§5551 — Title 26 Internal Revenue Code | U.S. Code

Summary

No person or business may start or keep operating as a distiller, warehouseman, processor, brewer, or winemaker unless the required bonds for that business are approved by the Secretary of the Treasury or an official he names, except as noted below. The Secretary or his designee can reject a bond if the bond-giver, or anyone who owns, controls, or runs the business, was previously convicted in a court of (1) a fraudulent tax-related offense tied to internal revenue or customs taxes on distilled spirits, wines, or beer (including if that offense was settled by paying penalties), or (2) a felony under state, District of Columbia, or federal law that bans making, selling, importing, or transporting distilled spirits, wine, beer, or other intoxicating liquor. If a designated officer rejects a bond, the bond-giver may appeal to the Secretary or an official he names for appeals, and that decision is final. If a taxpayer is covered by subparagraph (A) of section 5061(d)(4), after applying subparagraph (B) of that section, the taxpayer does not have to provide bonds for operations or withdrawals of distilled spirits or wines for nonindustrial use or of beer during that period and is treated as if the required bond were furnished for purposes of this chapter.

Title 26, §5551

Internal Revenue Code — Source: USLM XML via OLRC

(a)Except as provided under subsection (d), no individual, firm, partnership, corporation, or association, intending to commence or to continue the business of a distiller, warehouseman, processor, brewer, or winemaker, shall commence or continue the business of a distiller, warehouseman, processor, brewer, or winemaker until all bonds in respect of such a business, required by any provision of law, have been approved by the Secretary of the Treasury or the officer designated by him.

(b)The Secretary of the Treasury or any officer designated by him may disapprove any such bond or bonds if the individual, firm, partnership, or corporation, or association giving such bond or bonds, or owning, controlling, or actively participating in the management of the business of the individual, firm, partnership, corporation, or association giving such bond or bonds, shall have been previously convicted, in a court of competent jurisdiction, of—

(1)any fraudulent noncompliance with any provision of any law of the United States, if such provision related to internal revenue or customs taxation of distilled spirits, wines, or beer, or if such an offense shall have been compromised with the individual, firm, partnership, corporation, or association on payment of penalties or otherwise, or

(2)any felony under a law of any State, or the District of Columbia, or the United States, prohibiting the manufacture, sale, importation, or transportation of distilled spirits, wine, beer, or other intoxicating liquor.

(c)In case the disapproval is by an officer designated by the Secretary of the Treasury to approve or disapprove such bonds, the individual, firm, partnership, corporation, or association giving the bond may appeal from such disapproval to the Secretary of the Treasury or an officer designated by him to hear such appeals, and the disapproval of the bond by the Secretary of the Treasury or officer designated to hear such appeals shall be final.

(d)(1)During any period to which subparagraph (A) of section 5061(d)(4) applies to a taxpayer (determined after application of subparagraph (B) thereof), such taxpayer shall not be required to furnish any bond covering operations or withdrawals of distilled spirits or wines for nonindustrial use or of beer.

(2)Any taxpayer for any period described in paragraph (1) shall be treated as if sufficient bond has been furnished for purposes of covering operations and withdrawals of distilled spirits or wines for nonindustrial use or of beer for purposes of any requirements relating to bonds under this chapter.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5551, act Aug. 16, 1954, ch. 736, 68A Stat. 680, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859. Provisions similar to those comprising subsec. (c) of this section were contained in prior section 5177(c), act Aug. 16, 1954, ch. 736, 68A Stat. 630, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

2015—Subsec. (a). Pub. L. 114–113, § 332(b)(1)(A), substituted “Except as provided under subsection (d), no individual” for “No individual”. Subsec. (d). Pub. L. 114–113, § 332(b)(1)(B), added subsec. (d). 1979—Subsec. (a). Pub. L. 96–39 substituted “warehouseman, processor” for “bonded warehouseman, rectifier” in two places. 1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(B), substituted “Secretary of the Treasury” for “Secretary”. Subsec. (b). Pub. L. 94–455, §§ 1905(c)(5), 1906(b)(13)(B), substituted “Secretary of the Treasury” for “Secretary” in provisions preceding par. (1) and struck out “Territory, or” after “State,” in par. (2). Subsec. (c). Pub. L. 94–455, § 1906(b)(13)(B), substituted “Secretary of the Treasury” for “Secretary”.

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 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.

Effective Date

of 1976 AmendmentAmendment by section 1905(c)(5) 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.

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.

§5551 General Provisions Relating to Bonds

Summary

Title 26, §5551

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Effective Date

Citations & Metadata