26 U.S.C. § 5401: Qualifying documents

Summary

Before starting or continuing business, every brewer must file a written notice with the officer the Secretary names, using the form and information the Secretary requires to protect tax collection. When filing that notice, the brewer must also give a bond to the United States in a reasonable amount the Secretary sets. The bond must promise that the brewer will (1) pay the tax on all beer, including beer moved between breweries the brewer owns (see section 5414), (2) pay tax on beer taken free for export if it is not actually exported or returned (see section 5053(a)), and (3) follow the law about producing and selling beer honestly and without evasion. Every 4 years, or sooner if the Secretary requires, the brewer must give a new bond or a continuation certificate in the same amount; that new bond replaces earlier bonds for future liabilities. If the surety’s contract is kept in force for at least 4 years, the brewer and the surety may instead submit a signed certificate under penalty of perjury saying the bond continues, and that certificate will act as the bond. The bond rules do not apply for any period covered by section 5551(d).

Title 26, §5401

Internal Revenue Code, Source: USLM XML via OLRC

(a)Notice

Every brewer shall, before commencing or continuing business, file with the officer designated for that purpose by the Secretary a notice in writing, in such form and containing such information as the Secretary shall by regulations prescribe as necessary to protect and insure collection of the revenue.

(b)Bonds

Every brewer, on filing notice as provided by subsection (a) of his intention to commence business, shall execute a bond to the United States in such reasonable penal sum as the Secretary shall by regulation prescribe as necessary to protect and insure collection of the revenue. The bond shall be conditioned (1) that the brewer shall pay, or cause to be paid, as herein provided, the tax required by law on all beer, including all beer removed for transfer to the brewery from other breweries owned by him as provided in section 5414; (2) that he shall pay or cause to be paid the tax on all beer removed free of tax for export as provided in section 5053(a), which beer is not exported or returned to the brewery; and (3) that he shall in all respects faithfully comply, without fraud or evasion, with all requirements of law relating to the production and sale of any beer aforesaid. Once in every 4 years, or whenever required so to do by the Secretary, the brewer shall execute a new bond or a continuation certificate, in the penal sum prescribed in pursuance of this section, and conditioned as above provided, which bond or continuation certificate shall be in lieu of any former bond or bonds, or former continuation certificate or certificates, of such brewer in respect to all liabilities accruing after its approval. If the contract of surety between the brewer and the surety on an expiring bond or continuation certificate is continued in force between the parties for a succeeding period of not less than 4 years, the brewer may submit, in lieu of a new bond, a certificate executed, under penalties of perjury, by the brewer and the surety attesting to continuation of the bond, which certificate shall constitute a bond subject to all provisions of law applicable to bonds given pursuant to this section.

(c)Exception from bond requirements for certain breweries

Subsection (b) shall not apply to any taxpayer for any period described in section 5551(d).

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5401, act Aug. 16, 1954, ch. 736, 68A Stat. 674, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

2015—Subsec. (c). Pub. L. 114–113 added subsec. (c). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1971—Subsec. (b). Pub. L. 91–673 permitted bonding requirement to be satisfied by continuation of an existing bond, with such continuation being subject to Government approval in the same manner as a new bond and required that the continuation certificate be executed by both the brewer and the surety, under penalties of perjury.

Statutory Notes and Related Subsidiaries

Effective Date

of 2015 AmendmentAmendment by Pub. L. 114–113 applicable to any calendar quarters beginning more than 1 year after Dec. 18, 2015, see section 332(c) of Pub. L. 114–113, set out as a note under section 5061 of this title.

Effective Date

of 1971 AmendmentAmendment by Pub. L. 91–673 effective on first day of first calendar month which begins more than 90 days after Jan. 12, 1971, see section 5 of Pub. L. 91–673, set out as a note under section 5056 of this title.

Effective Date

Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85–859, set out as a note under section 5001 of this title.

§5401 Qualifying Documents

Summary

Title 26, §5401

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata