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§5607 Penalty and Forfeiture for Unlawful Use, Recovery, or Concealment of Denatured Distilled Spirits, or Articles

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 › § 5607

Last updated Sep 22, 2026|Official source

Summary

Makes it a crime to misuse denatured distilled spirits taken out tax-free under section 5214(a)(1). It covers four kinds of acts: using or selling them wrongfully to make medicines or flavorings, taking them out knowing they will be used as beverages, selling them or items that contain them for beverage use, or trying to recover usable alcohol from them (except as allowed in sections 5223 or 5273(c)). Punishment for each offense can be a fine up to $10,000, up to 5 years in jail, or both. The personal property used in the business and the buildings and land where the illegal acts happened will be taken by the United States.

Title 26, §5607

Internal Revenue Code, Source: USLM XML via OLRC

Any person who—

(1)uses denatured distilled spirits withdrawn free of tax under section 5214(a)(1) in the manufacture of any medicinal preparation or flavoring extract in violation of the provisions of section 5273(b)(1) or knowingly sells, or offers for sale, any such medicinal preparation or flavoring extract in violation of section 5273(b)(2); or

(2)knowingly withdraws any denatured distilled spirits free of tax under section 5214(a)(1) for beverage purposes; or

(3)knowingly sells any denatured distilled spirits withdrawn free of tax under section 5214(a)(1), or any articles containing such denatured distilled spirits, for beverage purposes; or

(4)recovers or attempts to recover by redistillation or by any other process or means (except as authorized in section 5223 or in section 5273(c)) any distilled spirits from any denatured distilled spirits withdrawn free of tax under section 5214(a)(1), or from any articles manufactured therefrom, or knowingly uses, sells, conceals, or otherwise disposes of distilled spirits so recovered or redistilled;

shall be fined not more than $10,000, or imprisoned not more than 5 years, or both, for each such offense; and all personal property used in connection with his business, together with the buildings and ground constituting the premises on which such unlawful acts are performed or permitted to be performed shall be forfeited to the United States.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5607, act Aug. 16, 1954, ch. 736, 68A Stat. 684, related to penalty for distilling on prohibited premises, prior to the general revision of this chapter by Pub. L. 85–859. See section 5505(i) and 5601(a)(6) of this title. Provisions similar to those comprising this section were contained in prior section 5647, act Aug. 16, 1954, ch. 736, 68A Stat. 693, prior to the general revision of this chapter by Pub. L. 85–859.