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1513-0123 (TTB F 5100.21 and 5110.51)
26 U.S.C.
Sec. 5001. Imposition, rate, and attachment of tax
(a) Rate of tax
(1) General
There is hereby imposed on all distilled spirits produced in or
imported into the United States a tax at the rate of $13.50 on each
proof gallon and a proportionate tax at the like rate on all
fractional parts of a proof gallon.
(2) Products containing distilled spirits
All products of distillation, by whatever name known, which
contain distilled spirits, on which the tax imposed by law has not
been paid, and any alcoholic ingredient added to such products,
shall be considered and taxed as distilled spirits.
(3) Wines containing more than 24 percent alcohol by volume
Wines containing more than 24 percent of alcohol by volume shall be taxed as distilled spirits.
(4) Distilled spirits withdrawn free of tax
Any person who removes, sells, transports, or uses distilled
spirits, withdrawn free of tax under section 5214(a) or section
7510, in violation of laws or regulations now or hereafter in force
pertaining thereto, and all such distilled spirits shall be subject
to all provisions of law relating to distilled spirits subject to
tax, including those requiring payment of the tax thereon; and the
person so removing, selling, transporting, or using the distilled
spirits shall be required to pay such tax.
(5) Denatured distilled spirits or articles
Any person who produces, withdraws, sells, transports, or uses
denatured distilled spirits or articles in violation of laws or
regulations now or hereafter in force pertaining thereto, and all
such denatured distilled spirits or articles shall be subject to
all provisions of law pertaining to distilled spirits that are not
denatured, including those requiring the payment of tax thereon;
and the person so producing, withdrawing, selling, transporting, or
using the denatured distilled spirits or articles shall be required
to pay such tax.
(6) Fruit-flavor concentrates
If any volatile fruit-flavor concentrate (or any fruit mash or
juice from which such concentrate is produced) containing one-half
of 1 percent or more of alcohol by volume, which is manufactured
free from tax under section 5511, is sold, transported, or used by
any person in violation of the provisions of this chapter or
regulations promulgated thereunder, such person and such
concentrate, mash, or juice shall be subject to all provisions of
this chapter pertaining to distilled spirits and wines, including
those requiring the payment of tax thereon; and the person so
selling, transporting, or using such concentrate, mash, or juice
shall be required to pay such tax.
(7) Imported liqueurs and cordials
Imported liqueurs and cordials, or similar compounds,
containing distilled spirits, shall be taxed as distilled spirits.
(8) Imported distilled spirits withdrawn for beverage
purposes
There is hereby imposed on all imported distilled spirits
withdrawn from customs custody under section 5232 without payment
of the internal revenue tax, and thereafter withdrawn from bonded
premises for beverage purposes, an additional tax equal to the duty
which would have been paid had such spirits been imported for
beverage purposes, less the duty previously paid thereon.
(9) Alcoholic compounds from Puerto Rico
Except as provided in section 5314, upon bay rum, or any
article containing distilled spirits, brought from Puerto Rico into
the United States for consumption or sale there is hereby imposed a
tax on the spirits contained therein at the rate imposed on
distilled spirits produced in the United States.
(b) Time of attachment on distilled spirits
The tax shall attach to distilled spirits as soon as this substance
is in existence as such, whether it be subsequently separated as pure or impure spirits, or be immediately, or at any subsequent time,
transferred into any other substance, either in the process of original
production or by any subsequent process.
(c) Cross reference
For provisions relating to the tax on shipments to the
United States of taxable articles from Puerto Rico and the
Virgin Islands, see section 7652.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1314; amended Pub. L. 86-75, Sec. 3(a)(2), (3), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, Sec. 202(a)(4), (5), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, Sec. 3(a)(4), (5), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(3), (4), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(4), (5), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(4), (5), June 30, 1964, 78 Stat. 237; Pub. L. 89-44, title V, Sec. 501(a), June 21, 1965, 79 Stat. 150; Pub. L. 96-39, title VIII, Secs. 802, 805(d), July 26, 1979, 93 Stat. 273, 278; Pub. L. 98-369, div. A, title I, Sec. 27(a)(1), July 18, 1984, 98 Stat. 507; Pub. L.
101-508, title XI, Sec. 11201(a)(1), Nov. 5, 1990, 104 Stat. 1388-415;
Pub. L. 103-465, title I, Sec. 136(a), Dec. 8, 1994, 108 Stat. 4841.)
Sec. 5041. Imposition and rate of tax
(a) Imposition
There is hereby imposed on all wines (including imitation,
substandard, or artificial wine, and compounds sold as wine) having not
in excess of 24 percent of alcohol by volume, in bond in, produced in,
or imported into, the United States, taxes at the rates shown in
subsection (b), such taxes to be determined as of the time of removal
for consumption or sale. All wines containing more than 24 percent of
alcohol by volume shall be classed as distilled spirits and taxed
accordingly. Still wines shall include those wines containing not more
than 0.392 gram of carbon dioxide per hundred milliliters of wine;
except that the Secretary may by regulations prescribe such tolerances
to this maximum limitation as may be reasonably necessary in good
commercial practice.
(b) Rates of tax
(1) On still wines containing not more than 14 percent of alcohol by volume, $1.07 per wine gallon;
(2) On still wines containing more than 14 percent and not exceeding 21 percent of alcohol by volume, $1.57 per wine gallon;
(3) On still wines containing more than 21 percent and not exceeding 24 percent of alcohol by volume, $3.15 per wine gallon;
(4) On champagne and other sparkling wines, $3.40 per wine gallon;
(5) On artificially carbonated wines, $3.30 per wine gallon; and
(6) On hard cider which is a still wine derived primarily from
apples or apple concentrate and water, containing no other fruit
product, and containing at least one-half of 1 percent and less than 7
percent alcohol by volume, 22.6 cents per wine gallon.
(c) Credit for small domestic producers
(1) Allowance of credit
Except as provided in paragraph (2), in the case of a person
who produces not more than 250,000 wine gallons of wine during the
calendar year, there shall be allowed as a credit against any tax
imposed by this title (other than chapters 2, 21, and 22) of 90
cents per wine gallon on the 1st 100,000 wine gallons of wine
(other than wine described in subsection (b)(4)) which are removed
during such year for consumption or sale and which have been
produced at qualified facilities in the United States. In the case
of wine described in subsection (b)(6), the preceding sentence
shall be applied by substituting ``5.6 cents'' for ``90 cents''.
(2) Reduction in credit
The credit allowable by paragraph (1) shall be reduced (but not
below zero) by 1 percent for each 1,000 wine gallons of wine
produced in excess of 150,000 wine gallons of wine during the
calendar year.
(3) Time for determining and allowing credit
The credit allowable by paragraph (1)--
(A) shall be determined at the same time the tax is
determined under subsection (a) of this section, and
(B) shall be allowable at the time any tax described in
paragraph (1) is payable as if the credit allowable by this
subsection constituted a reduction in the rate of such tax.
(4) Controlled groups
Rules similar to rules of section 5051(a)(2)(B) shall apply for
purposes of this subsection.
(5) Denial of deduction
Any deduction under subtitle A with respect to any tax against
which a credit is allowed under this subsection shall only be for
the amount of such tax as reduced by such credit.
(6) Credit for transferee in bond
If--
(A) wine produced by any person would be eligible for any
credit under paragraph (1) if removed by such person during the
calendar year,
(B) wine produced by such person is removed during such
calendar year by any other person (hereafter in this paragraph
referred to as the ``transferee'') to whom such wine was
transferred in bond and who is liable for the tax imposed by
this section with respect to such wine, and
(C) such producer holds title to such wine at the time of
its removal and provides to the transferee such information as
is necessary to properly determine the transferee's credit
under this paragraph,
then, the transferee (and not the producer) shall be allowed the
credit under paragraph (1) which would be allowed to the producer
if the wine removed by the transferee had been removed by the
producer on that date.
(7) Regulations
The Secretary may prescribe such regulations as may be
necessary to carry out the purposes of this subsection, including
regulations--
(A) to prevent the credit provided in this subsection from
benefiting any person who produces more than 250,000 wine
gallons of wine during a calendar year, and
(B) to assure proper reduction of such credit for persons
producing more than 150,000 wine gallons of wine during a
calendar year.
(d) Wine gallon
For the purpose of this chapter, the term ``wine gallon'' means a
United States gallon of liquid measure equivalent to the volume of 231
cubic inches. On lesser quantities the tax shall be paid proportionately (fractions of less than one-tenth gallon being converted to the nearest one-tenth gallon, and five-hundredths gallon being converted to the next full one-tenth gallon).
(e) Tolerances
Where the Secretary finds that the revenue will not be endangered
thereby, he may by regulation prescribe tolerances (but not greater than \1/2\ of 1 percent) for bottles and other containers, and, if such
tolerances are prescribed, no assessment shall be made and no tax shall
be collected for any excess in any case where the contents of a bottle
or other container are within the limit of the applicable tolerance
prescribed.
(f) Illegally produced wine
Notwithstanding subsection (a), any wine produced in the United
States at any place other than the bonded premises provided for in this
chapter shall (except as provided in section 5042 in the case of tax-
free production) be subject to tax at the rate prescribed in subsection
(b) at the time of production and whether or not removed for consumption or sale.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1331; amended Pub. L. 86-75, Sec. 3(a)(5), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, Sec. 202(a)(7), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, Sec. 3(a)(7), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(6), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(7), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(7), June 30, 1964, 78 Stat. 237; Pub. L. 89-44, title V, Sec. 501(c), title VIII, Sec. 806(a), June 21, 1965, 79 Stat. 150, 162; Pub. L. 93-490,
Sec. 6(a), Oct. 26, 1974, 88 Stat. 1468; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 100-647, title VI, Sec. 6101(a), Nov. 10, 1988, 102 Stat. 3710; Pub. L. 101-508, title XI, Sec. 11201(b)(1), (2), Nov. 5, 1990, 104 Stat. 1388-415, 1388-416; Pub. L. 104-188, title I, Sec. 1702(b)(5), Aug. 20, 1996, 110 Stat. 1868; Pub. L. 105-34, title IX, Sec. 908(a), (b), Aug. 5, 1997, 111 Stat. 876; Pub. L. 105-206, title VI, Sec. 6009(a), July 22, 1998, 112 Stat. 812.)
Sec. 5051. Imposition and rate of tax
(a) Rate of tax
(1) In general
A tax is hereby imposed on all beer brewed or produced, and
removed for consumption or sale, within the United States, or
imported into the United States. Except as provided in paragraph
(2), the rate of such tax shall be $18 for every barrel containing
not more than 31 gallons and at a like rate for any other quantity
or for fractional parts of a barrel.
(2) Reduced rate for certain domestic production
(A) $7 a barrel rate
In the case of a brewer who produces not more than
2,000,000 barrels of beer during the calendar year, the per
barrel rate of the tax imposed by this section shall be $7 on
the first 60,000 barrels of beer which are removed in such year
for consumption or sale and which have been brewed or produced
by such brewer at qualified breweries in the United States.
(B) Controlled groups
In the case of a controlled group, the 2,000,000 barrel
quantity specified in subparagraph (A) shall be applied to the
controlled group, and the 60,000 barrel quantity specified in
subparagraph (A) shall be apportioned among the brewers who are
component members of such group in such manner as the Secretary
or his delegate shall by regulations prescribed. For purposes
of the preceding sentence, the term ``controlled group'' has
the meaning assigned to it by subsection (a) of section 1563,
except that for such purposes the phrase ``more than 50
percent'' shall be substituted for the phrase ``at least 80
percent'' in each place it appears in such subsection. Under
regulations prescribed by the Secretary or his delegate,
principles similar to the principles of the preceding two
sentences shall be applied to a group of brewers under common
control where one or more of the brewers is not a corporation.
(C) Regulations
The Secretary may prescribe such regulations as may be
necessary to prevent the reduced rates provided in this
paragraph from benefiting any person who produces more than
2,000,000 barrels of beer during a calendar year.
(3) Tolerances
Where the Secretary or his delegate finds that the revenue will
not be endangered thereby, he may by regulations prescribe
tolerances for barrels and fractional parts of barrels, and, if
such tolerances are prescribed, no assessment shall be made and no
tax shall be collected for any excess in any case where the
contents of a barrel or a fractional part of a barrel are within
the limit of the applicable tolerance prescribed.
(b) Assessment on materials used in production in case of fraud
Nothing contained in this subpart or subchapter G shall be construed to authorize an assessment on the quantity of materials used in producing or purchased for the purpose of producing beer, nor shall the quantity of materials so used or purchased be evidence, for the purpose of taxation, of the quantity of beer produced; but the tax on all beer shall be paid as provided in section 5054, and not otherwise; except that this subsection shall not apply to cases of fraud, and nothing in this subsection shall have the effect to change the rules of law respecting evidence in any prosecution or suit.
(c) Illegally produced beer
The production of any beer at any place in the United States shall
be subject to tax at the rate prescribed in subsection (a) and such tax
shall be due and payable as provided in section 5054(a)(3) unless--
(1) such beer is produced in a brewery qualified under the
provisions of subchapter G, or
(2) such production is exempt from tax under section 5053(e)
(relating to beer for personal or family use).
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1333; amended Pub. L. 86-75, Sec. 3(a)(6), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, Sec. 202(a)(8), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, Sec. 3(a)(8), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(7), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(8), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(8), June 30, 1964, 78 Stat. 237; Pub. L. 89-44, title V, Sec. 501(d), June 21, 1965, 79 Stat. 150; Pub. L. 94-529, Sec. 1, Oct. 17, 1976, 90 Stat. 2485; Pub. L. 95-458, Sec. 2(b)(2)(A), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 101-508, title XI, Sec. 11201(c), Nov. 5, 1990, 104 Stat. 1388-416.)
Sec. 7101. Form of bonds
Whenever, pursuant to the provisions of this title (other than
section 7485), or rules or regulations prescribed under authority of
this title, a person is required to furnish a bond or security--
(1) General rule
Such bond or security shall be in such form and with such
surety or sureties as may be prescribed by regulations issued by
the Secretary.
(2) United States bonds and notes in lieu of surety bonds
The person required to furnish such bond or security may, in
lieu thereof, deposit bonds or notes of the United States as
provided in section 9303 of title 31, United States Code.
(Aug. 16, 1954, ch. 736, 68A Stat. 847; Pub. L. 92-310, title II,
Sec. 230(b), June 6, 1972, 86 Stat. 209; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-258,
Sec. 3(f)(11), Sept. 13, 1982, 96 Stat. 1065.)
Sec. 7102. Single bond in lieu of multiple bonds
In any case in which two or more bonds are required or authorized,
the Secretary may provide for the acceptance of a single bond complying
with the requirements for which the several bonds are required or
authorized.
(Aug. 16, 1954, ch. 736, 68A Stat. 847; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
Sec. 7652. Shipments to the United States
(a) Puerto Rico
(1) Rate of tax
Except as provided in section 5314, articles of merchandise of
Puerto Rican manufacture coming into the United States and
withdrawn for consumption or sale shall be subject to a tax equal
to the internal revenue tax imposed in the United States upon the
like articles of merchandise of domestic manufacture.
(2) Payment of tax
The Secretary shall by regulations prescribe the mode and time
for payment and collection of the tax described in paragraph (1),
including any discretionary method described in section 6302(b) and
(c). Such regulations shall authorize the payment of such tax
before shipment from Puerto Rico, and the provisions of section
7651(2)(B) shall be applicable to the payment and collection of
such tax in Puerto Rico.
(3) Deposit of internal revenue collections
All taxes collected under the internal revenue laws of the
United States on articles produced in Puerto Rico and transported
to the United States (less the estimated amount necessary for
payment of refunds and drawbacks), or consumed in the island, shall
be covered into the treasury of Puerto Rico.
(b) Virgin Islands
(1) Taxes imposed in the United States
Except as provided in section 5314, there shall be imposed in
the United States, upon articles coming into the United States from
the Virgin Islands, a tax equal to the internal revenue tax imposed
in the United States upon like articles of domestic manufacture.
(2) Exemption from tax imposed in the Virgin Islands
Such articles shipped from such islands to the United States
shall be exempt from the payment of any tax imposed by the internal
revenue laws of such islands.
(3) Disposition of internal revenue collections
The Secretary shall determine the amount of all taxes imposed
by, and collected under the internal revenue laws of the United
States on articles produced in the Virgin Islands and transported
to the United States. The amount so determined less 1 percent and
less the estimated amount of refunds or credits shall be subject to
disposition as follows:
(A) The payment of an estimated amount shall be made to the
government of the Virgin Islands before the commencement of
each fiscal year as set forth in section 4(c)(2) of the Act
entitled ``An Act to authorize appropriations for certain
insular areas of the United States, and for other purposes'',
approved August 18, 1978 (48 U.S.C. 1645), as in effect on the
date of the enactment of the Trade and Development Act of 2000.
The payment so made shall constitute a separate fund in the
treasury of the Virgin Islands and may be expended as the
legislature may determine.
(B) Any amounts remaining shall be deposited in the
Treasury of the United States as miscellaneous receipts.
If at the end of any fiscal year the total of the Federal
contribution made under subparagraph (A) with respect to the four
calendar quarters immediately preceding the beginning of that
fiscal year has not been obligated or expended for an approved
purpose, the balance shall continue available for expenditure
during any succeeding fiscal year, but only for emergency relief
purposes and essential public projects. The aggregate amount of
moneys available for expenditure for emergency relief purposes and
essential public projects only shall not exceed the sum of
$5,000,000 at the end of any fiscal year. Any unobligated or
unexpended balance of the Federal contribution remaining at the end
of a fiscal year which would cause the moneys available for
emergency relief purposes and essential public projects only to
exceed the sum of $5,000,000 shall thereupon be transferred and
paid over to the Treasury of the United States as miscellaneous
receipts.
(c) Articles containing distilled spirits
For purposes of subsections (a)(3) and (b)(3), any article
containing distilled spirits shall in no event be treated as produced in Puerto Rico or the Virgin Islands unless at least 92 percent of the
alcoholic content in such article is attributable to rum.
(d) Articles other than articles containing distilled spirits
For purposes of subsections (a)(3) and (b)(3)--
(1) Value added requirement for Puerto Rico
Any article, other than an article containing distilled
spirits, shall in no event be treated as produced in Puerto Rico
unless the sum of--
(A) the cost or value of the materials produced in Puerto
Rico, plus
(B) the direct costs of processing operations performed in
Puerto Rico, equals or exceeds 50 percent of the value of such
article as of the time it is brought into the United States.
(2) Prohibition of Federal excise tax subsidies
(A) In general
No amount shall be transferred under subsection (a)(3) or
(b)(3) in respect of taxes imposed on any article, other than
an article containing distilled spirits, if the Secretary
determines that a Federal excise tax subsidy was provided by
Puerto Rico or the Virgin Islands (as the case may be) with
respect to such article.
(B) Federal excise tax subsidy
For purposes of this paragraph, the term ``Federal excise
tax subsidy'' means any subsidy--
(i) of a kind different from, or
(ii) in an amount per value or volume of production
greater than, the subsidy which Puerto Rico or the Virgin
Islands offers generally to industries producing articles
not subject to Federal excise taxes.
(3) Direct costs of processing operations
For purposes of this subsection, the term ``direct cost of
processing operations'' has the same meaning as when used in
section 213 of the Caribbean Basin Economic Recovery Act.
(e) Shipments of rum to the United States
(1) Excise taxes on rum covered into treasuries of Puerto
Rico and Virgin Islands
All taxes collected under section 5001(a)(1) on rum imported
into the United States (less the estimated amount necessary for
payment of refunds and drawbacks) shall be covered into the
treasuries of Puerto Rico and the Virgin Islands.
(2) Secretary prescribes formula
The Secretary shall, from time to time, prescribe by regulation
a formula for the division of such tax collections between Puerto
Rico and the Virgin Islands and the timing and methods for
transferring such tax collections.
(3) Rum defined
For purposes of this subsection, the term ``rum'' means any
article classified under subheading 2208.40.00 of the Harmonized
Tariff Schedule of the United States (19 U.S.C. 1202).
(4) Coordination with subsections (a) and (b)
Paragraph (1) shall not apply with respect to any rum subject
to tax under subsection (a) or (b).
(f) Limitation on cover over of tax on distilled spirits
For purposes of this section, with respect to taxes imposed under
section 5001 or this section on distilled spirits, the amount covered
into the treasuries of Puerto Rico and the Virgin Islands shall not
exceed the lesser of the rate of--
(1)
$10.50 ($13.25 in the case of distilled spirits brought
into the United States after June 30, 1999, and before January 1,
2004), or
(2) the tax imposed under section 5001(a)(1), on each proof
gallon.
(g) Drawback for medicinal alcohol, etc.
In the case of medicines, medicinal preparations, food products,
flavors, flavoring extracts, or perfume containing distilled spirits,
which are unfit for beverage purposes and which are brought into the
United States from Puerto Rico or the Virgin Islands--
(1) subpart F of part II of subchapter A of chapter 51 shall be
applied as if--
(A) the use and tax determination described in section
5131(a) had occurred in the United States by a United States
person at the time the article is brought into the United
States, and
(B) the rate of tax were the rate applicable under
subsection (f) of this section, and
(2) no amount shall be covered into the treasuries of Puerto
Rico or the Virgin Islands.
(h) Manner of cover over of tax must be derived from this title
No amount shall be covered into the treasury of Puerto Rico or the
Virgin Islands with respect to taxes for which cover over is provided
under this section unless made in the manner specified in this section
without regard to--
(1) any provision of law which is not contained in this title
or in a revenue Act; and
(2) whether such provision of law is a subsequently enacted
provision or directly or indirectly seeks to waive the application
of this subsection.
(Aug. 16, 1954, ch. 736, 68A Stat. 907; Pub. L. 85-859, title II,
Sec. 204(17), (18), Sept. 2, 1958, 72 Stat. 1430; Pub. L. 89-44, title
VIII, Sec. 808(b)(3), June 21, 1965, 79 Stat. 164; Pub. L. 94-202,
Sec. 10(a), Jan. 2, 1976, 89 Stat. 1141; Pub. L. 94-455, title XIX,
Sec. 1906(a)(55), (b) (13)(A), Oct. 4, 1976, 90 Stat. 1832, 1834; Pub.
L. 98-67, title II, Sec. 221(a), Aug. 5, 1983, 97 Stat. 395; Pub. L. 98-213, Sec. 5(c), Dec. 8, 1983, 97 Stat. 1460; Pub. L. 98-369, div. B,
title VI, Secs. 2681(a), 2682(a), July 18, 1984, 98 Stat. 1172, 1174;
Pub. L. 99-514, title XVIII, Sec. 1879(i)(1), Oct. 22, 1986, 100 Stat.
2907; Pub. L. 100-418, title I, Sec. 1214(p)(1), Aug. 23, 1988, 102
Stat. 1159; Pub. L. 103-66, title XIII, Sec. 13227(e), Aug. 10, 1993,
107 Stat. 494; Pub. L. 103-465, title I, Sec. 136(b), Dec. 8, 1994, 108
Stat. 4841; Pub. L. 106-170, title V, Sec. 512(a), Dec. 17, 1999, 113
Stat. 1924; Pub. L. 106-200, title VI, Sec. 602(b), (c), May 18, 2000,
114 Stat. 305, 306; Pub. L. 107-147, title VI, Sec. 609(a), Mar. 9,
2002, 116 Stat. 60.)
1513-0123
27 CFR
Sec. 26.66 Bond, TTB Form 5110.50--Distilled spirits.
(a) General. If any person intends to ship to the United States,
distilled spirits products of Puerto Rican manufacture from bonded
storage in Puerto Rico on computation, but before payment, of the tax
imposed by 26 U.S.C. 7652(a), equal to the tax imposed in the United
States by 26 U.S.C. 5001(a)(1), he shall, before making any such
shipment, furnish a bond TTB Form 5110.50, for each premises from which
shipment will be made, to secure payment of such tax, at the time and in
the manner prescribed in this subpart, on all distilled spirits products
shipped. The bond shall be executed in a penal sum not less than the
amount of unpaid tax which, at any one time, is chargeable against the
bond. The penal sum of such bond shall not exceed $1,000,000, but in no
case shall the penal sum be less than $1,000.
(b) Blanket bond. Any person who is the proprietor of more than one
premises in Puerto Rico from which shipment of spirits to the United
States will be made, may, in lieu of furnishing two or more separate
bonds on TTB Form 5110.50 as required by paragraph (a) of this section,
furnish a blanket bond on TTB Form 5110.50. The penal sum of such
blanket bond shall be equal to the sum of the penal sums of all the
bonds in lieu of which it is given. Such blanket bond on TTB Form
5110.50 shall show each bonded warehouse and/or bonded processing room
and/or rectifying plant to be covered by the bond, and the part of the
total penal sum (computed in accordance with paragraph (a) of this
section) to be allocated to each of the designated premises. If the
penal sum of the bond allocated to a designated premises is in an amount
less than the maximum prescribed in paragraph (a) of this section,
transactions at such premises shall not exceed the quantity permissible,
as reflected by the penal sum allocated in the bond to such premises.
Such blanket bond shall contain the terms and conditions of the bonds in
lieu of which it is given and shall be conditioned that the total amount
of the bond shall be available for satisfaction of any liability
incurred under the terms and conditions of such bond.
(Act of August 16, 1954, 68A Stat. 847, as amended, 907, as amended (26
U.S.C 7101, 7102, 7652))
[T.D. ATF-62, 44 FR 71710, Dec. 11, 1979]
Sec. 26.67 Bond, Form 2897--Wine.
Where a proprietor intends to withdraw, for purpose of shipment to
the United States, wine of Puerto Rican manufacture from bonded storage
in Puerto Rico on computation, but before payment, of the tax imposed by
26 U.S.C. 7652(a), equal to the tax imposed in the United States by 26
U.S.C. 5041, he shall, before making any such withdrawal, furnish a
bond, Form 2897, to secure payment of such tax, at the time and in the
manner prescribed in this subpart, on all wine so withdrawn. The bond
shall be executed in a penal sum not less than the amount of unpaid tax
which, at any one time, is chargeable against the bond: Provided, That
the penal sum of such bond shall not exceed $250,000, but in no case
shall the penal sum be less than $500.
(Aug. 16, 1954, Chapter 736, 68A Stat. 775, as amended, 847, as amended,
906, 907, as amended (26 U.S.C. 6302, 7101, 7102, 7651(2)(B), 7652(a)))
[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-48, 44 FR 55852, Sept. 28, 1979]
Sec. 26.68 Bond, Form 2898--Beer.
Where a brewer intends to withdraw, for purpose of shipment to the
United States, beer of Puerto Rican manufacture from bonded storage in
Puerto Rico on computation, but before payment, of the tax imposed by 26
U.S.C. 7652(a), equal to the tax imposed in the United States by 26
U.S.C. 5051, he shall, before making any such withdrawal, furnish a
bond, Form 2898, to secure payment of such tax, at the time and in the
manner prescribed in this subpart, on all beer so withdrawn. The bond
shall be executed in a penal sum not less than the amount of unpaid tax
which, at any one time, is chargeable against the bond: Provided, That
the penal sum of such bond shall not exceed $500,000, but in no case
shall the penal sum be less than $1,000.
(Aug. 16, 1954, Chapter 736, 68A Stat. 775, as amended, 847, as amended,
906, 907, as amended (26 U.S.C. 6302, 7101, 7102, 7651(2)(B), 7652(a)))
[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-48, 44 FR 55852, Sept. 28, 1979]
Sec. 26.68a Bond account.
Every person who files a bond under this subpart shall keep an
account of the charges against and credits to the bond if the penal sum
of his bond is less than the maximum prescribed in Sec. Sec. 26.66(a),
26.67, or Sec. 26.68, or if the penal sum allocated to his premises
under Sec. 26.66(b) is less than the prescribed maximum. He shall
charge the bond with the amount of liability he accepts at the time he
executes TTB Form 5110.51 or 2900, and shall credit the bond with the
amount of the tax paid at the time he files each return, TTB Form
5110.32, 2927, or 2929, and remittance. The account shall also show the balance available under the bond at any one time.
[T.D. ATF-62, 44 FR 71710, Dec. 11, 1979. Redesignated and amended by
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]
Sec. 26.69 Strengthening bonds.
In all cases where the penal sum of any bond becomes insufficient,
the principal shall either give a strengthening bond with the same
surety to attain a sufficient penal sum, or give a new bond to cover the
entire liability. Strengthening bonds will not be approved where any
notation is made thereon which is intended, or which may be construed,
as a release of any former bond, or as limiting the amount of any bond
to less than its full penal sum. Strengthening bonds shall show the
current date of execution and the effective date.
Sec. 26.70 New or superseding bonds.
New bonds shall be required in case of insolvency or removal of any
surety, and may, at the discretion of the appropriate TTB officer, be
required in any other contingency affecting the validity or impairing
the efficiency of an existing bond. Executors, administrators,
assignees, receivers, trustees, or other persons acting in a fiduciary
capacity, continuing or liquidating the business of the principal, shall
execute and file a new bond or obtain the consent of the surety or
sureties on the existing bond or bonds. Where, under the provisions of
Sec. 26.72, the surety on any bond given under this subpart has filed
an application to be relieved of liability under said bond and the
principal desires or intends to continue the operations to which such
bond relates, he shall file a valid superseding bond to be effective on
or before the date specified in the surety's notice. New or superseding
bonds shall show the current date of execution and the effective date.
[T.D. 6551, 26 FR 1590, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987.
Further redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551,
July 25, 2001]
Sec. 26.70a Notice of approval of bonds.
Upon approval of an original, a strengthening, or a superseding
bond, the appropriate TTB officer shall notify the Secretary, and the
revenue agent at the premises, of the total penal sum of the bond or
bonds, and in the case of a blanket bond, the amount of the penal sum
allocated to the premises.
[T.D. 6695, 28 FR 12932, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]
Sec. 26.71 Termination of bonds.
Any bond given under the provisions of this subpart may be
terminated as to future transactions--
(a) Pursuant to application of surety as provided in Sec. 26.72;
(b) On approval of a superseding bond;
(c) On notification by the principal to the appropriate TTB officer
that he has discontinued transactions under the bond; or
(d) On notification by the principal to the appropriate TTB officer
that he has discontinued business.
[T.D. 6695, 28 FR 12932, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987.
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25,
2001]
Sec. 26.72 Application of surety for relief from bond.
A surety on any bond given under the provisions of this subpart may
at any time in writing notify the principal and the appropriate TTB
officer that he desires, after a date named, to be relieved of liability
under said bond. Such date shall be not less than 10 days after the date
the notice is received by the appropriate TTB officer. The surety shall
also file with the appropriate TTB officer an acknowledgment or other
proof of service on the principal. If such notice is not thereafter in
writing withdrawn, the rights of the principal as supported by said bond
shall be terminated on the date named in the notice, and the surety
shall be relieved from liability to the extent set forth in Sec. 26.73.
(Approved by the Office of Management and Budget under control number
1513-0064)
[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D.
ATF-251, 52 FR 19338, May 22, 1987. Redesignated and amended by T.D.
ATF-459, 66 FR 38550, 38551, July 25, 2001]
Sec. 26.73 Relief of surety from bond.
Where the surety on a bond given under the provisions of this
subpart has filed application for relief from liability, as provided in
Sec. 26.72, the surety shall be relieved from liability for
transactions occurring wholly subsequent to the date specified in the
notice, or the effective date of a new bond, if one is given.
[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr.
15, 1975 and further redesignated and amended by T.D. ATF-459, 66 FR
38550, 38551, July 25, 2001]
Sec. 26.74 Release of pledged securities.
Securities of the United States pledged and deposited as provided in
Sec. 26.63, shall be released only in accordance with the provisions of
31 CFR part 225. Such securities will not be released by the appropriate
TTB officer until the liability under the bond for which they were
pledged has been terminated. When the appropriate TTB officer is
satisfied that they may be released, he shall fix the date or dates on
which a part or all of such securities may be released. At any time
prior to the release of such securities, the appropriate TTB officer may
extend the date of release for such additional length of time as he
deems necessary.
(61 Stat. 650; 6 U.S.C. 15)
[T.D. 6551, 26 FR 1590, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987.
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25,
2001]
Sec. 26.75 Form 1490, Notice of Termination of Bond.
When the appropriate TTB officer is satisfied that any bond given
under the provisions of this subpart may be terminated, he shall issue
Form 1490, Notice of Termination of Bond, and shall forward copies to
the principal and to the surety. The appropriate TTB officer shall,
prior to the termination date, notify the Secretary and the revenue
agent of the proposed termination of any bond given under this part and
the date of such termination.
[T.D. 6695, 28 FR 12932, Dec. 5, 1963, as amended by T.D. ATF-2, 37 FR
22736, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and
amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]
Sec. 26.76 Insular permits.
Before liquors or articles of Puerto Rican manufacture may be
shipped to the United States, an insular permit, TTB Form 5110.51 (for
distilled spirits) or Form 2900 (for wine or beer), to compute the taxes
imposed by 26 U.S.C. 7652(a), and to withdraw the products from the
bonded establishment where they may be deposited, must be obtained from
the Secretary, and such products may not be shipped to the United States
until a permit to ship, on Form 487B, is applied for and obtained from
the Secretary.
[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr.
15, 1975]
Editorial Note: For Federal Register citations affecting Sec.
26.76, see the List of CFR Sections Affected, which appears in the
Finding Aids section of the printed volume and on GPO Access.
Sec. 26.77 Subject to tax.
(a) Distilled spirits of Puerto Rican manufacture, and any products
containing such distilled spirits, brought into the United States and
withdrawn for consumption or sale are subject to a tax equal to the tax
imposed in the United States by 26 U.S.C. 5001.
(b) A credit against the tax imposed on distilled spirits by 26
U.S.C. 7652 is allowable under 26 U.S.C. 5010 on each proof gallon of
alcohol derived from eligible wine or from eligible flavors which do not
exceed 2\1/2\ percent of the finished product on a proof gallon basis.
The credit is allowable at the time the tax is payable as if it
constituted a reduction in the rate of tax.
(c) Where credit against the tax is desired, the person liable for
the tax shall establish an effective tax rate in accordance with Sec.
26.79a. The effective tax rate established will be applied to each
withdrawal or other disposition of the distilled spirits for consumption
or sale within the United States.
(Approved by the Office of Management and Budget under control number
1513-0045)
(Act of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26
U.S.C. 7652); Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26
U.S.C. 5001); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26
U.S.C. 5010))
[T.D. ATF-297, 55 FR 18066, Apr. 30, 1990. Redesignated and amended by
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]
Sec. 26.78 Application and permit, TTB Form 5110.51.
Application for permit to compute the tax on, and to withdraw,
distilled spirits shall be made on TTB Form 5110.51, in quintuplicate,
by the proprietor. The proprietor shall forward all copies of the form
to the Secretary. If the application is properly prepared and is
otherwise in order, the Secretary or his delegate shall execute the
permit, retain one copy, and forward the original and remaining copies
of the form to the revenue agent at the premises where the products are
located.
[T.D. ATF-62, 44 FR 71711, Dec. 11, 1979, as amended by T.D. ATF-251, 52
FR 19338, May 22, 1987]
Sec. 26.79 Inspection or gauge and computation of tax.
On receipt of permit to compute the tax on TTB Form 5110.51, the
revenue agent shall:
(a) In the case of spirits in packages, prepare a gauge record as
provided in Sec. 26.164a in quadruplicate, compute the tax thereon, and
attach all copies of the gauge record to TTB Form 5110.51;
(b) In the instance of spirits in cases, verify by inspection the
quantity of spirits described on the form; or
(c) In the case of spirits in a bulk conveyance, verify by gauge or
inspection the quantity of spirits described on the form.
If the revenue agent determines any variation between his gauge and the
quantity of spirits described on Form 5110.51, he shall amend and
initial the data in part I of the form. The revenue agent shall deliver
all copies of Form 5110.51 and any accompanying package gauge record to
the proprietor. The proprietor shall then compute and enter the amount
of tax on all copies of Form 5110.51.
(Approved by the Office of Management and Budget under control number
1513-0056)
[T.D. ATF-198, 50 FR 8549, Mar. 1, 1985. Redesignated and amended by
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]
Sec. 26.79a Computation of effective tax rate.
(a) The proprietor shall compute the effective tax rate for
distilled spirits containing eligible wine or eligible flavors as the
ratio of the numerator and denominator as follows:
(1) the numerator will be the sum of:
(i) The proof gallons of all distilled spirits used in the product
(exclusive of distilled spirits derived from eligible flavors),
multiplied by the tax rate prescribed by 26 U.S.C. 5001;
(ii) The wine gallons of each eligible wine used in the product,
multiplied by the tax rate prescribed by 26 U.S.C. 5041(b) (1), (2), or
(3), as applicable; and
(iii) The proof gallons of all distilled spirits derived from
eligible flavors used in the product, multiplied by the tax rate
prescribed by 26 U.S.C. 5001, but only to the extent that such distilled
spirits exceed 2\1/2\% of the denominator prescribed in paragraph (a)(2)
of this section.
(2) The denominator will be the sum of:
(i) The proof gallons of all distilled spirits used in the product,
including distilled spirits derived from eligible flavors; and
(ii) The wine gallons of each eligible wine used in the product,
multiplied by twice the percentage of alcohol by volume of each, divided
by 100.
(b) In determining the effective tax rate, quantities of distilled
spirits, eligible wine, and eligible flavors will be expressed to the
nearest tenth of a proof gallon. The effective tax rate may be rounded
to as many decimal places as the proprietor deems appropriate, provided
that, such rate is expressed no less exactly than the rate
rounded to the nearest whole cent, and the effective tax rates for all
products will be consistently expressed to the same number of decimal
places. In such case, if the number is less than five it will be
dropped; if it is five or over, a unit will be added.
(c) The following is an example of the use of the formula.
---------------------------------------------------------------------------
\1\ Proof gallons by which distilled spirits derived from eligible
flavors exceed 2\1/2\% of the total proof gallons in the batch (100.9 -
(2\1/2\%) x 3.371.8 = 16.6).
Batch Record
Distilled spirits......................... 2249.1 proof gallons.
Eligible wine (14% alcohol by volume)..... 2265.0 wine gallons
Eligible wine (19% alcohol by volume)..... 1020.0 wine gallons
Eligible flavors.......................... 100.9 proof gallons
[GRAPHIC] [TIFF OMITTED] TC05OC91.041
(Approved by the Office of Management and Budget under control number
1513-0045)
(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
[T.D. ATF-297, 55 FR 18066, Apr. 30, 1990, as amended by T.D. ATF-307,
55 FR 52741, Dec 21, 1990]
Sec. 26.80 Deferred payment of tax--release of spirits.
(a) Action by proprietor. Where the proprietor has furnished bond on
TTB Form 5110.50, and payment of the tax is to be deferred, he shall
execute an agreement on TTB Form 5110.51 to pay the amount of tax which
has been computed and entered on the form. He shall also certify, under
the penalties of perjury, that he is not in default of any payment of
tax chargeable against his bond, and that his bond is in the maximum
penal sum, or that it is sufficient to cover the amount of tax on the
distilled spirits described on the form in addition to all other amounts
chargeable agains this bond. The proprietor shall deliver all copies of
TTB Form 5110.51 and any package gauge record as provided in Sec.
26.164a to the revenue agent.
(b) Action by revenue agent. On receipt of TTB Form 5110.51 and any
package gauge record, the revenue agent shall verify the computation of
the tax entered on the TTB Form 5110.51, and if the proprietor has on
file a good and sufficient bond, TTB Form 5110.50, so indicate on TTB
Form 5110.51. The revenue agent shall then execute his report of release
on the TTB Form 5110.51 and release the spirits for shipment to the
United States. He shall distribute TTB Form 5110.51 and any package
gauge record according to the instructions of TTB Form 5110.51. Where
the revenue agent finds that the proprietor does not have good and
sufficient bond coverage, or where the revenue agent has received
information that the proprietor is in default of payment of any taxes
previously charged to his bond, he shall return all copies of TTB Form
5110.51 and any package gauge record to the proprietor, giving his reasons for such action.
(Approved by the Office of Management and Budget under control number
1513-0056)
[T.D. ATF-198, 50 FR 8549, Mar. 1, 1985. Redesignated and amended by
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]
Sec. 26.81 Prepayment of tax and release of spirits.
(a) Action by proprietor. Where the distilled spirits are to be
released after payment of the computed tax, the proprietor shall enter
the amount of such computed tax on all copies of TTB Form 5110.51 and
execute the statement that such tax is being prepaid. The proprietor
shall then prepare TTB Form 5000.25 in duplicate, and send the original
with all copies of TTB Form 5110.51 and any package gauge record as
provided in Sec. 26.164a and the remittance in full for the tax, to the
appropriate TTB officer.
(b) Action by appropriate TTB officer. On receipt of TTB Forms
5110.51, 5000.25 and any package gauge record, with remittance covering
prepayment of tax, the appropriate TTB officer shall execute the receipt
on TTB Form 5000.25 and execute the report of prepaid taxes on all
copies of TTB Form 5110.51. The appropriate TTB officer shall then
retain the originals of TTB Forms 5110.51 and 5000.25 and forward the
remaining copies of TTB Form 5110.51 in accordance to the instructions
on the form.
(c) Action by revenue agent. On receipt of TTB Form 5110.51 executed
by the appropriate TTB officer to show receipt of TTB Form 5000.25 and
remittance, the revenue agent shall execute the report of release on the
TTB Form 5110.51 and release the spirits for shipment to the United
States. The completed TTB Form 5110.51 shall be distributed according to
the instructions on the form.
(Approved by the Office of Management and Budget under control number
1512-0210 and 1513-0090)
[T.D. ATF-277, 53 FR 45267, Nov. 9, 1988. Redesignated and amended by
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]
Sec. 26.93 Application and permit, Form 2900.
When wine of Puerto Rican manufacture is to be withdrawn for
shipment to the United States, or for use in an article made with wine
only or with wine and beer only, for shipment to the United States,
application for permit to compute the tax on, and to withdraw, the wine
shall be made on Form 2900, in quintuplicate, by the proprietor of the
bonded premises where the wine is stored. If the withdrawal is to be
made in casks, barrels, kegs or similar containers, the proprietor shall
enter the name of the winemaker producing the wine, the serial numbers
of the packages, the total number of wine gallons contained therein, and
the taxable grade of the wine, for example, ``not more than 14 percent''
if the wine contains not more than 14 percent of alcohol by volume,
``14-21 percent'' if the wine contains more than 14 percent and not
exceeding 21 percent of alcohol by volume, ``21-24 percent'' if the wine
contains more than 21 percent but not exceeding 24 percent of alcohol by
volume. If the application covers more than one taxable grade of wine,
the quantity in each taxable grade shall be reported separately. If the
withdrawal is to consist of bottled wine, the proprietor shall show the
number of cases, size of the bottles, the number of bottles per case,
the total quantity in wine gallons, and the taxable grade of the wine in
the manner stated above. The proprietor shall forward all copies of the
form to the Secretary. If the application is properly prepared and is
otherwise in order, the Secretary or his delegate shall execute the
permit, retain one copy, and return the original and three copies to the
proprietor.
[T.D. ATF-62, 44 FR 71712, Dec. 11, 1979, as amended by T.D. ATF-251, 52
FR 19338, May 22, 1987]
Sec. 26.95 Deferred payment of tax--release of wine.
(a) Action by proprietor. Where the proprietor has furnished bond,
on Form 2897, and payment of the tax is to be deferred, he shall execute
the agreement on Form 2900 to pay the amount of tax which has been
computed and entered on the form. He shall also certify under the
penalties of perjury that he is not in default of any payment of tax
chargeable against his bond, and that his bond is in the maximum penal
sum, or that it is sufficient to cover the amount of tax on the wine
described on the form in addition to all other amounts chargeable
against his bond. The proprietor shall deliver all copies of Form 2900
to the revenue agent.
(b) Action by revenue agent. On receipt of Form 2900, the revenue
agent shall verify the computation of the tax entered on the form, and
if the proprietor has on file a good and sufficient bond, Form 2897, so
indicate on Form 2900. The revenue agent shall then execute his report
of release on the Form 2900 and release the wine for the purpose
authorized on the form. The completed form shall be distributed in the
same manner as provided for TTB Form 5110.51 in Sec. 26.80(b). Where
the revenue agent finds that the proprietor does not have good and
sufficient bond coverage, or that the proprietor is in default of
payment of any taxes previously charged to his bond, he shall return all
copies of Form 2900 to the proprietor, giving his reasons for such action.
[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-62, 44 FR 71712, Dec. 11, 1979.
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25,
2001]
Sec. 26.96 Prepayment of tax--release of wine.
(a) Action by proprietor. Where the wine is to be withdrawn from
bonded storage after payment of the computed tax, the proprietor shall
enter the amount of such computed tax on all copies of TTB Form 2900
(5100.21) and execute the statement that such tax is being prepaid. The
proprietor shall then prepare TTB Form 5000.25 in duplicate and send the
original with all copies of TTB Form 2900 (5100.21) and the remittance
in full for the tax, to the appropriate TTB officer.
(b) Action by appropriate TTB officer. On receipt of TTB Forms 2900
(5100.21) and 5000.25, and remittance covering prepayment of tax, the
appropriate TTB officer shall execute the receipt on TTB Form 5000.25
and execute the report of prepaid taxes on all copies of TTB Form 2900
(5100.21). The appropriate TTB officer shall then retain the originals
of TTB Forms 2900 (5100.21) and 5000.25 and forward the remaining copies
of TTB Form 2900 (5100.21) in accordance with the instructions on the
form.
(c) Action by revenue agent. On receipt of TTB Form 2900 (5100.21)
executed by the appropriate TTB officer to show receipt of TTB Form
5000.25 and remittance, the revenue agent shall execute the report of
release on the TTB Form 2900 (5100.21) and release the wine for the
purpose authorized on the form. The completed TTB Form 2900 (5100.21)
shall be distributed according to the instructions on the form.
(Approved by the Office of Management and Budget under control number
1512-0149 and 1510-0090)
[T.D. ATF-277, 53 FR 45267, Nov. 9, 1988]
Sec. 26.104 Deferred payment of tax--release of beer.
(a) Action by brewer. Where the brewer has furnished bond on Form
2898, and payment of the tax is to be deferred, he shall execute the
agreement on Form 2900 to pay the amount of tax which has been computed
and entered on the form. He shall also certify under the penalties of
perjury that he is not in default of any payment of tax chargeable
against his bond, and that his bond is in the maximum penal sum, or that
it is sufficient to cover the amount of tax on the beer described on the
form in addition to all other amounts chargeable against his bond. The
brewer shall deliver all copies of Form 2900 to the revenue agent.
(b) Action by revenue agent. On receipt of Form 2900, the revenue
agent shall verify the computation of the tax entered on the form, and
if the proprietor has on file a good and sufficient bond, Form 2898, so
indicate on Form 2900. The revenue agent shall then execute his report
of release on the Form 2900 and release the beer for the purpose
authorized on the form. The completed form shall be distributed in the
same manner as provided for TTB Form 5110.51 in Sec. 26.80(b). Where
the revenue agent finds that the proprietor does not have good and
sufficient bond coverage, or that the proprietor is in default of
payment of any taxes previously charged to his bond, he shall return all
copies of Form 2900 to the proprietor, giving his reasons for such
action.
[T.D. 6695, 28 FR 12934, Dec. 5 1963. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-62, 44 FR 71712, Dec. 11, 1979.
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25,
2001]
Sec. 26.105 Prepayment of tax--release of beer.
(a) Action by brewer. Where the beer is to be withdrawn from bonded
storage after payment of the computed tax the brewer shall enter the
amount of such computed tax on all copies of TTB Form 2900 (5100.21) and
execute the statement that such tax is being prepaid. The brewer shall
then prepare TTB Form 5000.25 in duplicate and send the original with
all copies of TTB Form 2900 (5100.21) and the remittance in full for the
tax, to the appropriate TTB officer.
(b) Action by appropriate TTB officer. On receipt of TTB Forms 2900
(5100.21) and 5000.25, and remittance covering prepayment of tax, the
appropriate TTB officer shall execute the receipt on TTB Form 5000.25
and execute the report of prepaid taxes on all copies of TTB Form 2900
(5100.21). The appropriate TTB officer shall then retain the originals
of TTB Forms 2900 (5110.21) and 5000.25 and forward the remaining copies
of TTB Form 2900 (5100.21) in accordance with the instructions of the
form.
(c) Action by revenue agent. On receipt of TTB Form 2900 (5100.21)
executed by the appropriate TTB officer to show receipt of TTB Form
5000.25 and remittance, the revenue agent shall execute the report of
release on the TTB Form 2900 (5100.21) and release the beer for the
purpose authorized on the form. The completed TTB Form 2900 (5100.21)
shall be distributed according to the instructions on the form.
(Approved by the Office of Management and Budget under control number
1512-0149 and 1513-0090)
[T.D. ATF-277, 53 FR 45268, Nov. 9, 1988]
| File Type | application/msword |
| File Title | 1513-XXXX (TTB F 5100 |
| Author | TTB |
| Last Modified By | TTB |
| File Modified | 2009-12-16 |
| File Created | 2009-12-16 |