§5176 — Title 26 Internal Revenue Code | U.S. Code

Summary

A distilled spirits plant must post a new bond if a surety becomes insolvent or is removed, and the Treasury can demand a new bond in any other situation that weakens the existing one. If the plant owner refuses to furnish or renew a required bond and does not immediately remove the spirits and pay the tax, the Treasury will collect the tax.

Title 26, §5176

Internal Revenue Code — Source: USLM XML via OLRC

(a)New bonds shall be required under section 5173 and 5175 in case of insolvency or removal of any surety, and may, at the discretion of the Secretary, be required in any other contingency affecting the validity or impairing the efficiency of such bond.

(b)If the proprietor of a distilled spirits plant fails or refuses to furnish a bond required under paragraph (1) of section 5173(a) or to renew the same, and neglects to immediately withdraw the spirits and pay the tax thereon, the Secretary shall proceed to collect the tax.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5176(c), act Aug. 16, 1954, ch. 736, 68A Stat. 629, consisted of provisions similar to those comprising subsec. (a) of this section, prior to the general revision of this chapter by Pub. L. 85–859. Prior section 5176(a), (b), (d), (e), related to distiller’s bond: form and approval; additional bond; exemption from survey requirements; and cross references, prior to the general revision of this chapter by Pub. L. 85–859. See section 5173(a), (b), 5174(a)(1) and 5177 of this title. Provisions similar to those comprising this section were contained in prior section 5232(c), act Aug. 16, 1954, ch. 736, 68A Stat. 643, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1979—Subsec. (a). Pub. L. 96–39, § 807(a)(16)(A), struck out “, 5174,” after “section 5173”. Subsec. (b). Pub. L. 96–39, § 807(a)(16)(A), substituted reference to paragraph (1) of section 5173(a) for reference to section 5173(c) and struck out provisions relating to failure or refusal of the proprietor of a distilled spirits plant to withdraw any spirits from storage on bonded premises before the expiration of the time limited on the bond and pay the tax thereon. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 1979 AmendmentAmendment by Pub. L. 96–39 effective Jan. 1, 1980, see section 810 of Pub. L. 96–39, set out as a note under section 5001 of this title. Continuation of Distiller’s Notice and BondAuthority to waive requirements for filing notice and executing new bond on

May 1, 1959, if distiller and surety have executed consent to continuation of the terms of existing bond to cover operations from

May 1, 1959 to

June 30, 1959, see section 210(f) of Pub. L. 85–859, set out as a note under section 5175 of this title.

§5176 New or Renewed Bonds