Title 26, Internal Revenue CodeRelease 119-102
§5602 Penalty for Tax Fraud by Distiller
Title 26 › Subtitle E — Alcohol, Tobacco, and Certain Other Excise Taxes › CHAPTER 51 — DISTILLED SPIRITS, WINES, AND BEER › Subchapter J — Penalties, Seizures, and Forfeitures Relating to Liquors › PART I — PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED PRODUCTS › § 5602
Summary
Distillers who cheat or try to cheat the U.S. on spirits tax face fines up to $10,000, jail up to 5 years, or both. Prosecutions can't be dropped without Attorney General's written permission.
Full Legal Text
Title 26, §5602
Internal Revenue Code, Source: USLM XML via OLRC
Whenever any person engaged in or carrying on the business of a distiller defrauds, attempts to defraud, or engages in such business with intent to defraud the United States of the tax on the spirits distilled by him, or of any part thereof, he shall be fined not more than $10,000, or imprisoned not more than 5 years, or both. No discontinuance or nolle prosequi of any prosecution under this section shall be allowed without the permission in writing of the Attorney General.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 5602, act Aug. 16, 1954, ch. 736, 68A Stat. 863, related to penalty and forfeiture for setting up still without a permit, prior to the general revision of this chapter by Pub. L. 85–859. See section 5615(2) and 5687 of this title. Provisions similar to those comprising this section were contained in prior section 5606, 5626, act Aug. 16, 1954, ch. 736, 68A Stat. 684, 688, prior to the general revision of this chapter by Pub. L. 85–859.
Reference
Citations & Metadata
Citation
26 U.S.C. § 5602
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102