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Title 26, Internal Revenue CodeRelease 119-110

§5708 Losses Caused by Disaster

Title 26 › Subtitle E — Alcohol, Tobacco, and Certain Other Excise Taxes › CHAPTER 52 — TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES › Subchapter A — Definitions; Rate and Payment of Tax; Exemption From Tax; and Refund and Drawback of Tax › § 5708

Last updated Sep 22, 2026|Official source

Summary

When the President declares a "major disaster" under the Robert T. Stafford Act, the Secretary must pay, without interest, the federal excise taxes and any customs duties that were paid on tobacco, cigarette papers, and tubes that were removed and then lost, made unsellable, or condemned because of that disaster on or after the law’s effective date. The payment goes to the person who held those items for sale at the time of the disaster. To get payment, a claim must be filed within 6 months after the President’s disaster finding. The claimant must prove they were not already paid by insurance or otherwise for the tax and duty and that they qualify. Claims follow rules the Secretary sets. Condemned or unmarketable items must be destroyed under the Secretary’s supervision before payment unless already destroyed under acceptable supervision. Other tax laws, including penalties, apply to these payments as if they were tax refunds unless they conflict with this rule.

Full Legal Text

Title 26, §5708

Internal Revenue Code, Source: USLM XML via OLRC

(a)Authorization
Where the President has determined under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, that a “major disaster” as defined in such Act has occurred in any part of the United States, the Secretary shall pay (without interest) an amount equal to the amount of the internal revenue taxes paid or determined and customs duties paid on tobacco products and cigarette papers and tubes removed, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of such disaster occurring in such part of the United States on and after the effective date of this section, if such tobacco products or cigarette papers or tubes were held and intended for sale at the time of such disaster. The payments authorized by this section shall be made to the person holding such tobacco products or cigarette papers or tubes for sale at the time of the disaster.
(b)Claims
No claim shall be allowed under this section unless—
(1)filed within 6 months after the date on which the President makes the determination that the disaster referred to in subsection (a) has occurred; and
(2)the claimant furnishes proof to the satisfaction of the Secretary that—
(A)he was not indemnified by any valid claim of insurance or otherwise in respect of the tax, or tax and duty, on the tobacco products or cigarette papers or tubes covered by the claim, and
(B)he is entitled to payment under this section.
Claims under this section shall be filed under such regulations as the Secretary shall prescribe.
(c)Destruction of tobacco products or cigarette papers or tubes
Before the Secretary makes payment under this section in respect of the tax, or tax and duty, on the tobacco products or cigarette papers or tubes condemned by a duly authorized official or rendered unmarketable, such tobacco products or cigarette papers or tubes shall be destroyed under such supervision as the Secretary may prescribe, unless such tobacco products or cigarette papers or tubes were previously destroyed under supervision satisfactory to the Secretary.
(d)Other laws applicable
All provisions of law, including penalties, applicable in respect of internal revenue taxes on tobacco products and cigarette papers and tubes shall, insofar as applicable and not inconsistent with this section, be applied in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of such taxes.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (a), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see

Short Title

note set out under section 5121 of Title 42 and Tables.

Amendments

2004—Subsec. (a). Pub. L. 108–311 inserted “Robert T. Stafford” before “Disaster Relief and Emergency Assistance Act”. 1988—Subsec. (a). Pub. L. 100–707 substituted “and Emergency Assistance Act” for “Act of 1974”. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1974—Subsec. (a). Pub. L. 93–288 substituted “Disaster Relief Act of 1974” for “Disaster Relief Act of 1970”. 1970—Subsec. (a). Pub. L. 91–606 substituted “Disaster Relief Act of 1970” for “Act of September 30, 1950 (42 U.S.C. 1855)”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1974 AmendmentAmendment by Pub. L. 93–288 effective Apr. 1, 1974, see section 605 of Pub. L. 93–288, formerly set out as an

Effective Date

note under section 5121 of Title 42, The Public Health and Welfare.

Effective Date

of 1970 AmendmentAmendment by Pub. L. 91–606 effective Dec. 31, 1970, see section 304 of Pub. L. 91–606, set out as a note under section 165 of this title.

Effective Date

Section effective Sept. 3, 1958, see section 210(a)(1) of Pub. L. 85–859, set out as a note under section 5001 of this title. Losses of Tobacco Products Caused by Disaster Pub. L. 85–859, title II, § 209, Sept. 2, 1958, 72 Stat. 1434, authorized payments, without interest, of amounts equal to internal revenue taxes and customs duties paid by persons suffering a major disaster, pursuant to former act Sept. 30, 1950, ch. 1125, 64 Stat. 1109, for disasters occurring in the United States after Dec. 31, 1954, and before Sept. 2, 1958, in respect to tobacco products and cigarette papers and tubes; specified persons to whom the payments would be made and the procedure for allowance of claims; required the destruction of such tobacco products and cigarette papers and tubes under supervision; and made other laws applicable to such payments insofar as not inconsistent with section 209 of Pub. L. 85–859.

Reference

Citations & Metadata

Citation

26 U.S.C. § 5708

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110