Title 26 — Internal Revenue CodeRelease 119-73
§5121 Recordkeeping by Wholesale Dealers
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 II— MISCELLANEOUS PROVISIONS › Subpart C— Recordkeeping and Registration by Dealers › § 5121
Summary
Wholesale liquor dealers who sell distilled spirits to other dealers must keep a daily record of the spirits they receive and dispose of, and must send summaries of those records to the government as the rules require. Wholesale dealers in liquor or beer must also keep a book recording all wine and beer they receive — how much, from whom, and when — or keep all the invoices and bills instead. States, local governments, the District of Columbia, and their liquor stores are excused if they keep records that let revenue officers trace the products. Selling 20 wine gallons or more of spirits, wine, or beer to the same person at the same time is presumed to mean you are in business as a wholesale dealer, unless you can show the buyer was not a dealer.
Full Legal Text
Title 26, §5121
Internal Revenue Code — Source: USLM XML via OLRC
(a)(1)Every wholesale dealer in liquors who sells distilled spirits to other dealers shall keep daily a record of distilled spirits received and disposed of by him, in such form and at such place and containing such information, and shall submit correct summaries of such records to the Secretary at such time and in such form and manner, as the Secretary shall by regulations prescribe. Such dealer shall also submit correct extracts from or copies of such records, at such time and in such form and manner as the Secretary may by regulations prescribe; however, the Secretary may on application by such dealer, in accordance with such regulations, relieve him from this requirement until further notice, whenever the Secretary deems that the submission of such extracts or copies serves no useful purpose in law enforcement or in protection of the revenue.
(2)Every wholesale dealer in liquors and every wholesale dealer in beer shall provide and keep, at such place as the Secretary shall by regulations prescribe, a record in book form of all wines and beer received, showing the quantities thereof and from whom and the dates received, or shall keep all invoices of, and bills for, all wines and beer received.
(b)The provision of subsection (a) shall not apply to a State, to a political subdivision of a State, to the District of Columbia, or to liquor stores operated by any of them, if they maintain and make available for inspection by internal revenue officers such records as will enable such officers to trace all distilled spirits, wines, and beer received, and all distilled spirits disposed of by them. Such States, subdivisions, District, or liquor stores shall, upon the request of the Secretary, furnish him such transcripts, summaries and copies of their records with respect to distilled spirits as he shall require.
(c)For purposes of this part—
(1)The term “wholesale dealer in liquors” means any dealer (other than a wholesale dealer in beer) who sells, or offers for sale, distilled spirits, wines, or beer, to another dealer.
(2)The term “wholesale dealer in beer” means any dealer who sells, or offers for sale, beer, but not distilled spirits or wines, to another dealer.
(3)The term “dealer” means any person who sells, or offers for sale, any distilled spirits, wines, or beer.
(4)The sale, or offer for sale, of distilled spirits, wines, or beer, in quantities of 20 wine gallons or more to the same person at the same time, shall be presumptive evidence that the person making such sale, or offer for sale, is engaged in or carrying on the business of a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be. Such presumption may be overcome by evidence satisfactorily showing that such sale, or offer for sale, was made to a person other than a dealer.
(d)(1)For provisions requiring proprietors of distilled spirits plants to keep records and submit reports of receipts and dispositions of distilled spirits, see section 5207.
(2)For penalty for violation of subsection (a), see section 5603.
(3)For provisions relating to the preservation and inspection of records, and entry of premises for inspection, see section 5123.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 5121, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1343; amended Pub. L. 94–455, title XIX, § 1905(a)(9), (b)(3)(C), Oct. 4, 1976, 90 Stat. 1819, 1822; Pub. L. 100–203, title X, § 10512(c), Dec. 22, 1987, 101 Stat. 1330–448, related to special tax on retail dealers in liquors or beer, prior to repeal by Pub. L. 109–59, title XI, § 11125(a)(1)(D), (c), Aug. 10, 2005, 119 Stat. 1953, 1957, effective July 1, 2008, but inapplicable to taxes imposed for periods before such date. Another prior section 5121, act Aug. 16, 1954, ch. 736, 68A Stat. 621, related to tax on retail dealers in liquors or beer, prior to the general revision of this chapter by Pub. L. 85–859.
Amendments
2007—Pub. L. 110–172, which directed amendment of this title by redesignating section 5432 as section 5121, was executed by making correction to amendment by Pub. L. 109–59, § 11125(b)(5)(B)(i). See 2005 Amendment note below. 2005—Pub. L. 109–59, § 11125(b)(5)(B)(i), which directed amendment of section 5114 of this title by substituting “§ 5432. Recordkeeping by wholesale dealers” for “§ 5114. Records” in section catchline, was executed by substituting “§ 5121. Recordkeeping by wholesale dealers” for “§ 5114. Records”, to reflect the probable intent of Congress and the subsequent amendment by Pub. L. 110–172. See 2007 Amendment note above. Pub. L. 109–59, § 11125(b)(5)(A), transferred section 5114 of this title to this subpart so as to appear after subpart analysis. Subsecs. (c), (d). Pub. L. 109–59, § 11125(b)(5)(B)(ii), added subsec. (c) and redesignated former subsec. (c) as (d). Subsec. (d)(3). Pub. L. 109–59, § 11125(b)(5)(C), substituted “section 5123” for “section 5146”. 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, §§ 1905(c)(1), 1906(b)(13)(A), struck out “or Territory” after “a State”, “Territories” after “States,”, and “or his delegate” after “Secretary”.
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 section 1905(c)(1) of 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. § 5121
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73