Title 26, Internal Revenue CodeRelease 119-102
§5365 Segregation of Operations
Title 26 › Subtitle E — Alcohol, Tobacco, and Certain Other Excise Taxes › CHAPTER 51 — DISTILLED SPIRITS, WINES, AND BEER › Subchapter F — Bonded and Taxpaid Wine Premises › PART II — OPERATIONS › § 5365
Summary
The Secretary can make rules requiring separate areas (like partitions) on premises to protect tax revenue, keep untaxed operations apart, stop substitution in sparkling-wine production, and prevent mixing standard wines with other wines.
Full Legal Text
Title 26, §5365
Internal Revenue Code, Source: USLM XML via OLRC
The Secretary may require by regulations such segregation of operations within the premises, by partitions or otherwise, as may be necessary to prevent jeopardy to the revenue, to prevent confusion between untaxpaid wine operations and such other operations as are authorized in this subchapter, to prevent substitution with respect to the several methods of producing effervescent wines, and to prevent the commingling of standard wines with other than standard wines.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 5365, act Aug. 16, 1954, ch. 736, 68A Stat. 665, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.
Amendments
1979—Pub. L. 96–39 authorized segregation of operations to prevent the commingling of standard wines with other than standard wines. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
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.
Reference
Citations & Metadata
Citation
26 U.S.C. § 5365
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102