Title 26 — Internal Revenue CodeRelease 119-73
§5708 Losses Caused by Disaster
Title 26 › Subtitle 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
Summary
When the President declares a major disaster, the government pays back (without interest) the federal taxes and customs duties paid on tobacco products and cigarette papers and tubes that the disaster destroyed, made unsellable, or caused officials to condemn. The payment goes to the person who was holding the goods for sale when the disaster hit. You must file the claim within 6 months after the President's disaster determination and prove you were not already covered by insurance or another claim. Before paying, the IRS requires that the condemned or unmarketable goods be destroyed under its supervision, unless they were already destroyed in a way the IRS accepts.
Full Legal Text
Title 26, §5708
Internal Revenue Code — Source: USLM XML via OLRC
(a)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)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.
(c)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)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
Apr 6, 2026
Release point: 119-73