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Title 26 — Internal Revenue CodeRelease 119-73not60

§5763 Forfeitures

Title 26 › Subtitle Subtitle E— Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter 52— TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES › Subchapter G— Penalties and Forfeitures › § 5763

Last updated Apr 5, 2026|Official source

Summary

The United States can take and keep tobacco products, cigarette papers and tubes, and related items in several cases. If someone has these items after removal with the intent to cheat the United States, they can be taken. Items that are not in the required packages or do not have the required marks, labels, or notices can also be taken, unless they are sold or delivered directly to consumers from proper packages. If a qualified manufacturer, importer, or export warehouse proprietor fails to keep required records, files false records, refuses to pay taxes, tries to evade taxes, or removes taxable articles in forbidden ways, the government can take all tobacco products, papers and tubes, their packages, and the machinery, fixtures, equipment, other materials, and personal property on the business premises. If the business operates without the required bond or permit, those items and the building and land used for the business can also be taken. Property meant to be used in violating these rules, or already used that way, is taken under the procedures in section 7302.

Full Legal Text

Title 26, §5763

Internal Revenue Code — Source: USLM XML via OLRC

(a)(1)All tobacco products and cigarette papers and tubes which, after removal, are possessed with intent to defraud the United States shall be forfeited to the United States.
(2)All tobacco products and cigarette papers and tubes not in packages as required under section 5723 or which are in packages not bearing the marks, labels, and notices, as required under such section, which, after removal, are possessed otherwise than with intent to defraud the United States, shall be forfeited to the United States. This paragraph shall not apply to tobacco products or cigarette papers or tubes sold or delivered directly to consumers from proper packages.
(b)All tobacco products and cigarette papers and tubes, packages, machinery, fixtures, equipment, and all other materials and personal property on the premises of any qualified manufacturer or importer of tobacco products or cigarette papers and tubes, or export warehouse proprietor, who, with intent to defraud the United States, fails to keep or make any record, return, report, or inventory, or keeps or makes any false or fraudulent record, return, report, or inventory, required by this chapter; or refuses to pay any tax imposed by this chapter, or attempts in any manner to evade or defeat the tax or the payment thereof; or removes, contrary to any provision of this chapter, any article subject to tax under this chapter, shall be forfeited to the United States.
(c)All tobacco products, cigarette papers and tubes, machinery, fixtures, equipment, and other materials and personal property on the premises of any person engaged in business as a manufacturer or importer of tobacco products or cigarette papers and tubes, or export warehouse proprietor, without filing the bond or obtaining the permit, as required by this chapter, together with all his right, title, and interest in the building in which such business is conducted, and the lot or tract of ground on which the building is located, shall be forfeited to the United States.
(d)All property intended for use in violating the provisions of this chapter, or regulations thereunder, or which has been so used, shall be forfeited to the United States as provided in section 7302.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1997—Subsec. (b). Pub. L. 105–33 inserted “qualified importers,” after “manufacturers,” in heading and “or importer” after “manufacturer” in text. Subsec. (c). Pub. L. 105–33, § 9302(h)(2)(A), inserted “or importer” after “manufacturer”. 1976—Subsec. (a)(2). Pub. L. 94–455, § 1905(b)(7)(C)(i), substituted “and notices” for “notices, and stamps”. Subsec. (b). Pub. L. 94–455, § 1905(b)(7)(C)(ii), struck out “internal revenue stamps,” after “packages,”. 1965—Subsec. (b). Pub. L. 89–44, § 502(b)(13)(A), struck out references to tobacco materials, dealers in tobacco materials, and statements. Subsec. (c). Pub. L. 89–44, § 502(b)(13)(B), struck out references to tobacco materials and dealers in tobacco materials. 1958—Subsec. (a). Pub. L. 85–859 substituted “tobacco products and cigarette papers and tubes” for “articles” wherever appearing and inserted provisions making par. (2) inapplicable to tobacco products or cigarette papers for tubes delivered directly to consumers from proper packages. Subsecs. (b), (c). Pub. L. 85–859 included property of export warehouse proprietors. Subsec. (d). Pub. L. 85–859 included property intended for use, or used, in violating

Regulations

under this chapter.

Statutory Notes and Related Subsidiaries

Effective Date

of 1997 AmendmentAmendment by Pub. L. 105–33 applicable to articles removed, as defined in section 5702(j) of this title, after Dec. 31, 1999, with transition rule, see section 9302(i) of Pub. L. 105–33, set out as a note under section 5701 of this title.

Effective Date

of 1976 AmendmentAmendment by 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

of 1965 AmendmentAmendment by Pub. L. 89–44 applicable on and after Jan. 1, 1966, see section 701(d) of Pub. L. 89–44, set out as a note under section 5701 of this title.

Effective Date

of 1958 AmendmentAmendment by Pub. L. 85–859 effective on Sept. 3, 1958, see section 210(a)(1) of Pub. L. 85–859, set out as an

Effective Date

note under section 5001 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 5763

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60