L. 85–859.
Amendments
1998—Subsecs. (a) to (c). Pub. L. 105–206 substituted “removed for consumption or sale” for “produced in the United States”. 1997—Subsec. (c). Pub. L. 105–34, § 1414(c)(1), added subsec. (c). Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 105–34 redesignated subsec. (c) as (d) and substituted “rendering unmerchantable, or receipt on the bonded premises of a distilled spirits plant” for “or rendering unmerchantable”. 1976—Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1971—Subsec. (a). Pub. L. 91–673 inserted provision permitting credit or refund of tax if the beer is returned to any brewery of the brewer who paid the tax, and provided for offset or deduction against amount of beer removed from the brewery on the day of return if the beer is returned to the same brewery from which it was withdrawn. Subsec. (b). Pub. L. 91–673 inserted provisions for credit or refund or relief from liability of tax when the beer is lost by theft or otherwise or rendered unmerchantable by fire, casualty or act of God, before the transfer of title to any other party, and required the brewer to file claim for relief from the tax and submit proof of the cause of the loss, and in the case of theft, to further prove that such theft occurred before removal from the brewery and without connivance, collusion, fraud, or negligence on the part of the brewer, consignor, consignee, bailee, or carrier, or the employees or agents of any of them. Subsec. (c). Pub. L. 91–673 substantially reenacted subsec. (c) to reflect changes in subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date
of 1998 AmendmentAmendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
Effective Date
of 1997 AmendmentAmendment by Pub. L. 105–34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after Aug. 5, 1997, see section 1414(d) of Pub. L. 105–34, set out as a note under section 5053 of this title.
Effective Date
of 1971 Amendment Pub. L. 91–673, § 5, Jan. 12, 1971, 84 Stat. 2058, provided that: “The
Amendments
made by the first four sections of this Act [enacting section 5417 of this title and amending this section and section 5052, 5053, 5401, 5402, 5411, 5412, and 5416 of this title] shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Jan. 12, 1971].”
Reference
Citations & Metadata
Citation
26 U.S.C. § 5056
Title 26 — Internal Revenue Code
Last Updated
Apr 5, 2026
Release point: 119-73not60