§5122 — Title 26 Internal Revenue Code | U.S. Code

§5122 Recordkeeping by Retail 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 › § 5122

Last updated Apr 6, 2026|Official source

Summary

If you sell distilled spirits, wine, or beer at retail, you must keep a record book at your place of business showing all the alcohol you receive — the quantity, who it came from, and the dates — or else keep all the invoices and bills for it. When needed for law enforcement or to protect tax revenue, the Treasury can also require retail dealers by regulation to keep records of how the alcohol is disposed of. A retail dealer is someone who sells to people other than dealers. Churches, charities, fraternal groups, veterans' organizations, and similar groups selling drinks at occasional events like dances, picnics, bazaars, fairs, or festivals are "limited retail dealers" and are not covered, as long as they are not otherwise in business as a dealer.

Title 26, §5122

Internal Revenue Code — Source: USLM XML via OLRC

(a)Every retail dealer in liquors and every retail dealer in beer shall provide and keep in his place of business a record in book form of all distilled spirits, wines, and beer received, showing the quantity thereof and from whom and the dates received, or shall keep all invoices of, and bills for, all distilled spirits, wines, and beer received.

(b)When he deems it necessary for law enforcement purposes or the protection of the revenue, the Secretary may by regulations require retail dealers in liquors and retail dealers in beer to keep records of the disposition of distilled spirits, wines, or beer, in such form or manner and of such quantities as the Secretary may prescribe.

(c)For purposes of this section—

(1)The term “retail dealer in liquors” means any dealer (other than a retail dealer in beer or a limited retail dealer) who sells, or offers for sale, distilled spirits, wines, or beer, to any person other than a dealer.

(2)The term “retail dealer in beer” means any dealer (other than a limited retail dealer) who sells, or offers for sale, beer, but not distilled spirits or wines, to any person other than a dealer.

(3)The term “limited retail dealer” means any fraternal, civic, church, labor, charitable, benevolent, or ex-servicemen’s organization making sales of distilled spirits, wine or beer on the occasion of any kind of entertainment, dance, picnic, bazaar, or festival held by it, or any person making sales of distilled spirits, wine or beer to the members, guests, or patrons of bona fide fairs, reunions, picnics, carnivals, or other similar outings, if such organization or person is not otherwise engaged in business as a dealer.

(4)The term “dealer” has the meaning given such term by section 5121(c)(3).

(d)For provisions relating to the preservation and inspection of records, and entry of premises for inspection, see section 5123.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5122, added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1344; amended Pub. L. 94–455, title XIX, § 1905(a)(10), Oct. 4, 1976, 90 Stat. 1819, defined “retail dealer in liquors”, “retail dealer in beer”, and “limited retail dealer”, 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 5122, act Aug. 16, 1954, ch. 736, 68A Stat. 621, related to definition of retail dealers in liquors and beer, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

2005—Pub. L. 109–59, § 11125(b)(6)(A), (B)(i), renumbered section 5124 of this title as this section, transferred section to this subpart so as to appear after section 5121, and substituted “Recordkeeping by retail dealers” for “Records” in section catchline. Subsec. (c). Pub. L. 109–59, § 11125(b)(6)(B)(iii), added subsec. (c). Former subsec. (c) redesignated (d). Pub. L. 109–59, § 11125(b)(6)(B)(ii), substituted “section 5123” for “section 5146”. Subsec. (d). Pub. L. 109–59, § 11125(b)(6)(B)(iii), redesignated subsec. (c) as (d). 1976—Subsec. (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary” in two places.

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.