Dear Filipino's and Filipina's

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Dear Filipino's and Filipina's

Postby Ian Sebastin » Tue Apr 13, 2021 1:48 am

    

ARE WE READY TO WATCH THE NATION OF THE PHILIPPINES FLOP AGAIN? LAST YEAR FILIPINO'S HYPED THEIR DELEGATE TO DEATH. THEY BASHED EVERYONE THAT DID NOT ADORE THEIR OVER PROCESSED CLONE. YOU KNOW WHAT HAPPENED? SHE FLOPPED. SHE FLOPPED HARD. INDONESIA AND THAILAND CARRIED THE TORCH FOR ASIA WHILE THE PHILIPPINES WAS LEFT CLAPPING. I AM NOT ONLY PREDICTING THE SAME OUTCOME FOR THIS YEAR; I AM TELLING YOU THAT THE PHILIPPINES WILL FLOP HARD AT THE PAGEANT. OH HOW THE MIGHTY HAVE FALLEN.



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Re: Dear Filipino's and Filipina's

Postby Mizzyshay12 » Tue Apr 13, 2021 2:34 am

OF COURSE SHE IS JUST PURE HYPE. SHE IS BORING AND DOES NOT DEMAND ATTENTION
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Re: Dear Filipino's and Filipina's

Postby esperasave » Tue Apr 13, 2021 2:49 am

But her Ilongga kababayans will fight for her. How they flooded the social media after her crowning to venerate her because she carried the name of their Province. And until now, they are already looking forward for her coronation. Let's see if that will work for them. They are so hungry but they have to pay for a price to vote her to be in the top 21 and watch the pay per view.
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Re: Dear Filipino's and Filipina's

Postby sophocles » Tue Apr 13, 2021 3:11 am

I.R.C. § 5061(a) Collection By Return — The taxes on distilled spirits, wines, and beer shall be collected on the basis of a return. The Secretary shall, by regulation, prescribe the period or event for which such return shall be filed, the time for filing such return, the information to be shown in such return, and the time for payment of such tax.
I.R.C. § 5061(b) Exceptions — Notwithstanding the provisions of subsection (a), any taxes imposed on, or amounts to be paid or collected in respect of, distilled spirits, wines, and beer under—
I.R.C. § 5061(b)(1) — section 5001(a)(4), (5), or (6),
I.R.C. § 5061(b)(2) — section 5006(c) or (d),
I.R.C. § 5061(b)(3) — section 5041(f),
I.R.C. § 5061(b)(4) — section 5043(a)(3),
I.R.C. § 5061(b)(5) — section 5054(a)(3) or (4), or
I.R.C. § 5061(b)(6) — section 5505(a), shall be immediately due and payable at the time provided by such provisions (or if no specific time for payment is provided, at the time the event referred to in such provision occurs). Such taxes and amounts shall be assessed and collected by the Secretary on the basis of the information available to him in the same manner as taxes payable by return but with respect to which no return has been filed.
I.R.C. § 5061(c) Import Duties — The internal revenue taxes imposed by this part shall be in addition to any import duties unless such duties are specifically designated as being in lieu of internal revenue tax.
I.R.C. § 5061(d) Time For Collecting Tax On Distilled Spirits, Wines, And Beer
I.R.C. § 5061(d)(1) In General — Except as otherwise provided in this subsection, in the case of distilled spirits, wines, and beer to which this part applies (other than subsection (b) of this section) which are withdrawn under bond for deferred payment of tax, the last day for payment of such tax shall be the 14th day after the last day of the semimonthly period during which the withdrawal occurs.
I.R.C. § 5061(d)(2) Imported Articles — In the case of distilled spirits, wines, and beer which are imported into the United States (other than in bulk containers)—
I.R.C. § 5061(d)(2)(A) In General — The last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is entered into the customs territory of the United States.
I.R.C. § 5061(d)(2)(B) Special Rule For Entry For Warehousing — Except as provided in subparagraph (D), in the case of an entry for warehousing, the last day for payment of tax shall not be later than the 14th day after the last day of the semimonthly period during which the article is removed from the 1st such warehouse.
I.R.C. § 5061(d)(2)(C) Foreign Trade Zones — Except as provided in subparagraph (D) and in regulations prescribed by the Secretary, articles brought into a foreign trade zone shall, notwithstanding any other provision of law, be treated for purposes of this subsection as if such zone were a single customs warehouse.
I.R.C. § 5061(d)(2)(D) Exception For Articles Destined For Export — Subparagraphs (B) and (C) shall not apply to any article which is shown to the satisfaction of the Secretary to be destined for export.
I.R.C. § 5061(d)(3) Distilled Spirits, Wines, And Beer Brought Into The United States From Puerto Rico — In the case of distilled spirits, wines, and beer which are brought into the United States (other than in bulk containers) from Puerto Rico, the last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is brought into the United States.
I.R.C. § 5061(d)(4) Taxpayers Liable For Taxes Of Not More Than $50,000
I.R.C. § 5061(d)(4)(A) In General
I.R.C. § 5061(d)(4)(A)(i) More Than $1,000 And Not More Than $50,000 In Taxes — Except as provided in clause (ii), in the case of any taxpayer who reasonably expects to be liable for not more than $50,000 in taxes imposed with respect to distilled spirits, wines, and beer under subparts A, C, and D and section 7652 for the calendar year and who was liable for not more than $50,000 in such taxes in the preceding calendar year, the last day for the payment of tax on withdrawals, removals, and entries (and articles brought into the United States from Puerto Rico) shall be the 14th day after the last day of the calendar quarter during which the action giving rise to the imposition of such tax occurs.
I.R.C. § 5061(d)(4)(A)(ii) Not More Than $1,000 In Taxes — In the case of any taxpayer who reasonably expects to be liable for not more than $1,000 in taxes imposed with respect to distilled spirits, wines, and beer under subparts A, C, and D and section 7652 for the calendar year and who was liable for not more than $1,000 in such taxes in the preceding calendar year, the last day for the payment of tax on withdrawals, removals, and entries (and articles brought into the United States from Puerto Rico) shall be the 14th day after the last day of the calendar year.
I.R.C. § 5061(d)(4)(B) No Application After Limit Exceeded
I.R.C. § 5061(d)(4)(B)(i) Exceeds $50,000 Limit — Subparagraph (A)(i) shall not apply to any taxpayer for any portion of the calendar year following the first date on which the aggregate amount of tax due under subparts A, C, and D and section 7652 from such taxpayer during such calendar year exceeds $50,000, and any tax under such subparts which has not been paid on such date shall be due on the 14th day after the last day of the semimonthly period in which such date occurs.
I.R.C. § 5061(d)(4)(B)(ii) Exceeds $1,000 Limit — Subparagraph (A)(ii) shall not apply to any taxpayer for any portion of the calendar year following the first date on which the aggregate amount of tax due under subparts A, C, and D and section 7652 from such taxpayer during such calendar year exceeds $1,000, and any tax under such subparts which has not been paid on such date shall be due on the 14th day after the last day of the calendar quarter in which such date occurs.
I.R.C. § 5061(d)(4)(C) Calendar Quarter — For purposes of this paragraph, the term “calendar quarter” means the three-month period ending on March 31, June 30, September 30, or December 31.
I.R.C. § 5061(d)(5) Special Rule For Tax Due In September
I.R.C. § 5061(d)(5)(A) In General — Notwithstanding the preceding provisions of this subsection, the taxes on distilled spirits, wines, and beer for the period beginning on September 16 and ending on September 26 shall be paid not later than September 29.
I.R.C. § 5061(d)(5)(B) Safe Harbor — The requirement of subparagraph (A) shall be treated as met if the amount paid not later than September 29 is not less than 11/15 of the taxes on distilled spirits, wines, and beer for the period beginning on September 1 and ending on September 15.
I.R.C. § 5061(d)(5)(C) Taxpayers Not Required To Use Electronic Funds Transfer — In the case of payments not required to be made by electronic funds transfer, subparagraphs (A) and (B) shall be applied by substituting “September 25” for “September 26”, “September 28” for “September 29”, and “2/3” for “11/15”.
I.R.C. § 5061(d)(6) Special Rule Where Due Date Falls On Saturday, Sunday, Or Holiday — Notwithstanding section 7503, if, but for this paragraph, the due date under this subsection for payment of tax would fall on a Saturday, Sunday, or a legal holiday (within the meaning of section 7503), such due date shall be the immediately preceding day which is not a Saturday, Sunday, or such a holiday (or the immediately following day where the due date described in paragraph (5) falls on a Sunday).
I.R.C. § 5061(e) Payment By Electronic Fund Transfer
I.R.C. § 5061(e)(1) In General — Any person who in any 12-month period ending December 31, was liable for a gross amount equal to or exceeding $5,000,000 in taxes imposed on distilled spirits, wines, or beer by sections 5001, 5041, and 5051 (or 7652), respectively, shall pay such taxes during the succeeding calendar year by electronic fund transfer to a Federal Reserve Bank.
I.R.C. § 5061(e)(2) Electronic Fund Transfer — The term “electronic fund transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account.
I.R.C. § 5061(e)(3) Controlled Groups
I.R.C. § 5061(e)(3)(A) In General — In the case of a controlled group of corporations, all corporations which are component members of such group shall be treated as 1 taxpayer. For purposes of the preceding sentence, the term “controlled group of corporations” has the meaning given to such term by subsection (a) of section 1563, except that “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears in such subsection.
I.R.C. § 5061(e)(3)(B) Controlled Groups Which Include Nonincorporated Persons — Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation.
(Added by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1335, and amended Pub. L. 94-455, title XIX, Sec. 1905(a)(6), (b)(2)(E)(iii), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1819, 1822, 1834; Pub. L. 96-39, title VIII, Sec. 804(b), 807(a)(9), July 26, 1979, 93 Stat. 274, 281; Pub. L. 98-369, div. A, title I, Sec. 27(c)(1), July 18, 1984, 98 Stat. 509; Pub. L. 99-509, title VIII, Sec. 8011(b)(1), Oct. 21, 1986, 100 Stat. 1952; Pub. L. 99-514, title XVIII, Sec. 1801(c)(1), Oct. 22, 1986, 100 Stat. 2786; Pub. L. 100-647, title II, Sec. 2003(b)(1)(A), (B), Nov. 10, 1988, 102 Stat. 3598; Pub. L. 101-508, title XI, Sec. 11201(b)(3), 11704(a)(21), Nov. 5, 1990, 104 Stat. 1388-416, 1388-519; Dec. 8, 1994, Pub. L. 103-465, titles I and VII, Secs. 136, 712(b)(2), (b)(1); Pub. L. 104-188, title I, Sec. 1702, Aug. 20, 1996, 110 Stat. 1755; Pub. L. 109-59, title XI, Sec. 11127, Aug. 10, 2005, 119 Stat. 1144; Pub. L. 114-113, Div. Q, title III, Sec. 332(a), Dec. 18, 2015.)
BACKGROUND NOTES
AMENDMENTS
2015 - Subsec. (d)(4)(A) Pub. L. 114-113, Div. Q, Sec. 332(a)(1), amended subpar. (A) by substituting “(i) More Than $1,000 And Not More Than $50,000 In Taxes.—Except as provided in clause (ii), in the case of” for “In the case of”, by striking “under bond for deferred payment” in clause (i), and by adding clause (ii).
Subsec. (d)(4)(B). Pub. L. 114-113, Div. Q, Sec. 332(a)(2), amended subpar. (B) by substituting “(i) Exceeds $50,000 Limit.—Subparagraph (A)(i)” for “Subparagraph (A)” and by adding clause (ii).
2005 - Subsec. (d)(4)-(6). Pub. L. 109-59, Sec. 11127(a), amended subsec. (d) by redesignating par. (4) and (5) as par. (5) and (6), respectively, and added par. (4).
Subsec. (d)(6). Pub. L. 109-59, Sec. 11127(b), amended par. (6), as redesignated, by substituting “paragraph (5)" for “paragraph (4)”.
1996 - Subsec. (b)(3). Pub. L. 104-188, Sec. 1702(b)(6), amended par. (3). Before amendment, par. (3) read as follows:
“(3) section 5041(e),”
[Editor's Note] Inexplicably, section 11201(b)(3) of the 1990 Act amended section 5061(b)(3) to read as it already existed. Section 11704(a)(21) amended the provision to read as it appears.
1994 - Subsec. (b)(1). Pub. L. 103-465, Sec. 136 substituted “section 5001(a)(4), (5), or (6)” for “section 5001(a)(5), (6), or (7)”.
Subsec. (d)(5). Pub. L. 103-465, Sec. 712(b)(2), redesignated (d)(4) as (d)(5), amended redesignated (d)(5) by changing “14th day” to “due date” in the heading, and adding the parenthetical at the end, effective January 1, 1995.
Subsec. (d)(4). Pub. L. 103-465, Sec. 712(b)(1), redesignated (d)(4) as (d)(5) and added a new (d)(4) to read as above, effective January 1, 1995.
1990 - Subsec. (b)(3). Pub. L. 101-508, Sec. 11201(b)(3), 11704(a)(21), amended par. (3) identically, substituting ‘section 5041(e)’ for ‘section 5041(d)’.
1988 - Subsec. (d)(2)(A), (B), (3). Pub. L. 100-647 substituted ‘last day of the semimonthly period during’ for ‘date on’.
1986 - Subsec. (d). Pub. L. 99-509 amended subsec. (d) generally, substituting provisions relating to time for collecting tax on distilled spirits, wines, and beer, for provisions relating to extension of time for collecting tax on distilled spirits.
Subsec. (e)(3). Pub. L. 99-514 added par. (3).
1984 - Subsec. (e). Pub. L. 98-369 added subsec. (e).
1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(9)(A), struck out ‘rectified distilled spirits and wines,’ after ‘distilled spirits, wines,’.
Subsec. (b). Pub. L. 96-39, Sec. 807(a)(9)(B), in provisions preceding par. (1) struck out ‘rectified distilled spirits and wines’ after ‘spirits, wines,’ and redesignated pars. (4) to (7) as (3) to (6), respectively. Former par. (3), which made reference to section 5026(a)(2), was struck out.
Subsec. (d). Pub. L. 96-39, Sec. 804(b), added subsec. (d).
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1905(a)(6)(A), 1906(b)(13)(A), struck out last sentence providing for continued payment of taxes by stamp until the Secretary shall by regulation provide for collection of the taxes on the basis of a return and struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (b). Pub. L. 94-455, Sec. 1905(a)(6)(B), substituted the exceptions provisions for discretion method of collection providing that ‘Whether or not the method of collecting any tax imposed by this part is specifically provided in this part, any such tax may, under regulations prescribed by the Secretary or his delegate, be collected by stamp, coupon, serially-numbered ticket, or the use of tax-stamp machines, or by such other reasonable device or method as may be necessary or helpful in securing collection of the tax.’
Subsec. (c). Pub. L. 94-455, Sec. 1905(a)(6)(C), substituted the import duties provision for provision respecting applicability of other provisions of law and reading ‘All administrative and penalty provisions of this title, insofar as applicable, shall apply to the collection of any tax which the Secretary or his delegate determines or prescribes shall be collected in any manner provided in this section.’
Subsec. (d). Pub. L. 94-455, Sec. 1905(b)(2)(E)(iii), struck out subsec. (d) which provided cross reference to section 5689 for penalty and forfeiture for tampering with a stamp machine.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendments by Pub. L. 114-113, Div. Q, Sec. 332(a)), effective for any calendar quarters beginning more than 1 year after the date of the enactment of this Act [Enacted: Dec. 18, 2015].
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendments by section 11127 of Pub. L. 109-59 effective with respect to quarterly periods beginning on and after January 1, 2006.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 1702 of Pub. L. 104-188 effective as if included in the provision of the Revenue Reconciliation Act of 1990 to which such amendment relates.
EFFECTIVE DATE OF 1994 AMENDMENTS
Amendments by sections 136 and 712 of Pub. L. 103-465 effective Jan. 1, 1995.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11201(b)(3) of Pub. L. 101-508 effective Jan. 1, 1991, see section 11201(d) of Pub. L. 101-508, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 2003(b)(2) of Pub. L. 100-647 provided that: ‘The amendments made by paragraph (1) (amending this section and section 5703 of this title) shall take effect as if included in the amendments made by section 8011 of the Omnibus Budget Reconciliation Act of 1986 (Pub. L. 99-509).'
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by Pub. L. 99-514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99-514, set out as a note under section 48 of this title.
Section 8011(c) of Pub. L. 99-509, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(1) In general. - Except as provided in paragraph (2), the amendments made by this section (amending this section and sections 5054, 5703, and 5704 of this title) shall apply to removals during semimonthly periods ending on or after December 31, 1986.
‘(2) Imported articles, etc. - Subparagraphs (B) and (C) of section 5703(b)(2) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954) (as added by this section), paragraphs (2) and (3) of section 5061(d) of such Code (as amended by this section), and the amendments made by subsections (a)(2) and (b)(2) (amending sections 5054 and 5704 of this title) shall apply to articles imported, entered for warehousing, or brought into the United States or a foreign trade zone after December 15, 1986.
‘(3) Special rule for distilled spirits and tobacco for semimonthly period ending december 15, 1986. - With respect to remittances of -
‘(A) taxes imposed on distilled spirits by section 5001 or 7652 of such Code, and
‘(B) taxes imposed on tobacco products and cigarette papers and tubes by section 5701 or 7652 of such Code, for the semimonthly period ending December 15, 1986, the last day for payment of such remittances shall be January 14, 1987.
‘(4) Treatment of smokeless tobacco in inventory on June 30, 1986. - The tax imposed by section 5701(e) of the Internal Revenue Code of 1986 shall not apply to any smokeless tobacco which -
‘(A) on June 30, 1986, was in the inventory of the manufacturer or importer, and
‘(B) on such date was in a form ready for sale.’
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to taxes required to be paid on or after Sept. 30, 1984, see section 27(d)(2) of Pub. L. 98-369, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(6), (b)(2)(E)(iii) of 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of this title.
TRANSITIONAL RULES RELATING TO DETERMINATION AND PAYMENT OF TAX
Section 808 of Pub. L. 96-39, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(a) Liability for Payment of Tax. - Except as otherwise provided in this section, the tax on all distilled spirits which have been withdrawn from bond on determination of tax and on which tax has not been paid by the close of December 31, 1979, shall become due on January 1, 1980, and shall be payable in accordance with section 5061 of the Internal Revenue Code of 1986 (formerly I.R.C. 1954).
‘(b) Treatment of Controlled Stock and Bulk Wine. -
‘(1) Election with respect to controlled stock. - The proprietor of a distilled spirits plant may elect to convert any distilled spirits or wine which on January 1, 1980, is controlled stock.
‘(2) Election with respect to wine. - The proprietor of a distilled spirits plant may elect to convert any bulk wine which on January 1, 1980, is on the premises of a distilled spirits plant.
‘(3) Effect of election. - If an election under paragraph (1) or (2) is in effect with respect to any controlled stock or wine
‘(A) any distilled spirits, wine, or rectification tax previously paid or determined on such controlled stock or wine shall be abated or (without interest) credited or refunded under such regulations as the Secretary shall prescribe, and
‘(B) such controlled stock or wine shall be treated as distilled spirits or wine on which tax has not been paid or determined.
‘(4) Making of elections. - The elections under this subsection shall be made at such time and in such manner as the Secretary shall by regulations prescribe.
‘(c) Taxpaid Stock. -
‘(1) Taxpaid stock may remain on bonded premises during 1980. - Section 5612(a) of the Internal Revenue Code of 1986 (relating to forfeiture of taxpaid distilled spirits remaining on bonded premises) shall not apply during 1980.
‘(2) Separation of taxpaid stock. - All distilled spirits and wine on which tax has been paid and which are on the bonded premises of a distilled spirits plant shall be physically separated from other distilled spirits and wine. Such separation shall be by the use of separate tanks, rooms, or buildings, or by partitioning, or by such other methods as the Secretary finds will distinguish such distilled spirits and wine from other distilled spirits and wine on the bonded premises of the distilled spirits plant.
‘(d) Return of Distilled Spirits Products Containing Taxpaid Wine. - With respect to distilled spirits returned to the bonded premises of distilled spirits plants during 1980, section 5008(c)(1) of the Internal Revenue Code of 1986 (relating to refunds for distilled spirits returned to bonded premises) shall be treated as including a reference to section 5041 of such Code.
‘(e) Return of Distilled Spirits Products Containing Other Alcoholic Ingredients. - With respect to distilled spirits to which alcoholic ingredients other than distilled spirits have been added and which have been withdrawn from a distilled spirits plant before January 1, 1980, section 5215(a) of the Internal Revenue Codeof 1986 shall apply only if such spirits are returned to the distilled spirits plant from which withdrawn.
‘(f) Secretary Defined. - For purposes of this section, the term ‘Secretary’ means the Secretary of the Treasury or his delegate.'
PRIOR PROVISIONS
A prior section 5061, act Aug. 16, 1954, ch. 736, 68A Stat. 614, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising subsec. (d) of this section were contained in former section 5001(c), act Aug. 16, 1954, ch. 736, 68A Stat. 597, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5062(a) Refund — Under such regulations as the Secretary may prescribe, the amount of any internal revenue tax erroneously or illegally collected in respect to exported articles may be refunded to the exporter of the article, instead of to the manufacturer, if the manufacturer waives any claim for the amount so to be refunded.
I.R.C. § 5062(b) Drawback — On the exportation of distilled spirits or wines manufactured, produced, bottled, or packaged in casks or other bulk containers in the United States on which an internal revenue tax has been paid or determined, and which are contained in any cask or other bulk container, or in bottles packed in cases or other containers, there shall be allowed, under regulations prescribed by the Secretary, a drawback equal in amount to the tax found to have been paid or determined on such distilled spirits or wines. In the case of distilled spirits, the preceding sentence shall not apply unless the claim for drawback is filed by the bottler or packager of the spirits and unless such spirits have been marked, especially for export, under regulations prescribed by the Secretary. The Secretary is authorized to prescribe regulations governing the determination and payment or crediting of drawback of internal revenue tax on spirits and wines eligible for drawback under this subsection, including the requirements of such notices, bonds, bills of lading, and other evidence indicating payment or determination of tax and exportation as shall be deemed necessary.
I.R.C. § 5062(c) Exportation Of Imported Liquors
I.R.C. § 5062(c)(1) Allowance Of Tax — Upon the exportation of imported distilled spirits, wines, and beer upon which the duties and internal revenue taxes have been paid or determined incident to their importation into the United States, and which have been found after entry to be unmerchantable or not to conform to sample or specifications, and which have been returned to customs custody, the Secretary shall, under such regulations as he shall prescribe, refund, remit, abate, or credit, without interest, to the importer thereof, the full amount of the internal revenue taxes paid or determined with respect to such distilled spirits, wines, or beer.
I.R.C. § 5062(c)(2) Destruction In Lieu Of Exportation — At the option of the importer, such imported distilled spirits, wines, and beer, after return to customs custody, may be destroyed under customs supervision and the importer thereof granted relief in the same manner and to the same extent as provided in this subsection upon exportation.
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1336, and amended Pub. L. 88-539, 1, Aug. 31, 1964, 78 Stat. 746; Pub. L. 89-44, title VIII, 805(f)(6), June 21, 1965, 79 Stat. 161; Pub. L. 90-630, 2(a), Oct. 22, 1968, 82 Stat. 1328; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176, 1, Nov. 14, 1977, 91 Stat. 1363; Pub. L. 98-369, div. A, title IV, 454(c)(1), July 18, 1984, 98 Stat. 820.)
BACKGROUND NOTES
AMENDMENTS
1984--Subsec. (b). Pub. L. 98-369 substituted “have been marked” for “have been stamped or restamped, and marked”.
1977--Subsec. (b). Pub. L. 95-176 substituted in first sentence “manufactured, produced, bottled, or packaged in casks or other bulk containers” and “other bulk container” for “manufactured or produced” and “package” and in last sentence “spirits and wines eligible for drawback under this subsection, including the requirements" for “domestic distilled spirits and wines, including the requirement”.
1976--Subsecs. (a), (b), (c)(1). Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
1968--Subsec. (b). Pub. L. 90-630 permitted, under Treasury regulations, drawback of the tax where the stamping, restamping, or marking is done after the spirits have been removed from the original bottling plant.
1965--Subsec. (c)(1). Pub. L. 89-44 struck out “within six months of their release therefrom” after “customs custody”.
1964--Subsec. (c). Pub. L. 88-539 added subsec. (c).
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section 456(b) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-630 applicable only to articles exported on or after the first day of the first calendar month which begins more than 90 days after Oct. 22, 1968, see section 4 of Pub. L. 90-630, set out as a note under section 5008 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective July 1, 1965, see section 805(g)(1) of Pub. L. 89-44, set out as a note under section 5008 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 2 of Pub. L. 88-539 provided that: “The amendment made by the first section of this Act [amending this section] shall apply with respect to articles exported or destroyed after the date of the enactment of this Act [Aug. 31, 1964].”
[5063. Repealed. Pub. L. 89-44, title V, 501(e), June 21, 1965, 79 Stat. 150]
Section, Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1336; Pub. L. 86-75, 3(b)(1), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, 202(b)(1), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, 3(b)(1), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, 3(b)(1), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, 3(b)(1)(A), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, 2(b)(1)(A), June 30, 1964, 78 Stat. 237, made provision for floor stocks refunds on distilled spirits, wines, cordials, and beer and set out limitations on the eligibility for such refunds or credits.
A prior section 5063, act Aug. 16, 1954, ch. 736, 68A Stat. 615, consisted of provisions similar to those comprising section 5063, prior to the general revision of this chapter by Pub. L. 85-859.
Effective Date of Repeal
Repeal applicable on and after July 1, 1965, see section 701(d) of Pub. L. 89-44, set out as an Effective Date of 1965 Amendment note under section 5701 of this title.
PRIOR PROVISIONS
A prior section 5062, act Aug. 16, 1954, ch. 736, 68A Stat. 614, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5064(a) Payments — The Secretary, under such regulations as he may prescribe, shall pay (without interest) an amount equal to the amount of the internal revenue taxes paid or determined and customs duties paid on distilled spirits, wines, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of—
I.R.C. § 5064(a)(1) — fire, flood, casualty, or other disaster, or
I.R.C. § 5064(a)(2) — breakage, destruction, or other damage (but not including theft) resulting from vandalism or malicious mischief,
if such disaster or damage occurred in the United States and if such distilled spirits, wines, or beer were held and intended for sale at the time of such disaster or other damage. The payments provided for in this section shall be made to the person holding such distilled spirits, wines, or beer for sale at the time of such disaster or other damage.
I.R.C. § 5064(b) Claims
I.R.C. § 5064(b)(1) Period For Making Claim; Proof — No claim shall be allowed under this section unless—
I.R.C. § 5064(b)(1)(A) — filed within 6 months after the date on which such distilled spirits, wines, or beer were lost, rendered unmarketable, or condemned by a duly authorized official, and
I.R.C. § 5064(b)(1)(B) — the claimant furnishes proof satisfactory to the Secretary that the claimant—
I.R.C. § 5064(b)(1)(B)(i) — was not indemnified by any valid claim of insurance or otherwise in respect of the tax, or tax and duty, on the distilled spirits, wines, or beer covered by the claim; and
I.R.C. § 5064(b)(1)(B)(ii) — is entitled to payment under this section.
I.R.C. § 5064(b)(2) Minimum Claim — Except as provided in paragraph (3)(A), no claim of less than $250 shall be allowed under this section with respect to any disaster or other damage (as the case may be).
I.R.C. § 5064(b)(3) Special Rules For Major Disasters — If 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, and if the disaster referred to in subsection (a)(1) occurs in such part of the United States by reason of such major disaster, then—
I.R.C. § 5064(b)(3)(A) — paragraph (2) shall not apply, and
I.R.C. § 5064(b)(3)(B) — the filing period set forth in paragraph (1)(A) shall not expire before the day which is 6 months after the date on which the President makes the determination that such major disaster has occurred.
I.R.C. § 5064(b)(4) Regulations — Claims under this section shall be filed under such regulations as the Secretary shall prescribe.
I.R.C. § 5064(c) Destruction Of Distilled Spirits, Wines, Or Beer — When the Secretary has made payment under this section in respect of the tax, or tax and duty, on the distilled spirits, wines, or beer condemned by a duly authorized official or rendered unmarketable, such distilled spirits, wines, or beer shall be destroyed under such supervision as the Secretary may prescribe, unless such distilled spirits, wines, or beer were previously destroyed under supervision satisfactory to the Secretary.
I.R.C. § 5064(d) Products Of Puerto Rico — The provisions of this section shall not be applicable in respect of distilled spirits, wines, and beer of Puerto Rican manufacture brought into the United States and so lost or rendered unmarketable or condemned.
I.R.C. § 5064(e) Other Laws Applicable — All provisions of law, including penalties, applicable in respect of internal revenue taxes on distilled spirits, wines, and beer 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.
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1337, and amended Pub. L. 91-606, title III, 301(i), Dec. 31, 1970, 84 Stat. 1759; Pub. L. 93-288, title VI, 602(i), May 22, 1974, 88 Stat. 164; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-423, 1(a), Oct. 6, 1978, 92 Stat. 935; Pub. L. 96-39, title VIII, 807(a)(10), July 26, 1979, 93 Stat. 282; Pub. L. 100-707, title I, 109(l), Nov. 23, 1988, 102 Stat. 4709; Pub. L. 108-311, title IV, 408(a)(7), Oct. 4, 2004, 118 Stat. 1166.)
BACKGROUND NOTES
AMENDMENTS
2004-Subsec. (b)(3). Pub. L. 108-311, Sec. 408(a)(7), amended par. (3) by inserting “Robert T. Stafford” before “Disaster Relief and Emergency Assistance Act”.
1988--Subsec. (b)(3). Pub. L. 100-707 substituted “and Emergency Assistance Act” for “Act of 1974”.
1979--Pub. L. 96-39 struck out “rectified products,” after “distilled spirits, wines,” wherever appearing.
1978--Pub. L. 95-423 substituted “Losses resulting from disaster, vandalism, or malicious mischief” for “Losses caused by disaster” in section catchline.
Subsec. (a). Pub. L. 95-423 substituted provisions authorizing the Secretary, under such regulations as he may prescribe, to pay the prescribed amount on distilled spirits, etc., lost, rendered unmarketable, or condemned by a duly authorized official by reason of fire, flood, casualty or other disaster, breakage, destruction, or other damage (but not including theft) resulting from vandalism or malicious mischief, for provisions authorizing such payment where the President has determined under the Disaster Relief Act of 1974 that a “major disaster” has occurred, and that distilled spirits, etc., were lost, rendered unmarketable, or condemned by a duly authorized official by reason of such disaster occurring after June 30, 1959.
Subsec. (b). Pub. L. 95-423 redesignated par. (1) as (1)(A), substituted provisions disallowing a claim unless filed within 6 months after such distilled spirits, etc., were lost, rendered unmarketable or condemned, for provisions disallowing a claim unless filed within 6 months after the President determined that such disaster occurred, and added par. (1)(B); in par. (2) substituted provisions limiting claims to no less than $250, except as provided in par. (3)(A), for provisions demanding proof that claimant was not indemnified by any valid claim of insurance and that he is entitled to payment under this section; and added pars. (3) and (4).
1976--Subsecs. (a) to (c). 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)”.
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108-311, Sec. 408(a)(7), effective on the date of the enactment of this Act [Enacted: Oct. 4, 2004].
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 1(c) of Pub. L. 95-423 provided that: “The amendments made by this section [amending this section] shall apply to disasters (or other damage) occurring on or after the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Enacted: Oct. 6, 1978].”
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-288 effective Apr. 1, 1974, see section 605 of Pub. L. 93-288, set out as an Effective Date note under section 5121 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment 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 July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.
EXCEPTION TO EFFECTIVE DATE
Section 210(a)(3) of Pub. L. 85-859, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “Provisions having the effect of section 5064 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as such section is included in chapter 51 of such Code as amended by section 201 of this Act) shall be deemed to be included in the Internal Revenue Code of 1986, effective on the day following the date of the enactment of this Act [Sept. 2, 1958], and shall apply with respect to disasters occurring after such date of enactment, and not later than June 30, 1959.”
BEER LOST BY REASON OF FLOODS OF 1951 OR HURRICANES OF 1954
Section 207 of Pub. L. 85-859 provided for payment of an amount equal to the amount of taxes paid under section 3150(a) of the Internal Revenue Code of 1939 on fermented malt liquor which was lost, rendered unmarketable, or condemned by reason of the floods of 1951 or the hurricanes of 1954, under certain conditions and under regulations to be prescribed.
LOSSES OF ALCOHOLIC LIQUORS CAUSED BY DISASTER
Section 208 of Pub. L. 85-859 provided for payment of an amount equal to the amount of taxes and customs duties paid on distilled spirits, wines, rectified products, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by reason of a major disaster occurring after Dec. 31, 1954, and not later than Sept. 2, 1958, under certain conditions and under regulations to be prescribed.
PRIOR PROVISIONS
A prior section 5064, act Aug. 16, 1954, ch. 736, 68A Stat. 615, related to “territorial extent of law”, prior to the general revision of this chapter by Pub. L. 85-859. See section 5065 of this title.

I.R.C. § 5066(a) Entry Into Customs Bonded Warehouses
I.R.C. § 5066(a)(1) Bottled Distilled Spirits Withdrawn From Bonded Premises — Under such regulations as the Secretary may prescribe, bottled distilled spirits may be withdrawn from bonded premises as provided in section 5214(a)(4) for transfer to customs bonded warehouses in which imported distilled spirits are permitted to be stored in bond for entry therein pending withdrawal therefrom as provided in subsection (b). For the purposes of this chapter, the withdrawal of distilled spirits from bonded premises under the provisions of this paragraph shall be treated as a withdrawal for exportation and all provisions of law applicable to distilled spirits withdrawn for exportation under the provisions of section 5214(a)(4) shall apply with respect to spirits withdrawn under this paragraph.
I.R.C. § 5066(a)(2) Bottled Distilled Spirits Eligible For Export With Benefit Of Drawback — Under such regulations as the Secretary may prescribe, distilled spirits marked especially for export under the provisions of section 5062(b) may be shipped to a customs bonded warehouse in which imported distilled spirits are permitted to be stored, and entered in such warehouses pending withdrawal therefrom as provided in subsection (b), and the provisions of this chapter shall apply in respect of such distilled spirits as if such spirits were for exportation.
I.R.C. § 5066(a)(3) Time Deemed Exported — For the purposes of this chapter, distilled spirits entered into a customs bonded warehouse as provided in this subsection shall be deemed exported at the time so entered.
I.R.C. § 5066(b) Withdrawal From Customs Bonded Warehouses — Notwithstanding any other provisions of law, distilled spirits entered into customs bonded warehouses under the provisions of subsection (a) may, under such regulations as the Secretary may prescribe, be withdrawn from such warehouses for consumption in the United States by and for the official or family use of such foreign governments, organizations, and individuals who are entitled to withdraw imported distilled spirits from such warehouses free of tax. Distilled spirits transferred to customs bonded warehouses under the provisions of this section shall be entered, stored, and accounted for in such warehouses under such regulations and bonds as the Secretary may prescribe, and may be withdrawn therefrom by such governments, organizations, and individuals free of tax under the same conditions and procedures as imported distilled spirits.
I.R.C. § 5066(c) Withdrawal For Domestic Use — Distilled spirits entered into customs bonded warehouses as authorized by this section may be withdrawn therefrom for domestic use, in which event they shall be treated as American goods exported and returned.
I.R.C. § 5066(d) Sale Or Unauthorized Use Prohibited — No distilled spirits withdrawn from customs bonded warehouses or otherwise brought into the United States free of tax for the official or family use of such foreign governments, organizations, or individuals as are authorized to obtain distilled spirits free of tax shall be sold, or shall be disposed of or possessed for any use other than an authorized use. The provisions of section 5001(a)(4) are hereby extended and made applicable to any person selling, disposing of, or possessing any distilled spirits in violation of the preceding sentence, and to the distilled spirits involved in any such violation.
(Added Pub. L. 91-659, 3(a), Jan. 8, 1971, 84 Stat. 1965, and amended Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176, 2(d), Nov. 14, 1977, 91 Stat. 1364; Pub. L. 96-39, title VIII, 807(a)(11), July 26, 1979, 93 Stat. 282; Pub. L. 98-369, div. A, title IV, 454(c)(2), July 18, 1984, 98 Stat. 820; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(240), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018--Subsec. (d). Pub. L. 115-141, Div. U, Sec. 401(a)(240), amended subsec. (d) by substituting “section 5001(a)(4)” for “section 5001(a)(5)”.
1984--Subsec. (a)(2). Pub. L. 98-369 substituted “marked" for “stamped or restamped, and marked,”.
1979--Subsec. (a)(1). Pub. L. 96-39, 807(a)(11)(A), substituted “bottled distilled spirits” for “distilled spirits bottled in bond for export under the provisions of section 5233, or bottled distilled spirits returned to bonded premises under section 5215(b),”.
Subsec. (b). Pub. L. 96-39, 807(a)(11)(B), struck out “or domestic distilled spirits transferred to customs bonded warehouses under section 5521(d)(2)” after “the provisions of subsection (a)”.
1977--Subsec. (a)(1). Pub. L. 95-176 substituted par. (1) heading “Bottled distilled spirits withdrawn from bonded premises" for “Distilled spirits bottled in bond for export” and authorized withdrawal of bottled distilled spirits returned to bonded premises under section 5215(b) as provided in section 5214(a)(4).
1976--Subsecs. (a), (b). Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. No. 115-141, Div. U, Sec. 401(a)(240), effective on the date of the enactment of this Act [Enacted: Mar. 23, 2018].
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section 456(b) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
EFFECTIVE DATE
Section 6 of Pub. L. 91-659 provided that: “This Act [enacting this section and amending sections 5008, 5173, 5178, 5215, and 5232 of this title] shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Jan. 8, 1971].”
PRIOR PROVISIONS
A prior section 5066 was renumbered 5067.

I.R.C. § 5101(a) Notice Requirements
I.R.C. § 5101(a)(1) Notice Of Manufacture Of Still — The Secretary may, pursuant to regulations, require any person who manufactures any still, boiler, or other vessel to be used for the purpose of distilling, to give written notice, before the still, boiler, or other vessel is removed from the place of manufacture, setting forth by whom it is to be used, its capacity, and the time of removal from the place of manufacture.
I.R.C. § 5101(a)(2) Notice Of Set Up Of Still — The Secretary may, pursuant to regulations, require that no still, boiler, or other vessel be set up without the manufacturer of the still, boiler, or other vessel first giving written notice to the Secretary of that purpose.
I.R.C. § 5101(b) Penalties, Etc.
I.R.C. § 5101(b)(1) — For penalty and forfeiture for failure to give notice of manufacture, or for setting up a still without first giving notice, when required by the Secretary, see sections 5615(2) and 5687.
I.R.C. § 5101(b)(2) — For penalty and forfeiture for failure to register still or distilling apparatus when set up, see section 5601(a)(1) and 5615(1).
(Added by Pub. L. 98-369, div. A, title IV, 451(a), July 18, 1984, 98 Stat. 818.)
BACKGROUND NOTES
Amendment
Pub. L. 109-59, Sec. 11125(b)(1), amended the heading for Part II by substituting “Miscellaneous Provisions" for “Occupational Tax”, effective July 1, 2008, but does not apply to taxes imposed before such date.
Repeal Of Subpart A
Section 11125(a)(1)(A) of Pub. L. 109-59 repealed Subpart A, Proprietors of Distilled Spirits Plants, Bonded Wine Cellars, etc. (Sec. 5081), effective July 1, 2008, but does not apply to taxes imposed for periods before such date. Prior to repeal, Sec. 5081 read as follows:
“Sec. 5081. Imposition And Rate Of Tax
“(a) General Rule.—Every proprietor of—
“(1) a distilled spirits plant,
“(2) a bonded wine cellar,
“(3) a bonded wine warehouse, or
“(4) a taxpaid wine bottling house,
“shall pay a tax of $1,000 per year in respect of each such premises.
“(b) Reduced Rates For Small Proprietors.—
“(1) In General.—Subsection (a) shall be applied by substituting “$500” for “$1,000” with respect to any taxpayer not described in subsection (c) the gross receipts of which (for the most recent taxable year ending before the 1st day of the taxable period to which the tax imposed by subsection (a) relates) are less than $500,000.
“(2) Controlled Group Rules.— All persons treated as 1 taxpayer under section 5061(e)(3) shall be treated as 1 taxpayer for purposes of paragraph (1).
“(3) Certain Rules To Apply.— For purposes of paragraph (1), rules similar to the rules of subparagraphs (B) and (C) of section 448(c)(3) shall apply.
“(c) Exemption For Small Producers.— Subsection (a) shall not apply with respect to any taxpayer who is a proprietor of an eligible distilled spirits plant (as defined in section 5181(c)(4)).
Amendment Of Subpart
Pub. L. 109-59, Sec. 11125(b)(2) redesignated Subpart C (Sec. 5101 - 5102, relating to manufacturer of stills) as Subpart A, effective July 1, 2008, but does not apply to taxes imposed before such date.
Prior Provisions
Prior sections 5081 to 5084 of this title constituted a former subpart A of this part.
EFFECTIVE DATE
Section 456 of part II (451-456) of subtitle D of title IV of division A of Pub. L. 98-369, as amended by Pub. L. 99-514, title XVIII, 1845, Oct. 22, 1986, 100 Stat. 2856, provided that:
“(a) In General.--Except as otherwise provided in this section the amendments made by this part [enacting sections 5101 and 5102 of this title, amending sections 5005, 5062, 5066, 5116, 5134, 5179, 5204, 5206, 5207, 5214, 5215, 5235, 5301, 5354, 5555, 5604, 5613, 5615, 5691, 6103, 6801, and 7213 of this title, repealing section 5205 of this title, and omitting sections 5103, 5105, and 5106 of this title] shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Enacted: July 18, 1984].
“(b) Repeal of Stamp Requirement.--The amendments made by section 454 [amending sections 5062, 5066, 5116, 5204, 5206, 5207, 5215, 5235, 5301, 5555, 5604, 5613, and 6801 of this title and repealing section 5205 of this title] shall take effect on July 1, 1985.
“(c) Fortification of Cooking Wine.--The amendments made by section 455 [amending sections 5005, 5214, and 5354 of this title] shall take effect on the date of the enactment of this Act [July 18, 1984].
“(d) Section 452.--The amendment made by section 452 [amending section 5134 of this title] shall apply to products manufactured or produced after October 31, 1984.”
PRIOR PROVISIONS
A prior section 5101, added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1339, contained provisions relating to imposition and rate of tax, prior to the general revision of this subpart by Pub. L. 98-369.
Another prior section 5101, act Aug. 16, 1954, ch. 736, 68A Stat. 617, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5131(a) General — The Secretary may, at his discretion and under such regulations as he may prescribe, authorize a dealer (as defined in section 5121(c)) engaging in the business of supplying distilled spirits for industrial uses to package distilled spirits, on which the tax has been paid or determined, for such uses in containers of a capacity in excess of 1 wine gallon and not more than 5 wine gallons.
I.R.C. § 5131(b) Cross Reference — For provisions relating to containers of distilled spirits, see section 5206.
(Added by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1343, and amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(12), July 26, 1979, 93 Stat. 282; Pub. L. 98-369, div. A, title IV, Sec. 454(c)(3), July 18, 1984, 98 Stat. 821; Pub. L. 109-59, title XI, Sec. 11125(b)(11), Aug. 10, 2005, 119 Stat. 1144.)
BACKGROUND NOTES
Repeal of Subpart D
Section 11125(a)(1)(C) of Pub. L. 109-59 repealed Subpart D, Wholesale Dealers (other than sections 5114 and 5116, which were redesignated as Sec. 5121 and 5131, respectively), effective July 1, 2008, but does not apply to taxes imposed for periods before such date. See the Background Notes to Sec. 5111 for text of repealed sections 5111, 5112, 5113, 5115, and 5117.
Amendment
Pub. L. 109-59, Sec. 11125(b)(10), added Subpart D, Other Provisions, effective July 1, 2008, but does not apply to taxes imposed before such date.
AMENDMENTS
2005—Sec. 5116. Pub. L. 109-59, Sec. 11125(b)(11), redesignated Sec. 5116 as Sec. 5131.
Subsec. (a). Pub. L. 109-59, Sec. 11125(b)(11), amended subsec. (a) by inserting “(as defined in section 5121(c))" after “dealer”.
1984--Subsec. (b). Pub. L. 98-369 substituted “reference” for “references” in heading, struck out former par. (1) which provided a cross reference to section 5205(a)(1) of this title regarding stamps for immediate containers, and struck out designation “(2)” preceding provisions relating to containers of distilled spirits.
1979--Subsec. (b)(1). Pub. L. 96-39 substituted “section 5205(a)(1)” for “section 5205(a)(2)”.
1976--Subsec. (a). Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 2005 AMENDMENT
Redesignation and amendment by Section 11125(b)(11) of Pub. L. 109-59 effective July 1, 2008, but does not apply to taxes imposed before such date.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section 456(b) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
PRIOR PROVISIONS
A prior section 5116, act Aug. 16, 1954, ch. 736, 68A Stat. 620, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

Any person using distilled spirits on which the tax has been determined, in the manufacture or production of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which are unfit for beverage purposes shall be eligible for drawback at the time when such distilled spirits are used in the manufacture of such products as provided for in this subpart.
BACKGROUND NOTES
Repeal Of Subpart B
Section 11125(a)(1)(B) of Pub. L. 109-59 repealed Subpart B, Brewer (Secs. 5091-5093) effective July 1, 2008, but does not apply to taxes imposed for periods before such date. Prior to repeal, Sections 5091-5093 read as follows:
“Sec. 5091. Imposition And Rate Of Tax
“(a) General Rule.— Every brewer shall pay a tax of $1,000 per year in respect of each brewery.”
“(b) Reduced Rates For Small Brewers.— Rules similar to the rules of section 5081(b) shall apply for purposes of subsection (a).”
“Sec. 5092. Definition Of Brewer
“ Every person who brews beer (except a person who produces only beer exempt from tax under section 5053(e)) and every person who produces beer for sale shall be deemed to be a brewer.”
“Sec. 5093. Cross References
“(1) For exemption of brewer from special tax as wholesale and retail dealer, see section 5113(a).
“(2) For provisions relating to liability for special tax for carrying on business in more than one location, see section 5143(c).
“(3) For exemption from special tax in case of sales made on purchaser dealers' premises, see section 5113(d).”
Repeal of Subpart D
Section 11125(a)(1)(C) of Pub. L. 109-59 repealed Subpart D, Wholesale Dealers (other than sections 5114 and 5116, which were redesignated as Sec. 5121 and 5131, respectively), effective July 1, 2008, but does not apply to taxes imposed for periods before such date. Before repeal, Secs. 5111, 5112, 5113, 5115, and 5117 read as follows:
“Section 5111. Imposition and Rate of Tax
“(a) Wholesale Dealers In Liquors.— Every wholesale dealer in liquors shall pay a special tax of $500 a year.
“(b) Wholesale Dealers In Beer.— Every wholesale dealer in beer shall pay a special tax of $500 a year.”
“Section 5112. Definitions
“(a) Dealer.— When used in this subpart, subpart E, or subpart G, the term “dealer” means any person who sells, or offers for sale, any distilled spirits, wines, or beer.
“(b) Wholesale Dealer In Liquors.— When used in this chapter, the term “wholesale dealer in liquors” means any dealer, other than a wholesale dealer in beer, who sells, or offers for sale, distilled spirits, wines, or beer, to another dealer.
“(c) Wholesale Dealer In Beer.— When used in this chapter, the term “wholesale dealer in beer” means a dealer who sells, or offers for sale, beer, but not distilled spirits or wines, to another dealer.”
“Sec. 5113. Exemptions
“(a) Sales By Proprietors Of Controlled Premises.—No proprietor of a distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, shall be required to pay special tax under section 5111 or section 5121 on account of the sale at his principal business office as designated in writing to the Secretary, or at his distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, as the case may be, of distilled spirits, wines, or beer, which, at the time of sale, are stored at his distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, as the case may be, or had been removed from such premises to a taxpaid storeroom operated in connection therewith and are stored therein. However, on such proprietor shall have more than one place of sale, as to each distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, that shall be exempt from special taxes by reason of the sale of distilled spirits, wines, or beer stored at such premises (or removed therefrom and stored as provided in this section), by reason of this subsection.
“(b) Sales By Liquor Stores Operated By States, Political Subdivisions, Etc.—No liquor store engaged in the business of selling to persons other than dealers, which is operated by a State, by a political subdivision of a State or by the District of Columbia, shall be required to pay any special tax imposed under section 5111, by reason of selling distilled spirits, wines, or beer to dealers qualified to do business as such in such State, subdivision, or District, if such State, political subdivision, or District has paid the applicable special tax imposed under section 5121, and if such State, political subdivision, or District has paid special tax under section 5111 at its principal place of business.
“(c) Casual Sales.—
“(1) Sales By Creditors, Fiduciaries, And Officers Of Court.—No person shall be deemed to be a dealer by reason of the sale of distilled spirits, wines, or beer which have been received by him as security for or in payment of a debt, or as an executor, administrator, or other fiduciary, or which have been levied on by any officer under order or process of any court or magistrate, if such distilled spirits, wines, or beer are sold by such person in one parcel only or at public auction in parcels of not less than 20 wine gallons.
“(2) Sales By Retiring Partners Or Representatives Of Deceased Partners To Incoming Or Remaining Partners.—No person shall be deemed to be a dealer by reason of a sale of distilled spirits, wines, or beer made by such person as a retiring partner or the representative of a deceased partner to the incoming, remaining, or surviving partner or partners of a firm.
“(3) Return Of Liquors For Credit, Refund, Or Exchange.—No person shall be deemed to be a dealer by reason of the bona fide return of distilled spirits, wines, or beer to the dealer from whom purchased (or to the successor of the vendor's business or line of merchandise) for credit, refund, or exchange, and the giving of such credit, refund, or exchange shall not be deemed to be a purchase within the meaning of section 5117.
“(d) Dealers Making Sales On Purchaser Dealer's Premises.—
“(1) Wholesale Dealers In Liquors No wholesale dealer in liquors who has paid the special tax as such dealer shall again be required to pay special tax as such dealer on account of sales of wines or beer to wholesale or retail dealers in liquors, or to limited retail dealers, or of beer to wholesale or retail dealers in beer, consummated at the purchaser's place of business.
“(2) Wholesale Dealers In Beer No.—wholesale dealer in beer who has paid the special tax as such a dealer shall again be required to pay special tax as such dealer on account of sales of beer to wholesale or retail dealers in liquors or beer, or to limited retail dealers, consummated at the purchaser's place of business.
“(e) Sales By Retail Dealers In Liquidation.—No retail dealer in liquors or retail dealer in beer, selling in liquidation his entire stock of liquors in one parcel or in parcels embracing not less than his entire stock of distilled spirits, of wines, or of beer to any other dealer, shall be deemed to be a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be, by reason of such sale or sales.
“(f) Sales To Limited Retail Dealers.—
“(1) Retail Dealers In Liquors.—No retail dealer in liquors who has paid special tax as such dealer under section 5121(a) shall be required to pay special tax under section 5111 on account of the sale at his place of business of distilled spirits, wines, or beer to limited retail dealers as defined in section 5122(c).
“(2) Retail Dealers In Beer.—No retail dealer in beer who has paid special tax as such dealer under section 5121(b) shall be required to pay special tax under section 5111 on account of the sale at his place of business of beer to limited retail dealers as defined in section 5122(c).
“(g) Coordination Of Taxes Under Section 5111.—No tax shall be imposed by section 5111(a) with respect to a person's activities at any place during a year if such person has paid the tax imposed by section 5111(b) with respect to such place for such year.”
“Section 5115. Sign Required On Premises
“(a) Requirements
Every wholesale dealer in liquors who is required to pay special tax as such dealer shall, in the manner and form prescribed by regulations issued by the Secretary, place and keep conspicuously on the outside of the place of such business a sign, exhibiting, in plain and legible letters, the name or firm of the wholesale dealer, with the words: “wholesale liquor dealer.” The requirements of this subsection will be met by the posting of a sign of the character prescribed herein, but with words conforming to the designation on the dealer's special tax stamp.
“(b) Penalty
For penalty for failure to post sign, or for posting sign without paying the special tax, see section 5681.”
“Sec. 5117. Prohibited Purchases By Dealers
“(a) General.— It shall be unlawful for any dealer to purchase distilled spirits for resale from any person other than—
“(1) a wholesale dealer in liquors who has paid the special tax as such dealer to cover the place where such purchase is made; or
“(2) a wholesale dealer in liquors who is exempt, at the place where such purchase is made, from payment of such tax under any provision of this chapter; or
“(3) a person who is not required to pay special tax as a wholesale dealer in liquors.
“(b) Limited Retail Dealers.— A limited retail dealer may lawfully purchase distilled spirits for resale from a retail dealer in liquors.
“(c) Penalty And Forfeiture.— For penalty and forfeiture provisions applicable to violation of subsection (a), see sections 5687 and 7302.
“(d) Special Rule During Suspension Period.— Except as provided in subsection (b) or by the Secretary, during the suspension period (as defined in section 5148) it shall be unlawful for any dealer to purchase distilled spirits for resale from any person other than a wholesale dealer in liquors who is required to keep records under section 5114.”
AMENDMENTS
2005 — Sec. 5111. Pub. L. 109-59, Sec. 11125(b)(3)(C), amended the heading of Sec. 5111, as redesignated, by striking “and rate of tax”.
Subsec. (a). Pub. L. 109-59, Sec. 11125(b)(3)(C), struck the heading of subsec. (a). Before being struck, it read as follows: “Eligibility for drawback”.
Subsec. (b). Pub. L. 109-59, Sec. 11125(b)(3)(C), struck subsec. (b). Before being struck, it read as follows:
”(b) Rate of tax.—The special tax imposed by subsection (a) shall be $500 per year.”
Sec. 5131(a). Pub. L. 109-59, Sec. 11125(a)(2), struck “, on payment of a special tax per annum,” after “beverage purposes”.
Sec. 5131. Pub. L. 109-59, Sec. 11125(b)(3)(A), redesignated Sec. 5131 as Sec. 5111.
1994--Subsec. (a). Pub. L. 103-465 substituted “flavoring extracts, or perfume" for “or flavoring extracts”.
1987--Subsec. (b). Pub. L. 100-203 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The special tax imposed by subsection (a) shall be graduated in amount as follows: (1) for total annual use not exceeding 25 proof gallons, $25 a year; (2) for total annual use not exceeding 50 proof gallons, $50 a year; (3) for total annual use of more than 50 proof gallons, $100 a year.”
1976--Subsec. (a). Pub. L. 94-455 struck out “produced in a domestic registered distillery or industrial alcohol plant and withdrawn from bond, or using distilled spirits withdrawn from the bonded premises of a distilled spirits plant,” after “Any person using distilled spirits”.
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendments by section 11125 of Pub. L. 109-59 effective July 1, 2008, but does not apply to taxes imposed before such date.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective Jan. 1, 1995.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section 10512(h) of Pub. L. 100-203, set out as an Effective Date note under section 5081 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 effective on the first day of the 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

I.R.C. § 5114(a) Rate Of Drawback — In the case of distilled spirits on which the tax has been paid or determined, and which have been used as provided in this subpart, a drawback shall be allowed on each proof gallon at a rate of $1 less than the rate at which the distilled spirits tax has been paid or determined.
I.R.C. § 5114(b) Claims — Such drawback shall be due and payable quarterly upon filing of a proper claim with the Secretary; except that, where any person entitled to such drawback shall elect in writing to file monthly claims therefor, such drawback shall be due and payable monthly upon filing of a proper claim with the Secretary. The Secretary may require persons electing to file monthly drawback claims to file with him a bond or other security in such amount and with such conditions as he shall by regulations prescribe. Any such election may be revoked on filing of notice thereof with the Secretary. No claim under this subpart shall be allowed unless filed with the Secretary within the 6 months next succeeding the quarter in which the distilled spirits covered by the claim were used as provided in this subpart.
I.R.C. § 5114(c) Allowance Of Drawback Even Where Certain Requirements Not Met
I.R.C. § 5114(c)(1) In General — No claim for drawback under this section shall be denied in the case of a failure to comply with any requirement imposed under this subpart or any rule or regulation issued thereunder upon the claimant's establishing to the satisfaction of the Secretary that distilled spirits on which the tax has been paid or determined were in fact used in the manufacture or production of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which were unfit for beverage purposes.
I.R.C. § 5114(c)(2) Penalty
I.R.C. § 5114(c)(2)(A) In General — In the case of a failure to comply with any requirement imposed under this subpart or any rule or regulation issued thereunder, the claimant shall be liable for a penalty of $1,000 for each failure to comply unless it is shown that the failure to comply was due to reasonable cause.
I.R.C. § 5114(c)(2)(B) Penalty May Not Exceed Amount Of Claim — The aggregate amount of the penalties imposed under subparagraph (A) for failures described in paragraph (1) in respect of any claim shall not exceed the amount of such claim (determined without regard to subparagraph (A)).
I.R.C. § 5114(c)(3) Penalty Treated As Tax — The penalty imposed by paragraph (2) shall be assessed, collected, and paid in the same manner as taxes, as provided in section 6665(a).
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1346, and amended Pub. L. 90-615, 2(a), Oct. 21, 1968, 82 Stat. 1210; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, 452, July 18, 1984, 98 Stat. 819; Pub. L. 103-465, title I, 136, Dec. 8, 1994, 108 Stat. 4809; Pub. L. 104-188, title I, 1704(t), Aug. 20, 1996, 110 Stat. 1755; redesignated by Pub. L. 109-59, title XI, Sec. 11125(b)(3), Aug. 10, 2005, 119 Stat. 1144.)
BACKGROUND NOTES
AMENDMENTS
2005 -- Sec. 5134. Pub. L. 109-59, Sec. 11125(b)(3), redesignated Sec. 5134 as Sec. 5114.
1996--Subsec. (c)(3). Pub. L. 104-188, 1704(t)(12), substituted “section 6665(a)” for “section 6662(a)”.
1994--Subsec. (c)(1). Pub. L. 103-465, 136, substituted “flavoring extracts, or perfume" for “or flavoring extracts” in par. (3).
1984--Subsec. (c). Pub. L. 98-369 added subsec. (c).
1976--Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
1968--Subsec. (b). Pub. L. 90-615 substituted “6 months” for “3 months” in last sentence.
EFFECTIVE DATE OF 2005 AMENDMENT
Redesignation by Section 11125(b)(3) of Pub. L. 109-59 effective July 1, 2008, but does not apply to taxes imposed before such date.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188 effective on August 20, 1996.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective January 1, 1995.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to products manufactured or produced after Oct. 31, 1984, see section 456(d) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1968 AMENDMENT
Section 2(b) of Pub. L. 90-615 provided that: “The amendment made by subsection (a) [amending this section] shall apply to claims filed on or after the date of the enactment of this Act [Oct. 21, 1968].”
Prior Provisions
A prior subpart G, consisting of sections 5141 to 5149, related to general provisions, prior to the general revision of this chapter by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1313.
Amendments
1976--Pub. L. 94-455, title XIX, 1905(b)(3)(D)(ii), Oct. 4, 1976, 90 Stat. 1822, struck out item 5144 “Supply of stamps”.
Prior Provisions
A prior section 5134, acts Aug. 16, 1954, ch. 736, 68A Stat. 623; Mar. 30, 1955, ch. 18, 3(b)(2), 69 Stat. 15; Mar. 29, 1956, ch. 115, 3(b)(2), 70 Stat. 67; Mar. 29, 1957, Pub. L. 85-12, 3(b)(2), 71 Stat. 10; June 30, 1958, Pub. L. 85-475, 3(b)(2), 72 Stat. 259, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5121(a) Requirements
I.R.C. § 5121(a)(1) Distilled Spirits — Every wholesale dealer in liquors who sells distilled spirits to other dealers shall keep daily a record of distilled spirits received and disposed of by him, in such form and at such place and containing such information, and shall submit correct summaries of such records to the Secretary at such time and in such form and manner, as the Secretary shall by regulations prescribe. Such dealer shall also submit correct extracts from or copies of such records, at such time and in such form and manner as the Secretary may by regulations prescribe; however, the Secretary may on application by such dealer, in accordance with such regulations, relieve him from this requirement until further notice, whenever the Secretary deems that the submission of such extracts or copies serves no useful purpose in law enforcement or in protection of the revenue.
I.R.C. § 5121(a)(2) Wines And Beer — Every wholesale dealer in liquors and every wholesale dealer in beer shall provide and keep, at such place as the Secretary shall by regulations prescribe, a record in book form of all wines and beer received, showing the quantities thereof and from whom and the dates received, or shall keep all invoices of, and bills for, all wines and beer received.
I.R.C. § 5121(b) Exemption Of States, Political Subdivisions, Etc. — The provision of subsection (a) shall not apply to a State, to a political subdivision of a State, to the District of Columbia, or to liquor stores operated by any of them, if they maintain and make available for inspection by internal revenue officers such records as will enable such officers to trace all distilled spirits, wines, and beer received, and all distilled spirits disposed of by them. Such States, subdivisions, District, or liquor stores shall, upon the request of the Secretary, furnish him such transcripts, summaries and copies of their records with respect to distilled spirits as he shall require.
I.R.C. § 5121(c) Wholesale Dealers — For purposes of this part—
I.R.C. § 5121(c)(1) Wholesale Dealer In Liquors — The Term “wholesale dealer in liquors” means any dealer (other than a wholesale dealer in beer) who sells, or offers for sale, distilled spirits, wines, or beer, to another dealer.
I.R.C. § 5121(c)(2) Wholesale Dealer In Beer — The term “wholesale dealer in beer” means any dealer who sells, or offers for sale, beer, but not distilled spirits or wines, to another dealer.
I.R.C. § 5121(c)(3) Dealer — The term “dealer” means any person who sells, or offers for sale, any distilled spirits, wines, or beer.
I.R.C. § 5121(c)(4) Presumption In Case Of Sale Of 20 Wine Gallons Or More — The sale, or offer for sale, of distilled spirits, wines, or beer, in quantities of 20 wine gallons or more to the same person at the same time, shall be presumptive evidence that the person making such sale, or offer for sale, is engaged in or carrying on the business of a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be. Such presumption may be overcome by evidence satisfactorily showing that such sale, or offer for sale, was made to a person other than a dealer.
I.R.C. § 5121(d) Cross References
I.R.C. § 5121(d)(1) — For provisions requiring proprietors of distilled spirits plants to keep records and submit reports of receipts and dispositions of distilled spirits, see section 5207.
I.R.C. § 5121(d)(2) — For penalty for violation of subsection (a), see section 5603.
I.R.C. § 5121(d)(3) — For provisions relating to the preservation and inspection of records, and entry of premises for inspection, see section 5123.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1342, and amended Pub. L. 94-455, title XIX, 1905(c)(1), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; redesignated by Pub. L. 109-59, title XI, Sec. 11125(b)(5), Aug. 10, 2005, 119 Stat. 1144.)
BACKGROUND NOTES
Repeal Of Subpart E
Section 11125(a)(1)(D) of Pub. L. 109-59 repealed Subpart E, Retail Dealers (other than Sec. 5124 which in effect was redesignated as Sec. 5122) effective July 1, 2008, but does not apply to taxes imposed for periods before such date. Prior to repeal, Sections 5121-5123 and 5125 read as follows:
“Sec. 5121. Imposition and Rate of Tax
“(a) Retail Dealers In Liquors.— Every retail dealer in liquors shall pay a special tax of $250 a year.
“(b) Retail Dealers In Beer.— Every retail dealer in liquors shall pay a special tax of $250 a year.”
“Sec. 5122. Definitions
“(a) Retail Dealers in Liquors.—When used in this chapter, the term “retail dealer in liquors” means any dealer, other than a retail dealer in beer or a limited retail dealer, who sells, or offers for sale, any distilled spirits, wines, or beer, to any person other than a dealer.
“(b) Retail Dealers in Beer.—When used in this chapter, the term “retail dealer in beer” means any dealer, other than a limited retail dealer, who sells, or offers for sale, beer, but not distilled spirits or wines, to any person other than a dealer.
“(c) Limited Retail Dealer.—When used in this chapter, the term “limited retail dealer” means any fraternal, civic, church, labor, charitable, benevolent, or ex-servicemen's organization making sales of distilled spirits, wine or beer on the occasion of any kind of entertainment, dance, picnic, bazaar, or festival held by it, or any person making sales of distilled spirits, wine or beer to the members, guests, or patrons of bona fide fairs, reunions, picnics, carnivals, or other similar outings, if such organization or person is not otherwise engaged in business as a dealer.”
“Sec. 5123. Exemptions
“(a) Wholesale Dealers.—
“(1) Wholesale Dealers In Liquors,—No special tax shall be imposed under section 5121(a) or (b) on any dealer by reason of the selling, or selling, or offering for sale, of distilled spirits, wines, or beer at any location where such dealer is required to pay special tax under section 5111(a).
“(2) Wholesale Dealers In Beer.—No special tax shall be imposed under section 5121(b) on any dealer by reason of the selling, or offering for sale, of beer at any location where such dealer is required to pay special tax under section 5111(b).
“(b) Business Conducted In More Than One Location.–
“(1) Retail Dealers At Large.—Any retail dealer in liquors or retailer dealer in beer whose business is such as to require him to travel from place to place in different States of the United States may, under regulations prescribed by the Secretary, procure a special tax stamp “At Large” covering his activities throughout the United States with the payment of but one special tax as a retail dealer in liquors or as a retail dealer in beer, as the case may be.
“(2) Dealers On Trains, Aircraft, And Boats.—Nothing contained in this chapter shall prevent the issue, under such regulations as the Secretary may prescribe, of special tax stamps to—
“(A) persons carrying on the business of retail dealers in liquors, or retail dealers in beer, on trains, aircraft, boats or other vessels, engaged in the business of carrying passengers; or
“(B) persons carrying on the business of retail dealers in liquors or retail dealers in beer on boats or other vessels operated by them, when such persons operate from a fixed address in a port or harbor and supply exclusively boats or other vessels, or persons thereon, at such port or harbor.
“(3) Liquor Stores Operated By States, Political Subdivisions, Etc.—A State, a political subdivision of a State, or the District of Columbia shall not be required to pay more than one special tax as a retail dealer in liquors under section 5121(a) regardless of the number of locations at which such State, political subdivision, or District carries on business as a retail dealer in liquors.
“(c) Coordination Of Taxes Under Section 5121.—No tax shall be imposed by section 5121(a) with respect to a person's activities at any place during a year if such person has paid the tax imposed by section 5121(b) with respect to such place for such year.
“(d) Cross References.—
“(1) For exemption of proprietors of distilled spirits plants, bonded wine cellars, and breweries from special tax as dealers, see section 5113(a).
“(2) For provisions relating to sales by creditors, fiduciaries, and officers of courts, see section 5113(c)(1).
“(3) For provisions relating to sales by retiring partners or representatives of deceased partners to incoming or remaining partners, see section 5113(c)(2).
“(4) For provisions relating to return of liquors for credit, refund, or exchange, see section 5113(c)(3).
“(5) For provisions relating to sales by retail dealers in liquidation, see section 5113(e).”
“Sec. 5125. Cross References
“(1) For provisions relating to prohibited purchases by dealers, see section 5117.
“(2) For provisions relating to presumptions of liability as wholesale dealer in case of sale of 20 wine gallons or more, see section 5691(b).”
AMENDMENTS
2005—Sec. 5114. Pub. L. 109-59, Sec. 11125(b)(5), redesignated Sec. 5114 as Sec. 5432. Note, however, that it appears that it should have been redesignated as Sec. 5121.
Sec. 5432[5121]. Pub. L. 109-59, Sec. 11125(b)(5), substituted “Recordkeeping by Wholesale Dealers" for “Records”.
Subsec. (c). Pub. L. 109-59, Sec. 11125(b)(5), redesignated subsec. (c) as subsec. (d) and added a subsec. (c).
Subsec. (d). Pub. L. 109-59, Sec. 11125(b)(5), amended subsec. (d), as redesignated, by substituting “section 5123" for “section 5146”.
1976--Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
Subsec. (b). Pub. L. 94-455, Sec. 1905(c)(1), 1906(b)(13)(A), struck out “or Territory” after “a State”, “Territories" after “States,”, and “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendments by section 11125(b)(5) of Pub. L. 109-59 effective July 1, 2008, but does not apply to taxes imposed before such date.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(c)(1) of Pub. L. 94-455 effective on the first day of the 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.
Prior Provisions
A prior section 5114, act Aug. 16, 1954, ch. 736, 68A Stat. 619, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 8

I.R.C. § 5201(a) General — Proprietors of distilled spirits plants shall conduct all operations authorized to be conducted on the premises of such plants under such regulations as the Secretary shall prescribe.
I.R.C. § 5201(b) Distilled Spirits For Industrial Uses — The regulations of the Secretary under this chapter respecting the production, warehousing, denaturing, distribution, sale, export, and use of distilled spirits for industrial purposes shall be such as he deems necessary, advisable, or proper to secure the revenue, to prevent diversion to illegal uses, and to place the distilled spirits industry and other industries using such distilled spirits as a chemical raw material or for other lawful industrial purposes on the highest possible plane of scientific and commercial efficiency and development consistent with the provisions of this chapter. Where nonpotable chemical mixtures containing distilled spirits are produced for transfer to the bonded premises of a distilled spirits plant for completion of processing, the Secretary may waive any provision of this chapter with respect to the production of such mixtures, and the processing of such mixtures on the bonded premises shall be deemed to be production of distilled spirits for purposes of this chapter.
I.R.C. § 5201(c) Hours Of Operations — The Secretary may prescribe regulations relating to hours for distillery operations and to hours for removal of distilled spirits from distilled spirits plants; however, such regulations shall not be more restrictive, as to any operation or function, that the provisions of internal revenue law and regulations relating to such operation or function in effect on the day preceding the effective date of this section.
I.R.C. § 5201(d) Identification Of Distilled Spirits — The Secretary may provide by regulations for the addition of tracer elements to distilled spirits to facilitate the enforcement of this chapter. Tracer elements to be added to distilled spirits at any distilled spirits plant under provisions of this subsection shall be of such character and in such quantity as the Secretary may authorize or require, and such as will not impair the quality of the distilled spirits for their intended use.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1357, and amended by Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, 807(a)(21), July 26, 1979, 93 Stat. 283.)
BACKGROUND NOTES
AMENDMENTS
1979--Subsec. (a). Pub. L. 96-39 substituted “all operations authorized to be conducted” for “their operations relating to the production, storage, denaturing, rectification and bottling of distilled spirits, and all other operations authorized to be conducted”.
1976--Subsecs. (a) to (d). Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.
PRIOR PROVISIONS
Provisions similar to those comprising subsecs. (a) to (c) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85-859, as follows:


Present subsecs.: Prior sections:
(a) ................ 5193(a), 5194(g), 5241(a), 5281, 5282(a), 5302, 5305-5307, 5319(6).
(b) ................ 5305.
The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 633, 636, 640, 644, 651, 654, 657, 661.

I.R.C. § 5203(a) Keeping Premises Accessible — Every proprietor of a distilled spirits plant shall furnish the Secretary such keys as may be required for internal revenue officers to gain access to the premises and any structures thereon, and such premises shall always be kept accessible to any officer having such keys.
I.R.C. § 5203(b) Right Of Entry And Examination — It shall be lawful for any internal revenue officer at all times, as well by night as by day, to enter any distilled spirits plant, or any other premises where distilled spirits operations are carried on, or structure or place used in connection therewith for storage or other purposes; to make examination of the materials, equipment, and facilities thereon; and make such gauges and inventories as he deems necessary. Whenever any officer, having demanded admittance, and having declared his name and office, is not admitted into such premises by the proprietor or other person having charge thereof, it shall be lawful for such officer, at all times, as well by night as by day, to use such force as is necessary for him to gain entry to such premises.
I.R.C. § 5203(c) Furnishing Facilities And Assistance — On the demand of any internal revenue officer or agent, every proprietor of a distilled spirits plant shall furnish the necessary facilities and assistance to enable the officer or agent to gauge the spirits in any container or to examine any apparatus, equipment, containers, or materials on such premises. Such proprietor shall also, on demand of such officer or agent, open all doors, and open for examination all boxes, packages, and all casks, barrels, and other vessels on such premises.
I.R.C. § 5203(d) Authority To Break Up Grounds Or Walls — It shall be lawful for any internal revenue officer, and any person acting in his aid, to break up the ground on any part of a distilled spirits plant or any other premises where distilled spirits operations are carried on, or any ground adjoining or near to such plant or premises, or any wall or partition thereof, or belonging thereto, or other place, to search for any pipe, cock, private conveyance, or utensil; and, upon finding any such pipe or conveyance leading therefrom or thereto, to break up any ground, house, wall, or other place through or into which such pipe or other conveyance leads, and to break or cut away such pipe or other conveyance, and turn any cock, or to examine whether such pipe or other conveyance conveys or conceals any distilled spirits, mash, wort, or beer, or other liquor, from the sight or view of the officer, so as to prevent or hinder him from taking a true account thereof.
I.R.C. § 5203(e) Penalty — For penalty for violation of this section, see section 5687.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1357, and amended by Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, 807(a)(22), July 26, 1979, 93 Stat. 283.)
BACKGROUND NOTES
AMENDMENTS
1979--Subsec. (b). Pub. L. 96-39, 807(a)(22)(A), substituted “where distilled spirits operations are carried on” for “where distilled spirits are produced or rectified”.
Subsec. (c). Pub. L. 96-39, 807(a)(22)(B), substituted “on such premises" for “not under the control of the internal revenue officer in charge”.
Subsec. (d). Pub. L. 96-39, 807(a)(22)(C), substituted “where distilled spirits operations are carried on” for “where distilled spirits are produced or rectified”.
1976--Subsec. (a). Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 1979 AMENDMENTS
Amendments by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
PRIOR PROVISIONS
Provisions similar to those comprising this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85-859, as follows:


Present subsecs.: Prior sections
(a) .................. 5196(a).
(b) .................. 5196(b), (e).
(c) .................. 5196(c), (e), 5283, 5615.
(d) .................. 5196(d), 5283.
(e) .................. 5615, 5687.
The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 636, 652, 686, 700.

I.R.C. § 5207(a) Records Of Distilled Spirits Plant Proprietors — Every distilled spirits plant proprietor shall keep records in such form and manner as the Secretary shall by regulations prescribe of:
I.R.C. § 5207(a)(1) — The following production activities—
I.R.C. § 5207(a)(1)(A) — the receipt of materials intended for use in the production of distilled spirits, and the use thereof,
I.R.C. § 5207(a)(1)(B) — the receipt and use of distilled spirits received for redistillation, and
I.R.C. § 5207(a)(1)(C) — the kind and quantity of distilled spirits produced.
I.R.C. § 5207(a)(2) — The following storage activities—
I.R.C. § 5207(a)(2)(A) — the kind and quantity of distilled spirits, wines, and alcoholic ingredients entered into storage,
I.R.C. § 5207(a)(2)(B) — the kind and quantity of distilled spirits, wines, and alcoholic ingredients removed, and the purpose for which removed, and
I.R.C. § 5207(a)(2)(C) — the kind and quantity of distilled spirits returned to storage.
I.R.C. § 5207(a)(3) — The following denaturation activities—
I.R.C. § 5207(a)(3)(A) — the kind and quantity of denaturants received and used or otherwise disposed of,
I.R.C. § 5207(a)(3)(B) — the kind and quantity of distilled spirits denatured, and
I.R.C. § 5207(a)(3)(C) — the kind and quantity of denatured distilled spirits removed.
I.R.C. § 5207(a)(4) — The following processing activities—
I.R.C. § 5207(a)(4)(A) — all distilled spirits, wines, and alcoholic ingredients received or transferred,
I.R.C. § 5207(a)(4)(B) — the kind and quantity of distilled spirits packaged or bottled, and
I.R.C. § 5207(a)(4)(C) — the kind and quantity of distilled spirits removed from his premises.
I.R.C. § 5207(a)(5) — Such additional information with respect to activities described in paragraphs (1), (2), (3), and (4), and with respect to other activities, as may by regulations be required.
I.R.C. § 5207(b) Reports — Every person required to keep records under subsection (a) shall render such reports covering his operations, at such times and in such form and manner and containing such information, as the Secretary shall by regulations prescribe.
I.R.C. § 5207(c) Preservation And Inspection — The records required by subsection (a) and a copy of each report required by subsection (b) shall be available for inspection by any internal revenue officer during business hours, and shall be preserved by the person required to keep such records and reports for such period as the Secretary shall by regulations prescribe.
I.R.C. § 5207(d) Penalty — For penalty and forfeiture for refusal or neglect to keep records required under this section, or for false entries therein, see sections 5603 and 5615(5).
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1361, and amended by Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176, 2(e), Nov. 14, 1977, 91 Stat. 1364; Pub. L. 96-39, title VIII, 807(a)(25), July 26, 1979, 93 Stat. 283; Pub. L. 98-369, div. A, title IV, 454(c)(6), July 18, 1984, 98 Stat. 821 ;Pub. L. 105-34, title XIV, Sec. 1413(a), Aug. 5, 1997, 111 Stat 788.)
BACKGROUND NOTES
AMENDMENTS
1997-Subsec. (c). Pub. L. 105-34, Sec. 1413(a), amended subsec. (c) struck “shall be kept on the premises where the operations covered by the record are carried on and”.
1984--Subsec. (a)(4)(D). Pub. L. 98-369, 454(c)(6), struck out subpar. (D) which required every distilled spirits plant proprietor to keep records in such form and manner as prescribed by the Secretary of the receipt, use, and balance on hand of all stamps required by law or regulations to be used by the proprietor.
1979--Subsec. (a). Pub. L. 96-39 struck out provisions relating to the bottling of distilled spirits in bond and relating to the kind and quantity of distilled spirits returned to bonded premises and inserted provisions relating to the kind and quantity of distilled spirits returned to storage and relating to receipt, use, and balance on hand of all stamps required by law or regulations to be used by the Secretary.
Subsec. (b). Pub. L. 96-39 redesignated subsec. (c) as (b) and struck out “or (b)” after “subsection (a)”. Former subsec. (b), relating to records of rectifiers and bottlers, was struck out.
Subsec. (c). Pub. L. 96-39 redesignated subsec. (d) as (c), struck out “and (b),” after “subsection (a)”, and substituted “subsection (b)” for “subsection (c)”. Former subsec. (c) redesignated (b).
Subsecs. (d), (e). Pub. L. 96-39 redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).
1977--Subsec. (a)(10), (11). Pub. L. 95-176, 2(e)(2), (3), added par. (10) and redesignated former par. (10) as (11).
1976--Subsecs. (a) to (d). Pub. L. 94--455 struck out “or his delegate” after “Secretary” wherever appearing.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 1413(a) of Pub. L. 105-34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [Enacted: Aug. 5, 1997].
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section 456(b) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1979 AMENDMENTS
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
PRIOR PROVISIONS
Provisions similar to those comprising this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85-859, as follows:


Present subsecs.: Prior sections:
(a) ................... 5197(a)(1)(A), (a)(2), 5305, 5331(a)(3).
(b) ................... 5285, 5555(a).
(c) ................... 5197(b), 5285, 5305, 5331(a)(3), 5555(a).
(d) ................... 5197(a)(1)(B), 5285, 5305, 5331(a)(3), 5555(a).
(e) ................... 5197(c)(2), 5285.
The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 637, 638, 652, 657, 662, 681.
Prior Provisions
A prior part II, Operation, consisted of sections 5241 to 5252, prior to the general revision of this chapter by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1313.

Bulk distilled spirits on which the internal revenue tax has not been paid or determined as authorized by law may, under such regulations as the Secretary shall prescribe, be transferred in bond between bonded premises in any approved container. For the purposes of this chapter, the removal of bulk distilled spirits for transfer in bond between bonded premises shall not be construed to be a withdrawal from bonded premises. The provisions of this section restricting transfers to bulk distilled spirits shall not apply to alcohol bottled under the provisions of section 5235 which is to be withdrawn for industrial purposes. In the case of distilled spirits transferred in bond after December 31, 2017, between bonded premises belonging to the same person or members of the same controlled group (within the meaning of section 5001(c)(2)) this section shall be applied without regard to whether distilled spirits are bulk distilled spirits. In the case of distilled spirits transferred in bond from the person who distilled or processed such distilled spirits (hereinafter referred to as ‘transferor’) to another person for bottling or storage of such distilled spirits, and returned to the transferor for removal, this section shall be applied without regard to whether distilled spirits are bulk distilled spirits, but only if the transferor retains title during the entire period between such distillation, or processing, and removal.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1362, and amended by Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, 805(b)(2), July 26, 1979, 93 Stat. 276; Pub. L. 96-598, 6(d), Dec. 24, 1980, 94 Stat. 3490; Pub. L. 115-97, title I, Sec. 13808(a), Dec. 22, 2017; Pub. L. 116-94, title I, Sec. 144(h)(1), Dec. 20, 2019; Pub. L. 116-260, Div. EE, title I, Sec. 106(h), Dec. 27, 2020, 134 Stat. 1182.)
BACKGROUND NOTES
AMENDMENTS
2020 - Sec. 5212. Pub. L. 116-260, Div. EE, Sec. 106(h)(1), substituted “between bonded premises belonging to the same person or members of the same controlled group (within the meaning of section 5001(c)(2))” for “and before January 1, 2021,”.
Sec. 5212. Pub. L. 116-260, Div. EE, Sec. 106(h)(2), added a new sentence at the end.
2019 - Sec. 5212. Pub. L. 116-94, Sec. 144(h)(1), amended this section by substituting “January 1, 2021” for “January 1, 2020”.
2017—Pub. L. 115-97, Sec. 13808(a), added the sentence at the end.
1980--Pub. L. 96-598 inserted provision that restriction on transfers to bulk distilled spirits not apply to alcohol bottled under section 5235 of this title which is to be withdrawn for industrial purposes.
1979--Pub. L. 96-39 substituted “Bulk distilled spirits” for “Distilled spirits” and “bulk distilled spirits” for “distilled spirits”.
1976--Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 2020 AMENDMENTS
Amendments by Pub. L. 116-260, Div. EE, Sec. 106(h), effective for distilled spirits transferred in bond after December 31, 2020.
EFFECTIVE DATE OF 2019 AMENDMENT
Amendment by Pub. L. 116-94, Sec. 144(h)(1), effective for distilled spirits transferred in bond after December 31, 2019.
EFFECTIVE DATE OF 2017 AMENDMENT
Amendment by Pub. L. 115-97, Sec. 13808(a), effective for distilled spirits transferred in bond after December 31, 2017.
Sec. 41111 of Pub. L. 115-123 provided that:
“SEC. 41111. RULE OF CONSTRUCTION FOR CRAFT BEVERAGE MODERNIZATION AND TAX REFORM
“(a) IN GENERAL.—Subpart A of part IX of subtitle C of title I of Public Law 115–97 is amended by adding at the end the following new section:
‘SEC. 13809. RULE OF CONSTRUCTION.—Nothing in this subpart, the amendments made by this subpart, or any regulation promulgated under this subpart or the amendments made by this subpart, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverages.’.
“(b) EFFECTIVE DATE.—The amendment made by this section shall take effect as if included in Public Law 115–97.”
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
PRIOR PROVISIONS
A prior section 5212, act Aug. 16, 1954, ch. 736, 68A Stat. 639, related to the prevention and detection of fraud and contained a cross reference to provisions for gauging and marking of spirits, prior to the general revision of this chapter by Pub. L. 85-859. See section 5204(b) of this title.
Provisions similar to those comprising this section were contained in prior sections 5194(a), (e) to (g), 5217(a), 5246, 5308, act Aug. 16, 1954, ch. 736, 68A Stat. 634 to 636, 641, 647, 657, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5214(a) Purposes — Distilled spirits on which the internal revenue tax has not been paid or determined may, subject to such regulations as the Secretary shall prescribe, be withdrawn from the bonded premises of any distilled spirits plant in approved containers—
I.R.C. § 5214(a)(1) — free of tax after denaturation of such spirits in the manner prescribed by law for—
I.R.C. § 5214(a)(1)(A) — exportation;
I.R.C. § 5214(a)(1)(B) — use in the manufacture of ether, chloroform, or other definite chemical substance where such distilled spirits are changed into some other chemical substance and do not appear in the finished product; or
I.R.C. § 5214(a)(1)(C) — any other use in the arts and industries (except for uses prohibited by section 5273(b) or (d)) and for fuel, light, and power; or
I.R.C. § 5214(a)(2) — free of tax by, and for the use of, the United States or any governmental agency thereof, any State, any political subdivision of a State, or the District of Columbia, for nonbeverage purposes; or
I.R.C. § 5214(a)(3) — free of tax for nonbeverage purposes and not for resale or use in the manufacture of any product for sale—
I.R.C. § 5214(a)(3)(A) — for the use of any educational organization described in section 170(b)(1)(A)(ii) which is exempt from income tax under section 501(a), or for the use of any scientific university or college of learning;
I.R.C. § 5214(a)(3)(B) — for any laboratory for use exclusively in scientific research;
I.R.C. § 5214(a)(3)(C) — for use at any hospital, blood bank, or sanitarium), (including use in making any analysis or test at such hospital, blood bank, or sanitarium), or at any pathological laboratory exclusively engaged in making analyses, or tests, for hospitals or sanitariums; or
I.R.C. § 5214(a)(3)(D) — for the use of any clinic operated for charity and not for profit (including use in the compounding of bona fide medicines for treatment outside of such clinics of patients thereof); or
I.R.C. § 5214(a)(4) — without payment of tax for exportation, after making such application and entries, filing such bonds as are required by section 5175, and complying with such other requirements as may by regulations be prescribed; or
I.R.C. § 5214(a)(5) — without payment of tax for use in wine production, as authorized by section 5373; or
I.R.C. § 5214(a)(6) — without payment of tax for transfer to manufacturing bonded warehouses for manufacturing in such warehouses for export, as authorized by law; or
I.R.C. § 5214(a)(7) — without payment of tax for use of certain vessels and aircraft, as authorized by law; or
I.R.C. § 5214(a)(8) — without payment of tax for transfer to foreign-trade zones, as authorized by law; or
I.R.C. § 5214(a)(9) — without payment of tax, for transfer (for the purpose of storage pending exportation) to any customs bonded warehouse from which distilled spirits may be exported, and distilled spirits transferred to a customs bonded warehouse under this paragraph shall be entered, stored, and accounted for under such regulations and bonds as the Secretary may prescribe; or
I.R.C. § 5214(a)(10) — without payment of tax by a proprietor of bonded premises for use in research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials, or equipment, relating to distilled spirits or distilled spirits operations, under such limitations and conditions as to quantities, use, and accountability as the Secretary may by regulations require for the protection of the revenue; or
I.R.C. § 5214(a)(11) — free of tax when contained in an article (within the meaning of section 5002(a)(14)); or
I.R.C. § 5214(a)(12) — free of tax in the case of distilled spirits produced under section 5181; or
I.R.C. § 5214(a)(13) — without payment of tax for use on bonded wine cellar premises in the production of wine or wine products which will be rendered unfit for beverage use and removed pursuant to section 5362(d); or
I.R.C. § 5214(a)(14) — with respect to distilled spirits removed after December 31, 2019, and before January 1, 2021, free of tax for use in or contained in hand sanitizer produced and distributed in a manner consistent with any guidance issued by the Food and Drug Administration that is related to the outbreak of virus SARS-CoV-2 or coronavirus disease 2019 (COVID-19).
I.R.C. § 5214(b) Cross References
I.R.C. § 5214(b)(1) — For provisions relating to denaturation, see sections 5241 and 5242.
I.R.C. § 5214(b)(2) — For provisions requiring permit for users of distilled spirits withdrawn free of tax and for users of specially denatured distilled spirits, see section 5271.
I.R.C. § 5214(b)(3) — For provisions relating to withdrawal of distilled spirits without payment of tax for use of certain vessels and aircraft, as authorized by law, see 19 U.S.C. 1309.
I.R.C. § 5214(b)(4) — For provisions relating to withdrawal of distilled spirits without payment of tax for manufacture in manufacturing bonded warehouse, see 19 U.S.C. 1311.
I.R.C. § 5214(b)(5) — For provisions relating to foreign-trade zones, see 19 U.S.C. 81c.
I.R.C. § 5214(b)(6) — For provisions authorizing regulations for withdrawal of distilled spirits free of tax for use of the United States, see section 7510.
I.R.C. § 5214(b)(7) — For provisions authorizing removal of distillates to bonded wine cellars for use in the production of distilling material, see section 5373(c).
I.R.C. § 5214(b)(8) — For provisions relating to distilled spirits for use of foreign embassies, legations, etc., see section 5066.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1362, and amended by Pub. L. 91-172, title I, 101(j)(29), Dec. 30, 1969, 83 Stat. 529; Pub. L. 94-455, title XIX, 1905(c)(2), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 95-176, 3(a), (d), 4(a), Nov. 14, 1977, 91 Stat. 1365; Pub. L. 96-39, title VIII, 807(a)(28), July 26, 1979, 93 Stat. 285; Pub. L. 96-223, title II, 232(e)(2)(B), Apr. 2, 1980, 94 Stat. 280; Pub. L. 98-369, div. A, title IV, 455(a), July 18, 1984, 98 Stat. 823; Pub. L. 116-136, Div. A, title II, Sec. 2308(a)(1), Mar. 27, 2020.)
BACKGROUND NOTES
AMENDMENTS
2020--Subsec. (a)(14). Pub. L. 116-136, sec. 2308(a)(1), added par. (14).
1984--Subsec. (a)(13). Pub. L. 98-369 added par. (13).
1980--Subsec. (a)(12). Pub. L. 96-223 added par. (12).
1979--Subsec. (a)(6). Pub. L. 96-39, 807(a)(28)(A), inserted “for manufacturing in such warehouses for export” after “bonded warehouses" and substituted “by law” for “by section 5522(a)”.
Subsec. (a)(9). Pub. L. 96-39, 807(a)(28)(B), struck out “in the case of distilled spirits bottled in bond for export under section 5233 or distilled spirits returned to bonded premises under section 5215(b)," after “payment of tax,”.
Subsec. (a)(10). Pub. L. 96-39, 807(a)(28)(C), (D), substituted “distilled spirits operations” for “distillery operations”.
Subsec. (a)(11). Pub. L. 96-39, 807(a)(28)(D), added par. (11).
Subsec. (b)(4) to (8). Pub. L. 96-39, 807(a)(28)(E), added par. (4) and redesignated former pars. (4) to (7) as (5) to (8), respectively.
1977--Subsec. (a)(9). Pub. L. 95-176, 3(a), substituted provisions for withdrawal of distilled spirits from bonded premises without payment of tax where the distilled spirits are bottled in bond for export or are returned to bonded premises for transfer (for the purpose of storage pending exportation) to any customs bonded warehouse for exportation and requiring the transferred distilled spirits to be entered, stored, and accounted for, for prior provision for tax free withdrawals for use as samples in making tests or laboratory analyses.
Subsec. (a)(10). Pub. L. 95-176, 4(a), added par. (10).
Subsec. (b)(7). Pub. L. 95-176, 3(d), added par. (7).
1976--Subsec. (a). Pub. L. 94-455 struck out “or his delegate” after “Secretary” in introductory provisions and struck out “or Territory” after “State” in par. (2).
1969--Subsec. (a)(3)(A). Pub. L. 91-172 substituted “section 170(b)(1)(A)(ii)” for “section 503(b)(2)”.
EFFECTIVE DATE OF 2020 AMENDMENT
Amendment by Pub. L. 116-136, sec. 2308(a)(1), effective for distilled spirits removed after December 31, 2019.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 18, 1984, see section 456(c) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 effective on the first day of the first calendar month beginning more than 60 days after Apr. 2, 1980, see section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date note under section 5181 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(c)(2) of Pub. L. 94-455 effective on the first day of the 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 1969 AMENDMENT
Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as an Effective Date note under section 4940 of this title.
PRIOR PROVISIONS
A prior section 5214, act Aug. 16, 1954, ch. 736, 68A Stat. 639, related to regulation of traffic in containers of distilled spirits, prior to the general revision of this chapter by Pub. L. 85-859. See section 5301(a), (c), (d) of this title.
Provisions similar to those comprising subsecs. (a), (1) to (4), (9), (b)(3) to (5) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85-859, as follows:


Present subsecs.: Prior sections
(a) ................... 5243(e), 5247, 5310(a)-(c), 5331 (a)(1), (b), 5373(b)(4), 5522(a).
(a)(1) ................ 5310(a), 5331(a)(1), (b).
(a)(2), (3) ........... 5310(b), (c).
(a)(4) ................ 5243(e), 5247.
(a)(9) ................ 5373(b)(4).
(b)(3) ................ 5248(2).
(b)(4) ................ 5248(4).
(b)(5) ................ 5248(3).
The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 646-648, 658, 661, 662, 667. :zzz
sophocles
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Re: Dear Filipino's and Filipina's

Postby sophocles » Tue Apr 13, 2021 3:40 am



When used in this chapter—
I.R.C. § 5702(a) Cigar — “Cigar” means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsection (b)(2)).
I.R.C. § 5702(b) Cigarette — “Cigarette” means—
I.R.C. § 5702(b)(1) — any roll of tobacco wrapped in paper or in any substance not containing tobacco, and
I.R.C. § 5702(b)(2) — any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1).
I.R.C. § 5702(c) Tobacco Products — “Tobacco products” means cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
I.R.C. § 5702(d) Manufacturer Of Tobacco Products — “Manufacturer of tobacco products” means any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco, except that such term shall not include—
I.R.C. § 5702(d)(1) — a person who produces cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco solely for the person's own personal consumption or use, and
I.R.C. § 5702(d)(2) — a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse.
Such term shall include any person who for commercial purposes makes available for consumer use (including such consumer's personal consumption or use under paragraph (1)) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal as defined by subsection (j) with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer's personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal use quantities.
I.R.C. § 5702(e) Cigarette Paper — “Cigarette paper” means paper, or any other material except tobacco, prepared for use as a cigarette wrapper.
I.R.C. § 5702(f) Cigarette Tube — “Cigarette tube” means cigarette paper made into a hollow cylinder for use in making cigarettes.
I.R.C. § 5702(g) Manufacturer Of Cigarette Papers And Tubes — “Manufacturer of cigarette papers and tubes” means any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for his own personal use or consumption.
I.R.C. § 5702(h) Export Warehouse — “Export warehouse” means a bonded internal revenue warehouse for the storage of tobacco products or cigarette papers or tubes or any processed tobacco, upon which the internal revenue tax has not been paid, for subsequent shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States.
I.R.C. § 5702(i) Export Warehouse Proprietor — “Export warehouse proprietor” means any person who operates an export warehouse.
I.R.C. § 5702(j) Removal Or Remove — “Removal” or “remove” means the removal of tobacco products or cigarette papers or tubes, or any processed tobacco, from the factory or from internal revenue bond under section 5704, as the Secretary shall by regulation prescribe, or release from customs custody, and shall also include the smuggling or other unlawful importation of such articles into the United States.
I.R.C. § 5702(k) Importer — “Importer” means any person in the United States to whom nontaxpaid tobacco products or cigarette papers or tubes, or any processed tobacco, manufactured in a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States are shipped or consigned; any person who removes cigars or cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse; and any person who smuggles or otherwise unlawfully brings tobacco products or cigarette papers or tubes, or any processed tobacco, into the United States.
I.R.C. § 5702(l) Determination Of Price On Cigars — In determining price for purposes of section 5701(a)(2)—
I.R.C. § 5702(l)(1) — there shall be included any charge incident to placing the article in condition ready for use,
I.R.C. § 5702(l)(2) — there shall be excluded—
I.R.C. § 5702(l)(2)(A) — the amount of the tax imposed by this chapter or section 7652, and
I.R.C. § 5702(l)(2)(B) — if stated as a separate charge, the amount of any retail sales tax imposed by any State or political subdivision thereof or the District of Columbia, whether the liability for such tax is imposed on the vendor or vendee, and
I.R.C. § 5702(l)(3) — rules similar to the rules of section 4216(b) shall apply.
I.R.C. § 5702(m) Definitions Relating To Smokeless Tobacco
I.R.C. § 5702(m)(1) Smokeless Tobacco — The term “smokeless tobacco” means any snuff or chewing tobacco.
I.R.C. § 5702(m)(2) Snuff — The term “snuff” means any finely cut, ground, or powdered tobacco that is not intended to be smoked.
I.R.C. § 5702(m)(3) Chewing Tobacco — The term “chewing tobacco” means any leaf tobacco that is not intended to be smoked.
I.R.C. § 5702(n) Pipe Tobacco — The term “pipe tobacco” means any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe.
I.R.C. § 5702(o) Roll-Your-Own Tobacco — The term “roll-your-own tobacco” means any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes or cigars, or for use as wrappers thereof.
I.R.C. § 5702(p) Manufacturer Of Processed Tobacco
I.R.C. § 5702(p)(1) In General — The term “manufacturer of processed tobacco” means any person who processes any tobacco other than tobacco products.
I.R.C. § 5702(p)(2) Processed Tobacco — The processing of tobacco shall not include the farming or growing of tobacco or the handling of tobacco solely for sale, shipment, or delivery to a manufacturer of tobacco products or processed tobacco.
(Aug. 16, 1954, ch. 736, 68A Stat. 706; Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 202, 72 Stat. 1415; June 21, 1965, Pub. L. 89-44, title V, Sec. 502(b)(3), title VIII, Sec. 808(a), 79 Stat. 151, 164; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), title XXI, Sec. 2128(b), 90 Stat. 1834, 1921; Apr. 7, 1986, Pub. L. 99-272, title XIII, Sec. 13202(b)(2)-(4), 100 Stat. 312; Nov. 10, 1988, Pub. L. 100-647, title V, Sec. 5061(b)-(c)(2), 102 Stat. 3679; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11202(g), 104 Stat. 1388-419; Dec. 21, 2000, Pub. L. 106-554, Sec. 315, 114 Stat. 2763; Feb. 4, 2009, Pub. L. 111-3, title VII, Sec. 702(a), (d), 123 Stat. 8; Pub. L. 112-141, Sec. 100122(a), July 6, 2012, 126 Stat. 405.)
BACKGROUND NOTES
AMENDMENTS
2012 - Subsec. (d). Pub. L. 112-141, Sec. 100122(a), amended subsec. (d) by adding the flush sentence at the end.
2009 - Subsec. (h). Pub. L. 111-3, Sec. 702(a)(5)(A), amended subsec. (h) by substituting “tobacco products or cigarette papers or tubes or any processed tobacco” for “tobacco products and cigarette papers and tubes”.
Subsec. (j). Pub. L. 111-3, Sec. 702(a)(5)(B), amended subsec. (j) by inserting “, or any processed tobacco,” after “tobacco products or cigarette papers or tubes”.
Subsec. (k). Pub. L. 111-3, Sec. 702(a)(5)(B), amended subsec. (k) by inserting “, or any processed tobacco,” after “tobacco products or cigarette papers or tubes”.
Subsec. (o). Pub. L. 111-3, Sec. 702(d)(1), amended subsec. (o) by inserting “or cigars, or for use as wrappers thereof” before the period at the end.
Subsec. (p). Pub. L. 111-3, Sec. 702(a)(4), added subsec. (p).
2000 - Subsec. (f). Pub. L. 106-554, Sec. 315(a)(2), struck subsec. (f). Before being struck, it read as follows:
(f). Cigarette papers.
“‘Cigarette papers’ means taxable books or sets of cigarette papers.”
Subsec. (g)-(p). Pub. L. 106-554, Sec. 315(a)(2), redesignated subsecs. (g)-(p) as subsecs. (f)-(o), respectively.
Subsec. (h). Pub. L. 106-554, Sec. 315(a)(2)(A) amended subsec. (h), before its redesignation. Before it was amended, it read as follows:
“(h) Manufacturer of cigarette papers and tubes
“Manufacturer of cigarette papers and tubes” means any person who makes up cigarette paper into books or sets containing more than 25 papers each, or into tubes, except for his own personal use or consumption.”
1997 - Subsec. (c). Pub. L. 105-33, Sec. 9302(g)(3)(A) substituted ‘pipe tobacco, and roll-your-own tobacco’ for ‘and pipe tobacco’.
Subsec. (d). Pub. L. 105-33, Sec. 9302(g)(3)(B)(i) substituted ‘pipe tobacco, or roll your own tobacco’ for ‘or pipe tobacco’.
Subsec. (d)(1). Pub. L. 105-33, Sec. 9302(g)(3)(B)(ii) amended paragraph (1). Prior to amendment it read as follows:
‘(1) a person who produces cigars, cigarettes, smokeless tobacco, or pipe tobacco solely for his own personal consumption or use; or’
Subsec. (k). Pub. L. 105-33, Sec. 9302(h)(4) inserted ‘under section 5704’ after ‘internal revenue bond’.
Subsec. (p). Pub. L. 105-33, Sec. 9302(g)(2) added new subsec. (p).
1990 - Subsec. (m). Pub. L. 101-508 substituted heading for one which read: ‘Wholesale price’ and amended text generally. Prior to amendment, text read as follows: ‘ ‘Wholesale price’ means the manufacturer's, or importer's, suggested delivered price at which the cigars are to be sold to retailers, inclusive of the tax imposed by this chapter or section 7652, but exclusive of any State or local taxes imposed on cigars as a commodity, and before any trade, cash, or other discounts, or any promotion, advertising, display, or similar allowances. Where the manufacturer's or importer's suggested delivered price to retailers is not adequately supported by bona fide arm's length sales, or where the manufacturer or importer has no suggested delivered price to retailers, the wholesale price shall be the price for which cigars of comparable retail price are sold to retailers in the ordinary course of trade as determined by the Secretary.'
1988 - Subsec. (c). Pub. L. 100-647, Sec. 5061(c)(1), inserted reference to pipe tobacco.
Subsec. (d). Pub. L. 100-647, Sec. 5061(c)(2), inserted reference to pipe tobacco in introductory provisions and in par. (1).
Subsec. (o). Pub. L. 100-647, Sec. 5061(b), added subsec. (o).
1986 - Subsec. (c). Pub. L. 99-272, Sec. 13202(b)(2), inserted reference to smokeless tobacco.
Subsec. (d). Pub. L. 99-272, Sec. 13202(b)(3), inserted references to smokeless tobacco.
Subsec. (n). Pub. L. 99-272, Sec. 13202(b)(4), added subsec. (n).
1976 - Subsec. (k). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (m). Pub. L. 94-455, Sec. 2128(b), added subsec. (m).
1965 - Subsec. (a). Pub. L. 89-44, Sec. 502(b)(3)(A), 808(a), redesignated subsec. (b) as (a), repealed former subsec. (a) which related to manufactured tobacco and, in subsec. (a) as so redesignated, allowed the use of any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsec. (b)(2) as a wrapper in addition to the leaf tobacco previously allowed.
Subsec. (b). Pub. L. 89-44, Sec. 502(b)(3)(A), 808(a), redesignated subsec. (c) as (b) and permitted the use, as a wrapper for cigarettes in addition to paper and substances other than tobacco as previously allowed, any substance containing tobacco, which, because of the finished product's appearance, tobacco type, labeling, and packaging, is likely to be offered to or purchased by consumers as cigarettes. Former subsec. (b) redesignated (a).
Subsec. (c). Pub. L. 89-44, Sec. 502(b)(3)(A), (B), redesignated subsec. (d) as (c) and struck out reference to manufactured tobacco. Former subsec. (c) redesignated (b).
Subsec. (d). Pub. L. 89-44, Sec. 502(b)(3)(A), (C), redesignated subsec. (e) as (d), and simplified the definition of manufacturer of tobacco products to include only persons who manufacture cigars or cigarettes and reduced the area of excluded activities so as to exclude only persons producing cigars and cigarettes solely for their own personal use and proprietors of customs bonded manufacturing warehouses with respect to the operation of such warehouses. Former subsec. (d) redesignated (c).
Subsecs. (e) to (k). Pub. L. 89-44, Sec. 502(b)(3)(A) redesignated subsecs. (f) to (k) and (n) as (e) to (j) and (k), respectively. Former subsec. (e) redesignated (d).
Subsec. (l). Pub. L. 89-44, Sec. 502(b)(3)(A), redesignated subsec. (o) as (l) and repealed former subsec. (l) which related to tobacco materials.
Subsec. (m). Pub. L. 89-44, Sec. 502(b)(3)(A), repealed subsec. (m) which related to tobacco dealers.
Subsecs. (n), (o). Pub. L. 89-44, Sec. 502(b)(3)(A), redesignated subsec. (n) and (o) as (k) and (l), respectively.
1958 - Subsec. (a). Pub. L. 85-859 inserted the term ‘for removal, or merely removed’.
Subsecs. (b) to (d). Pub. L. 85-859 redesignated subsecs. (c), (d), and (f) as (b), (c), and (d), respectively. Former subsecs. (b), (c), and (d) redesignated (e), (b), and (c), respectively.
Subsec. (e). Pub. L. 85-859 consolidated the definitions ‘manufacturer of tobacco’ and ‘manufacturer of cigars and cigarettes’, inserted the phrase ‘for removal, or merely removes’, excluded from the definition a proprietor of a customs bonded manufacturing warehouse with respect to the operation of the warehouse, and required bona fide associations of farmers or growers to maintain records of leaf tobacco.
Subsec. (f). Pub. L. 85-859 redesignated subsec. (g) as (f) and former subsec. (f) as (d).
Subsec. (g). Pub. L. 85-859 added subsec. (g) and redesignated former subsec. (g) as (f).
Subsec. (i). Pub. L. 85-859 substituted ‘into books or sets containing more than 25 papers each, or into tubes’ for ‘into packages, books, sets, or tubes’.
Subsec. (j). Pub. L. 85-859 substituted provisions defining ‘export warehouse’ for provisions which defined ‘article’ as manufactured tobacco, cigars, cigarettes, and cigarette papers and tubes.
Subsec. (k). Pub. L. 85-859 added subsec. (k) and redesignated former subsec. (k) as (l).
Subsec. (l). Pub. L. 85-859 redesignated former subsec. (k) as (l) and substituted ‘other than manufactured tobacco, cigars, and cigarettes’ for ‘in process, leaf tobacco, and tobacco scraps, cuttings, clippings, siftings, dust, stems, and waste’. Former subsec. (l) redesignated (m).
Subsec. (m). Pub. L. 85-859 redesignated former subsec. (l) as (m) and included within the definition persons who receive tobacco materials, other than stems and waste, for use in the production of fertilizer, insecticide, or nicotine, required associations of farmers or growers of tobacco to maintain records of all leaf tobacco acquired or received and sold or otherwise disposed of, and excluded from the definition persons who buy leaf tobacco without taking physical possession of the tobacco and qualified manufacturers of tobacco products. Former subsec. (m) redesignated (n).
Subsec. (n). Pub. L. 85-859 redesignated former subsec. (m) as (n) and substituted ‘tobacco products or cigarette papers or tubes’ for ‘articles’. Former subsec. (n) redesignated (o).
Subsec. (o). Pub. L. 85-859 redesignated former subsec. (n) as (o) and substituted ‘tobacco products or cigarette papers or tubes’ for ‘articles’ in two places, and inserted provisions to include within the definition persons who remove cigars or cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse.
EFFECTIVE DATE OF 2012 AMENDMENT
Amendment by Sec. 100122(a) of Pub. L. 112-141 effective for articles removed after the date of the enactment of this Act [Enacted: July 6, 2012].
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by Sec. 702(a) of Pub. L. 111-3 effective April 1, 2009.
Amendment by Sec. 702(d) of Pub. L. 111-3 effective for articles removed (as defined in section 5702(j) of the Internal Revenue Codeof 1986) after March 31, 2009.
Sec. 702(g) provided the following transitional rule:
“(g) Transitional Rule.— Any person who—
“(1) on April 1, 2009 is engaged in business as a manufacturer of processed tobacco or as an importer of processed tobacco, and
“(2) before the end of the 90-day period beginning on such date, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.”
EFFECTIVE DATE OF 2000 AMENDMENTS
Section 315(b) of Pub. L. 106-554 provided that: “The amendments made by this section shall take effect as if included in section 9302 of the Balanced Budget Act of 1997.
EFFECTIVE DATE OF 1997 AMENDMENTS
Section 9302(i) of Pub. L. 105-33 provided that:
“(1) IN GENERAL--The amendments made by this section shall apply to articles removed (as defined in section 5702(k) of the Internal Revenue Code of 1986, as amended by this section) after December 31, 1999.
“(2) TRANSITIONAL RULE--Any person who---
“(A) on the date of the enactment of this Act is engaged in business as a manufacturer of roll-your-own tobacco or as an importer of tobacco products or cigarette papers and tubes, and
“(B) before January 1, 2000, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.”
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 applicable with respect to articles removed after Dec. 31, 1990, see section 11202(h) of Pub. L. 101-508, set out as a note under section 5701 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 applicable to pipe tobacco removed, within the meaning of subsec. (k) of this section, after Dec. 31, 1988, with transition rule, see section 5061(d) of Pub. L. 100-647, set out as a note under section 5701 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-272 applicable to smokeless tobacco removed after June 30, 1986, see section 13202(c) of Pub. L. 99-272, set out as a note under section 5701 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 2128(b) of Pub. L. 94-455 effective on first month which begins more than 90 days after Oct. 4, 1976, see section 2128(e) of Pub. L. 94-455, set out as a note under section 5701 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by section 502(b)(3) of 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.
Section 808(d)(1) of Pub. L. 89-44 provided that: ‘The amendments made by subsections (a) and (b)(3) (amending this section and section 7652 of this title) shall take effect on July 1, 1965.’
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-859 effective 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.
COORDINATION WITH TOBACCO INDUSTRY SETTLEMENT
Section 9302(k) of Pub. L. 105-33, as added by Sec. 1604(f)(3) of Pub. L. 105-34, provided that:
“The increase in excise taxes collected as a result of the amendments made by subsections (a), (e), and (g) of this section shall be credited against the total payments made by parties pursuant to Federal legislation implementing the tobacco industry settlement agreement of June 20, 1997.”

I.R.C. § 5701(a) Cigars — On cigars, manufactured in or imported into the United States, there shall be imposed the following taxes:
I.R.C. § 5701(a)(1) Small Cigars — On cigars, weighing not more than 3 pounds per thousand, $50.33 per thousand;
I.R.C. § 5701(a)(2) Large Cigars — On cigars weighing more than 3 pounds per thousand, a tax equal to 52.75 percent of the price for which sold but not more than 40.26 cents per cigar.
Cigars not exempt from tax under this chapter which are removed but not intended for sale shall be taxed at the same rate as similar cigars removed for sale.
I.R.C. § 5701(b) Cigarettes — On cigarettes, manufactured in or imported into the United States, there shall be imposed the following taxes:
I.R.C. § 5701(b)(1) Small Cigarettes — On cigarettes, weighing not more than 3 pounds per thousand, $50.33 per thousand;
I.R.C. § 5701(b)(2) Large Cigarettes — On cigarettes, weighing more than 3 pounds per thousand, $105.69 per thousand; except that, if more than 6 1/2 inches in length, they shall be taxable at the rate prescribed for cigarettes weighing not more than 3 pounds per thousand, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette.
I.R.C. § 5701(c) Cigarette Papers — On cigarette papers, manufactured in or imported into the United States, there shall be imposed a tax of 3.15 cents for each 50 papers or fractional part thereof; except that, if cigarette papers measure more than 6 1/2 inches in length, they shall be taxable at the rate prescribed, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette paper.
I.R.C. § 5701(d) Cigarette Tubes — On cigarette tubes, manufactured in or imported into the United States, there shall be imposed a tax of 6.30 cents for each 50 tubes or fractional part thereof, except that if cigarette tubes measure more than 6 1/2 inches in length, they shall be taxable at the rate prescribed, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette tube.
I.R.C. § 5701(e) Smokeless Tobacco — On smokeless tobacco, manufactured in or imported into the United States, there shall be imposed the following taxes:
I.R.C. § 5701(e)(1) Snuff — On snuff, $1.51 per pound and a proportionate tax at the like rate on all fractional parts of a pound.
I.R.C. § 5701(e)(2) Chewing Tobacco — On chewing tobacco, 50.33 cents per pound and a proportionate tax at the like rate on all fractional parts of a pound.
I.R.C. § 5701(f) Pipe Tobacco — On pipe tobacco, manufactured in or imported into the United States, there shall be imposed a tax of $2.8311 cents per pound (and a proportionate tax at the like rate on all fractional parts of a pound).
I.R.C. § 5701(g) Roll-Your-Own Tobacco — On roll-your-own tobacco, manufactured in or imported into the United States, there shall be imposed a tax of $24.78 per pound (and a proportionate tax at the like rate on all fractional parts of a pound).
I.R.C. § 5701(h) Imported Tobacco Products And Cigarette Papers And Tubes — The taxes imposed by this section on tobacco products and cigarette papers and tubes imported into the United States shall be in addition to any import duties imposed on such articles, unless such import duties are imposed in lieu of internal revenue tax.
(Aug. 16, 1954, ch. 736, 68A Stat. 705; Mar. 30, 1955, ch. 18, Sec. 3(a)(9), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(9), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, Sec. 3(a)(7), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec. 3(a)(7), 72 Stat. 259; Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 202, 72 Stat. 1414; June 30, 1959, Pub. L. 86-75, Sec. 3(a)(7), 73 Stat. 157; June 30, 1960, Pub. L. 86-564, title II, Sec. 202(a)(9), 74 Stat. 290; Sept. 14, 1960, Pub. L. 86-779, Sec. 1, 74 Stat. 998; June 30, 1961, Pub. L. 87-72, Sec. 3(a)(9), 75 Stat. 193; June 28, 1962, Pub. L. 87-508, Sec. 3(a)(8), 76 Stat. 114; June 29, 1963, Pub. L. 88-52, Sec. 3(a)(9), 77 Stat. 72; June 30, 1964, Pub. L. 88-348, Sec. 2(a)(9), 78 Stat. 237; June 21, 1965, Pub. L. 89-44, title V, Sec. 501(f), 502(a), 79 Stat. 150; Jan. 2, 1968, Pub. L. 90-240, Sec. 4(a), 81 Stat. 776; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1905(a)(24), title XXI, Sec. 2128(a), 90 Stat. 1821, 1921; Sept. 3, 1982, Pub. L. 97-248, title II, Sec. 283(a), 96 Stat. 568; Apr. 7, 1986, Pub. L. 99-272, title XIII, Sec. 13202(a), 100 Stat. 311; Nov. 10, 1988, Pub. L. 100-647, title V, Sec. 5061(a), 102 Stat. 3679; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11202(a)-(f), 104 Stat. 1388-419; Pub. L. 111-3, title VII, Sec. 701, 123 Stat. 8; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(250), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
Amendment
Pub. L. 105-33, Sec. 9302(g)(3)(C), amended the chapter heading for chapter 52. Prior to amendment it read “Cigars, Cigarettes, Smokeless Tobacco, Pipe Tobacco, and Cigarette Papers and Tubes”.
AMENDMENTS
2018--Subsec. (e). Pub. L. 115-141, Div. U, Sec. 401(a)(250), amended subsec. (e) by substituting “manufactured” for “manufacturered”.
2009 - Subsec. (a)(1). Pub. L. 111-3, Sec. 701(a)(1), amended par. (1) by substituting “$50.33 per thousand” for “$1.828 cents per thousand ($1.594 cents per thousand on cigars removed during 2000 or 2001)”.
Subsec. (a)(2). Pub. L. 111-3, Sec. 701(a)(2), amended par. (2) by substituting “52.75 percent” for “20.719 percent (18.063 percent on cigars removed during 2000 or 2001)”.
Subsec. (a)(2). Pub. L. 111-3, Sec. 701(a)(3), amended par. (2) by substituting “40.26 cents per cigar” for “$48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001)”.
Subsec. (b)(1). Pub. 111-3, Sec. 701(b)(1), amended par. (1) by substituting “$50.33 per thousand” for “$19.50 per thousand ($17 per thousand on cigarettes removed during 2000 or 2001)”.
Subsec. (b)(2). Pub. L. 111-3, Sec. 701(b)(2), amended par. (2) by substituting “$105.69 per thousand” for “$40.95 per thousand ($35.70 per thousand on cigarettes removed during 2000 or 2001)”.
Subsec. (c). Pub. L. 111-3, Sec. 701(c), amended subsec. (c) by substituting “3.15 cents” for “1.22 cents (1.06 cents on cigarette papers removed during 2000 or 2001)”.
Subsec. (d). Pub. L. 111-3, Sec. 701(d), amended subsec. (d) by substituting “6.30 cents” for “2.44 cents (2.13 cents on cigarette tubes removed during 2000 or 2001)”.
Subsec. (e)(1). Pub. L. 111-3, Sec. 701(e)(1), amended par. (1) by substituting “$1.51” for “58.5 cents (51 cents on snuff removed during 2000 or 2001)”.
Subsec. (e)(2). Pub. L. 111-3, Sec. 701(e)(2), amended par. (2) by substituting “50.33 cents” for “19.5 cents (17 cents on chewing tobacco removed during 2000 or 2001)”.
Subsec. (f). Pub. L. 111-3, Sec. 701(f), amended subsec. (f) by substituting “$2.8311 cents” for “$1.0969 cents (95.67 cents on pipe tobacco removed during 2000 or 2001)”.
Subsec. (g). Pub. L. 111-3, Sec. 701(g), amended subsec. (g) by substituting “$24.78” for “$1.0969 cents (95.67 cents on roll-your-own tobacco removed during 2000 or 2001)”.
1997 - Subsec. (a)(1). Pub. L. 105-33, Sec. 9302(b)(1) substituted ‘$1.828 cents per thousand ($1.594 cents per thousand on cigars removed during 2000 or 2001)’for ‘$1.125 cents per thousand (93.75 cents per thousand on cigars removed during 1991 or 1992)’.
Subsec. (a)(2). Pub. L. 105-33, Sec. 9302(b)(2) substituted ‘equal to 20.719 percent (18.063 percent on cigars removed during 2000 or 2001) of the price for which sold but not more than $48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001).’ for ‘equal to
‘(A) 10.625 percent of the price for which sold by not more than $25 per thousand on cigars removed during 1991 or 1992, and
‘(B) 12.75 percent of the price for which sold but not more than $30 per thousand on cigars removed after 1992.
‘Cigars not exempt from tax under this chapter which are removed but not intended for sale shall be taxed at the same rate as similar cigars removed for sale.’
Subsec. (b)(1). Pub. L. 105-33, Sec. 9302(a)(1) substituted ‘$19.50 per thousand ($17 per thousand on cigarettes removed during 2000 or 2001)’ for ‘$12 per thousand ($10 per thousand on cigarettes removed during 1991 or 1992)’.
Subsec. (b)(2). Pub. L. 105-33, Sec. 9302(a)(2) substituted ‘$40.95 per thousand ($35.70 per thousand on cigarettes removed during 2000 or 2001)’ for ‘$25.20 per thousand ($21 per thousand on cigarettes removed during 1991 or 1992)’.
Subsec. (c). Pub. L. 105-33, Sec. 9302(c) substituted ‘1.22 cents (1.06 cents on cigarette papers removed during 2000 or 2001)’ for ‘0.75 cent (0.625 cent on cigarette papers removed during 1991 or 1992)’.
Subsec. (c). Pub. L. 105-33, Sec. 9302(h)(3) substituted ‘On cigarette papers,’ for ‘On each book or set of cigarette papers containing more than 25 papers,’.
Subsec. (d). Pub. L. 105-33, Sec. 9302(d) substituted ‘2.44 cents (2.13 cents on cigarette tubes removed during 2000 or 2001)’ for ‘1.5 cent (1.25 cents on cigarette tubes removed during 1991 or 1992)’.
Subsec. (e)(1). Pub. L. 105-33, Sec. 9302(e)(1) substituted ‘58.5 cents (51 cents on snuff removed during 2000 or 2001)’ for ‘36 cents (30 cents on snuff removed during 1991 or 1992)’.
Subsec. (e)(2). Pub. L. 105-33, Sec. 9302(e)(2) substituted ‘19.5 cents (17 cents on chewing tobacco removed during 2000 or 2001)’ for ‘12 cents (10 cents on chewing tobacco removed during 1991 or 1992)’.
Subsec. (f). Pub. L. 105-33, Sec. 9302(f) substituted ‘$1.0969 cents (95.67 cents on pipe tobacco removed during 2000 or 2001)’ for ‘67.5 cents (56.25 cents on pipe tobacco removed during 1991 or 1992)’.
Subsecs. (g), (h). Pub. L. 105-33, Sec. 9302(g)(1) redesignated subsec. (g) as subsec. (h) and inserted a new subsec. (g).
1990 - Subsec. (a)(1). Pub. L. 101-508, Sec. 11202(a)(1), substituted ‘$1.125 cents per thousand (93.75 cents per thousand on cigars removed during 1991 or 1992)’ for ‘75 cents per thousand’.
Subsec. (a)(2). Pub. L. 101-508, Sec. 11202(a)(2), substituted ‘equal to - ‘ and subpars. (A) and (B) for ‘equal to 8 1/2 percent of the wholesale price, but not more than $20 per thousand.’
Subsec. (b)(1). Pub. L. 101-508, Sec. 11202(b)(1), substituted ‘$12 per thousand ($10 per thousand on cigarettes removed during 1991 or 1992)’ for ‘$8 per thousand’.
Subsec. (b)(2). Pub. L. 101-508, Sec. 11202(b)(2), substituted ‘$25.20 per thousand ($21 per thousand on cigarettes removed during 1991 or 1992)’ for ‘$16.80 per thousand’.
Subsec. (c). Pub. L. 101-508, Sec. 11202(c), substituted ‘0.75 cent (0.625 cent on cigarette papers removed during 1991 or 1992)’ for ‘ 1/2 cent’.
Subsec. (d). Pub. L. 101-508, Sec. 11202(d), substituted ‘1.5 cents (1.25 cents on cigarette tubes removed during 1991 or 1992)’ for ‘1 cent’.
Subsec. (e)(1). Pub. L. 101-508, Sec. 11202(e)(1), substituted ‘36 cents (30 cents on snuff removed during 1991 or 1992)’ for ‘24 cents’.
Subsec. (e)(2). Pub. L. 101-508, Sec. 11202(e)(2), substituted ‘12 cents (10 cents on chewing tobacco removed during 1991 or 1992)’ for ‘8 cents’.
Subsec. (f). Pub. L. 101-508, Sec. 11202(f), substituted ‘67.5 cents (56.25 cents on pipe tobacco removed during 1991 or 1992)’ for ‘45 cents’.
1988 - Subsecs. (f), (g). Pub. L. 100-647 added subsec. (f) and redesignated former subsec. (f) as (g).
1986 - Subsecs. (e), (f). Pub. L. 99-272 added subsec. (e) and redesignated former subsec. (e) as (f).
1982 - Subsec. (b)(1). Pub. L. 97-248, Sec. 283(a)(1), substituted ‘$8’ for ‘$4’.
Subsec. (b)(2). Pub. L. 97-248, Sec. 283(a)(2), substituted ‘$16.80’ for ‘$8.40’.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 2128(a), substituted provisions setting a tax of 8 1/2 percent of the wholesale price, but not more than $20 per thousand, on cigars weighing more than 3 pounds per thousand for provisions setting the tax according to a graduated table running from $2.50 per thousand for large cigars if removed to retail at not more than 2 1/2 cents each to $20 per thousand if removed to retail at more than 20 cents each, and struck out provisions that, in determining the retail price, for tax purposes, regard be had to the ordinary retail price of a single cigar in its principal market, exclusive of any State or local taxes imposed on cigars as a commodity, and that, for purposes of that determination, the amount of State or local tax excluded from the retail price be the actual tax imposed, except that, if the combined taxes resulted in a numerical figure ending in a fraction of a cent, the amount so excluded would be rounded to the next highest full cent unless such rounding would result in a tax lower than the tax which would be imposed in the absence of State or local tax.
Subsec. (e). Pub. L. 94-455, Sec. 1905(a)(24), inserted ‘, unless such import duties are imposed in lieu of internal revenue tax’ after ‘such articles’.
1968 - Subsec. (a). Pub. L. 90-240 provided that the amount of State and local tax excluded from the retail price be the actual tax imposed, except that, if the combined taxes result in a numerical figure ending in a fraction of a cent, the amount so excluded be rounded to the next highest full cent unless such rounding would result in a tax lower than the tax which would be imposed in the absence of State and local taxes.
1965 - Pub. L. 89-44, Sec. 502(a), struck out subsec. (a) relating to tobacco and redesignated subsecs. (b) to (f) as subsecs. (a) to (e), respectively.
Subsec. (b)(1). Pub. L. 89-44, Sec. 501(f), removed the July 1, 1965, time limit for the $4 per thousand rate as well as the provision for imposition of a $3.50 rate on and after July 1, 1965.
1964 - Subsec. (c)(1). Pub. L. 88-348 substituted ‘July 1, 1965’ for ‘July 1, 1964’ in two places.
1963 - Subsec. (c)(1). Pub. L. 88-52 substituted ‘July 1, 1964’ for ‘July 1, 1963’ in two places.
1962 - Subsec. (c)(1). Pub. L. 87-508 substituted ‘July 1, 1963’ for ‘July 1, 1962’ in two places.
1961 - Subsec. (c)(1). Pub. L. 87-72 substituted ‘July 1, 1962’ for ‘July 1, 1961’ in two places.
1960 - Subsec. (b). Pub. L. 86-779 substituted ‘imposed on cigars as a commodity’ for ‘imposed on the retail sales of cigars’.
Subsec. (c)(1). Pub. L. 86-564 substituted ‘July 1, 1961’ for ‘July 1, 1960’ in two places.
1959 - Subsec. (c)(1). Pub. L. 86-75 substituted ‘July 1, 1960’ for ‘July 1, 1959’ in two places.
1958 - Subsec. (b). Pub. L. 85-859 provided that in determining the retail price, for tax purposes, regard shall be had to the ordinary retail price of a single cigar in its principal market, exclusive of any State or local taxes imposed on the retail sale of cigars, and required cigars not exempt from tax under this chapter which are removed but not intended for sale to be taxed at the same rate as similar cigars removed for sale.
Subsec. (c)(1). Pub. L. 85-475 substituted ‘July 1, 1959’ for ‘July 1, 1958’ in two places.
Subsec. (d). Pub. L. 85-859 substituted ‘On each book or set of cigarette papers containing more than 25 papers, manufactured in or imported into the United States, there shall be imposed’ for ‘On cigarette papers, manufactured in or imported into the United States, there shall be imposed, on each package, book, or set containing more than 25 papers’.
Subsec. (f). Pub. L. 85-859 substituted ‘imposed by this section on tobacco products and cigarette papers and tubes imported into the United States’ for ‘imposed on articles by this section’.
1957 - Subsec. (c)(1). Pub. L. 85-12 substituted ‘July 1, 1958’ for ‘April 1, 1957’ in two places.
1956 - Subsec. (c)(1). Act Mar. 29, 1956, substituted ‘April 1, 1957’ for ‘April 1, 1956’ in two places.
1955 - Subsec. (c)(1). Act Mar. 30, 1955, substituted ‘April 1, 1956’ for ‘April 1, 1955’ in two places.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. No. 115-141, Div. U, Sec. 401(a)(250), effective on the date of the enactment of this Act [Enacted: Mar. 23, 2018].
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by Sec. 701 of Pub. L. 111-3 effective for articles removed (as defined in section 5702(j) of the Internal Revenue Codeof 1986) after March 1, 2009.
EFFECTIVE DATE OF 1997 AMENDMENTS
Section 9302(i) of Pub. L. 105-33 provided that:
“(1) IN GENERAL--The amendments made by this section shall apply to articles removed (as defined in section 5702(k) of the Internal Revenue Code of 1986, as amended by this section) after December 31, 1999.
“(2) TRANSITIONAL RULE--Any person who---
“(A) on the date of the enactment of this Act is engaged in business as a manufacturer of roll-your-own tobacco or as an importer of tobacco products or cigarette papers and tubes, and
“(B) before January 1, 2000, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.”
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11202(h) of Pub. L. 101-508 provided that: ‘The amendments made by this section (amending this section and section 5702 of this title) shall apply with respect to articles removed after December 31, 1990.’
EFFECTIVE DATE OF 1988 AMENDMENT
Section 5061(d) of Pub. L. 100-647 provided that:
‘(1) In general. - The amendments made by this section (amending this section and section 5702 of this title) shall apply to pipe tobacco removed (within the meaning of section 5702(k) of the 1986 Code) after December 31, 1988.
‘(2) Transitional rule. - Any person who -
‘(A) on the date of the enactment of this Act (Nov. 10, 1988), is engaged in business as a manufacturer of pipe tobacco, and
‘(B) before January 1, 1989, submits an application under subchapter B of chapter 52 of the 1986 Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of chapter 52 of the 1986 Code shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit to manufacture pipe tobacco under such chapter 52.’
EFFECTIVE DATE OF 1986 AMENDMENT
Section 13202(c) of Pub. L. 99-272, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(1) In general. - The amendments made by this section (amending this section and section 5702 of this title) shall apply to smokeless tobacco removed after June 30, 1986.
‘(2) Transitional rule. - Any person who -
‘(A) on the date of the enactment of this Act (Apr. 7, 1986), is engaged in business as a manufacturer of smokeless tobacco, and
‘(B) before July 1, 1986, submits an application under subchapter B of chapter 52 of the Internal Revenue Code of 1986 (formerly I.R.C. 1954) to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of chapter 52 of such Code shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit to manufacture smokeless tobacco under such chapter 52.'
EFFECTIVE DATE OF 1982 AMENDMENT
Section 283(c) of Pub. L. 97-248, as amended by Pub. L. 99-107, Sec. 2, Sept. 30, 1985, 99 Stat. 479; Pub. L. 99-155, Sec. 2(a), Nov. 14, 1985, 99 Stat. 814; Pub. L. 99-181, Sec. 1, Dec. 13, 1985, 99 Stat. 1172; Pub. L. 99-189, Sec. 1, Dec. 18, 1985, 99 Stat. 1184; Pub. L. 99-201, Sec. 1, Dec. 23, 1985, 99 Stat. 1665; Pub. L. 99-272, title XIII, Sec. 13201(a), Apr. 7, 1986, 100 Stat. 311, provided that: ‘The amendment made by subsection (a) (amending this section) shall apply with respect to cigarettes removed after December 31, 1982.’
(Pub. L. 99-272, title XIII, Sec. 13201(b), Apr. 7, 1986, 100 Stat. 311, provided that: ‘For purposes of all Federal and State laws, the amendment made by subsection (a) (amending section 283(c) of Pub. L. 97-248, set out above) shall be treated as having taken effect on March 14, 1986.')
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(24) of 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.
Section 2128(e) of Pub. L. 94-455 provided that: ‘The amendments made by this section (amending this section and sections 5702 and 5741 of this title) shall take effect on the first month which begins more than 90 days after the date of the enactment of this Act (Oct. 4, 1976).’
EFFECTIVE DATE OF 1968 AMENDMENT
Section 4(b) of Pub. L. 90-240 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply to the removal of cigars on or after the first day of the first calendar quarter which begins more than 30 days after the date of the enactment of this Act (Jan. 2, 1968).’
EFFECTIVE DATE OF 1965 AMENDMENT
Section 701(d) of Pub. L. 89-44 provided that: ‘The amendments made by section 501 (repealing sections 5063 and 5707 and 5701 note and amending this section and sections 5001, 5022, 5041, and 5051 of this title) shall apply on and after July 1, 1965. The amendments made by section 502 (striking out subchapter D of chapter 52 of this title and redesignating subchapters E, F, and G as subchapters D, E, and F respectively, and amending this section and sections 5702, 5704, 5711, 5741, 5753, 5762, and 5763 of this title) shall apply on and after January 1, 1966.’
EFFECTIVE DATE OF 1960 AMENDMENT
Section 2 of Pub. L. 86-779 provided that: ‘The amendment made by the first section of this Act (amending this section) shall apply with respect to cigars removed on or after the ninth day of the first month which begins after the date of the enactment of this Act (Sept. 14, 1960).’
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-859 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.
FLOOR STOCKS TAXES
Section 701(h) of Pub. L. 111-3 provided that:
(h) Floor Stocks Taxes.—
“(1) IMPOSITION OF TAX.— On tobacco products (other than cigars described in section 5701(a)(2) of the Internal Revenue Code of 1986) and cigarette papers and tubes manufactured in or imported into the United States which are removed before April 1, 2009, and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of—
“(A) the tax which would be imposed under section 5701 of such Code on the article if the article had been removed on such date, over
“(B) the prior tax (if any) imposed under section 5701 of such Code on such article.
“(2) CREDIT AGAINST TAX.— Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed the amount of taxes imposed by paragraph (1) on April 1, 2009, for which such person is liable.
“ (3) LIABILITY FOR TAX AND METHOD OF PAYMENT.—
“(A) LIABILITY FOR TAX.— A person holding tobacco products, cigarette papers, or cigarette tubes on April 1, 2009, to which any tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) METHOD OF PAYMENT.— The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
“ (C) TIME FOR PAYMENT.— The tax imposed by paragraph (1) shall be paid on or before August 1, 2009.
“(4) ARTICLES IN FOREIGN TRADE ZONES.— Notwithstanding the Act of June 18, 1934 (commonly known as the Foreign Trade Zone Act, 48 Stat. 998, 19 U.S.C. 81a et seq.) or any other provision of law, any article which is located in a foreign trade zone on April 1, 2009, shall be subject to the tax imposed by paragraph (1) if—
“(A) internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act, or
“(B) such article is held on such date under the supervision of an officer of the United States Customs and Border Protection of the Department of Homeland Security pursuant to the 2d proviso of such section 3(a).
“(5) DEFINITIONS.— For purposes of this subsection—
“(A) IN GENERAL.— Any term used in this subsection which is also used in section 5702 of the Internal Revenue Code of 1986 shall have the same meaning as such term has in such section.
“(B) SECRETARY.— The term ‘Secretary’ means the Secretary of the Treasury or the Secretary's delegate.
“(6) CONTROLLED GROUPS.— Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this subsection.
“(7) OTHER LAWS APPLICABLE.— All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701. The Secretary may treat any person who bore the ultimate burden of the tax imposed by paragraph (1) as the person to whom a credit or refund under such provisions may be allowed or made.”
FLOOR STOCKS TAXES
Section 9302(j) of Pub. L. 105-33, as amended by Sec. 315(a)(1) of Pub. L. 106-554, provided that:
“(1) IMPOSITION OF TAX--On cigarettes manufactured in or imported into the United States which are removed before any tax increase date, and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of---
“(A) the tax which would be imposed under section 5701 of the Internal Revenue Code of 1986 on the article if the article had been removed on such date, over
“(B) the prior tax (if any) imposed under section 5701 of such Code on such article.
“(2) AUTHORITY TO EXEMPT CIGARETTES HELD IN VENDING MACHINES-- To the extent provided in regulations prescribed by the Secretary, no tax shall be imposed by paragraph (1) on cigarettes held for retail sale on any tax increase date, by any person in any vending machine. If the Secretary provides such a benefit with respect to any person, the Secretary may reduce the $500 amount in paragraph (3) with respect to such person.
“(3) CREDIT AGAINST TAX--Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed the amount of taxes imposed by paragraph (1) on any tax increase date, for which such person is liable.
“(4) LIABILITY FOR TAX AND METHOD OF PAYMENT--
“(A) LIABILITY FOR TAX--A person holding cigarettes on any tax increase date, to which any tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) METHOD OF PAYMENT--The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
“(C) TIME FOR PAYMENT--The tax imposed by paragraph (1) shall be paid on or before April 1 following any tax increase date.
“(5) ARTICLES IN FOREIGN TRADE ZONES--Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) and any other provision of law, any article which is located in a foreign trade zone on any tax increase date, shall be subject to the tax imposed by paragraph (1) if---
“(A) internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act, or
“(B) such article is held on such date under the supervision of a customs officer pursuant to the 2d proviso of such section 3(a).
“(6) DEFINITIONS--For purposes of this subsection---
“(A) IN GENERAL--Terms used in this subsection which are also used in section 5702 of the Internal Revenue Codeof 1986 shall have the respective meanings such terms have in such section, as amended by this Act.
“(B) TAX INCREASE DATE--The term ‘tax increase date’ means January 1, 2000, and January 1, 2002.
“(C) SECRETARY--The term ‘Secretary’ means the Secretary of the Treasury or the Secretary's delegate.
“(7) CONTROLLED GROUPS--Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this subsection.
“(8) OTHER LAWS APPLICABLE--All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701. The Secretary may treat any person who bore the ultimate burden of the tax imposed by paragraph (1) as the person to whom a credit or refund under such provisions may be allowed or made.”
COORDINATION WITH TOBACCO INDUSTRY SETTLEMENT
Section 9302(k) of Pub. L. 105-33, as added by Sec. 1604(f)(3) of Pub. L. 105-34, and repealed by Section 519 of Pub. L. 105-78 [effective Nov. 13, 1997], provided that:
“The increase in excise taxes collected as a result of the amendments made by subsections (a), (e), and (g) of this section shall be credited against the total payments made by parties pursuant to Federal legislation implementing the tobacco industry settlement agreement of June 20, 1997.”
FLOOR STOCKS
Section 11202(i) of Pub. L. 101-508 provided that:
‘(1) Imposition of tax. - On cigarettes manufactured in or imported into the United States which are removed before any tax-increase date and held on such date for sale by any person, there shall be imposed the following taxes:
‘(A) Small cigarettes. - On cigarettes, weighing not more than 3 pounds per thousand, $2 per thousand.
‘(B) Large cigarettes. - On cigarettes weighing more than 3 pounds per thousand, $4.20 per thousand; except that, if more than 6 1/2 inches in length, they shall be taxable at the rate prescribed for cigarettes weighing not more than 3 pounds per thousand, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette.
‘(2) Exception for certain amounts of cigarettes. -
‘(A) In general. - No tax shall be imposed by paragraph (1) on cigarettes held on any tax-increase date by any person if -
‘(i) the aggregate number of cigarettes held by such person on such date does not exceed 30,000, and
‘(ii) such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this subparagraph.
For purposes of this subparagraph, in the case of cigarettes measuring more than 6 1/2 inches in length, each 2 3/4 inches (or fraction thereof) of the length of each shall be counted as one cigarette.
‘(B) Authority to exempt cigarettes held in vending machines. - To the extent provided in regulations prescribed by the Secretary, no tax shall be imposed by paragraph (1) on cigarettes held for retail sale on any tax-increase date by any person in any vending machine. If the Secretary provides such a benefit with respect to any person, the Secretary may reduce the 30,000 amount in subparagraph (A) and the $60 amount in paragraph (3) with respect to such person.
‘(3) Credit against tax. - Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $60. Such credit shall not exceed the amount of taxes imposed by paragraph (1) for which such person is liable.
‘(4) Liability for tax and method of payment. -
‘(A) Liability for tax. - A person holding cigarettes on any tax-increase date to which any tax imposed by paragraph (1) applies shall be liable for such tax.
‘(B) Method of payment. - The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
‘(C) Time for payment. - The tax imposed by paragraph (1) shall be paid on or before the 1st June 30 following the tax-increase date.
‘(5) Definitions. - For purposes of this subsection -
‘(A) Tax-increase date. - The term ‘tax-increase date’ means January 1, 1991, and January 1, 1993.
‘(B) Other definitions. - Terms used in this subsection which are also used in section 5702 of the Internal Revenue Code of 1986 shall have the respective meanings such terms have in such section.
‘(C) Secretary. - The term ‘Secretary’ means the Secretary of the Treasury or his delegate.
‘(6) Controlled groups. - Rules similar to the rules of section 11201(e)(6) (Pub. L. 101-508, set out in a note under section 5001 of this title) shall apply for purposes of this subsection.
‘(7) Other laws applicable. - All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701.’
Section 5061(e) of Pub. L. 100-647 provided that:
‘(1) Imposition of tax. - On pipe tobacco manufactured in or imported into the United States which is removed before January 1, 1989, and held on such date for sale by any person, there is hereby imposed a tax of 45 cents per pound (and a proportionate tax at the like rate on all fractional parts of a pound).
‘(2) Liability for tax and method of payment. -
‘(A) Liability for tax. - A person holding pipe tobacco on January 1, 1989, to which the tax imposed by paragraph (1) applies shall be liable for such tax.
‘(B) Method of payment. - The tax imposed by paragraph (1) shall be treated as a tax imposed by section 5701 of the 1986 Code and shall be due and payable on February 14, 1989, in the same manner as the tax imposed by such section is payable with respect to pipe tobacco removed on or after January 1, 1989.
‘(C) Treatment of pipe tobacco in foreign trade zones. - Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other provision of law, pipe tobacco which is located in a foreign trade zone on January 1, 1989, shall be subject to the tax imposed by paragraph (1) and shall be treated for purposes of this subsection as held on such date for sale if -
‘(i) internal revenue taxes have been determined, or customs duties liquidated, with respect to such pipe tobacco before such date pursuant to a request made under the first proviso of section 3(a) of such Act (19 U.S.C. 81c(a)), or
‘(ii) such pipe tobacco is held on such date under the supervision of a customs officer pursuant to the second proviso of such section 3(a).
‘Under regulations prescribed by the Secretary of the Treasury or his delegate, provisions similar to sections 5706 and 5708 of the 1986 Code shall apply to pipe tobacco with respect to which tax is imposed by paragraph (1) by reason of this subparagraph.
‘(3) Pipe tobacco. - For purposes of this subsection, the term ‘pipe tobacco’ shall have the meaning given to such term by subsection (o) of section 5702 of the 1986 Code.
‘(4) Exception where liability does not exceed $1,000. - No tax shall be imposed by paragraph (1) on any person if the tax which would but for this paragraph be imposed on such person does not exceed $1,000. For purposes of the preceding sentence, all persons who are treated as a single taxpayer under section 5061(e)(3) of the 1986 Code shall be treated as 1 person.’
Section 283(b) of Pub. L. 97-248, as amended by Pub. L. 97-448, title III, Sec. 306(a)(14), Jan. 12, 1983, 96 Stat. 2405; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(1) Imposition of tax. - On cigarettes manufactured in or imported into the United States which are removed before January 1, 1983, and held on such date for sale by any person, there shall be imposed the following taxes:
‘(A) Small cigarettes. - On cigarettes, weighing not more than 3 pounds per thousand, $4 per thousand;
‘(B) Large cigarettes. - On cigarettes, weighing more than 3 pounds per thousand, $8.40 per thousand; except that, if more than 6 1/2 inches in length, they shall be taxable at the rate prescribed for cigarettes weighing not more than 3 pounds per thousand, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette.
‘(2) Liability for tax and method of payment. -
‘(A) Liability for tax. - A person holding cigarettes on January 1, 1983, to which any tax imposed by paragraph (1) applies shall be liable for such tax.
‘(B) Method of payment. - The tax imposed by paragraph (1) shall be treated as a tax imposed under section 5701 and shall be due and payable on February 17, 1983 in the same manner as the tax imposed under such section is payable with respect to cigarettes removed on January 1, 1983.
‘(3) Cigarette. - For purposes of this subsection, the term ‘cigarette’ shall have the meaning given to such term by subsection (b) of section 5702 of the Internal Revenue Code of 1986 (formerly I.R.C. 1954).
‘(4) Exception for retailers. - The taxes imposed by paragraph (1) shall not apply to cigarettes in retail stocks held on January 1, 1983, at the place where intended to be sold at retail.’

I.R.C. § 5703(a) Liability For Tax
I.R.C. § 5703(a)(1) Original Liability — The manufacturer or importer of tobacco products and cigarette papers and tubes shall be liable for the taxes imposed thereon by section 5701.
I.R.C. § 5703(a)(2) Transfer Of Liability — When tobacco products and cigarette papers and tubes are transferred, without payment of tax, pursuant to section 5704, the liability for tax shall be transferred in accordance with the provisions of this paragraph. When tobacco products and cigarette papers and tubes are transferred between the bonded premises of manufacturers and export warehouse proprietors, the transferee shall become liable for the tax upon receipt by him of such articles, and the transferor shall thereupon be relieved of his liability for such tax. When tobacco products and cigarette papers and tubes are released in bond from customs custody for transfer to the bonded premises of a manufacturer of tobacco products or cigarette papers and tubes, the transferee shall become liable for the tax on such articles upon release from customs custody, and the importer shall thereupon be relieved of his liability for such tax. All provisions of this chapter applicable to tobacco products and cigarette papers and tubes in bond shall be applicable to such articles returned to bond upon withdrawal from the market or returned to bond after previous removal for a tax-exempt purpose.
I.R.C. § 5703(b) Method Of Payment Of Tax
I.R.C. § 5703(b)(1) In General — The taxes imposed by section 5701 shall be determined at the time of removal of the tobacco products and cigarette papers and tubes. Such taxes shall be paid on the basis of return. The Secretary shall, by regulations, prescribe the period or the event for which such return shall be made and the information to be furnished on such return. Any postponement under this subsection of the payment of taxes determined at the time of removal shall be conditioned upon the filing of such additional bonds, and upon compliance with such requirements, as the Secretary may prescribe for the protection of the revenue. The Secretary may, by regulations, require payment of tax on the basis of a return prior to removal of the tobacco products and cigarette papers and tubes where a person defaults in the postponed payment of tax on the basis of a return under this subsection or regulations prescribed thereunder. All administrative and penalty provisions of this title, insofar as applicable, shall apply to any tax imposed by section 5701.
I.R.C. § 5703(b)(2) Time For Payment Of Taxes
I.R.C. § 5703(b)(2)(A) In General — Except as otherwise provided in this paragraph, in the case of taxes on tobacco products and cigarette papers and tubes removed during any semimonthly period under bond for deferred payment of tax, the last day for payment of such taxes shall be the 14th day after the last day of such semimonthly period.
I.R.C. § 5703(b)(2)(B) Imported Articles — In the case of tobacco products and cigarette papers and tubes which are imported into the United States—
I.R.C. § 5703(b)(2)(B)(i) In General — The last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is entered into the customs territory of the United States.
I.R.C. § 5703(b)(2)(B)(ii) Special Rule For Entry For Warehousing — Except as provided in clause (iv), in the case of an entry for warehousing, the last day for payment of tax shall not be later than the 14th day after the last day of the semimonthly period during which the article is removed from the 1st such warehouse.
I.R.C. § 5703(b)(2)(B)(iii) Foreign Trade Zones — Except as provided in clause (iv) and in regulations prescribed by the Secretary, articles brought into a foreign trade zone shall, notwithstanding any other provision of law, be treated for purposes of this subsection as if such zone were a single customs warehouse.
I.R.C. § 5703(b)(2)(B)(iv) Exception For Articles Destined For Export — Clauses (ii) and (iii) shall not apply to any article which is shown to the satisfaction of the Secretary to be destined for export.
I.R.C. § 5703(b)(2)(C) Tobacco Products And Cigarette Papers And Tubes Brought Into The United States From Puerto Rico — In the case of tobacco products and cigarette papers and tubes which are brought into the United States from Puerto Rico, the last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is brought into the United States.
I.R.C. § 5703(b)(2)(D) Special Rule For Tax Due In September
I.R.C. § 5703(b)(2)(D)(i) In General — Notwithstanding the preceding provisions of this paragraph, the taxes on tobacco products and cigarette papers and tubes for the period beginning on September 16 and ending on September 26 shall be paid not later than September 29.
I.R.C. § 5703(b)(2)(D)(ii) Safe Harbor — The requirement of clause (i) shall be treated as met if the amount paid not later than September 29 is not less than 11/15 of the taxes on tobacco products and cigarette papers and tubes for the period beginning on September 1 and ending on September 15.
I.R.C. § 5703(b)(2)(D)(iii) Taxpayers Not Required To Use Electronic Funds Transfer — In the case of payments not required to be made by electronic funds transfer, clauses (i) and (ii) shall be applied by substituting “September 25” for “September 26”, “September 28” for “September 29”, and “2/3” for “11/15”.
I.R.C. § 5703(b)(2)(E) Special Rule Where Due Date Falls On Saturday, Sunday, Or Holiday — Notwithstanding section 7503, if, but for this subparagraph, the due date under this paragraph would fall on a Saturday, Sunday, or a legal holiday (as defined in section 7503), such due date shall be the immediately preceding day which is not a Saturday, Sunday, or such a holiday (or the immediately following day where the due date described in subparagraph (D) falls on a Sunday).
I.R.C. § 5703(b)(2)(F) Special Rule For Unlawfully Manufactured Tobacco Products — In the case of any tobacco products, cigarette paper, or cigarette tubes manufactured in the United States at any place other than the premises of a manufacturer of tobacco products, cigarette paper, or cigarette tubes that has filed the bond and obtained the permit required under this chapter, tax shall be due and payable immediately upon manufacture.
I.R.C. § 5703(b)(3) Payment By Electronic Fund Transfer — Any person who in any 12-month period, ending December 31, was liable for a gross amount equal to or exceeding $5,000,000 in taxes imposed on tobacco products and cigarette papers and tubes by section 5701 (or 7652) shall pay such taxes during the succeeding calendar year by electronic fund transfer (as defined in section 5061(e)(2)) to a Federal Reserve Bank. Rules similar to the rules of section 5061(e)(3) shall apply to the $5,000,000 amount specified in the preceding sentence.
I.R.C. § 5703(c) Use Of Government Depositaries — The Secretary may authorize Federal Reserve banks, and incorporated banks or trust companies which are depositaries or financial agents of the United States, to receive any tax imposed by this chapter, in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the manner, time, and condition under which the receipt of such tax by such banks and trust companies is to be treated as payment for tax purposes.
I.R.C. § 5703(d) Assessment — Whenever any tax required to be paid by this chapter is not paid in full at the time required for such payment, it shall be the duty of the Secretary, subject to the limitations prescribed in section 6501, on proof satisfactory to him, to determine the amount of tax which has been omitted to be paid, and to make an assessment therefor against the person liable for the tax. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. Except in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error, no such assessment shall be made until and after the person liable for the tax has been afforded reasonable notice and opportunity to show cause, in writing, against such assessment.
(Aug. 16, 1954, ch. 736, 68A Stat. 707; Sept. 2, 1958, Pub. L. 85-859, title II, 202, 72 Stat. 1417; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1905(a)(25), 1906(b)(13)(A), 90 Stat. 1821, 1834; Jan. 12, 1983, Pub. L. 97-448, title III, 308(a), 96 Stat. 2407; July 18, 1984, Pub. L. 98-369, div. A, title I, 27(c)(2), 98 Stat. 509; Oct. 21, 1986, Pub. L. 99-509, title VIII, 8011(a)(1), 100 Stat. 1951; Oct. 22, 1986, Pub. L. 99-514, title XVIII, 1801(c)(2), 100 Stat. 2786; Nov. 10, 1988, Pub. L. 100-647, title II, 2003(b)(1)(C), (D), 102 Stat. 3598; Dec. 8, 1994, Pub. L. 103-465, title VII, Sec. 712(c)(2), (c)(1); Feb. 4, 2009, Pub. L. 111-3, title VII, Sec. 702(e)(1), 123 Stat. 8.)
BACKGROUND NOTES
AMENDMENTS
2009 - Subsec. (b)(2)(F). Pub. L. 111-3, Sec. 702(e)(1), amended par. (2) by adding subpar. (F).
1994--Subsec. (b)(2)(E). Pub. L. 103-465, Sec. 712(c)(2), modified (E) by replacing ‘14th day’ with ‘due date’ in the heading and by inserting the parenthetical at the end, effective January 1, 1995.
Subsec. (b)(2)(D). Pub. L. 103-465, Sec. 712(c)(1) redesignated (b)(2)(D) as (E), and added new (D) to read as above, effective January 1, 1995.
1988--Subsec. (b)(2)(B)(i), (ii), (C). Pub. L. 100-647 substituted “the 14th day after the last day of the semimonthly period during which” for “the 14th day after the date on which”.
1986--Subsec. (b)(2). Pub. L. 99-509 amended par. (2) generally. Prior to amendment par. (2), time for making of return and payment of taxes, read as follows: “In the case of tobacco products and cigarette papers and tubes removed after December 31, 1982, under bond for deferred payment of tax, the last day for filing a return and paying any tax due for each return period shall be the last day of the first succeeding return period plus 10 days.”
Subsec. (b)(3). Pub. L. 99-514 inserted last sentence.
1984--Subsec. (b)(3). Pub. L. 98-369 added par. (3).
1983--Subsec. (b). Pub. L. 97-448 designated existing provisions as par. (1), struck out provisions that the Secretary prescribe the time for making a return and the time for the payment of taxes and that the Secretary prescribe by regulations the conditions for the filing of additional bonds, and added par. (2).
1976--Subsec. (a). Pub. L. 94-455, 1905(a)(25)(A), directed that all provisions of chapter 52 applicable to tobacco products and cigarette papers and tubes in bond be applicable to such articles returned to bond upon withdrawal from the market or returned to bond after previous removal for a tax-exempt purpose.
Subsec. (b). Pub. L. 94-455, 1905(a)(25)(B), 1906(b)(13)(A), struck out provisions which had authorized payment of taxes by stamp until regulations could be promulgated to provide for payment by return and struck out “or his delegate” after “Secretary” in three places.
Subsec. (c). Pub. L. 94-455, 1905(a)(25)(C), 1906(b)(13)(A), redesignated subsec. (d) as (c) and struck out “or his delegate” after “Secretary”. Former subsec. (c), relating to the use of stamps as evidence of the payment of taxes, was struck out.
Subsecs. (d), (e). Pub. L. 94-455, 1905(a)(25)(C), 1906(b)(13)(A), redesignated subsec. (e) as (d) and struck out “or his delegate” after “Secretary”. Former subsec. (d) redesignated (c).
1958--Subsec. (a)(1). Pub. L. 85-859 designated part of first sentence of subsec. (a) as par. (1) thereof and redesignated the remainder of subsec. (a) as (b).
Subsec. (a)(2). Pub. L. 85-859 added par. (2).
Subsec. (b). Pub. L. 85-859 designated former subsec. (a), with exception of part of the first sentence, as subsec. (b) and substituted “tobacco products and cigarette papers and tubes” for “articles”, and inserted provisions relating to postponements, and to payment of the tax on the basis of a return prior to removal of the tobacco products and cigarette papers and tubes where a person defaults in the postponed payment of the tax. Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 85-859 designated former subsec. (b) as (c) and substituted “If the Secretary or his delegate shall by regulation provide for the payment of tax by return and require the use of” for “If the Secretary or his delegate shall, by regulation, require the use”, and “tobacco products” for “articles”. Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 85-859 redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 85-859 designated former subsec. (d) as (e) and permitted assessments in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error.
EFFECTIVE DATE OF 2009 AMENDMENT
Amendment by Sec. 702(e)(1) of Pub. L. 111-3 effective on the date of the enactment of this Act [Enacted: Feb. 4, 2009]. Sec. 702(g) provided the following transitional rule:
“(g) Transitional Rule.— Any person who—
“(1) on April 1, 2009 is engaged in business as a manufacturer of processed tobacco or as an importer of processed tobacco, and
“(2) before the end of the 90-day period beginning on such date, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.”
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective as if included in the amendments made by section 8011 of the Omnibus Budget Reconciliation Act of 1986, Pub. L. 99-509, see section 2003(b)(2) of Pub. L. 100-647, set out as a note under section 5061 of this title.
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by Pub. L. 99-514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99-514, set out as a note under section 48 of this title.
Amendment by Pub. L. 99-509 applicable, except as otherwise provided, to removals during semimonthly periods ending on or after Dec. 31, 1986, see section 8011(c) of Pub. L. 99-509, set out as a note under section 5061 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to taxes required to be paid on or after Sept. 30, 1984, see section 27(d)(2) of Pub. L. 98-369, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Section 308(b) of Pub. L. 97-448 provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to tobacco products and cigarette papers and tubes removed after December 31, 1982.”
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(25) of Pub. L. 94-455 effective on the first day of the 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 1958 AMENDMENT
Amendment by Pub. L. 85-859 effective 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.

I.R.C. § 5704(a) Tobacco Products Furnished For Employee Use Or Experimental Purposes — Tobacco products may be furnished by a manufacturer of such products, without payment of tax, for use or consumption by employees or for experimental purposes, in such quantities, and in such manner as the Secretary shall by regulation prescribed.
I.R.C. § 5704(b) Tobacco Products And Cigarette Papers And Tubes Transferred Or Removed In Bond From Domestic Factories And Export Warehouses — A manufacturer or export warehouse proprietor may transfer tobacco products and cigarette papers and tubes, without payment of tax, to the bonded premises of another manufacturer or export warehouse proprietor, or remove such articles, without payment of tax, for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States; and manufacturers may similarly remove such articles for use of the United States; in accordance with such regulations and under such bonds as the Secretary shall prescribe. Tobacco products and cigarette papers and tubes may not be transferred or removed under this subsection unless such products or papers and tubes bear such marks, labels, or notices as the Secretary shall by regulations prescribe.
I.R.C. § 5704(c) Tobacco Products And Cigarette Papers And Tubes Released In Bond From Customs Custody — Tobacco products and cigarette papers and tubes, imported or brought into the United States, may be released from customs custody, without payment of tax, for delivery to the proprietor of an export warehouse, or to a manufacturer of tobacco products or cigarette papers and tubes if such articles are not put up in packages, in accordance with such regulations and under such bond as the Secretary shall prescribe.
I.R.C. § 5704(d) Tobacco Products And Cigarette Papers And Tubes Exported And Returned — Tobacco products and cigarette papers and tubes classifiable under item 804.00 of title I of the Tariff Act of 1930 (relating to duty on certain articles previously exported and returned) may be released from customs custody, without payment of that part of the duty attributable to the internal revenue tax for delivery to the original manufacturer of such tobacco products or cigarette papers and tubes or to the proprietor of an export warehouse authorized by such manufacturer to receive such articles, in accordance with such regulations and under such bond as the Secretary shall prescribe. Upon such release such products, papers, and tubes shall be subject to this chapter as if they had not been exported or otherwise removed from internal-revenue bond.
(Aug. 16, 1954, ch. 736, 68A Stat. 708; Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 202, 72 Stat. 1418; June 30, 1964, Pub. L. 88-342, Sec. 1(b), 78 Stat. 234; June 21, 1965, Pub. L. 89-44, title V, Sec. 502(b)(4), 79 Stat. 151; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1905(a)(26), 1906(b)(13)(A), 90 Stat. 1821, 1834; Oct. 21, 1986, Pub. L. 99-509, title VIII, Sec. 8011(a)(2), 100 Stat. 1952; Dec. 19, 1989, Pub. L. 101-239, title VII, Sec. 7508(a), 103 Stat. 2370; Nov. 9, 2000, Pub. L. 106-476, title IV, Sec. 4002(b).)
BACKGROUND NOTES
AMENDMENTS
2000 - Subsec. (b). Pub. L. 106-476, Sec. 4002(b), substituted “the original manufacturer of such” for “a manufacturer of” and inserted “authorized by such manufacturer to receive such articles” after “proprietor of an export warehouse”.
1997 - Subsec. (b). Pub. L. 105-33, Sec. 9302(h)(1)(A) inserted a new sentence at the end of the subsection.
1989 - Subsec. (c). Pub. L. 101-239 inserted ‘or to a manufacturer of tobacco products or cigarette papers and tubes if such articles are not put up in packages,’ after ‘export warehouse,’.
1986 - Subsec. (c). Pub. L. 99-509 struck out ‘to a manufacturer of tobacco products or cigarette papers and tubes or’ after ‘for delivery’.
1976 - Subsecs. (a), (b). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ‘or his delegate’ after ‘Secretary’.
Subsecs. (c), (d). Pub. L. 94-455, Sec. 1905(a)(26), 1906(b)(13)(A), inserted ‘or to the proprietor of an export warehouse’ after ‘to a manufacturer of tobacco products or cigarette papers and tubes’ and struck out ‘or his delegate’ after ‘Secretary’.
1965 - Subsec. (c). Pub. L. 89-44, Sec. 502(b)(4), redesignated subsec. (d) as (c), struck out all references to tobacco materials, and repealed former subsec. (c) which related to tobacco materials shipped or delivered in bond.
Subsecs. (d), (e). Pub. L. 89-44, Sec. 502(b)(4)(A), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).
1964 - Subsec. (e). Pub. L. 88-342 added subsec. (e).
1958 - Subsec. (b). Pub. L. 85-859 included transfers by export warehouse proprietors, and substituted ‘tobacco products and cigarette papers and tubes’ for ‘articles’, before ‘without payment of tax’.
Subsec. (c). Pub. L. 85-859 authorized shipments without payment of tax of tobacco stems and waste only, to any person for use by him as fertilizer or insecticide or in the production of fertilizer, insecticide, or nicotine.
Subsec. (d). Pub. L. 85-859 substituted ‘tobacco products, cigarette papers and tubes’ for ‘articles’ wherever appearing, and struck out provisions which related to delivery to bonded premises of manufacturers and dealers.
EFFECTIVE DATE OF 2000 AMENDMENT
Section 4002(d) of Pub. L. 106-476 provided that: “The amendments made by this section shall take effect 90 days after the date of the enactment of this Act [Nov. 9, 2000].”
EFFECTIVE DATE OF 1997 AMENDMENTS
Section 9302(i) of Pub. L. 105-33 provided that:
“(1) IN GENERAL--The amendments made by this section shall apply to articles removed (as defined in section 5702(k) of the Internal Revenue Code of 1986, as amended by this section) after December 31, 1999.
“(2) TRANSITIONAL RULE--Any person who---
“(A) on the date of the enactment of this Act is engaged in business as a manufacturer of roll-your-own tobacco or as an importer of tobacco products or cigarette papers and tubes, and
“(B) before January 1, 2000, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.”
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7508(b) of Pub. L. 101-239 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply to articles imported or brought into the United States after the date of the enactment of this Act (Dec. 19, 1989).’
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-509 applicable to articles imported, entered for warehousing, or brought into the United States or a foreign trade zone after Dec. 15, 1986, see section 8011(c) of Pub. L. 99-509, set out as a note under section 5061 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(26) of 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 AMENDMENT
Amendment by Pub. L. 89-44 applicable on and after January 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 1964 AMENDMENT
Section 2 of Pub. L. 88-342 provided that the amendment made by section 2 of Pub. L. 88-342 shall apply with respect to articles entered, or withdrawn from warehouse, for consumption after June 30, 1964.
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-859 effective 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.

I.R.C. § 5708(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.
I.R.C. § 5708(b) Claims — No claim shall be allowed under this section unless—
I.R.C. § 5708(b)(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
I.R.C. § 5708(b)(2) — the claimant furnishes proof to the satisfaction of the Secretary that—
I.R.C. § 5708(b)(2)(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
I.R.C. § 5708(b)(2)(B) — he is entitled to payment under this section.
Claims under this section shall be filed under such regulations as the Secretary shall prescribe.
I.R.C. § 5708(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.
I.R.C. § 5708(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.
(Added by Pub. L. 85-859, title II, 202, Sept. 2, 1958, 72 Stat. 1420, and amended by Pub. L. 91-606, title III, 301(j), Dec. 31, 1970, 84 Stat. 1759; Pub. L. 93-288, title VI, 602(j), May 22, 1974, 88 Stat. 164; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 100-707, title I, 109(l), Nov. 23, 1988, 102 Stat. 4709; Pub. L. 108-311, title IV, 408(a)(7), Oct. 4, 2004, 118 Stat 1166.)
BACKGROUND NOTES
AMENDMENTS
2004-Subsec. (a). Pub. L. 108-311, Sec. 408(a)(7), amended subsec. (a) by inserting “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)”.
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108-311, Sec. 408(a)(7), effective on the date of the enactment of this Act [Enacted: Oct. 4, 2004].
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-288 effective Apr. 1, 1974, see section 605 of Pub. L. 93-288, set out as an Effective Date note under section 5121 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment 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
Section 209 of Pub. L. 85-859 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.
Amendments
1965--Pub. L. 89-44, title V, 502(b)(5), June 21, 1965, 79 Stat. 151, struck out reference to dealers in tobacco materials from subchapter heading.

I.R.C. § 5891(a) Imposition Of Tax — There is hereby imposed on any person who acquires directly or indirectly structured settlement payment rights in a structured settlement factoring transaction a tax equal to 40 percent of the factoring discount as determined under subsection (c)(4) with respect to such factoring transaction.
I.R.C. § 5891(b) Exception For Certain Approved Transactions
I.R.C. § 5891(b)(1) In General — The tax under subsection (a) shall not apply in the case of a structured settlement factoring transaction in which the transfer of structured settlement payment rights is approved in advance in a qualified order.
I.R.C. § 5891(b)(2) Qualified Order — For purposes of this section, the term “qualified order” means a final order, judgment, or decree which—
I.R.C. § 5891(b)(2)(A) — finds that the transfer described in paragraph (1)—
I.R.C. § 5891(b)(2)(A)(i) — does not contravene any Federal or State statute or the order of any court or responsible administrative authority, and
I.R.C. § 5891(b)(2)(A)(ii) — is in the best interest of the payee, taking into account the welfare and support of the payee's dependents, and
I.R.C. § 5891(b)(2)(B) — is issued—
I.R.C. § 5891(b)(2)(B)(i) — under the authority of an applicable State statute by an applicable State court, or
I.R.C. § 5891(b)(2)(B)(ii) — by the responsible administrative authority (if any) which has exclusive jurisdiction over the underlying action or proceeding which was resolved by means of the structured settlement.
I.R.C. § 5891(b)(3) Applicable State Statute — For purposes of this section, the term ”applicable State statute” means a statute providing for the entry of an order, judgment, or decree described in paragraph (2)(A) which is enacted by—
I.R.C. § 5891(b)(3)(A) — the State in which the payee of the structured settlement is domiciled, or
I.R.C. § 5891(b)(3)(B) — if there is no statute described in subparagraph (A), the State in which either the party to the structured settlement (including an assignee under a qualified assignment under section 130) or the person issuing the funding asset for the structured settlement is domiciled or has its principal place of business.
I.R.C. § 5891(b)(4) Applicable State Court — For purposes of this section—
I.R.C. § 5891(b)(4)(A) In General — The term “applicable State court” means, with respect to any applicable State statute, a court of the State which enacted such statute.
I.R.C. § 5891(b)(4)(B) Special Rule — In the case of an applicable State statute described in paragraph (3)(B), such term also includes a court of the State in which the payee of the structured settlement is domiciled.
I.R.C. § 5891(b)(5) Qualified Order Dispositive — A qualified order shall be treated as dispositive for purposes of the exception under this subsection.
I.R.C. § 5891(c) Definitions — For purposes of this section—
I.R.C. § 5891(c)(1) Structured Settlement — The term “structured settlement” means an arrangement—
I.R.C. § 5891(c)(1)(A) — which is established by—
I.R.C. § 5891(c)(1)(A)(i) — suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2), or
I.R.C. § 5891(c)(1)(A)(ii) — agreement for the periodic payment of compensation under any workers' compensation law excludable from the gross income of the recipient under section 104(a)(1), and
I.R.C. § 5891(c)(1)(B) — under which the periodic payments are—
I.R.C. § 5891(c)(1)(B)(i) — of the character described in subparagraphs (A) and (B) of section 130(c)(2), and
I.R.C. § 5891(c)(1)(B)(ii) — payable by a person who is a party to the suit or agreement or to the workers' compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130.
I.R.C. § 5891(c)(2) Structured Settlement Payment Rights — The term “structured settlement payment rights” means rights to receive payments under a structured settlement.
I.R.C. § 5891(c)(3) Structured Settlement Factoring Transaction
I.R.C. § 5891(c)(3)(A) In General — The term “structured settlement factoring transaction” means a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration.
I.R.C. § 5891(c)(3)(B) Exception — Such term shall not include—
I.R.C. § 5891(c)(3)(B)(i) — the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution in the absence of any action to redirect the structured settlement payments to such institution (or agent or successor thereof) or otherwise to enforce such blanket security interest as against the structured settlement payment rights, or
I.R.C. § 5891(c)(3)(B)(ii) — a subsequent transfer of structured settlement payment rights acquired in a structured settlement factoring transaction.
I.R.C. § 5891(c)(4) Factoring Discount — The term “factoring discount” means an amount equal to the excess of—
I.R.C. § 5891(c)(4)(A) — the aggregate undiscounted amount of structured settlement payments being acquired in the structured settlement factoring transaction, over
I.R.C. § 5891(c)(4)(B) — the total amount actually paid by the acquirer to the person from whom such structured settlement payments are acquired.
I.R.C. § 5891(c)(5) Responsible Administrative Authority — The term “responsible administrative authority” means the administrative authority which had jurisdiction over the underlying action or proceeding which was resolved by means of the structured settlement.
I.R.C. § 5891(c)(6) State — The term “State” includes the Commonwealth of Puerto Rico and any possession of the United States.
I.R.C. § 5891(d) Coordination With Other Provisions
I.R.C. § 5891(d)(1) In General — If the applicable requirements of sections 72, 104(a)(1), 104(a)(2), 130, and 461(h) were satisfied at the time the structured settlement involving structured settlement payment rights was entered into, the subsequent occurrence of a structured settlement factoring transaction shall not affect the application of the provisions of such sections to the parties to the structured settlement (including an assignee under a qualified assignment under section 130) in any taxable year.
I.R.C. § 5891(d)(2) No Withholding Of Tax — The provisions of section 3405 regarding withholding of tax shall not apply to the person making the payments in the event of a structured settlement factoring transaction.
(Added by Pub. L. 107-134, title I, Sec. 115(a), Jan. 23, 2002, 115 Stat. 2427.)
BACKGROUND NOTES
EFFECTIVE DATE
Sec. 115(c) of Pub. L. 107-134 provided that:
“(1) In general.--The amendments made by this section (other than the provisions of section 5891(d) of the Internal Revenue Code of 1986, as added by this section) shall apply to structured settlement factoring transactions (as defined in section 5891(c) of such Code (as so added)) entered into on or after the 30th day following the date of the enactment of this Act [enacted: Jan. 23, 2002].
“(2) CLARIFICATION OF EXISTING LAW- Section 5891(d) of such Code (as so added) shall apply to structured settlement factoring transactions (as defined in section 5891(c) of such Code (as so added)) entered into before, on, or after such 30th day.
“(3) TRANSITION RULE- In the case of a structured settlement factoring transaction entered into during the period beginning on the 30th day following the date of the enactment of this Act and ending on July 1, 2002, no tax shall be imposed under section 5891(a) of such Code if--
“(A) the structured settlement payee is domiciled in a State (or possession of the United States) which has not enacted a statute providing that the structured settlement factoring transaction is ineffective unless the transaction has been approved by an order, judgment, or decree of a court (or where applicable, a responsible administrative authority) which finds that such transaction--
“(i) does not contravene any Federal or State statute or the order of any court (or responsible administrative authority), and
“(ii) is in the best interest of the structured settlement payee or is appropriate in light of a hardship faced by the payee, and
“(B) the person acquiring the structured settlement payment rights discloses to the structured settlement payee in advance of the structured settlement factoring transaction the amounts and due dates of the payments to be transferred, the aggregate amount to be transferred, the consideration to be received by the structured settlement payee for the transferred payments, the discounted present value of the transferred payments (including the present value as determined in the manner described in section 7520 of such Code), and the expenses required under the terms of the structured settlement factoring transaction to be paid by the structured settlement payee or deducted from the proceeds of such transaction.”

I.R.C. § 5881(a) Imposition Of Tax — There is hereby imposed on any person who receives greenmail a tax equal to 50 percent of gain or other income of such person by reason of such receipt.
I.R.C. § 5881(b) Greenmail — For purposes of this section, the term “greenmail” means any consideration transferred by a corporation (or any person acting in concert with such corporation) to directly or indirectly acquire stock of such corporation from any shareholder if—
I.R.C. § 5881(b)(1) — such shareholder held such stock (as determined under section 1223) for less than 2 years before entering into the agreement to make the transfer,
I.R.C. § 5881(b)(2) — at some time during the 2-year period ending on the date of such acquisition—
I.R.C. § 5881(b)(2)(A) — such shareholder,
I.R.C. § 5881(b)(2)(B) — any person acting in concert with such shareholder, or
I.R.C. § 5881(b)(2)(C) — any person who is related to such shareholder or person described in subparagraph (B), made or threatened to make a public tender offer for stock of such corporation, and
I.R.C. § 5881(b)(3) — such acquisition is pursuant to an offer which was not made on the same terms to all shareholders.
For purposes of the preceding sentence, payments made in connection with, or in transactions related to, an acquisition shall be treated as paid in such acquisition.
I.R.C. § 5881(c) Other Definitions — For purposes of this section—
I.R.C. § 5881(c)(1) Public Tender Offer — The term “public tender offer” means any offer to purchase or otherwise acquire stock or assets in a corporation if such offer was or would be required to be filed or registered with any Federal or State agency regulating securities.
I.R.C. § 5881(c)(2) Related Person — A person is related to another person if the relationship between such persons would result in the disallowance of losses under section 267 or 707(b).
I.R.C. § 5881(d) Tax Applies Whether Or Not Amount Recognized — The tax imposed by this section shall apply whether or not the gain or other income referred to in subsection (a) is recognized.
I.R.C. § 5881(e) Administrative Provisions — For purposes of the deficiency procedures of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.
(Added by Pub. L. 100-203, title X, 10228(a), Dec. 22, 1987, 101 Stat. 1330-417, and amended by Pub. L. 100-647, title II, 2004(o)(1)(A), (B)(i), (C), (2), Nov. 10, 1988, 102 Stat. 3608.)
BACKGROUND NOTES
AMENDMENTS
1988--Subsec. (a). Pub. L. 100-647, 2004(o)(1)(A), substituted “gain or other income of such person by reason of such receipt” for “gain realized by such person on such receipt”.
Subsec. (b). Pub. L. 100-647, 2004(o)(1)(B)(i), substituted “a corporation (or any person acting in concert with such corporation) to directly or indirectly acquire stock of such corporation” for “a corporation to directly or indirectly acquire its stock”.
Subsec. (d). Pub. L. 100-647, 2004(o)(1)(C), substituted “amount” for “gain” in heading and inserted “or other income” after “the gain" in text.
Subsec. (e). Pub. L. 100-647, 2004(o)(2), added subsec. (e).
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 2004(o)(1)(A), (C), (2) of Pub. L. 100-647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100-203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100-647, set out as a note under section 56 of this title.
Section 2004(o)(1)(B)(ii) of Pub. L. 100-647 provided that: “The amendment made by clause (i) [amending this section] shall apply to transactions occurring on or after March 31, 1988.”
EFFECTIVE DATE
Section 10228(d) of Pub. L. 100-203 provided that: “The amendments made by this section [enacting this chapter and amending section 275 of this title] shall apply to consideration received after the date of the enactment of this Act [Dec. 22, 1987] in taxable years ending after such date; except that such amendments shall not apply in the case of any acquisition pursuant to a written binding contract in effect on December 15, 1987, and at all times thereafter before the acquisition.”

I.R.C. § 5801(a) General Rule — On 1st engaging in business and thereafter on or before July 1 of each year, every importer, manufacturer, and dealer in firearms shall pay a special (occupational) tax for each place of business at the following rates:
I.R.C. § 5801(a)(1) — Importers and manufacturers: $1,000 a year or fraction thereof.
I.R.C. § 5801(a)(2) — Dealers: $500 a year or fraction thereof.
I.R.C. § 5801(b) Reduced Rates Of Tax For Small Importers And Manufacturers
I.R.C. § 5801(b)(1) In General — Paragraph (1) of subsection (a) shall be applied by substituting “$500” for “$1,000” with respect to any taxpayer the gross receipts of which (for the most recent taxable year ending before the 1st day of the taxable period to which the tax imposed by subsection (a) relates) are less than $500,000.
I.R.C. § 5801(b)(2) Controlled Group Rules — All persons treated as 1 taxpayer under section 5061(e)(3) shall be treated as 1 taxpayer for purposes of paragraph (1).
I.R.C. § 5801(b)(3) Certain Rules To Apply — For purposes of paragraph (1), rules similar to the rules of subparagraphs (B) and (C) of section 448(c)(3) shall apply.
(Added by Pub. L. 90-618, title II, 201, Oct. 22, 1968, 82 Stat. 1227, and amended by Pub. L. 100-203, title X, 10512(g)(1), Dec. 22, 1987, 101 Stat. 1330-449.)
BACKGROUND NOTES
AMENDMENTS
1987--Pub. L. 100-203 substituted “Imposition of tax” for “Tax” in section catchline and amended text generally. Prior to amendment, text read as follows: “On first engaging in business and thereafter on or before the first day of July of each year, every importer, manufacturer, and dealer in firearms shall pay a special (occupational) tax for each place of business at the following rates:
“(1) Importers.--$500 a year or fraction thereof;
“(2) Manufacturers.--$500 a year or fraction thereof;
“(3) Dealers.--$200 a year or fraction thereof.
Except an importer, manufacturer, or dealer who imports, manufactures, or deals in only weapons classified as ‘any other weapon’ under section 5845(e), shall pay a special (occupational) tax for each place of business at the following rates: Importers, $25 a year or fraction thereof; manufacturers, $25 a year or fraction thereof; dealers, $10 a year or fraction thereof.”
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section 10512(h) of Pub. L. 100-203, set out as an Effective Date note under section 5081 of this title.
EFFECTIVE DATE
Section 207 of Pub. L. 90-618, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(a) Section 201 of this title [adding this chapter] shall take effect on the first day of the first month following the month in which it is enacted [October, 1968].
“(b) Notwithstanding the provisions of subsection (a) or any other provision of law, any person possessing a firearm as defined in section 5845(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by this title) which is not registered to him in the National Firearms Registration and Transfer Record shall register each firearm so possessed with the Secretary of the Treasury or his delegate in such form and manner as the Secretary or his delegate may require within the thirty days immediately following the effective date of section 201 of this Act [see subsec. (a) of this section]. Such registrations shall become a part of the National Firearms Registration and Transfer Record required to be maintained by section 5841 of the Internal Revenue Code of 1986 (as amended by this title). No information or evidence required to be submitted or retained by a natural person to register a firearm under this section shall be used, directly or indirectly, as evidence against such person in any criminal proceeding with respect to a prior or concurrent violation of law.
“(c) The amendments made by sections 202 through 206 of this title [amending sections 6806 and 7273 of this title, repealing sections 5692 and 6107 of this title, and enacting provisions set out as a note under this section] shall take effect on the date of enactment [Oct. 22, 1968].
“(d) The Secretary of the Treasury, after publication in the Federal Register of his intention to do so, is authorized to establish such period of amnesty, not to exceed ninety days in the case of any single period, and immunity from liability during any such period, as the Secretary determines will contribute to the purposes of this title [adding this chapter, and sections 6806 and 7273 of this title, repealing sections 5692 and 6107 of this title, and enacting provisions set out as notes under this section].”
PRIOR PROVISIONS
A prior section 5801, acts Aug. 16, 1954, ch. 736, 68A Stat. 721; Sept. 2, 1958, Pub. L. 85-859, title II, 203(a), 72 Stat. 1427; June 1, 1960, Pub. L. 86-478, 1, 74 Stat. 149, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 90-618.

It shall be unlawful for any person—
I.R.C. § 5861(a) — to engage in business as a manufacturer or importer of, or dealer in, firearms without having paid the special (occupational) tax required by section 5801 for his business or having registered as required by section 5802; or
I.R.C. § 5861(b) — to receive or possess a firearm transferred to him in violation of the provisions of this chapter; or
I.R.C. § 5861(c) — to receive or possess a firearm made in violation of the provisions of this chapter; or
I.R.C. § 5861(d) — to receive or possess a firearm which is not registered to him in the National Firearms Registration and Transfer Record; or
I.R.C. § 5861(e) — to transfer a firearm in violation of the provisions of this chapter; or
I.R.C. § 5861(f) — to make a firearm in violation of the provisions of this chapter; or
I.R.C. § 5861(g) — to obliterate, remove, change, or alter the serial number or other identification of a firearm required by this chapter; or
I.R.C. § 5861(h) — to receive or possess a firearm having the serial number or other identification required by this chapter obliterated, removed, changed, or altered; or
I.R.C. § 5861(i) — to receive or possess a firearm which is not identified by a serial number as required by this chapter; or
I.R.C. § 5861(j) — to transport, deliver, or receive any firearm in interstate commerce which has not been registered as required by this chapter; or
I.R.C. § 5861(k) — to receive or possess a firearm which has been imported or brought into the United States in violation of section 5844; or
I.R.C. § 5861(l) — to make, or cause the making of, a false entry on any application, return, or record required by this chapter, knowing such entry to be false.
(Added by Pub. L. 90-618, title II, 201, Oct. 22, 1968, 82 Stat. 1234.)
BACKGROUND NOTES
EFFECTIVE DATE
Section effective on the first day of the first month following October, 1968, see section 207 of Pub. L. 90-618, set out as a note under section 5801 of this title.
PRIOR PROVISIONS
A prior section 5861, act Aug. 16, 1954, ch. 736, 68A Stat. 729, relating to penalties, was omitted in the general revision of this chapter by Pub. L. 90-618.
Provisions similar to those comprising subsecs. (a), (b), (d), (g), (j), and (k) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 90-618, as follows:


Present subsecs.: Prior sections
(a) .................. 5854.
(b) .................. 5851.
(d) .................. 5854.
(g) .................. 5852.
(j) .................. 5855.
(k) .................. 5853.
The prior sections 5851 to 5853, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 728.
The prior sections 5854 and 5855, Pub. L. 85-859, title II, 203(i)(1), Sept. 2, 1958, are set out in 72 Stat. 1428.
A prior section 5862, act Aug. 16, 1954, ch. 736, 68A Stat. 729, relating to the forfeiture and disposal of any firearm involved in any violation of the provisions of this chapter or any regulation promulgated thereunder, was omitted in the general revision of this chapter by Pub. L. 90-618. The provisions of prior section 5862 of this title are covered by section 5872 of this title.
Prior Provisions
A prior subchapter D, consisted of sections 5861 and 5862, prior to the general revision of this chapter by Pub. L. 90-618, title II, 201, Oct. 22, 1968, 82 Stat. 1227.
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Re: Dear Filipino's and Filipina's

Postby sophocles » Tue Apr 13, 2021 3:46 am

[size=150] I.R.C. § 3309(a) State Law Requirements — For purposes of section 3304(a)(6)—
I.R.C. § 3309(a)(1) — except as otherwise provided in subsections (b) and (c), the services to which this paragraph applies are—
I.R.C. § 3309(a)(1)(A) — service excluded from the term “employment" solely by reason of paragraph (8) of section 3306(c), and
I.R.C. § 3309(a)(1)(B) — service excluded from the term “employment" solely by reason of paragraph (7) of section 3306(c); and
I.R.C. § 3309(a)(2) — the State law shall provide that a governmental entity, including an Indian tribe, or any other organization (or group of governmental entities or other organizations) which, but for the requirements of this paragraph, would be liable for contributions with respect to service to which paragraph (1) applies may elect, for such minimum period and at such time as may be provided by State law, to pay (in lieu of such contributions) into the State unemployment fund amounts equal to the amounts of compensation attributable under the State law to such service. The State law may provide safeguards to ensure that governmental entities or other organizations so electing will make the payments required under such elections.
I.R.C. § 3309(b) Section Not To Apply To Certain Service — This section shall not apply to service performed—
I.R.C. § 3309(b)(1) — in the employ of (A) a church or convention or association of churches, (B) an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches, or (C) an elementary or secondary school which is operated primarily for religious purposes, which is described in section 501(c)(3), and which is exempt from tax under section 501(a);
I.R.C. § 3309(b)(2) — by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order;
I.R.C. § 3309(b)(3) — in the employ of a governmental entity referred to in paragraph (7) of section 3306(c), if such service is performed by an individual in the exercise of his duties—
I.R.C. § 3309(b)(3)(A) — as an elected official;
I.R.C. § 3309(b)(3)(B) — as a member of a legislative body, or a member of the judiciary, of a State or political subdivision thereof, or of an Indian tribe;
I.R.C. § 3309(b)(3)(C) — as a member of the State National Guard or Air National Guard;
I.R.C. § 3309(b)(3)(D) — as an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or similar emergency;
I.R.C. § 3309(b)(3)(E) — in a position which, under or pursuant to the State or tribal law, is designated as (i) a major nontenured policymaking or advisory position, or (ii) a policymaking or advisory position the performance of the duties of which ordinarily does not require more than 8 hours per week; or
I.R.C. § 3309(b)(3)(F) — as an election official or election worker if the amount of remuneration received by the individual during the calendar year for services as an election official or election worker is less than $1,000;
I.R.C. § 3309(b)(4) — in a facility conducted for the purpose of carrying out a program of—
I.R.C. § 3309(b)(4)(A) — rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury, or
I.R.C. § 3309(b)(4)(B) — providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market,
by an individual receiving such rehabilitation or remunerative work;
I.R.C. § 3309(b)(5) — as part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any Federal agency or an agency of a State or political subdivision thereof or of an Indian tribe, by an individual receiving such work relief or work training; and
I.R.C. § 3309(b)(6) — by an inmate of a custodial or penal institution.
I.R.C. § 3309(c) Nonprofit Organizations Must Employ 4 Or More — This section shall not apply to service performed during any calendar year in the employ of any organization unless on each of some 20 days during such calendar year or the preceding calendar year, each day being in a different calendar week, the total number of individuals who were employed by such organization in employment (determined without regard to section 3306(c)(8) and by excluding service to which this section does not apply by reason of subsection (b)) for some portion of the day (whether or not at the same moment of time) was 4 or more.
I.R.C. § 3309(d) Election By Indian Tribe — The State law shall provide that an Indian tribe may make contributions for employment as if the employment is within the meaning of section 3306 or make payments in lieu of contributions under this section, and shall provide that an Indian tribe may make separate elections for itself and each subdivision, subsidiary, or business enterprise wholly owned by such Indian tribe. State law may require a tribe to post a payment bond or take other reasonable measures to assure the making of payments in lieu of contributions under this section. Notwithstanding the requirements of section 3306(a)(6), if, within 90 days of having received a notice of delinquency, a tribe fails to make contributions, payments in lieu of contributions, or payment of penalties or interest (at amounts or rates comparable to those applied to all other employers covered under the State law) assessed with respect to such failure, or if the tribe fails to post a required payment bond, then service for the tribe shall not be excepted from employment under section 3306(c)(7) until any such failure is corrected. This subsection shall apply to an Indian tribe within the meaning of section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(e)).
(Added by Pub. L. 91-373, title I, 104(b)(1), Aug. 10, 1970, 84 Stat. 697, and amended Pub. L. 94-566, title I, 115(a), (b), (c)(2), (3), title V, 506(a), Oct. 20, 1976, 90 Stat. 2670, 2671, 2687; Pub. L. 95-19, title III, 302(b), Apr. 12, 1977, 91 Stat. 44; Pub. L. 106-554, Sec. 166, Dec. 21, 2000, 114 Stat. 2763; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(216), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018--Subsec. (d). Pub. L. 115-141, Div. U, Sec. 401(a)(216), amended subsec. (d) by substituting “25 U.S.C. 5304(e)” for “25 U.S.C. 450b(e)”.
2000--Subsec. (a)(2). Pub. L. 106-554, Sec. 166(b)(1), inserted “, including an Indian tribe” after “the State law shall provide that a governmental entity”.
Subsec. (b)(3)(B). Pub. L. 106-554, Sec. 166(b)(2), inserted “, or of an Indian tribe” after “of a State or political subdivision thereof”.
Subsec. (b)(3)(E). Pub. L. 106-554, Sec. 166(b)(3), inserted “or tribal” after “the State”.
Subsec. (b)(5). Pub. L. 106-554, Sec. 166(b)(4), inserted “or of an Indian tribe” after “an agency of a State or political subdivision thereof”.
Subsec. (d). Pub. L. 106-554, Sec. 166(c), added subsec. (d).
1997--Subsec. (b)(1). Pub. L. 105-33, Sec. 5407(a), struck “or” at the end of subpar. (A), and inserted “, or (C) an elementary or secondary school which is operated primarily for religious purposes, which is described in section 501(c)(3), and which is exempt from tax under section 501(a)” before the semicolon.
Subsec. (b)(3). Pub. L. 105-33, Sec. 5405(a), struck “or” at the end of subpar. (D); added “or” at the end of subpar. (E); and added subpar. (F).
1977--Subsec. (a)(2). Pub. L. 95-19 substituted “(or group of governmental entities or other organizations)” for “(or group of organizations)”.
1976--Subsec. (n). Pub. L. 94-566, Sec. 115(c)(3), substituted “services performed for nonprofit organizations or governmental entities" for “certain services performed for nonprofit organizations and for State hospitals and institutions of higher education” in section catchline.
Subsec. (a)(1)(B). Pub. L. 94-566, Sec. 115(a), struck out “performed in the employ of the State, or any instrumentality of the State or of the State and one or more other States, for a hospital or institution of higher education located in the State, if such service is” after “service”.
Subsec. (a)(2). Pub. L. 94-566, Sec. 506(a), substituted “a governmental entity or any other organization” for “an organization”, “paragraph (1)” for “paragraph (1)(A)”, and “that governmental entities or other organizations” for “that organizations”.
Subsec. (b)(3). Pub. L. 94-566, Sec. 115(b)(1), substituted reference to services performed in the employ of a governmental entity referred to in paragraph (7) of section 3306(c), if such services are performed by an individual in the exercise of his duties as an elected official, as a member of a legislative body, or a member of the judiciary, of a State or political subdivision thereof, as a member of the State National Guard or Air National Guard, as an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or similar emergency, or in a position which, under or pursuant to the State law, is designated as a major nontenured policymaker or advisory position or a policymaking or advisory position the performance of the duties of which ordinarily does not require more than 8 hours per week, for reference to services performed in the employ of a school which is not an institution of higher education.
Subsec. (b)(6). Pub. L. 94-566, Sec. 115(b)(2), substituted “by an inmate of a custodial or penal institution” for “for a hospital in a State prison or other State correctional institution by an inmate of the prison or correctional institution”.
Subsec. (d). Pub. L. 94-566, Sec. struck out subsec. (d) which defined “institution of higher education”. See section 3304(f) of this title.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(216), effective March 23, 2018.
EFFECTIVE DATE OF 2000 AMENDMENTS
Amendments by Sec. 166 of Pub. L. 106-554 effective for services performed on or after the date of the enactment of this Act [Enactment Date: Dec. 21, 2000]. Sec. 166(e)(2) provides the following transition rule:
“(2) TRANSITION RULE.--For purposes of the Federal Unemployment Tax Act, service performed in the employ of an Indian tribe (as defined in section 3306(u) of the Internal Revenue Codeof 1986 (as added by this section)) shall not be treated as employment (within the meaning of section 3306 of such Code) if--
“(A) it is service which is performed before the date of the enactment of this Act and with respect to which the tax imposed under the Federal Unemployment Tax Act has not been paid, and
“(B) such Indian tribe reimburses a State unemployment fund for unemployment benefits paid for service attributable to such tribe for such period.”
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 5405(a) of Pub. L. 105-33 applicable with respect to service performed after the date of the enactment of this Act [enacted: Aug. 5, 1997].
Amendments by Sec. 5407(a) of Pub. L. 105-33 applicable with respect to service performed after the date of the enactment of this Act [enacted: Aug. 5, 1997].
EFFECTIVE DATE OF 1977 AMENDMENT
Section 302(d)(2) of Pub. L. 95-19 provided that: “The amendment made by subsection (b) [amending this section] shall take effect as if included in the amendments made by section 506 of the Unemployment Compensation Amendments of 1976 [which amended this section in 1976, see Effective Date of 1976 Amendment note below].”
EFFECTIVE DATE OF 1976 AMENDMENTS
For effective date of amendment by section 115(a), (b), (c)(2), (3) of Pub. L. 94-566 see section 115(d) of Pub. L. 94-566, set out as a note under section 3304 of this title.
For effective date of amendment by section 506(a) of Pub. L. 94-566, see section 506(c) of Pub. L. 94-566, set out as a note under section 3304 of this title.
EFFECTIVE DATE
Section applicable with respect to certifications of State laws for 1972 and subsequent years, but only with respect to service performed after Dec. 31, 1971, see section 104(d)(1) of Pub. L. 91-373, set out as a note under section 3304 of this title.
PRIOR PROVISIONS
A prior section 3309 was renumbered section 3311.
There is hereby imposed on every employer (as defined in section 3306(a)) for each calendar year an excise tax, with respect to having individuals in his employ, equal to 6 percent of the total wages (as defined in section 3306(b)) paid by such employer during the calendar year with respect to employment (as defined in section 3306(c)).
(Aug. 16, 1954, ch. 736, 68A Stat. 439; Sept. 13, 1960, Pub. L. 86-778, title V, Sec. 523(a), 74 Stat. 980; Mar. 24, 1961, Pub. L. 87-6, Sec. 14(a), 75 Stat. 16; May 29, 1963, Pub. L. 88-31, Sec. 2(a), 77 Stat. 51; Aug. 10, 1970, Pub. L. 91-373, title III, Sec. 301(a), 84 Stat. 713; June 30, 1972, Pub. L. 92-329, Sec. 2(a), 86 Stat. 398; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1903(a)(11), 90 Stat. 1808; Oct. 20, 1976, Pub. L. 94-566, title II, Sec. 211(b), 90 Stat. 2676; Sept. 3, 1982, Pub. L. 97-248, title II, Sec. 271(b)(1), (c)(1), 96 Stat. 554, 555; Oct. 22, 1986, Pub. L. 99-514, title XVIII, Sec. 1899A(42), 100 Stat. 2960; Dec. 22, 1987, Pub. L. 100-203, title IX, Sec. 9153(a), 101 Stat. 1330-326; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11333(a), 104 Stat. 1388-470; Nov. 15, 1991, Pub. L. 102-164, title IV, Sec. 402; Pub. L. 103-66, title XIII, Sec. 13751, Aug. 10, 1993, 107 Stat. 312; Pub. L. 105-34, title IX, Sec. 1035, Aug. 5, 1997, 111 Stat 788; Dec. 19, 2007, Pub. L. 110-140, title XV, Sec. 1501(a), 121 Stat. 1492; Pub. L. 110-343, div. B, title IV, Sec. 404(a), Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-92, Sec. 10, Nov. 6, 2009, 123 Stat. 2984; Pub. L. 115-141, Div. U, title IV, Sec. 401(b)(37), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
Amendments to Chapter
1976--Pub. L. 94-566, title I, 115(c)(4), Oct. 20, 1976, 90 Stat. 2671, substituted “services performed for nonprofit organizations or governmental entities” for “certain services performed for nonprofit organizations and for State hospitals and institutions of higher education” in item 3309.
1970--Pub. L. 91-373, title I, 104(b)(2), 131(b)(3), Aug. 10, 1970, 84 Stat. 699, 705, added items 3309 and 3310 and redesignated former item 3309 as 3311.
1960--Pub. L. 86-778, title V, 531(d)(2), Sept. 13, 1960, 74 Stat. 984, added item 3308 and redesignated former item 3308 as 3309.
AMENDMENTS
2018 - Pub. L. 115-141, Div. U, title IV, Sec. 401(b)(37), amended Sec. 3301 by substituing “equal to 6 percent of the total wages (as defined in section 3306(b)) paid by such employer during the calendar year with respect to employment (as defined in section 3306(c))” for “equal to—
“(1) 6.2 percent in the case of calendar years 1998 through 2010 and the first 6 months of calendar year 2011; or
“(2) 6.0 percent in the case of the remainder of calendar year 2011 and each calendar year thereafter;
“of the total wages (as defined in section 3306(b)) paid by him during the calendar year (or portion of the calendar year) with respect to employment (as defined in section 3306(c)).”
2009 - Par. (1). Pub. L. 111-92, Sec. 10(a)(1), substituted “through 2010 and the first 6 months of calendar year 2011” for “through 2009”.
Par. (2). Pub. L. 111-92, Sec. 10(a)(2), substituted “the remainder of calendar year 2011” for “calendar year 2010”.
Sec. 3301. Pub. L. 111-92, Sec. 10(a)(3), amended the material following par. (2) by inserting “(or portion of the calendar year)” after “during the calendar year”.
2008 - Par. (1). Pub. L. 110-343, Div. B, Sec. 404(a)(1), substituted “through 2009” for “through 2008”.
Par. (2). Pub. L. 110-343, Div, B, Sec. 404(a)(2), substituted “calendar year 2010” for “calendar year 2009”.
2007 - Par. (1). Pub. L. 110-140, Sec. 1501(a)(2), substituted “2008” for “2007”.
Par. (2). Pub. L. 110-140, Sec. 1501(a)(1), substituted “2009” for “2008”.
1997 - Par. (1). Pub. L. 105-34, Sec. 1035, substituted “2007” for “1997”.
Par. (2). Pub. L. 105-34, Sec. 1035, substituted “2008” for “1998”.
1993 - Par. (1). Pub. L. 103-66, Sec. 13751(1), amended par. (1) by substituting “1998” for “1996”.
Par. (2). Pub. L. 103-66, Sec. 13751(2), amended par. (2) by substituting “1999” for “1997”.
1991 - Par. (1). Pub. L. 102-164, Sec. 402(1), amended par. (1) by substituting “1996” for “1995”.
Par. (2). Pub. L. 102-164, Sec. 402(2) , amended par. (2) by substituting “1997” for “1996”.
1990 - Par. (1). Pub. L. 101-508, Sec. 11333(a)(1), substituted ‘1988 through 1995’ for ‘1988, 1989, and 1990’.
Par. (2). Pub. L. 101-508, Sec. 11333(a)(2), substituted ‘1996’ for ‘1991’.
1987 - Pars. (1), (2). Pub. L. 100-203 amended pars. (1) and (2) generally. Prior to amendment, pars. (1) and (2) read as follows:
‘(1) 6.2 percent, in the case of a calendar year beginning before the first calendar year after 1976, as of January 1 of which there is not a balance of repayable advances made to the extended unemployment compensation account (established by section 905(a) of the Social Security Act); or
‘(2) 6.0 percent, in the case of such first calendar year and each calendar year thereafter;’.
1986 - Par. (1). Pub. L. 99-514 substituted ‘unemployment’ for ‘unemployed’.
1982 - Par. (1). Pub. L. 97-248, Sec. 271(c)(1)(A), substituted ‘6.2 percent’ for ‘3.5 percent’.
Pub. L. 97-248, Sec. 271(b)(1), substituted ‘3.5 percent’ for ‘3.4 percent’.
Par. (2). Pub. L. 97-248, Sec. 271(c)(1)(B), substituted ‘6.0 percent’ for ‘3.2 percent’.
1976 - Pub. L. 94-566 substituted provisions imposing an excise tax equal to 3.4 percent, in the case of a calendar year beginning before the first calendar year after 1976, as of January 1 of which there is not a balance of repayable advances made to the extended unemployed compensation account (established by section 905(a) of the Social Security Act), or 3.2 percent, in the case of such first calendar year and each calendar year thereafter, of the total wages (as defined in section 3306(b)) paid by him during the calendar year with respect to employment (as defined in section 3306(c)), for provisions imposing an excise tax for the calendar year 1970 and each calendar year thereafter, with respect to having individuals in his employ, equal to 3.2 percent of the total wages (as defined in section 3306(b)) paid by him during the calendar year with respect to employment (as defined in section 3306(c)) and provisions that, in the case of wages paid during the calendar year 1973, the rate of such tax should be 3.28 percent in lieu of 3.2 percent.
Pub. L. 94-455 substituted ‘each calendar year’ for ‘the calendar year 1970 and each calendar year thereafter’ and struck out provisions relating to the rate of tax in the case of wages paid during the calendar year 1973.
1972 - Pub. L. 92-329 inserted provisions setting forth the rate of tax in the case of wages paid during the calendar year 1973.
1970 - Pub. L. 91-373 increased the rate from 3.1 percent to 3.2 percent and struck out provisions setting special rates for wages paid during 1962 and 1963.
1963 - Pub. L. 88-31 reduced the tax rate for the year 1963 from 3.5 percent to 3.35 percent.
1961 - Pub. L. 87-6 provided for a tax rate of 3.5 percent for calendar years 1962 and 1963.
1960 - Pub. L. 86-778 substituted ‘1961’ for ‘1955’ and ‘3.1 percent’ for ‘3 percent’.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 401(b)(37), effective March 23, 2018.
Sec. 401(e) of Pub. L. 115-141, Div. U, provided the following Savings Provision:
“(e) General Savings Provision With Respect To Deadwood Provisions.—If—
“(1) any provision amended or repealed by the amendments made by subsection (b) or (d) applied to—
“(A) any transaction occurring before the date of the enactment of this Act,
“(B) any property acquired before such date of enactment, or
“(C) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(2) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by such subsection) affect the liability for tax for periods ending after such date of enactment,
“nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by Section 10(a) of Pub. L. 111-92 effective for wages paid after December 31, 2009.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Section 404(a) of Pub. L. 110-343, Div. B, effective for wages paid after December 31, 2008.
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Section 1501(a) of Pub. L. 110-140 effective for wages paid after December 31, 2007.
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendments by Section 13751 of Pub. L. 103-66 effective on the date of the enactment of this Act [Enacted: Aug. 10, 1993].
EFFECTIVE DATE OF 1991 AMENDMENTS
Amendments by Section 402 of Pub. L. 102-164, effective on the date of the enactment of this Act [Enacted: Nov. 15, 1991].
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11333(b) of Pub. L. 101-508 provided that: ‘The amendments made by this section (amending this section) shall apply to wages paid after December 31, 1990.’
EFFECTIVE DATE OF 1987 AMENDMENT
Section 9153(b) of Pub. L. 100-203 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply to wages paid on or after January 1, 1988.’
EFFECTIVE DATE OF 1982 AMENDMENT
Section 271(d)(1), (2), formerly 271(b)(1), (2), of Pub. L. 97-248, as redesignated by Pub. L. 98-601, Sec. 1(a), Oct. 30, 1984, 98 Stat. 3147, provided that:
‘(1) Subsections (a) and (b). - The amendments made by subsections (a) and (b) (amending this section, sections 3306 and 6157 of this title, and sections 1101 and 1105 of Title 42, The Public Health and Welfare) shall apply to remuneration paid after December 31, 1982.
‘(2) Subsection (c). - The amendments made by subsection (c) (amending this section, sections 3302 and 6157 of this title, and section 1101 of Title 42) shall apply to remuneration paid after December 31, 1984.’
EFFECTIVE DATE OF 1976 AMENDMENT
Section 211(d)(2) of Pub. L. 94-566 provided that: ‘The amendment made by subsection (b) (amending this section) shall apply to remuneration paid after December 31, 1976.’
EFFECTIVE DATE OF 1970 AMENDMENT
Section 301(a) of Pub. L. 91-373 provided that the amendment made by that section is effective with respect to remuneration paid after Dec. 31, 1969.
EFFECTIVE DATE OF 1960 AMENDMENT
Section 523(c) of Pub. L. 86-778 provided that: ‘The amendments made by subsection (a) (amending this section) shall apply only with respect to the calendar year 1961 and calendar years thereafter.’
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of this title.
I.R.C. § 3302(a) Contributions To State Unemployment Funds
I.R.C. § 3302(a)(1) — The taxpayer may, to the extent provided in this subsection and subsection (c), credit against the tax imposed by section 3301 the amount of contributions paid by him into an unemployment fund maintained during the taxable year under the unemployment compensation law of a State which is certified as provided in section 3304 for the 12-month period ending on October 31 of such year.
I.R.C. § 3302(a)(2) — The credit shall be permitted against the tax for the taxable year only for the amount of contributions paid with respect to such taxable year.
I.R.C. § 3302(a)(3) — The credit against the tax for any taxable year shall be permitted only for contributions paid on or before the last day upon which the taxpayer is required under section 6071 to file a return for such year; except that credit shall be permitted for contributions paid after such last day, but such credit shall not exceed 90 percent of the amount which would have been allowable as credit on account of such contributions had they been paid on or before such last day.
I.R.C. § 3302(a)(4) — Upon the payment of contributions into the unemployment fund of a State which are required under the unemployment compensation law of that State with respect to remuneration on the basis of which, prior to such payment into the proper fund, the taxpayer erroneously paid an amount as contributions under another unemployment compensation law, the payment into the proper fund shall, for purposes of credit against the tax, be deemed to have been made at the time of the erroneous payment. If, by reason of such other law, the taxpayer was entitled to cease paying contributions with respect to services subject to such other law, the payment into the proper fund shall, for purposes of credit against the tax, be deemed to have been made on the date the return for the taxable year was filed under section 6071.
I.R.C. § 3302(a)(5) — In the case of wages paid by the trustee of an estate under title 11 of the United States Code, if the failure to pay contributions on time was without fault by the trustee, paragraph (3) shall be applied by substituting “100 percent" for “90 percent”.
I.R.C. § 3302(b) Additional Credit — In addition to the credit allowed under subsection (a), a taxpayer may credit against the tax imposed by section 3301 for any taxable year an amount, with respect to the unemployment compensation law of each State certified as provided in section 3303 for the 12-month period ending on October 31 of such year, or with respect to any provisions thereof so certified, equal to the amount, if any, by which the contributions required to be paid by him with respect to the taxable year were less than the contributions such taxpayer would have been required to pay if throughout the taxable year he had been subject under such State law to the highest rate applied thereunder in such 12-month period to any person having individuals in his employ, or to a rate of 5.4 percent, whichever rate is lower.
I.R.C. § 3302(c) Limit On Total Credits
I.R.C. § 3302(c)(1) — The total credits allowed to a taxpayer under this section shall not exceed 90 percent of the tax against which such credits are allowable.
I.R.C. § 3302(c)(2) — If an advance or advances have been made to the unemployment account of a State under title XII of the Social Security Act, then the total credits (after applying subsections (a) and (b) and paragraph (1) of this subsection) otherwise allowable under this section for the taxable year in the case of a taxpayer subject to the unemployment compensation law of such State shall be reduced—
I.R.C. § 3302(c)(2)(A)
I.R.C. § 3302(c)(2)(A)(i) — in the case of a taxable year beginning with the second consecutive January 1 as of the beginning of which there is a balance of such advances, by 5 percent of the tax imposed by section 3301 with respect to the wages paid by such taxpayer during such taxable year which are attributable to such State; and
I.R.C. § 3302(c)(2)(A)(ii) — in the case of any succeeding taxable year beginning with a consecutive January 1 as of the beginning of which there is a balance of such advances, by an additional 5 percent, for each such succeeding taxable year, of the tax imposed by section 3301 with respect to the wages paid by such taxpayer during such taxable year which are attributable to such State;
I.R.C. § 3302(c)(2)(B) — in the case of a taxable year beginning with the third or fourth consecutive January 1 as of the beginning of which there is a balance of such advances, by the amount determined by multiplying the wages paid by such taxpayer during such taxable year which are attributable to such State by the percentage (if any), multiplied by a fraction, the numerator of which is the State's average annual wage in covered employment for the calendar year in which the determination is made and the denominator of which is the wage base under this chapter, by which—
I.R.C. § 3302(c)(2)(B)(i) — 2.7 percent multiplied by a fraction, the numerator of which is the wage base under this chapter and the denominator of which is the estimated United States average annual wage in covered employment for the calendar year in which the determination is to be made, exceeds
I.R.C. § 3302(c)(2)(B)(ii) — the average employer contribution rate for such State for the calendar year preceding such taxable year; and
I.R.C. § 3302(c)(2)(C) — in the case of a taxable year beginning with the fifth or any succeeding consecutive January 1 as of the beginning of which there is a balance of such advances, by the amount determined by multiplying the wages paid by such taxpayer during such taxable year which are attributable to such State by the percentage (if any) by which—
I.R.C. § 3302(c)(2)(C)(i) — the 5-year benefit cost rate applicable to such State for such taxable year or (if higher) 2.7 percent, exceeds
I.R.C. § 3302(c)(2)(C)(ii) — the average employer contribution rate for such State for the calendar year preceding such taxable year.
Subparagraph (C) shall not apply with respect to any taxable year to which it would otherwise apply (but subparagraph (B) shall apply to such taxable year) if the Secretary of Labor determines (on or before November 10 of such taxable year) that the State meets the requirements of subsection (f)(2)(B) for such taxable year.
I.R.C. § 3302(c)(3) — If the Secretary of Labor determines that a State, or State agency, has not—
I.R.C. § 3302(c)(3)(A) — entered into the agreement described in section 239 of the Trade Act of 1974, with the Secretary of Labor before July 15, 1975, or
I.R.C. § 3302(c)(3)(B) — fulfilled its commitments under an agreement with the Secretary of Labor as described in section 239 of the Trade Act of 1974,
then, in the case of a taxpayer subject to the unemployment compensation law of such State, the total credits (after applying subsections (a) and (b) and paragraphs (1) and (2) of this section) otherwise allowable under this section for a year during which such State or agency does not enter into or fulfill such an agreement shall be reduced by 7-1/2 percent of the tax imposed with respect to wages paid by such taxpayer during such year which are attributable to such State.
I.R.C. § 3302(d) Definitions And Special Rules Relating To Subsection (c)
I.R.C. § 3302(d)(1) Rate Of Tax Deemed To Be 6 Percent — In applying subsection (c), the tax imposed by section 3301 shall be computed at the rate of 6 percent in lieu of the rate provided by such section.
I.R.C. § 3302(d)(2) Wages Attributable To A Particular State — For purposes of subsection (c), wages shall be attributable to a particular State if they are subject to the unemployment compensation law of the State, or (if not subject to the unemployment compensation law of any State) if they are determined (under rules or regulations prescribed by the Secretary) to be attributable to such State.
I.R.C. § 3302(d)(3) Additional Taxes Inapplicable Where Advances Are Repaid Before November 10 Of Taxable Year — Paragraph (2) of subsection (c) shall not apply with respect to any State for the taxable year if (as of the beginning of November 10 of such year) there is no balance of advances referred to in such paragraph.
I.R.C. § 3302(d)(4) Average Employer Contribution Rate — For purposes of subparagraphs (B) and (C) of subsection (c)(2), the average employer contribution rate for any State for any calendar year is that percentage obtained by dividing—
I.R.C. § 3302(d)(4)(A) — the total of the contributions paid into the State unemployment fund with respect to such calendar year, by
I.R.C. § 3302(d)(4)(B)
I.R.C. § 3302(d)(4)(B)(i) — for purposes of subparagraph (B) of subsection (c)(2), the total of the wages (as determined without any limitation on amount) attributable to such State subject to contributions under this chapter with respect to such calendar year, and
I.R.C. § 3302(d)(4)(B)(ii) — for purposes of subparagraph (C) of subsection (c)(2), the total of the remuneration subject to contributions under the State unemployment compensation law with respect to such calendar year.
For purposes of subparagraph (C) of subsection (c)(2), if the average employer contribution rate for any State for any calendar year (determined without regard to this sentence) equals or exceeds 2.7 percent, such rate shall be determined by increasing the amount taken into account under subparagraph (A) of the preceding sentence by the aggregate amount of employee payments (if any) into the unemployment fund of such State with respect to such calendar year which are to be used solely in the payment of unemployment compensation.
I.R.C. § 3302(d)(5) 5-Year Benefit Cost Rate — For purposes of subparagraph (C) of subsection (c)(2), the 5-year benefit cost rate applicable to any State for any taxable year is that percentage obtained by dividing—
I.R.C. § 3302(d)(5)(A) — one-fifth of the total of the compensation paid under the State unemployment compensation law during the 5-year period ending at the close of the second calendar year preceding such taxable year, by
I.R.C. § 3302(d)(5)(B) — the total of the remuneration subject to contributions under the State unemployment compensation law with respect to the first calendar year preceding such taxable year.
I.R.C. § 3302(d)(6) Rounding — If any percentage referred to in either subparagraph (B) or (C) of subsection (c)(2) is not a multiple of .1 percent, it shall be rounded to the nearest multiple of .1 percent.
I.R.C. § 3302(d)(7) Determination And Certification Of Percentages — The percentage referred to in subsection (c)(2)(B) or (C) for any taxable year for any State having a balance referred to therein shall be determined by the Secretary of Labor, and shall be certified by him to the Secretary of the Treasury before June 1 of such year, on the basis of a report furnished by such State to the Secretary of Labor before May 1 of such year. Any such State report shall be made as of the close of March 31 of the taxable year, and shall be made on such forms, and shall contain such information, as the Secretary of Labor deems necessary to the performance of his duties under this section.
I.R.C. § 3302(e) Successor Employer — Subject to the limits provided by subsection (c), if—
I.R.C. § 3302(e)(1) — an employer acquires during any calendar year substantially all the property used in the trade or business of another person, or used in a separate unit of a trade or business of such other person, and immediately after the acquisition employs in his trade or business one or more individuals who immediately prior to the acquisition were employed in the trade or business of such other person, and
I.R.C. § 3302(e)(2) — such other person is not an employer for the calendar year in which the acquisition takes place,
then, for the calendar year in which the acquisition takes place, in addition to the credits allowed under subsections (a) and (b), such employer may credit against the tax imposed by section 3301 for such year an amount equal to the credits which (without regard to subsection (c)) would have been allowable to such other person under subsections (a) and (b) and this subsection for such year, if such other person had been an employer, with respect to remuneration subject to contributions under the unemployment compensation law of a State paid by such other person to the individual or individuals described in paragraph (1).
I.R.C. § 3302(f) Limitation On Credit Reduction
I.R.C. § 3302(f)(1) Limitation — In the case of any State which meets the requirements of paragraph (2) with respect to any taxable year the reduction under subsection (c)(2) in credits otherwise applicable to taxpayers subject to the unemployment compensation law of such State shall not exceed the greater of—
I.R.C. § 3302(f)(1)(A) — the reduction which was in effect with respect to such State under subsection (c)(2) for the preceding taxable year, or
I.R.C. § 3302(f)(1)(B) — 0.6 percent of the wages paid by the taxpayer during such taxable year which are attributable to such State.
I.R.C. § 3302(f)(2) Requirements — The requirements of this paragraph are met by any State with respect to any taxable year if the Secretary of Labor determines (on or before November 10 of such taxable year) that—
I.R.C. § 3302(f)(2)(A) — no State action was taken during the 12-month period ending on September 30 of such taxable year (excluding any action required under State law as in effect prior to the date of the enactment of this subsection) which has resulted or will result in a reduction in such State's unemployment tax effort (as defined by the Secretary of Labor in regulations),
I.R.C. § 3302(f)(2)(B) — no State action was taken during the 12-month period ending on September 30 of such taxable year (excluding any action required under State law as in effect prior to the date of the enactment of this subsection) which has resulted or will result in a net decrease in the solvency of the State unemployment compensation system (as defined by the Secretary of Labor in regulations),
I.R.C. § 3302(f)(2)(C) — the State unemployment tax rate for the taxable year equals or exceeds the average benefit cost ratio for calendar years in the 5-calendar year period ending with the last calendar year before the taxable year, and
I.R.C. § 3302(f)(2)(D) — the outstanding balance for such State of advances under title XII of the Social Security Act on September 30 of such taxable year was not greater than the outstanding balance for such State of such advances on September 30 of the third preceding taxable year.
I.R.C. § 3302(f)(3) Credit Reductions For Subsequent Years — If the credit reduction under subsection (c)(2) is limited by reason of paragraph (1) of this subsection for any taxable year, for purposes of applying subsection (c)(2) to subsequent taxable years (including years after 1987), the taxable year for which the credit reduction was so limited (and January 1 thereof) shall not be taken into account.
I.R.C. § 3302(f)(4) State Unemployment Tax Rate — For purposes of this subsection, the State unemployment tax rate for any taxable year is the percentage obtained by dividing—
I.R.C. § 3302(f)(4)(A) — the total amount of contributions paid into the State unemployment fund with respect to such taxable year, by
I.R.C. § 3302(f)(4)(B) — the total amount of the remuneration subject to contributions under the State unemployment compensation law with respect to such taxable year (determined without regard to any limitation on the amount of wages subject to contribution under the State law).
I.R.C. § 3302(f)(5) Benefit Cost Ratio — For purposes of this subsection—
I.R.C. § 3302(f)(5)(A) In General — The benefit cost ratio for any calendar year is the percentage determined by dividing—
I.R.C. § 3302(f)(5)(A)(i) — the sum of the total of the compensation paid under the State unemployment compensation law during such calendar year and any interest paid during such calendar year on advances made to the State under title XII of the Social Security Act, by
I.R.C. § 3302(f)(5)(A)(ii) — the total amount of the remuneration subject to contributions under the State unemployment compensation law with respect to such calendar year (determined without regard to any limitation on the amount of remuneration subject to contribution under the State law).
I.R.C. § 3302(f)(5)(B) Reimbursable Benefits Not Taken Into Account — For purposes of subparagraph (A), compensation shall not be taken into account to the extent—
I.R.C. § 3302(f)(5)(B)(i) — the State is entitled to reimbursement for such compensation under the provisions of any Federal law, or
I.R.C. § 3302(f)(5)(B)(ii) — such compensation is attributable to services performed for a reimbursing employer.
I.R.C. § 3302(f)(5)(C) Reimbursing Employer — The term “reimbursing employer” means any governmental entity or other organization (or group of governmental entities or any other organizations) which makes reimbursements in lieu of contributions to the State unemployment fund.
I.R.C. § 3302(f)(5)(D) Rounding — If any percentage determined under subparagraph (A) is not a multiple of .1 percent, such percentage shall be reduced to the nearest multiple of .1 percent.
I.R.C. § 3302(f)(6) Reports — The Secretary of Labor may, by regulations, require a State to furnish such information at such time and in such manner as may be necessary for purposes of this subsection.
I.R.C. § 3302(f)(7) Definitions And Special Rules — The definitions and special rules set forth in subsection (d) shall apply to this subsection in the same manner as they apply to subsection (c).
I.R.C. § 3302(f)(8) Partial Limitation
I.R.C. § 3302(f)(8)(A) — In the case of a State which would meet the requirements of this subsection for a taxable year prior to 1986 but for its failure to meet one of the requirements contained in subparagraph (C) or (D) of paragraph (2), the reduction under subsection (c)(2) in credits otherwise applicable to taxpayers in such State for such taxable year and each subsequent year (in a period of consecutive years for each of which a credit reduction is in effect for taxpayers in such State) shall be reduced by 0.1 percentage point.
I.R.C. § 3302(f)(8)(B) — In the case of a State which does not meet the requirements of paragraph (2) but meets the requirements of subparagraphs (A) and (B) of paragraph (2) and which also meets the requirements of section 1202(b)(8)(B) of the Social Security Act with respect to such taxable year, the reduction under subsection (c)(2) in credits otherwise applicable to taxpayers in such State for such taxable year and each subsequent year (in a period of consecutive years for each of which a credit reduction is in effect for taxpayers in such State) shall be further reduced by an additional 0.1 percentage point.
I.R.C. § 3302(f)(8)(C) — In no case shall the application of subparagraphs (A) and (B) reduce the credit reduction otherwise applicable under subsection (c)(2) below the limitation under paragraph (1).
I.R.C. § 3302(g) Credit Reduction Not To Apply When State Makes Certain Repayments
I.R.C. § 3302(g)(1) In General — In the case of any State which meets requirements of paragraph (2) with respect to any taxable year, subsection (c)(2) shall not apply to such taxable year; except that such taxable year (and January 1 of such taxable year) shall (except as provided in subsection (f)(3)) be taken into account for purposes of applying subsection (c)(2) to succeeding taxable years.
I.R.C. § 3302(g)(2) Requirements — The requirements of this paragraph are met by any State with respect to any taxable year if the Secretary of Labor determines that—
I.R.C. § 3302(g)(2)(A) — the repayments during the 1-year period ending on November 9 of such taxable year made by such State of advances under title XII of the Social Security Act are not less than the sum of—
I.R.C. § 3302(g)(2)(A)(i) — the potential additional taxes for such taxable year, and
I.R.C. § 3302(g)(2)(A)(ii) — any advances made to such State during such 1-year period under such title XII,
I.R.C. § 3302(g)(2)(B) — there will be sufficient amounts in the State unemployment fund to pay all compensation during the 3-month period beginning on November 1 of such taxable year without receiving any advance under title XII of the Social Security Act, and
I.R.C. § 3302(g)(2)(C) — there is a net increase in the solvency of the State unemployment compensation system for the taxable year attributable to changes made in the State law after the date on which the first advance taken into account in determining the amount of the potential additional taxes was made (or, if later, after the date of the enactment of this subsection) and such net increase equals or exceeds the potential additional taxes for such taxable year.
I.R.C. § 3302(g)(3) Definitions — For purposes of paragraph (2)—
I.R.C. § 3302(g)(3)(A) Potential Additional Taxes — The term “potential additional taxes” means, with respect to any State for any taxable year, the aggregate amount of the additional tax which would be payable under this chapter for such taxable year by all taxpayers subject to the unemployment compensation law of such State for such taxable year if paragraph (2) of subsection (c) had applied to such taxable year and any preceding taxable year without regard to this subsection but with regard to subsection (f).
I.R.C. § 3302(g)(3)(B) Treatment Of Certain Reductions — Any reduction in the State's balance under section 901(d)(1) of the Social Security Act shall not be treated as a repayment made by such State.
I.R.C. § 3302(g)(4) Reports — The Secretary of Labor may require a State to furnish such information at such time and in such manner as may be necessary for purposes of paragraph (2).
I.R.C. § 3302(h) Treatment Of Certified Professional Employer Organizations — If a certified professional employer organization (as defined in section 7705), or a customer of such organization, makes a contribution to the State's unemployment fund with respect to wages paid to a work site employee, such certified professional employer organization shall be eligible for the credits available under this section with respect to such contribution.
(Aug. 16, 1954, ch. 736, 68A Stat. 439; Sept. 13, 1960, Pub. L. 86-778, title V, 523(b), 74 Stat. 980; Mar. 24, 1961, Pub. L. 87-6, 14(b), 75 Stat. 16; Sept. 26, 1961, Pub. L. 87-321, 1(a), 75 Stat. 683; May 29, 1963, Pub. L. 88-31, 2(b), 77 Stat. 51; Nov. 7, 1963, Pub. L. 88-173, 1(a)-(c), 77 Stat. 305; Aug. 10, 1970, Pub. L. 91-373, title I, 142(a), (b), 84 Stat. 707; Jan. 3, 1975, Pub. L. 93-618, title II, 239(e), 88 Stat. 2025; June 30, 1975, Pub. L. 94-45, title I, 110(a), title III, 302, 89 Stat. 239, 243; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1903(a)(12), 1906(b)(13)(A), 90 Stat. 1808, 1834; Apr. 12, 1977, Pub. L. 95-19, title II, 201(a), 91 Stat. 43; Dec. 24, 1980, Pub. L. 96-589, 6(f), 94 Stat. 3409; Aug. 13, 1981, Pub. L. 97-35, title XXIV, 2406(a), 95 Stat. 876; Sept. 3, 1982, Pub. L. 97-248, title II, 271(c)(2), (3)(A), (B), 272(a), 273(a), 96 Stat. 555-557; Apr. 20, 1983, Pub. L. 98-21, title V, 512(a)(1), (b), 513(a)-(c), 97 Stat. 146, 147; Oct. 22, 1986, Pub. L. 99-514, title XVIII, 1884(1), (2), 100 Stat. 2919; Pub. L. 113-295, Div. A, title II, Sec. 221(a)(101), Div. B, title II, Sec. 206(c)(1), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 115-141, Div. U, title IV, Sec. 401(b)(38), (39)(A), (B), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018 - Subsec. (c)(2). Pub. L. 115-141, Div. U, Sec. 401(b)(38), amended par. (2) by striking the next to last sentence “The provisions of the preceding sentence shall not be applicable with respect to the taxable year beginning January 1, 1975, or any succeeding taxable year which begins before January 1, 1980; and, for purposes of such sentence, January 1, 1980, shall be deemed to be the first January 1 occurring after January 1, 1974, and consecutive taxable years in the period commencing January 1, 1980, shall be determined as if the taxable year which begins on January 1, 1980, were the taxable year immediately succeeding the taxable year which began on January 1, 1974.”
Subsec. (f)(2)(D). Pub. L. 115-141, Div. U, Sec. 401(b)(39)(A), amended subpar. (D) by striking “(or, for purposes of applying this subparagraph to taxable year 1983, September 30, 1981)”.
Subsec. (f)(2). Pub. L. 115-141, Div. U, Sec. 401(b)(39)(B), amended par. (2) by striking the last sentence “The requirements of subparagraphs (C) and (D) shall not apply to taxable years 1981 and 1982.”
2014 - Subsec. (f)(4). Pub. L. 113-295, Div. A, Sec. 221(a)(101)(A), amended par. (4) by substituting “subsection the” for “subsection—(A) In General.—The”, by striking subpar. (B), by redesignating clauses (i) and (ii) as subpar. (A) and (B), respectively. Before being struck, subpar. (B) read as follows:
“(B) Treatment Of Additional Tax Under This Chapter.—
“(i) Taxable Year 1983.—In the case of taxable year 1983, any additional tax imposed under this chapter with respect to any State by reason of subsection (c)(2) shall be treated as contributions paid into the State unemployment fund with respect to such taxable year.
“(ii) Taxable Year 1984.— In the case of taxable year 1984, any additional tax imposed under this chapter with respect to any State by reason of subsection (c)(2) shall (to the extent such additional tax is attributable to a credit reduction in excess of 0.6 of wages attributable to such State) be treated as contributions paid into the State unemployment fund with respect to such taxable year.”
Subsec. (f)(5)(D)-(E). Pub. L. 113-295, Div. A, Sec. 221(a)(101)(B), amended par. (5) by striking subpar. (D) and by redesignating subpar. (E) and subpar. (D). Before being struck, subpar. (D) read as follows:
“(D) Special Rules For Years Before 1985.—
“(i) Taxable Year 1983.—For purposes of determining whether a State meets the requirements of paragraph (2)(C) for taxable year 1983, only regular compensation (as defined in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970) shall be taken into account for purposes of determining the benefit ratio for any preceding calendar year before 1982.
“(ii) Taxable Year 1984.—For purposes of determining whether a State meets the requirements of paragraph (2)(C) for taxable year 1984, only regular compensation (as so defined) shall be taken into account for purposes of determining the benefit ratio for any preceding calendar year before 1981.”
Subsec. (h). Pub. L. 113-295, Div. B, Sec. 206(c)(1), added subsec. (h).
1986--Subsec. (c)(2)(B). Pub. L. 99-514, 1884(1), substituted “denominator” for second reference to “determination”, and in cl. (i) inserted “percent” after “2.7” and struck out “percent” after “is to be made”.
Subsec. (f)(8)(A). Pub. L. 99-514, 1884(2), substituted “1986” for “1987”.
1983--Subsec. (c)(2)(B). Pub. L. 98-21, 513(c), inserted “,multiplied by a fraction, the numerator of which is the State's average annual wage in covered employment for the calendar year in which the determination is made and the determination of which is the wage base under this chapter,” in provisions preceding cl. (i).
Subsec. (c)(2)(B)(i). Pub. L. 98-21, 513(b), inserted “multiplied by a fraction, the numerator of which is the wage base under this chapter and the denominator of which is the estimated United States average annual wage in covered employment for the calendar year in which the determination is to be made” after “2.7”.
Subsec. (d)(4)(B). Pub. L. 98-21, 513(a), amended subpar. (B) generally, adding cl. (i), designating existing provisions as cl. (ii), and inserting reference to purposes of subsec. (c)(2)(C).
Subsec. (f)(1). Pub. L. 98-21, 512(b), struck out “beginning before January 1, 1988,” after “any taxable year”.
Subsec. (f)(8). Pub. L. 98-21, 512(a)(1), added par. (8).
1982--Subsec. (b). Pub. L. 97-248, 271(c)(2)(A), substituted “5.4 percent” for “2.7 percent”.
Subsec. (c)(2). Pub. L. 97-248, 273(a), inserted provision at end that subpar. (C) shall not apply with respect to any taxable year to which it would otherwise apply (but that subpar. (B) would apply to such taxable year) if the Secretary of Labor determines (on or before Nov. 10 of such taxable year) that the State meets the requirements of subsec. (f)(2)(B) of this section for such taxable year.
Subsec. (c)(2)(A). Pub. L. 97-248, 271(c)(3)(A), substituted “5 percent" for “10 percent” in two places.
Subsec. (c)(3). Pub. L. 97-248, 271(c)(3)(B), substituted “7-1/2 percent" for “15 percent” in provisions following subpar. (B).
Subsec. (d)(1). Pub. L. 97-248, 271(c)(2)(B), substituted “6 percent" for “3 percent” in par. heading and text.
Subsec. (g). Pub. L. 97-248, 272(a), added subsec. (g).
1981--Subsec. (f). Pub. L. 97-35 added subsec. (f).
1980--Subsec. (a)(5). Pub. L. 96-589 added par. (5).
1977--Subsec. (c)(2). Pub. L. 95-19 substituted “January 1, 1980” for “January 1, 1978” wherever appearing.
1976--Subsec. (a)(1). Pub. L. 94-455, 1903(a)(12)(A), struck out “(10-month period in the case of October 31, 1972)” after “ending on October 31 of such year”.
Subsec. (b). Pub. L. 94-455, 1903(a)(12)(B), struck out “(10-month period in the case of October 31, 1972)” after “ending on October 31, of such year” and substituted “12-month period” for “12 or 10-month period, as the case may be,”.
Subsec. (c)(2). Pub. L. 94-455, 1903(a)(12)(C)(i), (ii), redesignated par. (3) as (2), struck out “on or after the date of the enactment of the Employment Security Act of 1960” after “title XII of the Social Security Act”, and substituted “paragraph (1)” for “paragraphs (1) and (2). Former par. (2), which related to the computation of the reduction of the total credits allowable to a taxpayer with respect to advances made to the unemployment account, was struck out.
Subsec. (c)(3), (4). Pub. L. 94-455, 1903(a)(12)(C)(i), (iii), redesignated par. (4) as (3) and substituted “paragraphs (1) and (2)” for “paragraphs (1), (2), and (3)”. Former par. (3) redesignated (2).
Subsec. (d)(2). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate" after “Secretary”.
Subsec. (d)(3). Pub. L. 94-455, 1903(a)(12)(C)(iv), struck out “or (3)" after “Paragraph (2)”.
Subsec. (d)(4) to (6). Pub. L. 94-455, 1903(a)(12(C)(v), substituted “subsection (c)(2)” for “subsection (c)(3)”.
Subsec. (d)(7). Pub. L. 94-455, 1903(a)(12)(C)(vi), substituted “subsection (c)(2)(B) or (C) for “subsection (c)(3)(B) or (C)”.
Subsec. (d)(8). Pub. L. 94-455, 1903(a)(12)(D), struck out par. (8) which provided for a cross reference to section 104 of the Temporary Unemployment Compensation Act of 1958 relating to the reduction of total credits allowable under subsec. (c) of this section.
1975--Subsec. (c)(3). Pub. L. 94-45, 110(a), provided that par. (3) shall not be applicable with respect to the taxable year beginning Jan. 1, 1975, or any succeeding taxable year which begins before Jan. 1, 1978, and that, for the purposes of par. (3), Jan. 1, 1978, shall be deemed to be the first Jan. 1 occurring after Jan. 1, 1974, and consecutive taxable years in the period commencing Jan. 1, 1978, shall be determined as if the taxable year which begins Jan. 1, 1978, were the taxable year immediately succeeding the taxable year which began on Jan. 1, 1974.
Subsec. (c)(4). Pub. L. 94-45, 302, substituted “July 15, 1975” for “July 1, 1975”.
Pub. L. 93-618 added par. (4).
1970--Subsec. (a)(1). Pub. L. 91-373, 142(a), substituted “certified as provided in section 3304 for the 12-month period ending on October 31 of such year (10-month period in the case of October 31, 1972)” for “certified for the taxable year as provided in section 3304”.
Subsec. (b). Pub. L. 91-373, 142(b), changed the certification date from December 31 to October 31, with a provision for a 10-month period in the case of October 31, 1972, and provided for certification based on a 12-month period ending each October 31.
1963--Subsec. (c). Pub. L. 88-173, in cl. (2), substituted “on January 1, 1963 (and in the case of any succeeding taxable year beginning before January 1, 1968),” for “with the fourth consecutive January 1”, in subpar. (A), and “on or after January 1, 1968,” for “with a consecutive January 1”, in subpar. (B), and inserted paragraph following subpar. (B).
Subsec. (d)(1). Pub. L. 88-31 substituted “the rate provided by such section" for “3.1 percent (or, in the case of the tax imposed with respect to the calendar years 1962 and 1963, in lieu of 3.5 percent)”.
1961--Subsec. (d)(1). Pub. L. 87-6 provided for computation of the tax at the rate of 3 percent in lieu of 3.5 percent for calendar years 1962 and 1968.
Subsec. (e). Pub. L. 87-321 added subsec. (e).
1960--Subsec. (c). Pub. L. 86-778 restricted cl. (2) to advances made before the date of the enactment of the Employment Security Act of 1960, added cl. (3), and struck out provisions which related to the attributing of wages to a particular State, which provisions are now covered by subsec. (d)(2).
Subsec. (d). Pub. L. 86-778 added subsec. (d).
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. No. 115-141, Div. U, Sec. 401(b)(38), (39)(A), (B), effective March 23, 2018.
Sec. 401(e) of Pub. L. 115-141, Div. U, provided the following Savings Provision:
“(e) General Savings Provision With Respect To Deadwood Provisions.—If—
“(1) any provision amended or repealed by the amendments made by subsection (b) or (d) applied to—
“(A) any transaction occurring before the date of the enactment of this Act,
“(B) any property acquired before such date of enactment, or
“(C) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(2) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by such subsection) affect the liability for tax for periods ending after such date of enactment,
“nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendment by Pub. L. 113-295, Div. B, Sec. 206(c)(1), effective for wages for services performed on or after January 1 of the first calendar year beginning more than 12 months after the date of the enactment of this Act [Enacted: Dec. 19, 2014].
Pub. L. 113-295, Div. B, Sec. 206(g)(2) provided:
“(2) Certification Program.—The Secretary of the Treasury shall establish the certification program described in section 7705(b) of the Internal Revenue Code of 1986, as added by subsection (b), notlater than 6 months before the effective date determined under paragraph (1).”
Pub. L. 113-295, Div. B, Sec. 206(h) further provided:
“(h) No Infererence.—Nothing contained in this section or the amendmentns made by this section shall be construed to create any inference with respect to the determination of who is an employee or employer—
“(1) for Federal tax purposes (other than the purposes set forth in the amendments made by this section), or
“(2) for purposes of any other provision of law.”
Amendments by Pub. L. 113-295, Div. A, Sec. 221(a)(101), effective on the date of the enactment of this Act [Enacted: Dec. 19, 2014].
Section 221(b)(2) of Pub. L. 113-295, Div. A, provided the following Savings Provision:
“(2) SAVINGS PROVISION.—If—
“(A) any provision amended or repealed by the amendments made by this section applied to—
“(i) any transaction occurring before the date of the enactment of this Act [Enacted: Dec. 19, 2014],
“(ii) any property acquired before such date of enactment, or
“(iii) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(B) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by this section) affect the liability for tax for periods ending after date of enactment, nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 1983 AMENDMENT
Section 512(a)(2) of Pub. L. 98-21 provided that: “The amendment made by paragraph (1) [amending this section] shall apply with respect to taxable year 1983 and taxable years thereafter.”
Section 513(d) of Pub. L. 98-21 provided that: “The amendments made by this section [amending this section] shall be effective for taxable year 1983 and taxable years thereafter.”
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by section 271(c)(2), (3)(A), (B) of Pub. L. 97-248 applicable to remuneration paid after Dec. 31, 1984, see section 271(d)(2) of Pub. L. 97-248, as amended, set out as a note under section 3301 of this title.
Section 272(b) of Pub. L. 97-248 provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1982.”
Section 273(b) of Pub. L. 97-248 provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1982.”
EFFECTIVE DATE OF 1981 AMENDMENT
Section 2406(b) of Pub. L. 97-35 provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1980.”
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-589 effective Oct. 1, 1979, but not to apply to proceedings under Title 11, Bankruptcy, commenced before Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as a note under section 108 of this title.
TERMINATION DATE OF 1975 AMENDMENT
For termination date of amendment by Pub. L. 93-618, see section 285 of Pub. L. 93-618, as amended, set out as a Termination Date note preceding section 2271 of Title 19, Customs Duties.
EFFECTIVE DATE OF 1970 AMENDMENT
Section 142(i) of Pub. L. 91-373 provided that: “The amendments made by this section [amending sections 3302, 3303, and 3304 of this title] shall apply with respect to the taxable year 1972 and taxable years thereafter.”
EFFECTIVE DATE OF 1963 AMENDMENT
Section 1(d) of Pub. L. 88-173 provided that: “The amendments made by subsections (a), (b), and (c) of this section [amending this section] shall apply only with respect to taxable years beginning on or after January 1, 1963.”
EFFECTIVE DATE OF 1961 AMENDMENT
Section 1(b) of Pub. L. 87-321 provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to the calendar year 1961 and each calendar year thereafter.”
TRANSITIONAL RULE FOR CERTAIN EMPLOYEES AND SMALL BUSINESSES
Section 271(d)(3), (4), formerly 271(b)(3), of Pub. L. 97-248, as redesignated and amended by Pub. L. 98-601, 1(a), Oct. 30, 1984, 98 Stat. 3147; Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(3) Transitional rule for certain employees.--
“(A) In general.--Notwithstanding section 3303 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], in the case of taxable years beginning after December 31, 1984, and before January 1, 1989, a taxpayer shall be allowed the additional credit under section 3302(b) of such Code with respect to any employee covered by a qualified specific industry provision if the requirements of subparagraph (B) are met with respect to such employee.
“(B) Requirements.--The requirements of this subparagraph are met for any taxable year with respect to any employee covered by a specific industry provision if the amount of contributions required to be paid for the taxable year to the unemployment fund of the State with respect to such employee are not less than the product of the required rate multiplied by the wages paid by the employer during the taxable year.
“(C) Required rate.--For purposes of subparagraph (B), the required rate for any taxable year is the sum of--
“(i) the rate at which contributions were required to be made under the specific industry provision as in effect on August 10, 1982, and
“(ii) the applicable percentage of the excess of 5.4 percent over the rate described in clause (i).
“(D) Applicable percentage.--For purposes of subparagraph (C), the term ‘applicable percentage’ means--
“(i) 20 percent in the case of taxable year 1985,
“(ii) 40 percent in the case of taxable year 1986,
“(iii) 60 percent in the case of taxable year 1987, and
“(iv) 80 percent in the case of taxable year 1988.
“(E) Qualified specific industry provision.--For purposes of this paragraph, the term, ‘qualified specific industry provision’ means a provision contained in a State unemployment compensation law (as in effect on August 10, 1982)--
“(i) which applies to employees in a specific industry or to an otherwise defined type of employees, and
“(ii) under which employers may elect to make contributions at a specified rate (without experience rating) which exceeds 2.7 percent.
“(4) Transitional rule for certain small businesses.--
“(A) In general.--Notwithstanding section 3303 of the Internal Revenue Code of 1986, in the case of taxable years beginning after December 31, 1984, and before January 1, 1989, a taxpayer shall be allowed the additional credit under section 3302(b) of such Code with respect to any employee covered by a qualified small business provision if the requirements of subparagraph (B) are met with respect to such employee.
“(B) Requirements.--The requirements of this subparagraph are met for any taxable year with respect to any employee covered by a qualified small business provision if the amount of contributions required to be paid for the taxable year to the unemployment fund of the State with respect to such employee are not less than the product of the required rate multiplied by the wages paid by the employer during the taxable year.
“(C) Required rate.--For purposes of subparagraph (B), the required rate for any taxable year is the sum of--
“(i) 3.1 percent, plus
“(ii) the applicable percentage (as defined in paragraph (3)(D)) of the excess of 5.4 percent over the rate described in clause (i).
“(D) Qualified small business provision.--For purposes of this paragraph, the term ‘qualified small business provision’ means a provision contained in a State unemployment compensation law (as in effect on the date of the enactment of this paragraph [Oct. 30, 1984]) which provides a maximum rate at which an employer is subject to contribution for wages paid during a calendar quarter if the total wages paid by such employer during such calendar quarter are less than $50,000.
“(E) Definition.--For purposes of this paragraph, the term ‘wages’ means the remuneration subject to contributions under the State unemployment compensation law, except that for purposes of subparagraph (D) the amount of total wages paid by an employer shall be determined without regard to any limitation on the amount subject to contribution.”
[Section 1(b) of Pub. L. 98-601 provided that: “The amendment made by subsection (a) [amending section 271(d) of Pub. L. 97-248, set out above] shall apply to remuneration paid after December 31, 1984."]
EXTENSION OF PERIOD FOR REPAYMENT OF FEDERAL LOANS TO SATE UNEMPLOYMENT FUNDS
Section 304 of Pub. L. 102-318 provided the following extension:
“(a) GENERAL RULE.—If the Secretary of Labor determines that a State meets the requirements of subsection (b), paragraph (2) of section 3302(c) of the Internal Revenue Codeof 1986 shall be applied with respect to such State for taxable years after 1991—
“(1) by substituting “third” for “second” in subparagraph (A)(i),
“(2) by substituting “fourth or fifth” for “third or fourth” in subparagraph (B), and
“(3) by substituting “sixth” for “fifth” in subparagraph (C).
“(b) REQUIREMENTS.—A State meets the requirements of this subsection if, during calendar year 1992 or 1993, the State amended its unemployment compensation law to increase estimated contributions required under such law by at least 25 percent.
“(c) SPECIAL RULE.—This section shall not apply to any taxable year after 1994 unless—
“(1) such taxable year is in a series of consecutive taxable years as of the beginning of each of which there was a balance referred to in section 3302(c)(2) of such Code, and
“(2) such series includes a taxable year beginning in 1992, 1993, or 1994.”
FINDINGS OF SECRETARY OF LABOR CONCERNING STEPS TAKEN BY STATES AS PREREQUISITE TO SUSPENSION UNTIL JANUARY 1, 1980, OF AUTOMATIC INCREASES IN FEDERAL UNEMPLOYMENT TAX
Section 201(b) of Pub. L. 95-19 provided that extension under section 201(a) of Pub. L. 95-19 (amending this section) from Jan. 1, 1978, to Jan. 1, 1980, not to apply to any State unless the Secretary of Labor finds that such State meets the requirement of section 110(b) of Emergency Compensation and Special Unemployment Assistance Extension Act of 1975.
FISCAL SOUNDNESS OF STATE UNEMPLOYMENT ACCOUNT IN UNEMPLOYMENT TRUST FUND; UNPAID LOANS TO STATES; FINDINGS OF SECRETARY OF LABOR CONCERNING STEPS TAKEN BY STATES AS PREREQUISITE TO 1975-1977 SUSPENSION OF AUTOMATIC INCREASES IN FEDERAL UNEMPLOYMENT TAX
Section 110(b) of Pub. L. 94-45 provided that:
“(1) The amendment made by subsection (a) [amending this section] shall not be applicable in the case of any State unless the Secretary of Labor finds that such State has studied and taken appropriate action with respect to the financing of its unemployment programs so as substantially to accomplish the purpose of restoring the fiscal soundness of the State's unemployment account in the Unemployment Trust Fund and permitting the repayment within a reasonable time of any advances made to such account under title XII of the Social Security Act [section 1321 et seq. of Title 42, The Public Health and Welfare]. For purposes of the preceding sentence, appropriate action with respect to the financing of a State's unemployment programs means an increase in the State's unemployment tax rate, an increase in the State's unemployment tax base, a change in the experience rating formulas, or a combination thereof.
“(2) The Secretary of Labor shall promptly prescribe and publish in the Federal Register regulations setting forth the criteria according to which he will determine the requirements of the preceding paragraph.
“(3) Immediately after he makes a determination with respect to any State under paragraph (1), the Secretary of Labor shall publish such determination, together with his reasons therefor, in the Federal Register.”
I.R.C. § 3303(a) State Standards — A taxpayer shall be allowed an additional credit under section 3302(b) with respect to any reduced rate of contributions permitted by a State law, only if the Secretary of Labor finds that under such law—
I.R.C. § 3303(a)(1) — no reduced rate of contributions to a pooled fund or to a partially pooled account is permitted to a person (or group of persons) having individuals in his (or their) employ except on the basis of his (or their) experience with respect to unemployment or other factors bearing a direct relation to unemployment risk during not less than the 3 consecutive years immediately preceding the computation date;
I.R.C. § 3303(a)(2) — no reduced rate of contributions to a guaranteed employment account is permitted to a person (or a group of persons) having individuals in his (or their) employ unless—
I.R.C. § 3303(a)(2)(A) — the guaranty of remuneration was fulfilled in the year preceding the computation date; and
I.R.C. § 3303(a)(2)(B) — the balance of such account amounts to not less than 21/2 percent of that part of the payroll or payrolls for the 3 years preceding the computation date by which contributions to such account were measured; and
I.R.C. § 3303(a)(2)(C) — such contributions were payable to such account with respect to 3 years preceding the computation date;
I.R.C. § 3303(a)(3) — no reduced rate of contributions to a reserve account is permitted to a person (or group of persons) having individuals in his (or their) employ unless—
I.R.C. § 3303(a)(3)(A) — compensation has been payable from such account throughout the year preceding the computation date, and
I.R.C. § 3303(a)(3)(B) — the balance of such account amounts to not less than five times the largest amount of compensation paid from such account within any 1 of the 3 years preceding such date, and
I.R.C. § 3303(a)(3)(C) — the balance of such account amounts to not less than 21/2 percent of that part of the payroll or payrolls for the 3 years preceding such date by which contributions to such account were measured, and
I.R.C. § 3303(a)(3)(D) — such contributions were payable to such account with respect to the 3 years preceding the computation date; and
I.R.C. § 3303(a)(4) — if the taxpayer is a certified professional employer organization (as defined in section 7705) that is treated as the employer under section 3511, such certified professional employer organization is permitted to collect and remit, in accordance with paragraphs (1), (2), and (3), contributions during the taxable year to the State unemployment fund with respect to a work site employee.
For any person (or group of persons) who has (or have) not been subject to the State law for a period of time sufficient to compute the reduced rates permitted by paragraphs (1), (2), (3), and (4) of this subsection on a 3-year basis (i) the period of time required may be reduced to the amount of time the person (or group of persons) has (or have) had experience under or has (or have) been subject to the State law, whichever is appropriate, but in no case less than 1 year immediately preceding the computation date, or (ii) a reduced rate (not less than 1 percent) may be permitted by the State law on a reasonable basis other than as permitted by paragraph (1), (2), (3), or (4).
I.R.C. § 3303(b) Certification By The Secretary Of Labor With Respect To Additional Credit Allowance
I.R.C. § 3303(b)(1) — On October 31 of each calendar year, the Secretary of Labor shall certify to the Secretary of the Treasury the law of each State (certified by the Secretary of Labor as provided in section 3304 for the 12-month period ending on such October 31), with respect to which he finds that reduced rates of contributions were allowable with respect to such 12-month period only in accordance with the provisions of subsection (a).
I.R.C. § 3303(b)(2) — If the Secretary of Labor finds that under the law of a single State (certified by the Secretary of Labor as provided in section 3304) more than one type of fund or account is maintained, and reduced rates of contributions to more than one type of fund or account were allowable with respect to any 12-month period ending on October 31, and one or more of such reduced rates were allowable under conditions not fulfilling the requirements of subsection (a), the Secretary of Labor shall, on such October 31, certify to the Secretary of the Treasury only those provisions of the State law pursuant to which reduced rates of contributions were allowable with respect to such 12-month period under conditions fulfilling the requirements of subsection (a), and shall, in connection therewith, designate the kind of fund or account, as defined in subsection (c), established by the provisions so certified. If the Secretary of Labor finds that a part of any reduced rate of contributions payable under such law or under such provisions is required to be paid into one fund or account and a part into another fund or account, the Secretary of Labor shall make such certification pursuant to this paragraph as he finds will assure the allowance of additional credits only with respect to that part of the reduced rate of contributions which is allowed under provisions which do fulfill the requirements of subsection (a).
I.R.C. § 3303(b)(3) — The Secretary of Labor shall, within 30 days after any State law is submitted to him for such purpose, certify to the State agency his findings with respect to reduced rates of contributions to a type of fund or account, as defined in subsection (c), which are allowable under such State law only in accordance with the provisions of subsection (a). After making such findings, the Secretary of Labor shall not withhold his certification to the Secretary of the Treasury of such State law, or of the provisions thereof with respect to which such findings were made, for any 12-month period ending on October 31 pursuant to paragraph (1) or (2) unless, after reasonable notice and opportunity for hearing to the State agency, the Secretary of Labor finds the State law no longer contains the provisions specified in subsection (a) or the State has, with respect to such 12-month period, failed to comply substantially with any such provision.
I.R.C. § 3303(c) Definitions — As used in this section—
I.R.C. § 3303(c)(1) Reserve Account — The term “reserve account” means a separate account in an unemployment fund, maintained with respect to a person (or group of persons) having individuals in his (or their) employ, from which account, unless such account is exhausted, is paid all and only compensation payable on the basis of services performed for such person (or for one or more of the persons comprising the group).
I.R.C. § 3303(c)(2) Pooled Fund — The term “pooled fund” means an unemployment fund or any part thereof (other than a reserve account or a guaranteed employment account) into which the total contributions of persons contributing thereto are payable, in which all contributions are mingled and undivided, and from which compensation is payable to all individuals eligible for compensation from such fund.
I.R.C. § 3303(c)(3) Partially Pooled Account — The term “partially pooled account” means a part of an unemployment fund in which part of the fund all contributions thereto are mingled and undivided, and from which part of the fund compensation is payable only to individuals to whom compensation would be payable from a reserve account or from a guaranteed employment account but for the exhaustion or termination of such reserve account or of such guaranteed employment account. Payments from a reserve account or guaranteed employment account into a partially pooled account shall not be construed to be inconsistent with the provisions of paragraph (1) or (4).
I.R.C. § 3303(c)(4) Guaranteed Employment Account — The term “guaranteed employment account” means a separate account, in an unemployment fund, maintained with respect to a person (or group of persons) having individuals in his (or their) employ who, in accordance with the provisions of the State law or of a plan thereunder approved by the State agency,
I.R.C. § 3303(c)(4)(A) — guarantees in advance at least 30 hours of work, for which remuneration will be paid at not less than stated rates, for each of 40 weeks (or if more, 1 weekly hour may be deducted for each added week guaranteed) in a year, to all the individuals who are in his (or their) employ in, and who continue to be available for suitable work in, one or more distinct establishments, except that any such individual's guaranty may commence after a probationary period (included within the 11 or less consecutive weeks immediately following the first week in which the individual renders services), and
I.R.C. § 3303(c)(4)(B) — gives security or assurance, satisfactory to the State agency, for the fulfillment of such guaranties, from which account, unless such account is exhausted or terminated, is paid all and only compensation, payable on the basis of services performed for such person (or for one or more of the persons comprising the group), to any such individual whose guaranteed remuneration has not been paid (either pursuant to the guaranty or from the security or assurance provided for the fulfillment of the guaranty), or whose guaranty is not renewed and who is otherwise eligible for compensation under the State law.
I.R.C. § 3303(c)(5) Year — The term “year” means any 12 consecutive calendar months.
I.R.C. § 3303(c)(6) Balance — The term “balance”, with respect to a reserve account or a guaranteed employment account, means the amount standing to the credit of the account as of the computation date; except that, if subsequent to January 1, 1940, any moneys have been paid into or credited to such account other than payments thereto by persons having individuals in their employ, such term shall mean the amount in such account as of the computation date less the total of such other moneys paid into or credited to such account subsequent to January 1, 1940.
I.R.C. § 3303(c)(7) Computation Date — The term “computation date” means the date, occurring at least once in each calendar year and within 27 weeks prior to the effective date of new rates of contributions, as of which such rates are computed.
I.R.C. § 3303(c)(8) Reduced Rate — The term “reduced rate” means a rate of contributions lower than the standard rate applicable under the State law, and the term “standard rate” means the rate on the basis of which variations therefrom are computed.
I.R.C. § 3303(d) Voluntary Contributions — A State law may, without being deemed to violate the standards set forth in subsection (a), permit voluntary contributions to be used in the computation of reduced rates if such contributions are paid prior to the expiration of 120 days after the beginning of the year for which such rates are effective.
I.R.C. § 3303(e) Payments By Certain Nonprofit Organizations — A State may, without being deemed to violate the standards set forth in subsection (a), permit an organization (or a group of organizations) described in section 501(c)(3) which is exempt from income tax under section 501(a) to elect (in lieu of paying contributions) to pay into the State unemployment fund amounts equal to the amounts of compensation attributable under the State law to service performed in the employ of such organization (or group).
I.R.C. § 3303(f) Prohibition On Noncharging Due To Employer Fault
I.R.C. § 3303(f)(1) In General — A State law shall be treated as meeting the requirements of subsection (a)(1) only if such law provides that an employer's account shall not be relieved of charges relating to a payment from the State unemployment fund if the State agency determines that—
I.R.C. § 3303(f)(1)(A) — the payment was made because the employer, or an agent of the employer, was at fault for failing to respond timely or adequately to the request of the agency for information relating to the claim for compensation; and
I.R.C. § 3303(f)(1)(B) — the employer or agent has established a pattern of failing to respond timely or adequately to such requests.
I.R.C. § 3303(f)(2) State Authority To Impose Stricter Standards — Nothing in paragraph (1) shall limit the authority of a State to provide that an employer's account not be relieved of charges relating to a payment from the State unemployment fund for reasons other than the reasons described in subparagraphs (A) and (B) of such paragraph, such as after the first instance of a failure to respond timely or adequately to requests described in paragraph (1)(A).
(Aug. 16, 1954, ch. 736, 68A Stat. 440; Sept. 1, 1954, ch. 1212, 2, 68 Stat. 1130; Aug. 10, 1970, Pub. L. 91-373, title I, 104(c), 122(a), 142(c)-(e), 84 Stat. 699, 702, 707; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1903(a)(13), 1906(b)(13)(C), 90 Stat. 1809, 1834; Oct. 20, 1976, Pub. L. 94-566, title I, 122(a), (b), 90 Stat. 2675, 2676; Pub. L. 112-40, title II, Sec. 252, Oct. 21, 2011, 125 Stat. 401; Pub. L. 113-295, Div. B, title II, Sec. 206(c)(2), Dec. 19, 2014, 128 Stat. 4010.)
BACKGROUND NOTES
AMENDMENTS
2014--Subsec. (a). Pub. L. 113-295, Div. A, Sec. 206(c)(2)(B), amended the last sentence of subsec. (a) by substituting “paragraphs (1), (2), (3), and (4)” for “paragraphs (1), (2), and (3)” and by substituting “paragraphs (1), (2), (3) or (4)” for “paragraphs (1), (2), or (3)”.
Subsec. (a)(3)-(4). Pub. L. 113-295, Div. A, Sec. 206(c)(2)(A), amended par. (3) by substituting “; and” for the period at the end and by adding par. (4).
2011--Subsecs. (f)-(g). Pub. L. 112-40, Sec. 252(a), struck subsecs. (f) and (g) and added a new subsec. (f). Before being struck, subsecs. (f) and (g) read as follows:
“(f) Transition.— To facilitate the orderly transition to coverage of service to which section 3309(a)(1)(A) applies, a State law may provide that an organization (or group of organizations) which elects before April 1, 1972, to make payments (in lieu of contributions) into the State unemployment fund as provided in section 3309(a)(2), and which had paid contributions into such fund under the State law with respect to such service performed in its employ before January 1, 1969, is not required to make any such payment (in lieu of contributions) on account of compensation paid after its election as heretofore described which is attributable under the State law to service performed in its employ, until the total of such compensation equals the amount—
“(1) by which the contributions paid by such organization (or group) with respect to a period before the election provided by section 3309(a)(2), exceed
“(2) the unemployment compensation for the same period which was charged to the experience-rating account of such organization (or group) or paid under the State law on the basis of wages paid by it or service performed in its employ, whichever is appropriate.”
“(g) Transitional Rule For Unemployment Compensation Amendments Of 1976.—To facilitate the orderly transition to coverage of service to which section 3309(a)(1)(A) applies by reason of the enactment of the Unemployment Compensation Amendments of 1976, a State law may provide that an organization (or group of organizations) which elects, when such election first becomes available under the State law with respect to such service, to make payments (in lieu of contributions) into the State unemployment fund as provided in section 3309(a)(2), and which had paid contributions into such fund under the State law with respect to such service performed in its employ before the date of the enactment of this subsection, is not required to make any such payment (in lieu of contributions) on account of compensation paid after its election as heretofore described which is attributable under the State law to such service performed in its employ, until the total of such compensation equals the amount—
“(1) by which the contributions paid by such organization (or group) on the basis of wages for such service with respect to a period before the election provided by section 3309(a)(2), exceed
“(2) the unemployment compensation for the same period which was charged to the experience-rating account of such organization (or group) or paid under the State law on the basis of such service performed in its employ or wages paid for such service, whichever is appropriate.”
1976--Subsec. (b)(1) to (3). Pub. L. 94-455 substituted reference to Secretary of the Treasury for reference to Secretary and reference to 12-month period for reference to 12 or 10-month period, as the case may be, and struck out reference to (10-month period in the case of Oct. 31, 1972) following provisions relating to 12-month period ending Oct. 31.
Subsec. (f). Pub. L. 94-566, 122(b), substituted “which elects before April 1, 1972,” for “which elects, when such election first becomes available under the State law,”.
Subsec. (g). Pub. L. 94-566, 122(a), added subsec. (g).
1970--Subsec. (a). Pub. L. 91-373, 122(a), added to provision following par. (3) the authorization for the allowance of a reduced rate by State law (but not less than 1 percent) on a reasonable basis other than as permitted by par. (1), (2), or (3).
Subsec. (b). Pub. L. 91-373, 142(c)-(e), changed the certification date referred to in pars. (1) to (3) from Dec. 31 to Oct. 31, with provision for a 10-month period in the case of Oct. 31, 1972, and, except for Oct. 31, 1972, provided for a 12-month period ending on Oct. 31 each year.
Subsecs. (e), (f). Pub. L. 91-373, 104(c), added subsecs. (e) and (f).
1954--Subsec. (a). Act Sept. 1, 1954, inserted sentence relating to reduced rates for new employers.
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendments by Pub. L. 113-295, Div. B, Sec. 206(c)(2), effective for wages for services performed on or after January 1 of the first calendar year beginning more than 12 months after the date of the enactment of this Act [Enacted: Dec. 19, 2014].
EFFECTIVE DATE OF 2011 AMENDMENTS
Amendments by Sec. 252(a) of Pub. L. 112-40 effective for erroneous payments established after the end of the 2-year period beginning on the date of the enactment of this Act.
Sec. 252(b)(2) of Pub. L. 112-40 provided the following exception:
“(2) AUTHORITY.—A State may amend its State law to apply such amendments to erroneous payments established prior to the end of the period described in paragraph (1).”
EFFECTIVE DATE OF 1976 AMENDMENTS
Section 122(c) of Pub. L. 94-566 provided that: “The amendment made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [Oct. 20, 1976]. The amendment made by subsection (b) [amending this section] shall take effect on January 1, 1970.”
Amendment by section 1903(a)(13) of Pub. L. 94-455 (substituting 12-month period for 12 or 10-month period and striking out 10-month period in the case of Oct. 31, 1972) applicable with respect to wages paid after Dec. 31, 1976, see section 1903(d) of Pub. L. 94-455, set out as a note under section 3101 of this title.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by section 104(c) of Pub. L. 91-373 [amending this section] to take effect Jan. 1, 1970, see section 104(d)(1) of Pub. L. 91-373, set out as a note under section 3304 of this title.
Section 122(b) of Pub. L. 91-373 provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to taxable years beginning after December 31, 1971.”
Amendment by section 142(c)-(e) of Pub. L. 91-373 applicable with respect to taxable year 1972 and taxable years thereafter, see section 142(i) of Pub. L. 91-373, set out as a note under section 3302 of this title.
EFFECTIVE DATE OF 1954 AMENDMENT
Section 2 of act Sept. 1, 1954, provided that the amendment made by section 2 of act Sept. 1, 1954, shall take effect after Dec. 31, 1954.
TREATMENT OF CERTAIN CHARITABLE ORGANIZATIONS RETROACTIVELY DETERMINED TO BE DESCRIBED IN SECTION 501(c)(3) OF THIS TITLE
Pub. L. 98-21, title V, 524, Apr. 20, 1983, 97 Stat. 149, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “If--
“(1) an organization did not make an election to make payments (in lieu of contributions) as provided in section 3309(a)(2) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] before April 1, 1972, because such organization, as of such date, was treated as an organization described in section 501(c)(4) of such Code,
“(2) the Internal Revenue Service subsequently determined that such organization was described in section 501(c)(3) of such Code, and
“(3) such organization made such an election before the earlier of--
“(A) the date 18 months after such election was first available to it under the State law, or
“(B) January 1, 1984, then section 3303(f) of such Code shall be applied with respect to such organization as if it did not contain the requirement that the election be made before April 1, 1972, and by substituting ‘January 1, 1982’ for ‘January 1, 1969’.”
I.R.C. § 3304(a) Requirements — The Secretary of Labor shall approve any State law submitted to him, within 30 days of such submission, which he finds provides that—
I.R.C. § 3304(a)(1) — all compensation is to be paid through public employment offices or such other agencies as the Secretary of Labor may approve;
I.R.C. § 3304(a)(2) — no compensation shall be payable with respect to any day of unemployment occurring within 2 years after the first day of the first period with respect to which contributions are required;
I.R.C. § 3304(a)(3) — all money received in the unemployment fund shall (except for refunds of sums erroneously paid into such fund and except for refunds paid in accordance with the provisions of section 3305(b)) immediately upon such receipt be paid over to the Secretary of the Treasury to the credit of the Unemployment Trust Fund established by section 904 of the Social Security Act (42 U.S.C. 1104);
I.R.C. § 3304(a)(4) — all money withdrawn from the unemployment fund of the State shall be used solely in the payment of unemployment compensation, exclusive of expenses of administration, and for refunds of sums erroneously paid into such fund and refunds paid in accordance with the provisions of section 3305(b); except that—
I.R.C. § 3304(a)(4)(A) — an amount equal to the amount of employee payments into the unemployment fund of a State may be used in the payment of cash benefits to individuals with respect to their disability, exclusive of expenses of administration;
I.R.C. § 3304(a)(4)(B) — the amounts specified by section 903(c)(2) or 903(d)(4) of the Social Security Act may, subject to the conditions prescribed in such section, be used for expenses incurred by the State for administration of its unemployment compensation law and public employment offices;
I.R.C. § 3304(a)(4)(C) — nothing in this paragraph shall be construed to prohibit deducting an amount from unemployment compensation otherwise payable to an individual and using the amount so deducted to pay for health insurance, or the withholding of Federal, State, or local individual income tax, if the individual elected to have such deduction made and such deduction was made under a program approved by the Secretary of Labor;
I.R.C. § 3304(a)(4)(D) — amounts shall be deducted from unemployment benefits and used to repay overpayments as provided in section 303(g) of the Social Security Act;
I.R.C. § 3304(a)(4)(E) — amounts may be withdrawn for the payment of short-time compensation under a short-time compensation program (as defined under section 3306(v));
I.R.C. § 3304(a)(4)(F) — amounts may be withdrawn for the payment of allowances under a self-employment assistance program (as defined in section 3306(t)); and
I.R.C. § 3304(a)(4)(G) — with respect to amounts of covered unemployment compensation debt (as defined in section 6402(f)(4)) collected under section 6402(f)—
I.R.C. § 3304(a)(4)(G)(i) — amounts may be deducted to pay any fees authorized under such section; and
I.R.C. § 3304(a)(4)(G)(ii) — the penalties and interest described in section 6402(f)(4)(C) may be transferred to the appropriate State fund into which the State would have deposited such amounts had the person owing the debt paid such amounts directly to the State;
I.R.C. § 3304(a)(5) — compensation shall not be denied in such State to any otherwise eligible individual for refusing to accept new work under any of the following conditions:
I.R.C. § 3304(a)(5)(A) — if the position offered is vacant due directly to a strike, lockout, or other labor dispute;
I.R.C. § 3304(a)(5)(B) — if the wages, hours, or other conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the locality;
I.R.C. § 3304(a)(5)(C) — if as a condition of being employed the individual would be required to join a company union or to resign from or refrain from joining any bona fide labor organization;
I.R.C. § 3304(a)(6)
I.R.C. § 3304(a)(6)(A) — compensation is payable on the basis of service to which section 3309(a)(1) applies, in the same amount, on the same terms, and subject to the same conditions as compensation payable on the basis of other service subject to such law; except that—
I.R.C. § 3304(a)(6)(A)(i) — with respect to services in an instructional, research, or principal administrative capacity for an educational institution to which section 3309(a)(1) applies, compensation shall not be payable based on such services for any week commencing during the period between two successive academic years or terms (or, when an agreement provides instead for a similar period between two regular but not successive terms, during such period) to any individual if such individual performs such services in the first of such academic years (or terms) and if there is a contract or reasonable assurance that such individual will perform services in any such capacity for any educational institution in the second of such academic years or terms,
I.R.C. § 3304(a)(6)(A)(ii) — with respect to services in any other capacity for an educational institution to which section 3309(a)(1) applies—
I.R.C. § 3304(a)(6)(A)(ii)(I) — compensation payable on the basis of such services may be denied to any individual for any week which commences during a period between 2 successive academic years or terms if such individual performs such services in the first of such academic years or terms and there is a reasonable assurance that such individual will perform such services in the second of such academic years or terms, except that
I.R.C. § 3304(a)(6)(A)(ii)(II) — if compensation is denied to any individual for any week under subclause (I) and such individual was not offered an opportunity to perform such services for the educational institution for the second of such academic years or terms, such individual shall be entitled to a retroactive payment of the compensation for each week for which the individual filed a timely claim for compensation and for which compensation was denied solely by reason of subclause (I),
I.R.C. § 3304(a)(6)(A)(iii) — with respect to any services described in clause (i) or (ii), compensation payable on the basis of such services shall be denied to any individual for any week which commences during an established and customary vacation period or holiday recess if such individual performs such services in the period immediately before such vacation period or holiday recess, and there is a reasonable assurance that such individual will perform such services in the period immediately following such vacation period or holiday recess,
I.R.C. § 3304(a)(6)(A)(iv) — with respect to any services described in clause (i) or (ii), compensation payable on the basis of services in any such capacity shall be denied as specified in clauses (i), (ii), and (iii) to any individual who performed such services in an educational institution while in the employ of an educational service agency, and for this purpose the term “educational service agency” means a governmental agency or governmental entity which is established and operated exclusively for the purpose of providing such services to one or more educational institutions,
I.R.C. § 3304(a)(6)(A)(v) — with respect to services to which section 3309(a)(1) applies, if such services are provided to or on behalf of an educational institution, compensation may be denied under the same circumstances as described in clauses (i) through (iv), and
I.R.C. § 3304(a)(6)(A)(vi) — with respect to services described in clause (ii), clauses (iii) and (iv) shall be applied by substituting “may be denied” for “shall be denied”, and
I.R.C. § 3304(a)(6)(B) — payments (in lieu of contributions) with respect to service to which section 3309(a)(1) applies may be made into the State unemployment fund on the basis set forth in section 3309(a)(2);
I.R.C. § 3304(a)(7) — an individual who has received compensation during his benefit year is required to have had work since the beginning of such year in order to qualify for compensation in his next benefit year;
I.R.C. § 3304(a)(8) — compensation shall not be denied to an individual for any week because he is in training with the approval of the State agency (or because of the application, to any such week in training, of State law provisions relating to availability for work, active search for work, or refusal to accept work);
I.R.C. § 3304(a)(9)
I.R.C. § 3304(a)(9)(A) — compensation shall not be denied or reduced to an individual solely because he files a claim in another State (or a contiguous country with which the United States has an agreement with respect to unemployment compensation) or because he resides in another State (or such a contiguous country) at the time he files a claim for unemployment compensation;
I.R.C. § 3304(a)(9)(B) — the State shall participate in any arrangement for the payment of compensation on the basis of combining an individual's wages and employment covered under the State law with his wages and employment covered under the unemployment compensation law of other States which are approved by the Secretary of Labor in consultation with the State unemployment compensation agencies as reasonably calculated to assure the prompt and full payment of compensation in such situations. Any such arrangements shall include provisions for (i) applying the base period of a single state law to a claim involving the combining of an individual's wages and employment covered under two or more State laws, and (ii) avoiding duplicate use of wages and employment by reason of such combining;
I.R.C. § 3304(a)(10) — compensation shall not be denied to any individual by reason of cancellation of wage credits or total reduction of his benefit rights for any cause other than discharge for misconduct connected with his work, fraud in connection with a claim for compensation, or receipt of disqualifying income;
I.R.C. § 3304(a)(11) — extended compensation shall be payable as provided by the Federal-State Extended Unemployment Compensation Act of 1970;
I.R.C. § 3304(a)(12) — no person shall be denied compensation under such State law solely on the basis of pregnancy or termination of pregnancy;
I.R.C. § 3304(a)(13) — compensation shall not be payable to any individual on the basis of any services, substantially all of which consist of participating in sports or athletic events or training or preparing to so participate, for any week which commences during the period between two successive sport seasons (or similar periods) if such individual performed such services in the first of such seasons (or similar periods) and there is a reasonable assurance that such individual will perform such services in the later of such seasons (or similar periods);
I.R.C. § 3304(a)(14)
I.R.C. § 3304(a)(14)(A) — compensation shall not be payable on the basis of services performed by an alien unless such alien is an individual who was lawfully admitted for permanent residence at the time such services were performed, was lawfully present for purposes of performing such services, or was permanently residing in the United States under color of law at the time such services were performed (including an alien who was lawfully present in the United States as a result of the application of the provisions of section 212(d)(5) of the Immigration and Nationality Act),
I.R.C. § 3304(a)(14)(B) — any data or information required of individuals applying for compensation to determine whether compensation is not payable to them because of their alien status shall be uniformly required from all applicants for compensation, and
I.R.C. § 3304(a)(14)(C) — in the case of an individual whose application for compensation would otherwise be approved, no determination by the State agency that compensation to such individual is not payable because of his alien status shall be made except upon a preponderance of the evidence;
I.R.C. § 3304(a)(15)
I.R.C. § 3304(a)(15)(A) — subject to subparagraph (B), the amount of compensation payable to an individual for any week which begins after March 31, 1980, and which begins in a period with respect to which such individual is receiving a governmental or other pension, retirement or retired pay, annuity, or any other similar periodic payment which is based on the previous work of such individual shall be reduced (but not below zero) by an amount equal to the amount of such pension, retirement or retired pay, annuity, or other payment, which is reasonably attributable to such week except that—
I.R.C. § 3304(a)(15)(A)(i) — the requirements of this paragraph shall apply to any pension, retirement or retired pay, annuity, or other similar periodic payment only if—
I.R.C. § 3304(a)(15)(A)(i)(I) — such pension, retirement or retired pay, annuity, or similar payment is under a plan maintained (or contributed to) by a base period employer or chargeable employer (as determined under applicable law), and
I.R.C. § 3304(a)(15)(A)(i)(II) — in the case of such a payment not made under the Social Security Act or the Railroad Retirement Act of 1974 (or the corresponding provisions of prior law), services performed for such employer by the individual after the beginning of the base period (or remuneration for such services) affect eligibility for, or increase the amount of, such pension, retirement or retired pay, annuity, or similar payment, and
I.R.C. § 3304(a)(15)(A)(ii) — the State law may provide for limitations on the amount of any such a reduction to take into account contributions made by the individual for the pension, retirement or retired pay, annuity, or other similar periodic payment, and
I.R.C. § 3304(a)(15)(A)(B) — the amount of compensation shall not be reduced on account of any payments of governmental or other pensions, retirement or retired pay, annuity, or other similar payments which are not includible in the gross income of the individual for the taxable year in which it was paid because it was part of a rollover distribution;
I.R.C. § 3304(a)(16)
I.R.C. § 3304(a)(16)(A) — wage information contained in the records of the agency administering the State law which is necessary (as determined by the Secretary of Health and Human Services in regulations) for purposes of determining an individual's eligibility for assistance, or the amount of such assistance, under a State program funded under part A of title IV of the Social Security Act, shall be made available to a State or political subdivision thereof when such information is specifically requested by such State or political subdivision for such purposes,
I.R.C. § 3304(a)(16)(B) — wage and unemployment compensation information contained in the records of such agency shall be furnished to the Secretary of Health and Human Services (in accordance with regulations promulgated by such Secretary) as necessary for the purposes of the National Directory of New Hires established under section 453(i) of the Social Security Act, and
I.R.C. § 3304(a)(16)(C) — such safeguards are established as are necessary (as determined by the Secretary of Health and Human Services in regulations) to insure that information furnished under subparagraph (A) or (B) is used only for the purposes authorized under such subparagraph;
I.R.C. § 3304(a)(17) — any interest required to be paid on advances under title XII of the Social Security Act shall be paid in a timely manner and shall not be paid, directly or indirectly (by an equivalent reduction in State unemployment taxes or otherwise) by such State from amounts in such State's unemployment fund;
I.R.C. § 3304(a)(18) — Federal individual income tax from unemployment compensation is to be deducted and withheld if an individual receiving such compensation voluntarily requests such deduction and withholding; and
I.R.C. § 3304(a)(19) — all the rights, privileges, or immunities conferred by such law or by acts done pursuant thereto shall exist subject to the power of the legislature to amend or repeal such law at any time.
I.R.C. § 3304(b) Notification — The Secretary of Labor shall, upon approving such law, notify the governor of the State of his approval.
I.R.C. § 3304(c) Certification — On October 31 of each taxable year the Secretary of Labor shall certify to the Secretary of the Treasury each State whose law he has previously approved, except that he shall not certify any State which, after reasonable notice and opportunity for hearing to the State agency, the Secretary of Labor finds has amended its law so that it no longer contains the provisions specified in subsection (a) or has with respect to the 12-month period ending on such October 31 failed to comply substantially with any such provision in such subsection. No finding of a failure to comply substantially with any provision in paragraph (5) of subsection (a) shall be based on an application or interpretation of State law (1) until all administrative review provided for under the laws of the State has been exhausted, or (2) with respect to which the time for judicial review provided by the laws of the State has not expired, or (3) with respect to which any judicial review is pending. On October 31 of any taxable year, the Secretary of Labor shall not certify any State which, after reasonable notice and opportunity for hearing to the State agency, the Secretary of Labor finds has failed to amend its law so that it contains each of the provisions required by law to be included therein (including provisions relating to the Federal-State Extended Unemployment Compensation Act of 1970 (or any amendments thereto) as required under subsection (a)(11)), or has, with respect to the twelve-month period ending on such October 31, failed to comply substantially with any such provision.
I.R.C. § 3304(d) Notice Of Noncertification — If at any time, the Secretary of Labor has reason to believe that a State whose law he has previously approved may not be certified under subsection (c), he shall promptly so notify the governor of such State.
I.R.C. § 3304(e) Change Of Law During 12-Month Period — Whenever—
I.R.C. § 3304(e)(1) — any provision of this section, section 3302, or section 3303 refers to a 12-month period ending on October 31 of a year, and
I.R.C. § 3304(e)(2) — the law applicable to one portion of such period differs from the law applicable to another portion of such period, then such provision shall be applied by taking into account for each such portion the law applicable to such portion.
I.R.C. § 3304(f) Definition Of Institution Of Higher Education — For purposes of subsection (a)(6), the term “institution of higher education” means an educational institution in any State which—
I.R.C. § 3304(f)(1) — admits as regular students only individuals having a certificate of graduation from a high school, or the recognized equivalent of such a certificate;
I.R.C. § 3304(f)(2) — is legally authorized within such State to provide a program of education beyond high school;
I.R.C. § 3304(f)(3) — provides an educational program for it which awards a bachelor's or higher degree, or provides a program which is acceptable for full credit toward such a degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and
I.R.C. § 3304(f)(4) — is a public or other nonprofit institution.
(Aug. 16, 1954, ch. 736, 68A Stat. 443; Aug. 10, 1970, Pub. L. 91-373, title I, 104(a), 108(a), 121(a), 131(b)(2), 142(f)-(h), title II, 206, 84 Stat. 697, 701, 704, 707, 708, 712; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1903(a)(14), 1906(b)(13)(C), (E), 90 Stat. 1809, 1834; Oct. 20, 1976, Pub. L. 94-566, title I, 115(c)(1), (5), title III, 312(a), (b), 314(a), title V, 506(b), 90 Stat. 2670, 2671, 2679, 2680, 2687; Apr. 12, 1977, Pub. L. 95-19, title III, 302(a), (c), (e), 91 Stat. 44, 45; Nov. 12, 1977, Pub. L. 95-171, 2(a), 91 Stat. 1353; Dec. 20, 1977, Pub. L. 95-216, title IV, 403(b), 91 Stat. 1561; Sept. 26, 1980, Pub. L. 96-364, title IV, 414(a), 94 Stat. 1310; Aug. 13, 1981, Pub. L. 97-35, title XXIV, 2408(a), 95 Stat. 880; Sept. 3, 1982, Pub. L. 97-248, title I, 193(a), 96 Stat. 408; Apr. 20, 1983, Pub. L. 98-21, title V, 515(b), 521(a), 523(a), 97 Stat. 147, 148; Apr. 7, 1986, Pub. L. 99-272, title XII, 12401(b)(1), 100 Stat. 297; Oct. 22, 1986, Pub. L. 99-514, title XVIII, 1899A(43), 100 Stat. 2960; Nov. 29, 1990, Pub. L. 101-649, sec. 162(e)(4); Dec. 8, 1994, Pub. L. 103-465, title VII, Sec. 702(b), (c); Aug. 22, 1996, Pub. L. 104-193, title I, Sec. 110(l)(2), title III, Sec. 316, 110 Stat. 2105; Nov. 15, 1991, Pub. L. 102-164, Sec. 302(a); July 3, 1992, Pub. L. 102-318, Sec. 401(a)(1); Dec. 8, 1993, Pub. L. 103-182, Sec. 507(b)(1); Pub. L. 103-465, Sec. 702(b), (c)(1); Mar. 9, 2002, Pub. L. 107-147, title II, Sec. 209(d)(1), 116 Stat. 21; Aug. 17, 2006, Pub. L. 109-280, title XI, Sec. 1105(a), 120 Stat. 780; Sept. 30, 2008, Pub. L. 110-328, Sec. 3(c), 122 Stat. 3567; Pub. L. 110-458, title I, Sec. 111(b), Dec. 23, 2008, 122 Stat. 5092; Pub. L. 112-96, title II, Sec. 2161(b)(1)(A), Feb. 22, 2012, 126 Stat. 156; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(211), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018 - Subsec. (a)(4)(G)(ii). Pub. L. 115-141, Div. U, Sec. 401(a)(211), amended clause (ii) by substituting “section 6402(f)(4)(C)” for “section 6402(f)(4)(B)”.
2012 - Subsec. (a)(4)(E). Pub. L. 112-96, Sec. 2161(b)(1)(A), amended subpar. (E). Before amendment, it read as follows:
“(E) amounts may be withdrawn for the payment of short-time compensation under a plan approved by the Secretary of Labor;”
2008 - Subsec. (a)(15). Pub. L. 110-458, Sec. 111(b)(1), amended par. (15) by redesignating clauses (i) and (ii) and subclause (I) and (II), respectively, by redesignating subpar. (A) and (B) as clauses (i) and (ii), respectively, by substituting “, and” for the semicolon at the end of clause (ii) (as redesignated), by substituting “(15)(A) subject to subparagraph (B),” for “(15)”, and by adding subpar. (B).
Subsec. (a). Pub. L. 110-458, Sec. 111(b)(2), amended subsec. (a) by striking the sentence at the end. Before being struck, it read as follows:
“ Compensation shall not be reduced under paragraph (15) for any pension, retirement or retired pay, annuity, or similar payment which is not includible in gross income of the individual for the taxable year in which paid because it was part of a rollover distribution.”
Subsec. (a)(4)(E)-(G). Pub. L. 110-328, Sec. 3(c), amended par. (4) by striking “and” at the end of subpar. (E); by inserting “and” at the end of subpar. (F); and by adding subpar. (G).
2006 - Subsec. (a). Pub. L. 109-280, Sec. 1105(a), amended subsec. (a) by adding the flush sentence at the end.
2002—Subsec. (a)(4)(B). Pub. L. 107-147, Sec. 209(d)(1), amended subpar. (B) by inserting “or 903(d)(4)” before “of the Social Security Act”.
1996--Subsec. (a)(16)(A). Pub. L. 104-193, Sec. 110(l)(1), as redesignated by Pub. L. 105-33, Sec. 5514(a)(2), substituted ‘eligibility for assistance, or the amount of such assistance, under a State program funded’ for ‘eligibility for aid or services, or the amount of such aid or services, under a State plan for aid and services to needy families with children approved'.
Subsec. (a)(16). Pub. L. 104-193, Sec. 316(g)(2)(A), substituted each occurance of ‘Secretary of Health, Education, and Welfare’ with ‘Secretary of Health and Human Services’.
Subsec. (a)(16)(B). Pub. L. 104-193, Sec. 316(g)(2)(B), struck ‘such information is used only for the purposes authorized under subparagraph (A);’ and inserted ‘information furnished under subparagraph (A) or (B) is used only for the purposes authorized under such subparagraph;’
Subsec. (a)(16)(A), (B), and (C). Pub. L. 104-193, Sec. 316(g)(2)(C), (D), and (E), struck ‘and’ at the end of subpar. (A), redesignated subpar. (B) as subpar. (C), and inserted after subpar. (A) new subpar. (B).
1994--Subsec. (a)(17), (18), and (19). Pub. L. 103-465, Sec. 702(b), struck out the ‘and’ at the end of (17), redesignated para. (18) as (19), and inserted a new para. (18) to read as above, effective for payments made after December 31, 1996.
Subsec. (a)(4)(C). Pub. L. 103-465, Sec. 702(c), inserted after ‘health insurance’ the following: ‘, or the withholding of Federal, State, or local individual income tax,’ effective for payments made after December 31, 1996.
1993—Subsec. (a)(4)(D)-(F). Pub. L. 103-182, Sec. 507(b)(1), amended par. (4) by substituting “;” for “; and” at the end of subpar. (D); by substituting “; and” for the semicolon at the end of subpar. (E); and by adding subpar. (F).
1992--Subsec. (a)(4)(C)-(D). Pub. L. 102-318, Sec. 401(a)(1), amended par. (4) by striking “and” at the end of subpar. (C), by inserting “and” at the end of subpar. (D), and by adding subpar. (E).
1991—Subsec. (a)(6)(A)(ii)(I). Pub. L. 102-164, Sec. 301(a)(1), amended subclause (I) by substituting “may be denied” for “shall be denied”.
Subsec. (a)(6)(A)(iii)-(vi). Pub. L. 102-164, Sec. 302(a)(2), amended par. (6) by striking “and” at the end of clauses (iii) and (iv) and by adding clause (vi).
1990--Subsec. (a)(14)(A). Pub. L. 101-649 struck “section 203(a)(7)” after “application of the provisions of”.
1986--Subsec. (a)(4)(D). Pub. L. 99-272 added subpar. (D).
Subsec. (a)(6)(A)(iii). Pub. L. 99-514 struck out “and” at end.
1983--Subsec. (a)(4)(C). Pub. L. 98-21, 523(a), added subpar. (C).
Subsec. (a)(6)(A)(ii)(I), (iii), (iv). Pub. L. 98-21, 521(a)(2), substituted “shall be denied” for “may be denied”.
Subsec. (a)(6)(A)(v). Pub. L. 98-21, 521(a)(1), added cl. (v).
Subsec. (a)(17), (18). Pub. L. 98-21, 515(b), added par. (17) and redesignated former par. (17) as (18).
1982--Subsec. (a)(6)(A)(ii). Pub. L. 97-248 redesignated existing provisions as provisions preceding subcl. (I) and subcl. (I), and in such provisions as so redesignated, struck out “(other than an institution of higher education)” after “capacity for an educational institution”, substituted “2” for “two”, and inserted “except that" at end of subcl. (I), and added subcl. (II).
1981--Subsec. (c). Pub. L. 97-35 substituted provisions relating to limitations on certification on Oct. 31 of any taxable year, for provisions relating to limitations on certification on Oct. 31 of any taxable year after 1971, and on Oct. 31 of any taxable year after 1977.
1980--Subsec. (a)(15). Pub. L. 96-364 inserted provisions relating to applicability to any pension, retirement or retired pay, annuity, or other similar periodic payment.
1977--Subsec. (a)(6)(A)(i). Pub. L. 95-19, 302(c)(1), (2), inserted a comma between “instructional” and “research”, substituted “two successive academic years or terms” for “two successive academic years”, and struck out “and” after “the second of such academic years or terms,”.
Subsec. (a)(6)(A)(iii). Pub. L. 95-19, 302(c)(3), added cl. (iii).
Subsec. (a)(6)(A)(iv). Pub. L. 95-171 added cl. (iv).
Subsec. (a)(14)(A). Pub. L. 95-19, 302(a), substituted “who was lawfully admitted for permanent residence at the time such services were performed, was lawfully present for purposes of performing such services, or was permanently residing in the United States under color of law at the time such services were performed (including an alien who was" for “who has been lawfully admitted for permanent residence or otherwise is permanently residing in the United States under color of law (including an alien who is”.
Subsec. (a)(15). Pub. L. 95-19, 302(e), substituted “March 31, 1980” for “September 30, 1979”.
Subsec. (a)(16), (17). Pub. L. 95-216 added par. (16). Former par. (16) redesignated (17).
1976--Subsec. (a)(3). Pub. L. 94-455, 1903(a)(14)(A), 1906(b)(13)(C), inserted “of the Treasury” after “to the Secretary” and struck out “49 Stat. 640; 52 Stat. 1104, 1105;” before “42 U.S.C. 1104“.
Subsec. (a)(6)(A). Pub. L. 94-566, 115(c)(1), designated existing provisions as cl. (i), added cl. (ii), and in cl. (i) as so designated substituted “educational institution” for “institution of higher education”, “an agreement provides” for “the contract provides”, and “if such individual performs such services in the first of such academic years (or terms) and if there is a contract or reasonable assurance that such individual will perform services in any such capacity for any educational institution in the second of such academic years or terms, and” for “who has a contract to perform services in any such capacity for any institution or institutions of higher education for both of such academic years or both of such terms, and”.
Subsec. (a)(6)(B). Pub. L. 94-566, 506(b), substituted “section 3309(a)(1)" for “section 3309(a)(1)(A)”.
Subsec. (a)(12). Pub. L. 94-566, 312(a), substituted provisions that no person shall be denied compensation under such State law solely on the basis of pregnancy or termination of pregnancy for provisions that each political subdivision of the State should have the right to elect to have compensation payable to employees thereof (whose services were not otherwise subject to such law) based on service performed by such employees in the hospitals and institutions of higher education (as defined in section 3309(d)) operated by such political subdivision; and, if any such political subdivision did elect to have compensation payable to such employees thereof (A) the political subdivision elected should pay into the State unemployment fund, with respect to the service of such employees, payments (in lieu of contributions), and (B) such employees would be entitled to receive, on the basis of such service, compensation payable on the same conditions as compensation which was payable on the basis of similar service for the State which was subject to such law.
Subsec. (a)(13) to (16). Pub. L. 94-566, 314(a), added pars. (13) to (15) and redesignated former par. (13) as (16).
Subsec. (c). Pub. L. 94-566, 312(b), provided that on Oct. 31 of any taxable year after 1977, the Secretary shall not certify any State which, after reasonable notice and opportunity for a hearing to the State agency, the Secretary of Labor finds has failed to amend its law so that it contains each of the provisions required by reason of the enactment of the Unemployment Compensation Amendments of 1976 to be included therein, or has with respect to the 12-month period ending on such Oct. 31, failed to comply substantially with any such provision.
Pub. L. 94-455, 1903(a)(14)(B), 1906(b)(13)(C), (E), inserted “of the Treasury” after “certify to the Secretary”, substituted “the Secretary of Labor shall" for “the Secretary shall” and struck out “(10-month period in the case of October 31, 1972)” after “to the 12-month period”.
Subsec. (f). Pub. L. 94-566, 115(c)(5), added subsec. (f).
1970--Subsec. (a)(6) to (13). Pub. L. 91-373, 104(a), 108(a), 121(a), 206, added pars. (6) to (12) and redesignated former par. (6) as (13).
Subsec. (c). Pub. L. 91-373, 131(b)(2), clarified provisions governing procedure to be followed with respect to a finding of the Secretary of Labor that a state has failed to comply substantially with any of the provisions of subsec. (a)(5).
Pub. L. 91-373, 142(f), substituted “October 31” for “December 31” as certification date and “12-month period ending on such October 31” for “taxable year” and prohibited certifications for failure to amend State laws to contain provisions required by reason of enactment of the Employment Security Amendments of 1970.
Subsec. (d). Pub. L. 91-373, 142(g), substituted “If at any time” for “If, at any time during the taxable year,”.
Subsec. (e). Pub. L. 91-373, 142(h), added subsec. (e).
The Secretary of Health, Education, and Welfare was redesignated the Secretary of Health and Human Services by section 3508(b) of Title 20, Education.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. No. 115-141, Div. U, Sec. 401(a)(211), effective on March 23, 2018.
EFFECTIVE DATE OF 2012 AMENDMENT
Amendment by Pub. L. 112-96, Sec. 2161(b)(1)(A), effective on the date of the enactment of this Act [Enacted: Feb. 22, 2012].
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Pub. L. 110-458, Sec. 111(b), effective as if included in the provisions of the Pension Protection Act of 2006 [Pub. L. 109-280, Sec. 1105] to which they relate [Effective for weeks beginning on or after Aug. 17, 2006].
Amendments by Pub. L. 110-328, Sec. 3(c), effective for refunds payable under section 6402 of the Internal Revenue Code of 1986 on or after the date of enactment of this Act [Enacted: Sept. 30, 2008].
EFFECTIVE DATE OF 2006 AMENDMENT
Amendment by Pub. L. 109-280, Sec. 1105(a), effective for weeks beginning on or after the date of the enactment of this Act [Enacted: Aug. 17, 2006].
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107-147, Sec. 209(d)(1), effective on the date of the enactment of this Act [enacted: Mar. 9, 2002].
EFFECTIVE DATE OF 1996 AMENDMENTS
Amendment by Pub. L. 104-193, Sec. 110(l)(1), as redesignated by Pub. L. 105-33, Sec. 5514(a)(2), effective July 1, 1997, except as otherwise provided.
Section 395(a)(2) of Pub. L. 104-193 provided that except as otherwise specifically provided, “provisions of this title shall become effective upon the date of the enactment of this Act [Enacted: Aug. 22, 1996].”
EFFECTIVE DATE OF 1994 AMENDMENTS
Amendments by Pub. L. 103-465, Sec. 702, effective for payments made after December 31, 1996.
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendments by Pub. L. 103-182, Sec. 507(b)(1), effective on the date of the enactment of this Act [Enacted: Dec. 8, 1992]. Section 507(e)(2), prior to repeal by Pub. L. 105-306, Sec. 3(a), provided:
“(2) Sunset.—The authority provided by this section, and the amendments made by this section, shall terminate 5 years after the date of the enactment of this Act [Enacted: Dec. 8, 1992].
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102-318 effective on the date of the enactment of this Act [Enacted: July 3, 1992].
EFFECTIVE DATE OF 1991 AMENDMENTS
Amendments by Pub. L. 102-164, Sec. 302(a), effective in the case of compensation paid for weeks beginning on or after the date of the enactment of this Act [Enacted: Nov. 15, 1991].
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-649 effective on the date of the enactment of this Act [Enacted: Nov. 29, 1990].
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-272 applicable to recoveries made on or after Apr. 7, 1986, and applicable with respect to overpayments made before, on, or after such date, see section 12401(c) of Pub. L. 99-272, set out as a note under section 503 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1983 AMENDMENT
Section 521(b) of Pub. L. 98-21 provided that:
“(1) Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply in the case of compensation paid for weeks beginning on or after April 1, 1984.
“(2) In the case of a State with respect to which the Secretary of Labor has determined that State legislation is required in order to comply with the amendment made by this section, the amendment made by this section shall apply in the case of compensation paid for weeks which begin on or after April 1, 1984, and after the end of the first session of the State legislature which begins after the date of the enactment of this Act [Apr. 20, 1983], or which began prior to the date of the enactment of this Act and remained in session for at least twenty-five calendar days after such date of enactment. For purposes of the preceding sentence, the term ‘session’ means a regular, special, budget, or other session of a State legislature.”
Section 523(c) of Pub. L. 98-21 provided that: “The amendments made by this section [amending this section and section 503 of Title 42, The Public Health and Welfare] shall take effect on the date of the enactment of this Act [Apr. 20, 1983].”
EFFECTIVE DATE OF 1982 AMENDMENT
Section 193(b) of Pub. L. 97-248, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) The amendment made by subsection (a) [amending this section] shall apply to weeks of unemployment beginning after the date of the enactment of this Act [Sept. 3, 1982].
“(2) The amendment made by subsection (a) [amending this section], insofar as it requires retroactive payments of compensation to employees of educational institutions other than institutions of higher education (as defined in section 3304(f) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]), shall not be a requirement for any State law before January 1, 1984.”
EFFECTIVE DATE OF 1980 AMENDMENT
Section 414(b) of Pub. L. 96-364 provided that: “The amendment made by subsection (a) [amending this section] shall apply to certifications of States for 1981 and subsequent years.”
EFFECTIVE DATE OF 1977 AMENDMENTS
Amendment by Pub. L. 95-216 effective on Dec. 20, 1977, see section 403(d) of Pub. L. 95-216, set out as a note under section 602 of Title 42, The Public Health and Welfare.
Section 2(b) of Pub. L. 95-171 provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to weeks of unemployment which begin after December 31, 1977.”
Section 302(d)(1) of Pub. L. 95-19 provided that: “The amendment made by subsection (a) [amending this section] shall take effect as if included in the amendment made by section 314 of the Unemployment Compensation Amendments of 1976.”
Section 302(d)(3) of Pub. L. 95-19 provided that: “The amendments made by subsection (c) [amending this section] shall take effect as if included in the amendments made by section 115(c) of the Unemployment Compensation Amendments of 1976.”
EFFECTIVE DATE OF 1976 AMENDMENTS
Section 115(d) of Pub. L. 94-566, as amended by Pub. L. 95-19, title III, 301(a), Apr. 12, 1977, 91 Stat. 43, effective Oct. 20, 1976, provided that:
“(1) Except as provided in paragraph (2), the amendments made by this section [amending this section and section 3309 of this title] shall apply with respect to certifications of States for 1978 and subsequent years; except that--
“(A) the amendments made by subsections (a) and (b) [amending section 3309 of this title] shall only apply with respect to services performed after December 31, 1977; and
“(B) the amendments made by subsection (c) [amending this section and section 3309 of this title] shall only apply with respect to weeks of unemployment which begin after December 31, 1977.
“(2) In the case of any State the legislature of which does not meet in a regular session which closes during the calendar year 1977, the amendments made by subsection (c) [amending this section and section 3309 of this title] shall only apply with respect to weeks of unemployment which begin after December 31, 1978 (or if earlier, the date provided by State law).”
Section 116(f) of Pub. L. 94-566, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“Effective dates.--
“(1) Subsections (a), (c) and (d).--The amendments made by subsections (a), (c), and (d) [amending sections 202 and 205 of Pub. L. 91-373 and section 102 of Pub. L. 93-57 set out below, section 49d of Title 29, Labor, and section 1301 of Title 42, The Public Health and Welfare] shall take effect on the later of October 1, 1976, or the day after the day on which the Secretary of Labor approves under section 3304(a) of the Internal Revenue Codeof 1986 [formerly I.R.C. 1954] an unemployment compensation law submitted to him by the Virgin Islands for approval.
“(2) Subsection (b).--The amendments made by subsection (b) [amending section 3306 of this title] shall apply with respect to remuneration paid after December 31 of the year in which the Secretary of Labor approves for the first time an unemployment compensation law submitted to him by the Virgin Islands for approval, for services performed after such December 31.
“(3) Subsection (e).--The amendments made by subsection (e) [amending sections 8501, 8503, 8504, 8521, and 8522 of Title 5, Government Organization and Employees] shall apply with respect to benefit years beginning on or after the later of October 1, 1976, or the first day of the first week for which compensation becomes payable under an unemployment compensation law of the Virgin Islands which is approved by the Secretary of Labor under section 3304(a) of the Internal Revenue Code of 1986.”
Section 312(c) of Pub. L. 94-566, as amended Pub. L. 95-19, title III, 301(b), Apr. 12, 1977, 91 Stat. 43, effective Oct. 20, 1976, provided that:
“(1) Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply with respect to certifications of States for 1978 and subsequent years.
“(2) In the case of any State the legislature of which does not meet in a regular session which closes during the calendar year 1977, the amendments made by this section [amending this section] shall apply with respect to the certification of such State for 1979 and subsequent years.”
Section 314(b) of Pub. L. 94-566 provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to certifications of States for 1978 and subsequent years, or for 1979 and subsequent years in the case of States the legislatures of which do not meet in a regular session which closes in the calendar year 1977.”
Section 506(c) of Pub. L. 94-566, as amended Pub. L. 95-19, title III, 301(c), Apr. 12, 1977, 91 Stat. 44, effective Oct. 20, 1976, provided that:
“(1) Except as provided in paragraph (2), the amendments made by this section [amending this section and section 3309 of this title] shall apply with respect to certifications of States for 1978 and subsequent years, but only with respect to services performed after December 31, 1977.
“(2) In the case of any State the legislature of which does not meet in a regular session which closes during the calendar year 1977, the amendments made by this section [amending this section and section 3309 of this title] shall apply with respect to the certification of such State for 1979 and subsequent years, but only with respect to services performed after December 31, 1978.”
[Section 301(d) of Pub. L. 95-19 provided that: “The amendments made by this section [amending this Effective Date of 1976 Amendment note in three places] shall take effect on October 20, 1976."]
EFFECTIVE DATE OF 1970 AMENDMENTS
Section 104(d) of Pub. L. 91-373, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) Subject to the provisions of paragraph (2), the amendments made by subsections (a) and (b) [amending this section and enacting section 3309 of this title] shall apply with respect to certifications of State laws for 1972 and subsequent years, but only with respect to service performed after December 31, 1971. The amendment made by subsection (c) [amending section 3303 of this title] shall take effect January 1, 1970.
“(2) Section 3304(a)(6) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection (a) of this section) shall not be a requirement for the State law of any State prior to July 1, 1972, if the legislature of such State does not meet in a regular session which closes during the calendar year 1971.”
Section 108(b) of Pub. L. 91-373, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to certification of State laws for 1972 and subsequent years; except that section 3304(a)(12) of the Internal Revenue Codeof 1986 [formerly I.R.C. 1954] (as added by subsection (a)) shall not be a requirement for the State law of any State prior to July 1, 1972, if the legislature of such State does not meet in a regular session which closes during the calendar year 1971, or prior to January 1, 1975, if compliance with such requirement would necessitate a change in the constitution of such State.”
Section 121(b) of Pub. L. 91-373, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) Subject to the provisions of paragraph (2), the amendments made by subsection (a) [amending this section] shall take effect January 1, 1972, and shall apply to the taxable year 1972 and taxable years thereafter.
“(2) Paragraphs (7) through (10) of section 3304(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection (a) of this section) shall not be requirements for the State law of any State prior to July 1, 1972, if the legislature of such State does not meet in a regular session which closes during the calendar year 1971.”
Amendment by section 142(f)-(h) of Pub. L. 91-373 applicable with respect to taxable year 1972 and taxable years thereafter, see section 142(i) of Pub. L. 91-373, set out as a note under section 3302 of this title.
EXTENSION OF EMERGENCY STATE STAFFING FLEXIBILITY
Section 9015 of Pub. L. 117-2, provided:
“SEC. 9015. EXTENSION OF EMERGENCY STATE STAFFING FLEXIBILITY
“If a State modifies its unemployment compensation law and policies, subject to the succeeding sentence, with respect to personnel standards on a merit basis on an emergency temporary basis as needed to respond to the spread of COVID–19, such modifications shall be disregarded for the purposes of applying section 303 of the Social Security Act and section 3304 of the Internal Revenue Codeof 1986 to such State law. Such modifications shall only apply through September 6, 2021, and shall be limited to engaging of temporary staff, rehiring of retirees or former employees on a non-competitive basis, and other temporary actions to quickly process applications and claims. ”
WAIVER TO PRESERVE ACCESS TO EXTENDED BENEFITS IN HIGH UNEMPLOYMENT STATES
Section 266 of Pub. L. 116-260, Div N, provided that:
“(a) IN GENERAL.—For purposes of determining the beginning of an extended benefit period (or a high unemployment period) under the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) during the period beginning on November 1, 2020, and ending December 31, 2021, section 203 of such Act may be applied without regard to subsection (b)(1)(B) of such section.
“(b) RULEMAKING AUTHORITY; TECHNICAL ASSISTANCE.—The Secretary of Labor shall issue such rules or other guidance as the Secretary determines may be necessary for the implementation of subsection (a), and shall provide technical assistance to States as needed to facilitate such implementation.”
EMERGENCY TRANSFERS FOR UNEMPLOYMENT COMPENSATION ADMINISTRATION
Section 4102(b) of Pub. L. 116-127 provided:
“SEC. 4102. EMERGENCY TRANSFERS FOR UNEMPLOYMENT COMPENSATION ADMINISTRATION.
* * *
“(b) EMERGENCY FLEXIBILITY.—Notwithstanding any other law, if a State modifies its unemployment compensation law and policies with respect to work search, waiting week, good cause, or employer experience rating on an emergency temporary basis as needed to respond to the spread of COVID–19, such modifications shall be disregarded for the purposes of applying section 303 of the Social Security Act and section 3304 of the Internal Revenue Code of 1986 to such State law.”
DETERMINATION OF AMOUNT OF FEDERAL SHARE WITH RESPECT TO CERTAIN EXTENDED BENEFITS PAYMENTS
Pub. L. 100-203, title IX, 9151, Dec. 22, 1987, 101 Stat. 1330-322, provided that: “For the purpose of determining the amount of the Federal payment to any State under section 204(a)(1) of the Federal-State Extended Unemployment Compensation Act of 1970 [section 204(a)(1) of Pub. L. 91-373, set out below] with respect to the implementation of paragraph (3) of section 202(a) of such Act [section 202(a) of Pub. L. 91-373, set out below] (as added by section 1024(a) of the Omnibus Reconciliation Act of 1980 [Pub. L. 96-499]), such paragraph shall be considered to apply only with respect to weeks of unemployment beginning after October 31, 1981, except that for any State in which the State legislature did not meet in 1981, it shall be considered to apply for such purpose only with respect to weeks of unemployment beginning after October 31, 1982.”
DEMONSTRATION PROGRAM TO PROVIDE SELF—EMPLOYMENT ALLOWANCES FOR ELIGIBLE INDIVIDUALS
Pub. L. 100-203, title IX, 9152, Dec. 22, 1987, 101 Stat. 1330-322, as amended by Pub. L. 100-647, title VIII, 8301, Nov. 10, 1988, 102 Stat. 3798, provided that:
“(a) In General.--The Secretary of Labor (hereinafter in this section referred to as the ‘Secretary’) shall carry out a demonstration program under this section for the purpose of making available self-employment allowances to eligible individuals. To carry out such program, the Secretary shall enter into agreements with three States that--
“(1) apply to participate in such program, and
“(2) demonstrate to the Secretary that they are capable of implementing the provisions of the agreement.
“(b) Selection of States.--(1) In determining whether to enter into an agreement with a State under this section, the Secretary shall take into consideration at least--
“(A) the availability and quality of technical assistance currently provided by agencies of the State to the self-employed;
“(B) existing local market conditions and the business climate for new, small business enterprises in the State;
“(C) the adequacy of State resources to carry out a regular unemployment compensation program and a program under this section;
“(D) the range and extent of specialized services to be provided by the State to individuals covered by such an agreement;
“(E) the design of the evaluation to be applied by the State to the program; and
“(F) the standards which are to be utilized by the State for the purpose of assuring that individuals who will receive self-employment assistance under this section will have sufficient experience (or training) and ability to be self employed.
“(2) The Secretary may not enter into an agreement with any State under this section unless the Secretary makes a determination that the State's unemployment compensation program has adequate reserves.
“(c) Provisions of Agreements.--Any agreement entered into with a State under this section shall provide that--
“(1) each individual who is an eligible individual with respect to any benefit year beginning during the three-year period commencing on the date on which such agreement is entered into shall receive a self-employment allowance;
“(2) self-employment allowances made to any individual under this section shall be made in the same amount, on the same terms, and subject to the same conditions as regular or extended unemployment compensation, as the case may be, paid by such State; except that--
“(A) State and Federal requirements relating to availability for work, active search for work, or refusal to accept suitable work shall not apply to such individual; and
“(B) such individual shall be considered to be unemployed for purposes of the State and Federal laws applicable to unemployment compensation, as long as the individual meets the requirements applicable under this section to such individual;
“(3) to the extent that such allowances are made to an individual under this section, an amount equal to the amount of such allowances shall be charged against the amount that may be paid to such individual under State law for regular or extended unemployment compensation, as the case may be;
“(4) the total amount paid to an individual with respect to any benefit year under this section may not exceed the total amount that could be paid to such individual for regular or extended unemployment compensation, as the case may be, with respect to such benefit year under State law;
“(5) the State shall implement a program that--
“(A) is approved by the Secretary;
“(B) will not result in any cost to the Unemployment Trust Fund established by section 904(a) of the Social Security Act [42 U.S.C. 1104(a)] in excess of the cost which would have been incurred by such State and charged to such Fund if the State had not participated in the demonstration program under this section;
“(C) is designed to select and assist individuals for self-employment allowances, monitor the individual's self-employment, and provide, as described in subsection (d), to the Secretary a complete evaluation of the use of such allowances; and
“(D) otherwise meets the requirements of this section; and
“(6) the State, from its general revenue funds, shall--
“(A) repay to the Unemployment Trust Fund any cost incurred by the State and charged to the Fund which exceeds the cost which would have been incurred by such State and charged to such Fund if the State had not participated in the demonstration program under this section; and
“(B) in any case in which any excess cost described in subparagraph (A) is not repaid in the fiscal year in which it was charged to the Fund, pay to the Fund an amount of interest, on the outstanding balance of such excess cost, which is sufficient (when combined with any repayment by the State described in subparagraph (A)) to reimburse the Fund for any loss which would not have been incurred if such excess cost had not been incurred.
“(d) Evaluation.--(1) Each State that enters into an agreement under this section shall carry out an evaluation of its activities under this section. Such evaluation shall be based on an experimental design with random assignment between a treatment group and a control group with not more than one-half of the individuals receiving assistance at any one time being assigned to the treatment group.
“(2) The Secretary shall use the data provided from such evaluation to analyze the benefits and the costs of the program carried out under this section, to formulate the reports under subsection (g), and to estimate any excess costs described in subsection (c)(6)(A).
“(e) Financing.--(1) Notwithstanding section 303(a)(5) of the Social Security Act [42 U.S.C. 503(a)(5)] and section 3304(a)(4) of the Internal Revenue Code of 1986, amounts in the unemployment fund of a State may be used by a State to make payments (exclusive of expenses of administration) for self-employment allowances made under this section to an individual who is receiving them in lieu of regular unemployment compensation.
“(2) In any case in which a self-employment allowance is made under this section to an individual in lieu of extended unemployment compensation under the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, set out below], payments made under this section for self-employment allowances shall be considered to be compensation described in section 204(a)(1) of such Act and paid under State law.
“(f) Limitation.--No funds made available to a State under title III of the Social Security Act [42 U.S.C. 501 et seq.] or any other Federal law may be used for the purpose of administering the program carried out by such State under this section.
“(g) Report to Congress.--(1) Not later than three years after the date of the enactment of this Act [Dec. 22, 1987], the Secretary shall submit an interim report to the Congress on the effectiveness of the demonstration program carried out under this section. Such report shall include--
“(A) information on the extent to which this section has been utilized;
“(B) an analysis of any barriers to such utilization; and
“(C) an analysis of the feasibility of extending the provisions of this section to individuals not covered by State unemployment compensation laws.
“(2) Not later than six years after the date of the enactment of this Act [Dec. 22, 1987], the Secretary shall submit a final report to the Congress on such program.
“(h) Fraud and Overpayments.--(1) If an individual knowingly has made, or caused to be made by another, a false statement or representation of a material fact, or knowingly has failed, or caused another to fail, to disclose a material fact, and as a result of such false statement or representation or of such nondisclosure such individual has received payment under this section to which he was not entitled, such individual shall be--
“(A) ineligible for further assistance under this section; and
“(B) subject to prosecution under section 1001 of title 18, United States Code.
“(2)(A) If any person received any payment under this section to which such person was not entitled, the State is authorized to require such person to repay such assistance; except that the State agency may waive such repayment if it determines that--
“(i) the providing of such assistance or making of such payment was without fault on the part of such person; and
“(ii) such repayment would be contrary to equity and good conscience.
“(B) No repayment shall be required under subparagraph (A) until a determination has been made, notice thereof and an opportunity for a fair hearing has been given to the person, and the determination has become final. Any determination under such subparagraph shall be subject to review in the same manner and to the same extent as determinations under the State unemployment compensation law, and only in that manner and to that extent.
“(i) Definitions.--For purposes of this section--
“(1) the term ‘eligible individual’ means, with respect to any benefit year, an individual who--
“(A) is eligible to receive regular or extended compensation under the State law during such benefit year;
“(B) is likely to receive unemployment compensation for the maximum number of weeks that such compensation is made available under the State law during such benefit year;
“(C) submits an application to the State agency for a self-employment allowance under this section; and
“(D) meets applicable State requirements, except that not more than (i) 3 percent of the number of individuals eligible to receive regular compensation in a State at the beginning of a fiscal year, or (ii) the number of persons who exhausted their unemployment compensation benefits in the fiscal year ending before such fiscal year, whichever is lesser, may be considered as eligible individuals for such State for purposes of this section during such fiscal year;
“(2) the term ‘self-employment allowance’ means compensation paid under this section for the purpose of assisting an eligible individual with such individual's self-employment; and
“(3) the terms ‘compensation’, ‘extended compensation’, ‘regular compensation’, ‘benefit year’, ‘State’, and ‘State law’, have the respective meanings given to such terms by section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, set out below].”
SUPPLEMENTAL UNEMPLOYMENT COMPENSATION FOR CERTAIN INDIVIDUALS
Section 12402 of Pub. L. 99-272 provided that:
“(a) In General.--If--
“(1) an individual was receiving Federal supplemental compensation for the week which includes March 31, 1985, or a series of consecutive weeks which began with such week, and
“(2) such individual did not meet the consecutive-week eligibility requirements of the Federal Supplemental Compensation Act of 1982 [subtitle A (601-606) of title VI of Pub. L. 97-248, set out below] during any period of 1 or more subsequent weeks by reason of performing temporary disaster services described in subsection (e), weeks in such period shall be disregarded for purposes of the consecutive-week requirement of section 602(f)(2)(B) of such Act [section 602(f)(2)(B) of Pub. L. 97-248, set out below], and, notwithstanding the requirements of State law relating to the availability for work, the active search for work, or the refusal to accept work, such individual shall be entitled to payment of Federal supplemental compensation for each week of unemployment which is described in subsection (b) and for which a certification of unemployment is made by such individual in accordance with subsection (c).
“(b) Weeks for Which Payment Shall Be Made.--A week of unemployment for which payment shall be made under subsection (a) is a week which occurred during the period which commences with the first week beginning after the close of the period described in subsection (a)(2) and ends with the beginning of the first week in which the individual was employed after the close of such period.
“(c) Certification.--The certification of unemployment referred to in subsection (a) shall be a certification--
“(1) that is made on a form provided by the State agency concerned and signed by the individual; and
“(2) that identifies the weeks of unemployment for which the individual is making the certification.
“(d) Limitation on Amount of Payment.--In no case may the total amount paid to an individual under subsection (a) exceed the amount remaining in the account established for such individual under section 602(e) of the Federal Supplemental Compensation Act of 1982 [section 602(e) of Pub. L. 97-248, set out below] after payments were made from such account for weeks of unemployment beginning before the period described in subsection (a)(2).
“(e) Definition.--For purposes of subsection (a), the term ‘temporary disaster services’ means services performed as a member of the National Guard after being called up by the Governor of a State to perform services related to a major disaster that was declared on June 3, 1985, by the President of the United States under the Disaster Relief Act of 1974 [42 U.S.C. 5121 et seq.].
“(f) Modification of Agreement.--(1) The Secretary of Labor shall, at the earliest possible date after the date of the enactment of this Act [Apr. 7, 1986], propose to any State concerned a modification of the agreement that the Secretary has with such State under section 602 of the Federal Supplemental Compensation Act of 1982 [section 602 of Pub. L. 97-248, set out below] in order to carry out this section.
“(2) Pending modification of the agreement, the State may make payment in accordance with the provisions of this section and shall be reimbursed in accordance with the provisions of section 604(a) of the Federal Supplemental Compensation Act of 1982 [section 604(a) of Pub. L. 97-248, set out below]. For purposes of carrying out this paragraph, the term ‘this subtitle’ in such section 604(a) shall include this section.
“(g) Effective Date.--The provisions of this section shall apply to weeks beginning after March 31, 1985.”
AMORTIZATION PAYMENTS FOR STATES WITH INDEPENDENT RETIREMENT PLANS FROM FUNDS FOR INCREASED COSTS OF ADMINISTRATION OF UNEMPLOYMENT COMPENSATION LAWS; CHANGES IN STATE LAWS; INCREASED CLAIMS; SALARY COSTS
Pub. L. 99-88, title I, 100, Aug. 15, 1985, 99 Stat. 344, provided that: “Whenever funds are made available, now or hereafter, in this or any other Act for the administration of unemployment compensation laws to meet increased costs of administration resulting from changes in a State law or increases in the number of unemployment insurance claims filed and claims paid or increased salary costs resulting from changes in State salary compensation plans embracing employees of the State generally over those upon which the State's basic allocation was based, which cannot be provided for by normal budgetary adjustment, amortization payments for States which had independent retirement plans prior to 1980 in their State Employment Security Agencies and States agencies administering the State's unemployment compensation law may be paid from such funds.”
ARRANGEMENTS TO PREVENT PAYMENTS OF UNEMPLOYMENT COMPENSATION TO RETIREES AND PRISONERS
Pub. L. 98-135, title II, 206, Oct. 24, 1983, 97 Stat. 861, provided that:
“(a) The Secretary of Labor, the Director of the Office of Personnel Management, and the Attorney General are directed to enter into arrangements to make available to the States, computer or other data regarding current and retired Federal employees and Federal prisoners so that States may review the eligibility of these individuals for unemployment compensation, and take action where appropriate.
“(b) The Secretary of Labor shall report to the Congress, prior to January 31, 1984, on arrangements which have been entered into under subsection (a), and any arrangements which could be entered into with other appropriate State agencies, for the purpose of ensuring that unemployment compensation is not paid to retired individuals or prisoners in violation of law. The report shall include any recommendations for further legislation which might be necessary to aid in preventing such payments.”
SHORT—TIME COMPENSATION
Section 194 of Pub. L. 97-248 provided that:
“(a) It is the purpose of this section to assist States which provide partial unemployment benefits to individuals whose workweeks are reduced pursuant to an employer plan under which such reductions are made in lieu of temporary layoffs.
“(b)(1) The Secretary of Labor (hereinafter in this section referred to as the ‘Secretary’) shall develop model legislative language which may be used by States in developing and enacting short-time compensation programs, and shall provide technical assistance to States to assist in developing, enacting, and implementing such short-time compensation program.
“(2) The Secretary shall conduct a study or studies for purposes of evaluating the operation, costs, effect on the State insured rate of unemployment, and other effects of State short-time compensation programs developed pursuant to this section.
“(3) This section shall be a three-year experimental provision, and the provisions of this section regarding guidelines shall terminate 3 years following the date of the enactment of this Act [Sept. 3, 1982].
“(4) States are encouraged to experiment in carrying out the purpose and intent of this section. However, to assure minimum uniformity, States are encouraged to consider requiring the provisions contained in subsections (c) and (d).
“(c) For purposes of this section, the term ‘short-time compensation program’ means a program under which--
“(1) individuals whose workweeks have been reduced pursuant to a qualified employer plan by at least 10 per centum will be eligible for unemployment compensation;
“(2) the amount of unemployment compensation payable to any such individual shall be a pro rata portion of the unemployment compensation which would be payable to the individual if the individual were totally unemployed;
“(3) eligible employees may be eligible for short-time compensation or regular unemployment compensation, as needed; except that no employee shall be eligible for more than the maximum entitlement during any benefit year to which he or she would have been entitled for total unemployment, and no employee shall be eligible for short-time compensation for more than twenty-six weeks in any twelve-month period; and
“(4) eligible employees will not be expected to meet the availability for work or work search test requirements while collecting short-time compensation benefits, but shall be available for their normal workweek.
“(d) For purposes of subsection (c), the term ‘qualified employer plan’ means a plan of an employer or of an employers' association which association is party to a collective bargaining agreement (hereinafter referred to as ‘employers’ association') under which there is a reduction in the number of hours worked by employees rather than temporary layoffs if--
“(1) the employer's or employers' association's short-time compensation plan is approved by the State agency;
“(2) the employer or employers' association certifies to the State agency that the aggregate reduction in work hours pursuant to such plan is in lieu of temporary layoffs which would have affected at least 10 per centum of the employees in the unit or units to which the plan would apply and which would have resulted in an equivalent reduction of work hours;
“(3) during the previous four months the work force in the affected unit or units has not been reduced by temporary layoffs of more than 10 per centum;
“(4) the employer continues to provide health benefits, and retirement benefits under defined benefit pension plans (as defined in section 3(35) of the Employee Requirement Income Security Act of 1974 [29 U.S.C. 1002(35)], to employees whose workweek is reduced under such plan as though their workweek had not been reduced; and
“(5) in the case of employees represented by an exclusive bargaining representative, that representative has consented to the plan.
The State agency shall review at least annually any qualified employer plan put into effect to assure that it continues to meet the requirements of this subsection and of any applicable State law.
“(e) Short-time compensation shall be charged in a manner consistent with the State law.
“(f) For purposes of this section, the term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.
“(g)(1) The Secretary shall conduct a study or studies of State short-time compensation programs consulting with employee and employer representatives in developing criteria and guidelines to measure the following factors:
“(A) the impact of the program upon the unemployment trust fund, and a comparison with the estimated impact on the fund of layoffs which would have occurred but for the existence of the program;
“(B) the extent to which the program has protected and preserved the jobs of workers, with special emphasis on newly hired employees, minorities, and women;
“(C) the extent to which layoffs occur in the unit subsequent to initiation of the program and the impact of the program upon the entitlement to unemployment compensation of the employees;
“(D) where feasible, the effect of varying methods of administration;
“(E) the effect of short-time compensation on employers' State unemployment tax rates, including both users and nonusers of short-time compensation, on a State-by-State basis;
“(F) the effect of various State laws and practices under those laws on the retirement and health benefits of employees who are on short-time compensation programs;
“(G) a comparison of costs and benefits to employees, employers, and communities from use of short-time compensation and layoffs;
“(H) the cost of administration of the short-time compensation program; and
“(I) such other factors as may be appropriate.
“(2) Not later than October 1, 1985, the Secretary shall submit to the Congress and to the President a final report on the implementation of this section. Such report shall contain an evaluation of short-time compensation programs and shall contain such recommendations as the Secretary deems advisable, including recommendations as to necessary changes in the Statistical practices of the Department of Labor.”
FEDERAL SUPPLEMENTAL COMPENSATION ACT OF 1982
Subtitle A (601-606) of title VI of Pub. L. 97-248, as amended by Pub. L. 97-424, title V, 544(a), (d), Jan. 6, 1983, 96 Stat. 2196; Pub. L. 97-448, title III, 310(a), Jan. 12, 1983, 96 Stat. 2411; Pub. L. 98-21, title V, 501, 502, 504, 505, Apr. 20, 1983, 97 Stat. 141, 144; Pub. L. 98-92, 1(a), Sept. 2, 1983, 97 Stat. 608; Pub. L. 98-118, 1, Oct. 11, 1983, 97 Stat. 803; Pub. L. 98-135, title I, 101, 102, Oct. 24, 1983, 97 Stat. 857; Pub. L. 99-15, 1(a), (b), Apr. 4, 1985, 99 Stat. 37, provided that:
“Short Title
“Sec. 601. This subtitle may be cited as the ‘Federal Supplemental Compensation Act of 1982’.
“Federal-state Agreements
“Sec. 602. (a) Any State which desires to do so may enter into and participate in an agreement with the Secretary of Labor (hereinafter in this title referred to as the ‘Secretary’) under this subtitle. Any State which is a party to an agreement under this subtitle may, upon providing thirty days' written notice to the Secretary, terminate such agreement.
“(b) Any such agreement shall provide that the State agency of the State will make payments of Federal supplemental compensation--
“(1) to individiuals [sic] who--
“(A) have exhausted all rights to regular compensation under the State law;
“(B) have no rights to compensation (including both regular compensation and extended compensation) with respect to a week under such law or any other State unemployment compensation law or to compensation under any other Federal law (and is not paid or entitled to be paid any additional compensation under any such State or Federal law); and
“(C) are not receiving compensation with respect to such week under the unemployment compensation law of Canada;
“(2) for any week of unemployment which begins in the individual's period of eligibility, except that no payment of Federal supplemental compensation shall be made to any individual for any week of unemployment which begins more than two years after the end of the benefit year for which he exhausted his rights to regular compensation.
“(c) For purposes of subsection (b)(1)(A), an individual shall be deemed to have exhausted his rights to regular compensation under a State law when--
“(A) no payments of regular compensation can be made under such law because such individual has received all regular compensation available to him based on employment or wages during his base period; or
“(B) his rights to such compensation have been terminated by reason of the expiration of the benefit year with respect to which such rights existed.
“(d) For purposes of any agreement under this subtitle--
“(1) the amount of the Federal supplemental compensation which shall be payable to any individual for any week of total unemployment shall be equal to the amount of the regular compensation (including dependents' allowances) payable to him during his benefit year under the State law for a week of total unemployment;
“(2) the terms and conditions of the State law which apply to claims for extended compensation and to the payment thereof shall apply to claims for Federal supplemental compensation and the payment thereof; except where inconsistent with the provisions of this subtitle or with the regulations of the Secretary promulgated to carry out this subtitle; and
“(3) the maximum amount of Federal supplemental compensation payable to any individual for whom an account is established under subsection (e) shall not exceed the lesser of (A) the amount established in such account for such individual, or (B) in the case of an individual filing a claim under the interstate benefit payment plan for Federal supplemental compensation, the amount which would have been established in such account if the amount established in such account were determined by reference to the applicable limit under subparagraph (A)(ii) of subsection (e)(2) applicable in the State in which the individual is filing such interstate claim under the interstate benefit payment plan for the week in which he is filing such claim.
Solely for purposes of paragraph (2), the amendment made by section 2404(a) of the Omnibus Budget Reconciliation Act of 1981 [section 2404(a) of Pub. L. 97-35, enacting par. (5) of section 202(a) of Pub. L. 91-373, set out below] shall be deemed to be in effect for all weeks beginning on or after September 12, 1982.
“(e)(1) Any agreement under this subtitle with a State shall provide that the State will establish, for each eligible individual who files an application for Federal supplemental compensation, a Federal supplemental compensation account with respect to such individual's benefit year.
“(2)(A)(i) Except as provided in subparagraph (B), the amount established in such account shall be equal to the lesser of--
“(I) 55 per centum of the total amount of regular compensation (including dependents' allowances) payable to the individual with respect to the benefit year (as determined under the State law) on the basis of which he most recently received regular compensation, or
“(II) the applicable limit times his average weekly benefit amount for his benefit year.
“(ii) For purposes of clause (i)--
“(I) in the case of an account from which Federal supplemental compensation was payable to an individual for a week beginning before October 19, 1983, the applicable limit shall be the applicable limit in effect in the State under this paragraph (as in effect on the day before the date of the enactment of the Federal Supplemental Compensation Amendments of 1983 [Oct. 24, 1983]) for the last week beginning before October 19, 1983, or
“(II) in the case of an account from which Federal supplemental compensation is first payable for a week beginning after October 18, 1983, the applicable limit shall be the applicable limit determined under the following table with respect to the first week for which Federal supplemental compensation is payable from such account:


In the case of weeks during a: The applicable limit is:
6-percent period...............................14
5-percent period...............................12
4-percent period...............................10
Low-unemployment period.........................8.
“(B) In the case of any account from which Federal supplemental compensation was first payable for a week which begins after March 31, 1983, and before October 19, 1983, the amount established in such account under subparagraph (A) shall be increased by the individual's additional entitlement. In no event shall such increase result in the individual's receiving more Federal supplemental compensation for weeks beginning after October 18, 1983, than the subparagraph (A) entitlement.
“(C) For purposes of subparagraph (B) and this subparagraph--
“(i) The term ‘additional entitlement’ means the lesser of--
“(I) 3/4 of the subparagraph (A) entitlement, or
“(II) the individual's average weekly benefit amount for the benefit year multiplied by the applicable limit determined under clause (ii).
“(ii) The applicable limit determined under this clause is--
“(I) 5 if all of the amount in the individual's Federal supplemental compensation account (determined without regard to subparagraph (B)) is payable to the individual for weeks beginning before October 18, 1983, and
“(II) in the case of an individual not described in subclause (I), 4 (2 if the State is in a 4-percent period or a low-unemployment period for the first week beginning after October 18, 1983).
“(iii) The term ‘subparagraph (A) entitlement’ means the amount which would have been established in the account if Federal supplemental compensation were first payable from such account for the first week beginning after October 18, 1983.
“(3)(A) For purposes of this subsection, the terms ‘6-percent period’, ‘5-percent period’, ‘4-percent period’, and ‘low-unemployment period’, mean, with respect to any State, the period which--
“(i) begins with the third week after the first week for which the applicable trigger is on, and
“(ii) ends with the second week after the first week for which the applicable trigger is off.
“(B)(i) In the case of a 6-percent period, 5-percent period, 4-percent period, or low-unemployment period, as the case may be, the applicable trigger is on for any week if--
“(I) the rate of insured unemployment in the State for the period consisting of such week and the immediately preceding 12 weeks falls within the applicable range, or
“(II) the rate of insured unemployment in the State for the period consisting of the last week beginning in the second calendar quarter ending before the week for which the trigger determination is being made and all weeks preceding such last week which began on or after January 1, 1982, equals or exceeds 5.5 percent in the case of a 6-percent period (or, in the case of a 5-percent period, equals or exceeds 4.5 percent but is less than 5.5 percent).
Subclause (II) shall not apply in the case of a 4-percent period or low-unemployment period.
“(ii) In the case of a 6-percent period, 5-percent period, 4-percent period, or low-unemployment period, as the case may be, the applicable trigger is off for any week if subclause (I) of clause (i) is not satisfied (or in the case of a 6-percent period or a 5-percent period, both subclauses (I) and (II) of clause (i) are not satisfied).
“(iii) In the case of any 5-percent period, 4-percent period, or low-unemployment period, as the case may be, notwithstanding clauses (i) and (ii), the applicable trigger shall be off for any week if the applicable trigger for a period with a higher applicable limit is on for such week.
“(C) For purposes of this paragraph, the applicable range is as follows:
In the case of a: The applicable range is:
6-percent period........A rate equal to or exceeding 6 percent.
5-percent period........A rate equal to or exceeding 5 percent but less than 6 percent.
4-percent period........A rate equal to or exceeding 4 percent but less than 5 percent.
low-unemployment period.......A rate less than 4 percent.
“(D)(i) No 6-percent period, 5-percent period, 4-percent period, or low-unemployment period, as the case may be, which is in effect for the first week beginning after October 18, 1983, or any week thereafter, shall last for a period of less than 13 weeks beginning after October 18, 1983.
“(ii) The applicable limit in any State shall not be reduced or increased by more than 2 during any 13-week period beginning with the week for which such a reduction (or increase) would otherwise take effect. The preceding sentence shall not apply to any increase (or decrease) which takes effect for the first week beginning after October 18, 1983.
“(E) For purposes of this subsection--
“(i) The rate of insured unemployment for any period shall be determined in the same manner as determined for purposes of section 203 of the Federal-State Extended Unemployment Compensation Act of 1970 [section 203 of Pub. L. 91-373, set out below]; except that, for purposes of determining the rate of insured unemployment for the period described in subparagraph (B)(i)(II), the rate of insured unemployment shall be determined by reference to the average monthly covered employment under the State law for so much of such period as does not fall in the last 6 months thereof.
“(ii) The amount of an individual's average weekly benefit amount shall be determined in the same manner as determined for purposes of section 202(b)(1)(C) of such Act [section 202(b)(1)(C) of Pub. L. 91-373, set out below].
“(4) The amount of Federal supplemental compensation payable to an eligible individual shall not exceed the amount in such individual's account established under this subsection.
“(5)(A) Except as provided in subparagraph (B), the maximum amount of Federal supplemental compensation payable to an individual shall not be reduced by reason of any trade readjustment allowance to which the individual was entitled under the Trade Act of 1974.
“(B) If an individual received any trade readjustment allowance under the Trade Act of 1974 [19 U.S.C. 2101 et seq.] in respect of any benefit year, the maximum amount of Federal supplemental compensation payable under this subtitle in respect of such benefit year shall be reduced (but not below zero) so that (to the extent possible by making such a reduction) the aggregate amount of--
“(i) regular compensation,
“(ii) extended compensation,
“(iii) trade readjustment allowances, and
“(iv) Federal supplemental compensation, payable in respect of such benefit year does not exceed the aggregate amount which would have been so payable had the individual not been entitled to any trade readjustment allowance.
“(f)(1) No Federal supplemental compensation shall be payable to any individual under an agreement entered into under this subtitle for any week beginning before whichever of the following is the later:
“(A) the week following the week in which such agreement is entered into; or
“(B) September 12, 1982.
“(2)(A) Except as provided in subparagraph (B), no Federal supplemental compensation shall be payable to any individual under an agreement entered into under this subtitle for any week beginning after March 31, 1985.
“(B) In the case of any individual who is receiving Federal supplemental compensation for the week which includes March 31, 1985, such compensation shall continue to be payable to such individual in accordance with subsection (e) for any week thereafter, in a period of consecutive weeks for each of which he meets the eligibility requirements of this Act.
“(g) The payment of Federal supplemental compensation shall not be denied to any recipient (who submits documentation prescribed by the Secretary) for any week because the recipient is in training or attending an accredited educational institution on a substantially full-time basis, or because of the application of State law to any such recipient relating to the availability for work, the active search for work, or the refusal to accept work on account of such training or attendance, unless the State agency determines that such training or attendance will not improve the opportunities for employment of the recipient.
“Payments to states having agreements for the payment of federal supplemental compensation
“Sec. 603. (a) There shall be paid to each State which has entered into an agreement under this subtitle an amount equal to 100 per centum of the Federal supplemental compensation paid to individuals by the State pursuant to such agreement.
“(b) No payment shall be made to any State under this section in respect of compensation to the extent the State is entitled to reimbursement in respect of such compensation under the provisions of any Federal law other than this subtitle or chapter 85 of title 5 of the United States Code. A State shall not be entitled to any reimbursement under such chapter 85 in respect of any compensation to the extent the State is entitled to reimbursement under this subtitle in respect of such compensation.
“(c) Sums payable to any State by reason of such State's having an agreement under this subtitle shall be payable, either in advance or by way of reimbursement (as may be determined by the Secretary), in such amounts as the Secretary estimates the State will be entitled to receive under this subtitle for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made on the basis of such statistical sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved.
“Financing provisions
“Sec. 604. (a)(1) Funds in the extended unemployment compensation account (as established by section 905 of the Social Security Act) [42 U.S.C. 1105] of the Unemployment Trust Fund shall be used for the making of payments to States having agreements entered into under this subtitle.
“(2) The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this subtitle. The Secretary of the Treasury, prior to audit or settlement by the General Accounting Office, shall make payments to the State in accordance with such certification, by transfers from the extended unemployment compensation account (as established by section 905 of the Social Security Act) [42 U.S.C. 1105] to the account of such State in the Unemployment Trust Fund.
“(b) There are hereby authorized to be appropriated, without fiscal year limitation, to the extended unemployment compensation account, such sums as may be necessary to carry out the purposes of this subtitle. Amounts appropriated pursuant to the preceding sentence shall not be required to be repaid.
“(c) There are hereby authorized to be appropriated from the general fund of the Treasury, without fiscal year limitation, such funds as may be necessary for purposes of assisting States (as provided in title III of the Social Security Act) [42 U.S.C. 501 et seq.] in meeting the costs of administration of agreements under this subtitle.
“Definitions
“Sec. 605. For purposes of this subtitle--
“(1) the terms ‘compensation’, ‘regular compensation’, ‘extended compensation’, ‘base period’, ‘benefit year’, ‘State’, ‘State agency’, ‘State law’, and ‘week’ shall have the meanings assigned to them under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 [section 205 of Pub. L. 91-373, set out below]; and
“(2) the term ‘period of eligibility’ means, with respect to any individual, any week which begins on or after September 12, 1982, and begins before April 1, 1985 (except as otherwise provided in section 602(f)(2)(B)); except that an individual shall not have a period of eligibility unless--
“(A) his benefit year ends on or after June 1, 1982, or
“(B) such individual was entitled to extended compensation for a week which begins on or after June 1, 1982.
“Fraud and overpayments
“Sec. 606. (a)(1) If an individual knowingly has made, or caused to be made by another, a false statement or representation of a material fact, or knowingly has failed, or caused another to fail, to disclose a material fact, and as a result of such false statement or representation or of such nondisclosure such individual has received an amount of Federal supplemental compensation under this subtitle to which he was not entitled, such individual--
“(A) shall be ineligible for further Federal supplemental compensation under this subtitle in accordance with the provisions of the applicable State unemployment compensation law relating to fraud in connection with a claim for unemployment compensation; and
“(B) shall be subject to prosecution under section 1001 of title 18, United States Code.
“(2)(A) In the case of individuals who have received amounts of Federal supplemental compensation under this subtitle to which they were not entitled, the State is authorized to require such individuals to repay the amounts of such Federal supplemental compensation to the State agency, except that the State agency may waive such repayment if it determines that--
“(i) the payment of such Federal Supplemental compensation was without fault on the part of any such individual, and
“(ii) such repayment would be contrary to equity and good conscience.
“(B) The State agency may recover the amount to be repaid, or any part thereof, by deductions from any Federal supplemental compensation payable to such individual under this subtitle or from any unemployment compensation payable to such individual under any Federal unemployment compensation law administered by the State agency or under any other Federal law administered by the State agency which provides for the payment of any assistance or allowance with respect to any week of unemployment, during the three-year period after the date such individuals received the payment of the Federal supplemental compensation to which they were not entitled, except that no single deduction may exceed 50 per centum of the weekly benefit amount from which such deduction is made.
“(C) No repayment shall be required, and no deduction shall be made, until a determination has been made, notice thereof and an opportunity for a fair hearing has been given to the individual, and the determination has become final.
“(3) Any determination by a State agency under paragraph (1) or (2) shall be subject to review in the same manner and to the same extent as determinations under the State unemployment compensation law, and only in that manner and to that extent.”
[Pub. L. 98-135, 1, 97 Stat. 857, provided that: “This Act [amending section 3306 of this title and sections 1323 and 1397b of Title 42, The Public Health and Welfare, enacting provisions set out as notes under sections 3304 and 3306 of this title and section 1323 of Title 42, and amending provisions set out as notes under this section] may be cited as the ‘Federal Supplemental Compensation Amendments of 1983’."]
[Section 103 of title I of Pub. L. 98-135 provided that:
["(a) General Rule.--The amendments made by this title [amending sections 602(d)(3), (e)(2), (3), (f)(2) and 605(2) of Pub. L. 97-248, set out above] shall apply to weeks beginning after October 18, 1983.
["(b) Transitional Rule.--In the case of any eligible individual who exhausted his rights to Federal supplemental compensation (by reason of the payment of all of the amount in his Federal supplemental compensation account) before the first week beginning after October 18, 1983, such individual's eligibility for additional weeks of compensation by reason of the amendments made by this title [amending sections 602(d)(3), (e)(2), (3), (f)(2) and 605(2) of Pub. L. 97-248, set out above] shall not be limited or terminated by reason of any event, or failure to meet any requirement of law relating to eligibility for unemployment compensation, occurring after the date of such exhaustion of rights and before the beginning of the first week beginning after October 18, 1983 (and the period after such exhaustion and before the beginning of such first week shall not be counted for purposes of determining the expiration of the two years following the end of his benefit year for purposes of section 602(b) of the Federal Supplemental Compensation Act of 1982 [section 602(b) of Pub. L. 97-248, set out above]).
["(c) Modification of Agreements.--The Secretary of Labor shall, at the earliest practicable date, after the date of the enactment of this Act [Oct. 24, 1983], propose to each State with which he has in effect an agreement under section 602 of the Federal Supplemental Compensation Act of 1982 [section 602 of Pub. L. 97-248, set out above] a modification of such agreement designed to provide for the payment of Federal supplemental compensation under such Act in accordance with the amendments made by this title [amending sections 602(d)(3), (e)(2), (3), (f)(2) and 605(2) of Pub. L. 97-248, set out above]. Notwithstanding any other provision of law, if any State fails or refuses within the three-week period beginning on the date the Secretary of Labor proposes such modification to such State, to enter into such modification of such agreement, the Secretary of Labor shall terminate such agreement effective with the end of the last week which ends on or before the close of such three-week period.
["(d) New Periods Begin With First Week After October 18, 1983.--For purposes of determining whether any 6-percent period, 5-percent period, 4-percent period, or low-unemployment period is in effect during weeks beginning after October 18, 1983, the amendments made by this title [amending sections 602(d)(3), (e)(2), (3), (f)(2) and 605(2) of Pub. L. 97-248, set out above] shall be treated as in effect during all periods before the first week beginning after October 18, 1983."]
[Section 1(b)-(d) of Pub. L. 98-92 provided that:
["(b) The amendment made by subsection (a) [amending section 602(e)(2) of Pub. L. 97-248, set out above] shall apply to weeks beginning after July 24, 1983.
["(c)(1) In the case of an account established before the week beginning June 5, 1983, the applicable limit under section 602(e)(2)(A)(ii) of the Federal Supplemental Compensation Act of 1982 [section 602(e)(2)(A)(ii) of Pub. L. 97-248, set out above] shall in no event be less than the number of weeks applicable to such State for the week beginning March 27, 1983, under section 602(e)(2) of such Act (as in effect for such week) reduced by four.
["(2) Paragraph (1) shall apply only to compensation for weeks of unemployment beginning on or after the date of the enactment of this Act [Sept. 2, 1983].
["(d) In the case of any eligible individual who (without regard to the amendment made by subsection (a) [amending section 602(e)(2) of Pub. L. 97-248, set out above] or the provisions of subsection (c)) exhausted his rights to Federal supplemental compensation (by reason of the payment of all of the amount in his Federal supplemental compensation account) before the first week beginning after the date of the enactment of this Act [Sept. 2, 1983], such individual's eligibility for additional compensation by reason of the amendment made by subsection (a) or the provisions of subsection (c) for any week of unemployment shall not be limited or terminated by reason of any event, or failure to meet any requirement of law relating to eligibility for unemployment compensation, occurring after the date of such exhaustion of rights and before the beginning of the first week beginning after the date of the enactment of this Act."]
[Section 544(b) of Pub. L. 97-424 provided that: “The amendments made by subsection (a) [enacting section 602(e)(2)(B)-(F), (3) and amending section 602(e)(2)(A) of Pub. L. 97-248, set out above] shall apply to Federal supplemental compensation payable for weeks beginning on or after the date of the enactment of this Act [Jan. 6, 1983]. In the case of any eligible individual to whom any Federal supplemental compensation was payable for any week beginning prior to such date of enactment and who exhausted his rights to such compensation (by reason of the payment of all the amount in his Federal supplemental compensation account) prior to the first week beginning on or after such date of enactment, such individual's eligibility for additional weeks of compensation by reason of the amendments made by this section shall not be limited or terminated by reason of any event, or failure to meet any requirement of law relating to eligibility for unemployment compensation, occurring after the date of such exhaustion of rights and prior to the date of the enactment of this Act [Jan. 6, 1983] (and such weeks shall not be counted for purposes of determining the expiration of the two years following the end of his benefit year for purposes of section 602(b) of the Tax Equity and Fiscal Responsibility Act of 1982) [Pub. L. 97-248]."]
[Pub. L. 97-448, title III, 310(b), Jan. 12, 1983, 96 Stat. 2411, provided that: “The amendment made by subsection (a) [enacting section 602(d)(3) of Pub. L. 97-248, set out above] shall be effective as if it had been originally included in section 602 of the Tax Equity and Fiscal Responsibility Act of 1982 [section 602 of Pub. L. 97-248, set out above]."]
[Section 503 of part A (501-505) of title V of Pub. L. 98-21 provided that:
["(a) The amendments made by this part [enacting section 602(e)(2), (3), (5), (g) and amending sections 602(d)(3), (e)(4), (f)(2) and 605(2) of Pub. L. 97-248, set out above] shall apply to weeks beginning after March 31, 1983.
["(b) In the case of any eligible individual--
["(1) to whom any Federal supplemental compensation was payable for any week beginning before April 1, 1983, and
["(2) who exhausted his rights to such compensation (by reason of the payment of all the amount in his Federal supplemental compensation account) before the first week beginning after March 31, 1983, such individual's eligibility for additional weeks of compensation by reason of the amendments made by this part shall not be limited or terminated by reason of any event, or failure to meet any requirement of law relating to eligibility for unemployment compensation, occurring after the date of such exhaustion of rights and before April 1, 1983 (and the period after such exhaustion and before April 1, 1983, shall not be counted for purposes of determining the expiration of the two years following the end of his benefit year for purposes of section 602(b) of the Federal Supplemental Compensation Act of 1982 [section 602(b) of Pub. L. 97-248, set out above]).
["(c) The Secretary of Labor shall, at the earliest practicable date after the date of the enactment of this Act [Apr. 20, 1983], propose to each State with which he has in effect an agreement under section 602 of the Federal Supplemental Compensation Act of 1982 [section 602 of Pub. L. 97-248, set out above] a modification of such agreement designed to provide for the payment of Federal supplemental compensation under such Act [subtitle A of title VI of Pub. L. 97-248, set out above] in accordance with the amendments made by this part. Notwithstanding any other provision of law, if any State fails or refuses, within the 3-week period beginning on the date the Secretary of Labor proposed such a modification to such State, to enter into such a modification of such agreement, the Secretary of Labor shall terminate such agreement effective with the end of the last week which ends on or before such 3-week period."]
MODIFICATION OF AGREEMENTS UNDER FEDERAL SUPPLEMENTAL COMPENSATION ACT OF 1982
Pub. L. 99-15, 1(c), Apr. 4, 1985, 99 Stat. 37, provided that: “The Secretary of Labor shall, at the earliest practicable date after the date of the enactment of this Act [Apr. 4, 1985], propose to each State with which he has in effect an agreement under section 602 of the Federal Supplemental Compensation Act of 1982 [section 602 of Pub. L. 97-248, set out above] a modification of such agreement designed to provide for the payment of Federal supplemental compensation under such Act [subtitle A of title VI of Pub. L. 97-248, set out above] in accordance with the amendments made by this Act [amending the Federal Supplemental Compensation Act of 1982]. Notwithstanding any other provision of law, if any State fails or refuses within the three-week period beginning on the date the Secretary of Labor proposes such modification to such State, to enter into such modification of such agreement, the Secretary of Labor shall terminate such agreement effective with the end of the last week which ends on or before the close of such three-week period. Pending modification (or termination) of the agreement, States may pay Federal supplemental compensation in accordance with the amendments made by this Act for weeks beginning after March 31, 1985, and shall be reimbursed in accordance with the provisions of the Federal Supplemental Compensation Act of 1982.”
APPLICATION OF FEDERAL SUPPLEMENTAL COMPENSATION ACT OF 1982 WITH RESPECT TO WEEKS BEGINNING AFTER MARCH 31, 1983
Pub. L. 98-13, Mar. 29, 1983, 97 Stat. 54, provided: “That, with respect to weeks beginning after March 31, 1983, the Federal Supplemental Compensation Act of 1982 [subtitle A of title VI of Pub. L. 97-248, set out above] shall be applied as if the provisions contained in part A of title V of the conference report [H. Rept. No. 98-47] on the bill H.R. 1900 [part A (501-505) of title V of Pub. L. 98-21, Apr. 20, 1983, 97 Stat. 141-144, amending subtitle A of title VI of Pub. L. 97-248, set out above] were enacted into law on the date of the enactment of this Act [Mar. 29, 1983].”
TERMINATION OF FEDERAL—STATE SUPPLEMENTAL UNEMPLOYMENT COMPENSATION AGREEMENTS WITH STATES FAILING TO RENEGOTIATE
Pub. L. 97-424, title V, 544(c), Jan. 6, 1983, 96 Stat. 2197, provided that: “The Secretary of Labor shall, at the earliest practicable date after the date of the enactment of this Act [Jan. 6, 1983], propose to each State with which he has in effect an agreement under section 602 of the Tax Equity and Fiscal Responsibility Act of 1982 [section 602 of Pub. L. 97-248, set out above] a modification of such agreement designed to provide for the payment of Federal supplemental compensation under such Act [sections 601 to 606 of Pub. L. 97-248, set out above] in accordance with the amendments made by this Act [amending section 602(e) of Pub. L. 97-248, set out above]. Notwithstanding any other provision of law, if any State fails or refuses, within the three-week period beginning on the date the Secretary of Labor proposes such a modification to such State, to enter into such a modification of such agreement, the Secretary of Labor shall terminate such agreement effective with the end of the last week which ends on or before such three-week period.”
CERTIFICATION OF STATE UNEMPLOYMENT LAWS; EFFECTIVE DATES
Section 2408(b) of Pub. L. 97-35, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(1) Except as otherwise provided in paragraph (2)--
“(A) The amendments made by sections 2401 and 2402 [amending Pub. L. 91-373, set out below] shall be required to be included in State unemployment compensation laws for purposes of certifications under section 3304(c) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] on October 31 of any taxable year after 1980; and
“(B) the amendments made by sections 2403 and 2404 [amending Pub. L. 91-373, set out below] shall be required to be included in such laws for purposes of such certifications on October 31 of any taxable year after 1981.
“(2)(A) In the case of any State the legislature of which--
“(i) does not meet in a session which begins after the date of the enactment of this Act [Aug. 13, 1981] and prior to September 1, 1981, and
“(ii) if in session on the date of the enactment of this Act, does not remain in session for a period of at least 25 calendar days, the date ‘1980’ in paragraph (1)(A) shall be deemed to be ‘1981’.
“(B) In the case of any State the legislature of which--
“(i) does not meet in a session which begins after the date of the enactment of this Act [Aug. 13, 1981] and prior to September 1, 1982, and
“(ii) if in session on the date of the enactment of this Act, does not remain in session for a period of at least 25 calendar days, the date ‘1981’ in paragraph (1)(B) shall be deemed to be ‘1982’.”
Pub. L. 96-499, title X, 1025, Dec. 5, 1980, 94 Stat. 2660, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “On October 31 of any taxable year after 1980, the Secretary of Labor shall not certify any State, as provided in section 3304(c) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], which, after reasonable notice and opportunity for a hearing to the State agency, the Secretary of Labor finds has failed to amend its law so that it contains each of the provisions required by reason of the enactment of the preceding provisions of this subtitle [subtitle C of title X of Pub. L. 96-499, Dec. 5, 1980, 94 Stat. 2656, which enacted section 8509 of Title 5, Government Organization and Employees, and section 1109 of Title 42, The Public Health and Welfare, enacted provisions set out as notes under this section and section 8509 of Title 5, and amended provisions set out as notes under this section] to be included therein, or has with respect to the 12-month period ending on such October 31, failed to comply substantially with any such provision.”
TRANSFER OF FUNDS TO FEDERAL UNEMPLOYMENT TRUST FUND AS PREREQUISITE TO APPROVAL OF VIRGIN ISLANDS UNEMPLOYMENT COMPENSATION LAW
Section 116(g) of Pub. L. 94-566, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The Secretary of Labor shall not approve an unemployment compensation law of the Virgin Islands under section 3304(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] until the Governor of the Virgin Islands has approved the transfer to the Federal Unemployment Trust Fund established by section 904 of the Social Security Act [42 U.S.C. 1104] of an amount equal to the dollar balance credited to the unemployment subfund of the Virgin Islands established under section 310 of title 24 of the Virgin Islands Code.”
FEDERAL REIMBURSEMENT FOR BENEFITS PAID TO NEWLY COVERED WORKERS DURING TRANSITION PERIOD
Section 121 of Pub. L. 94-566, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(a) General Rule.--If any State, the unemployment compensation law of which is approved by the Secretary under section 3304(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], provides for the payment of compensation for any week of unemployment beginning on or after January 1, 1978, on the basis of previously uncovered services, the Secretary shall pay to the unemployment fund of such State an amount equal to the Federal reimbursement for any compensation paid for a week of unemployment beginning on or after January 1, 1978, to any individual whose base period wages include wages for previously uncovered services.
“(b) Previously Uncovered Services.--For purposes of this section, the term ‘previously uncovered services’ means, with respect to any State, services--
“(1) which were not covered by the State unemployment compensation law, at any time, during the 1-year period ending December 31, 1975; and
“(2) which--
“(A) are agricultural labor (as defined in section 3306(k) of the Internal Revenue Code of 1986) or domestic services referred to in section 3306(c)(2) of such Code (as in effect on the day before the date of the enactment of this Act) [Oct. 20, 1976] and are treated as employment (as defined in section 3306(c) of such Code) by reason of the amendments made by this Act [see Short Title of 1976 Amendment note set out under section 3311 of this title], or
“(B) are services to which section 3309(a)(1) of such Code applies by reason of the amendments made by this Act.
“(c) Federal Reimbursement.--
“(1) In general.--For purposes of this section, the Federal reimbursement for compensation paid to any individual for any week of unemployment shall be an amount which bears the same ratio to the amount of such compensation as the amount of the individual's base period wages which are attributable to previously uncovered services which are reimbursable bears to the total amount of the individual's base period wages.
“(2) Reimbursable services.--For purposes of determining the amount of the Federal reimbursement for compensation paid to any individual for any week of unemployment, previously uncovered services shall be treated as being reimbursable--
“(A) if such services were performed--
“(i) before July 1, 1978, in the case of a week of unemployment beginning before July 1, 1978; or
“(ii) before January 1, 1978, in the case of a week of unemployment beginning after July 1, 1978; and
“(B) to the extent that assistance under title II of the Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, set out below] was not paid to such individual on the basis of such services.
“(3) Denial of payment.--No payment may be made under subsection (a) to any State in respect of any compensation for which the State is entitled to any reimbursement under the provisions of any Federal law other than this Act [see Short Title of 1976 Amendment note set out under section 3311 of this title] or the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, set out below].
“(d) Experience Rating of Certain Employers.--The unemployment compensation law of any State may, without being deemed to violate the standards set forth in section 3303(a) of the Internal Revenue Code of 1986, provide that the experience-rating account of any employer shall not be charged for the compensation paid to any individual whose base period wages includes wages for previously uncovered services which are reimbursable under subsection (c)(2) to the extent that such individual would not have been eligible to receive such compensation had the State law not provided for the payment of compensation on the basis of such previously uncovered services.
“(e) Certain Nonprofit Employers.--The unemployment compensation law of any State may provide that any organization which elects to make payments (in lieu of contributions) into the State unemployment compensation fund as provided in section 3309(a)(2) of the Internal Revenue Code of 1986 shall not be liable to make such payments with respect to the compensation paid to any individual whose base period wages includes wages for previously uncovered services which are reimbursable under subsection (c)(2) to the extent that such individual would not have been eligible to receive such compensation had the State not provided for the payment of compensation on the basis of such previously uncovered services.
“(f) Payments Made Monthly.--Payments under subsection (a) shall be made monthly, prior to audit or settlement by the General Accounting Office, on the basis of estimates by the Secretary of the amount payable to such State for such month, reduced or increased, as the case may be, by any amount by which the Secretary finds that his estimates for any prior month were greater or less than the amounts which should have been paid to such State. Such estimates may be made on the basis of such statistical, sampling, or other methods as may be agreed upon by the Secretary and the State.
“(g) Definitions.--For purposes of this section--
“(1) State.--The term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.
“(2) Secretary.--The term ‘Secretary’ means the Secretary of Labor.
“(3) Benefit year.--The term ‘benefit year’ means the benefit year as defined in the applicable State unemployment compensation law.
“(4) Base period.--The term ‘base period’ means the base period as defined by the applicable State unemployment compensation law for the benefit year.
“(5) Unemployment fund.--The term ‘unemployment fund’ has the meaning given to such term by section 3306(f) of the Internal Revenue Code of 1986.
“(h) Authorization of Appropriations.--There are authorized to be appropriated from the general fund of the Treasury such sums as may be necessary to carry out the purposes of this section.”
EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974
Pub. L. 93-572, 101-105, Dec. 31, 1974, 88 Stat. 1869-1872, as amended by Pub. L. 94-12, title VII, 701(a), Mar. 29, 1975, 89 Stat. 65; Pub. L. 94-45, title I, 101(a)-(f), 102(a), 103(a), 106, June 30, 1975, 89 Stat. 236-239; Pub. L. 94-566, title I, 116(d)(3), Oct. 20, 1976, 90 Stat. 2672; Pub. L. 95-19, title I, 101(a), 102(a)-(c), 103(a), 104(a), 105(a), 107(a), Apr. 12, 1977, 91 Stat. 39-42; Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“Sec. 101. [Short title]. This Act [enacting this note and amending Pub. L. 91-373, title II, set out below] may be cited as the ‘Emergency Unemployment Compensation Act of 1974’.
“Sec. 102. [Federal-State agreements]. (a) [State law requirements; termination of agreement]. Any State, the State unemployment compensation law of which is approved by the Secretary of Labor (hereinafter in this Act referred to as the ‘Secretary’) under section 3304 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] which desires to do so, may enter into and participate in an agreement with the Secretary under this Act, if such State law contains (as of the date such agreement is entered into) a requirement that extended compensation be payable thereunder as provided by the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, set out below]. Any State which is a party to an agreement under this Act may, upon providing thirty days' written notice to the Secretary, terminate such agreement.
“(b) [Emergency compensation]. Any such agreement shall provide that the State agency of the State will make payments of emergency compensation--
“(1) to individuals who--
“(A)(i) have exhausted all rights to regular compensation under the State law;
“(ii) have exhausted all rights to extended compensation, or are not entitled thereto, because of the ending of their eligibility period for extended compensation, in such State;
“(B) have no rights to compensation (including both regular compensation and extended compensation) with respect to a week under such law or any other State unemployment compensation law or to compensation under any other Federal law; and
“(C) are not receiving compensation with respect to such week under the unemployment compensation law of Canada,
“(2) for any week of unemployment which--
“(A) begins in--
“(i) an emergency benefit period (as defined in subsection (c)(3)), and
“(ii) the individual's period of eligibility (as defined in section 105(a)(2)); or
“(B) begins in an individual's additional eligibility period (as defined in section 105(a)(4));except that no payment of emergency compensation shall be made to any individual for any week of unemployment which begins more than two years after the end of the benefit year for which he exhausted his rights to regular compensation.
“(c) [Regular and extended compensation rights, exhaustion; emergency benefit period; publication in Federal Register; State ‘emergency on’ and ‘emergency off’ indicators.] (1) For purposes of subsection (b)(1)(A), an individual shall be deemed to have exhausted his rights to regular compensation under a State law when--
“(A) no payments of regular compensation can be made under such law because such individual has received all regular compensation available to him based on employment or wages during his base period; or
“(B) his rights to such compensation have been terminated by reason of the expiration of the benefit year with respect to which such rights existed.
“(2) For purposes of subsection (b)(1)(B), an individual shall be deemed to have exhausted his rights to extend compensation under a State law when no payments of extended compensation under a State law can be made under such law because such individual has received all the extended compensation available to him from his extended compensation account (as established under State law in accordance with section 202(b)(1) of the Federal-State Extended Unemployment Compensation Act of 1970) [Pub. L. 91-373, title II, 202(b)(1), set out below]).
“(3)(A)(i) For purposes of subsection (b)(2)(A), in the case of any State, an emergency benefit period--
“(I) shall begin with the third week after a week for which there is a State ‘emergency on’ indicator; and
“(II) shall end with the third week after the first week for which there is a State ‘emergency off’ indicator.
“(ii) In the case of any State, no emergency benefit period shall last for a period of less than 13 consecutive weeks, and no emergency benefit period which began prior to January 1, 1976, shall end prior to such date.
“(iii) When a determination has been made that an emergency benefit period is beginning or ending with respect to any State, the Secretary shall cause notice of such determination to be published in the Federal Register.
“(B)(i) For purposes of subparagraph (A), there is a State ‘emergency on’ indicator for a week if (I) there is a State or National ‘on’ indicator for such week (as determined under subsections (d) and (e) of section 203 of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 203(d), (e), set out below]), and (II) the rate of insured unemployment in such State for the period consisting of such week and the immediately preceding twelve weeks equaled or exceeded 5 per centum.
“(ii) For purposes of subparagraph (A), there is a State ‘emergency off’ indicator for a week if the rate of insured unemployment in such State for the period consisting of such week and the immediately preceding twelve weeks is less than 5 per centum.
“(d) [Amount of emergency compensation; terms and conditions of State law for regular compensation] For purposes of any agreement under this Act--
“(1) the amount of the emergency compensation which shall be payable to any individual for any week of total unemployment shall be equal to the amount of the regular compensation (including dependents' allowances) payable to him during his benefit year under the State law; and
“(2) the terms and conditions of the State law which apply to claims for regular compensation and to the payment thereof shall (except where inconsistent with the provisions of this Act or regulations of the Secretary promulgated to carry out this Act) apply to claims for emergency compensation and the payment thereof.
“(e) [Emergency compensation account] (1) Any agreement under this Act with a State shall provide that the State will establish, for each eligible individual who files an application for emergency compensation, an emergency compensation account.
“(2) The amount established in such account for any individual shall be equal to the lesser of--
“(A) 50 per centum of the total amount of regular compensation (including dependents' allowances) payable to him with respect to the benefit year (as determined under the State law) on the basis of which he most recently received regular compensation; or
“(B) 13 times his average weekly benefit amount (as determined for purposes of section 202(b)(1)(C) of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 202(b)(1)(C), set out below]) for his benefit year.
“(3) The amount determined under paragraph (2) with respect to any individual shall be reduced by the amount of any assistance paid to such individual under title II of the Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, set out below], for any weeks of unemployment in the 65-week period preceding the first week of unemployment with respect to which compensation is payable to such individual under this Act.
“(f) [Effective dates] (1) No emergency compensation shall be payable to any individual under an agreement entered into under this Act for any week beginning before whichever of the following is the latest:
“(A) the first week which begins after December 31, 1974,
“(B) the week following the week in which such agreement is entered into, or
“(C) the first week which begins after the date of the enactment of this Act [Dec. 31, 1974].
“(2) No emergency compensation shall be payable to any individual under an agreement entered into under this Act--
“(A) for any week ending after October 31, 1977, or
“(B) in the case of an individual who (for a week ending after the beginning of his most recent benefit year and before October 31, 1977) had a week with respect to which emergency compensation was payable under such agreement, for any week ending after January 31, 1978.
“(g) [Individuals not participating in approved training programs] Notwithstanding the preceding provisions of this section emergency compensation shall not be payable for any week to an individual who is not a participant in a training program which is approved by the Secretary if--
“(1) the State determines that there is a need for upgrading or broadening such individual's occupational skills and a program which is approved by the Secretary for such upgrading or broadening is available within a reasonable distance and without charge to the individual for tuition or fees, and
“(2) such individual is not an applicant to participate in such a program.
“(h) [Denial of emergency compensation to individuals who refuse offers of suitable work or who are not actively seeking work]. (1) In addition to any eligibility requirement of the applicable State law, emergency compensation shall not be payable for any week to any individual otherwise eligible to receive such compensation if during such week such individual--
“(A) fails to accept any offer of suitable work or to apply for any suitable work to which he was referred by the State agency, or
“(B) fails to actively engage in seeking work.
“(2) If any individual is ineligible for emergency compensation for any week by reason of a failure described in subparagraph (A) or (B) of paragraph (1), the individual shall be ineligible to receive emergency compensation for any week which begins during a period which--
“(A) begins with the week following the week in which such failure occurs, and
“(B) does not end until such individual has been employed during at least 4 weeks which begin after such failure and the total of the remuneration earned by the individual for being so employed is not less than the product of 4 multiplied by the individual's average weekly benefit amount (as determined for purposes of section 202(b)(1)(C) of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 202(b)(1)(C), set out below]) for his benefit year.
“(3) Emergency compensation shall not be denied under paragraph (1) to any individual for any week by reason of a failure to accept an offer of, or apply for, suitable work--
“(A) if the gross average weekly remuneration payable to such individual for the position does not exceed the sum of--
“(i) the individual's average weekly benefit amount (as determined for purposes of section 202(b)(1)(C) of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 202(b)(1)(C), set out below]) for his benefit year, plus
“(ii) the amount (if any) of supplemental unemployment compensation benefits (as defined in section 501(c)(17)(D) of the Internal Revenue Code of 1986) payable to such individual for such week;
“(B) if the position was not offered to such individual in writing and was not listed with the State employment service;
“(C) if such failure would not result in a denial of compensation under the provisions of the applicable State law to the extent that such provisions are not inconsistent with the provisions of paragraph (4); or
“(D) if the position pays wages less than the higher of--
“(i) the minimum wage provided by section 6(a)(1) of the Fair Labor Standards Act of 1938 [29 U.S.C. 206(a)(1)], without regard to any exemption; or
“(ii) any applicable State or local minimum wage.
“(4) For purposes of this subsection--
“(A) The term ‘suitable work’ means, with respect to any individual, any work which is within such individual's capabilities; except that, if the individual furnishes evidence satisfactory to the State agency that such individual's prospects for obtaining work in his customary occupation within a reasonably short period are good, the determination of whether any work is suitable work with respect to such individual shall be made in accordance with the applicable State law.
“(B) An individual shall be treated as actively engaged in seeking work during any week if--
“(i) the individual has engaged in a systematic and sustained effort to obtain work during such week, and
“(ii) the individual provides tangible evidence to the State agency that he has engaged in such an effort during such week.
“(5) Any agreement under subsection (a) shall provide that, in the administration of this Act, States shall make provision for referring applicants for benefits under this Act to any suitable work to which subparagraphs (A), (B), (C), and (D) of paragraph (3) would not apply.
“Sec. 103. [Payments to States having agreements for the payment of emergency compensation]. (a) [Amount payable]. There shall be paid to each State which has entered into an agreement under this Act an amount equal to 100 per centum of the emergency compensation paid to individuals by the State pursuant to such agreement.
“(b) [Limitation] No payment shall be made to any State under this section in respect of compensation for which the State is entitled to reimbursement under the provisions of any Federal law other than this Act.
“(c) [Calendar month basis; advances, reimbursements, and adjustments; method for estimates] Sums payable to any State by reason of such State's having an agreement under this Act shall be payable, either in advance or by way of reimbursement (as may be determined by the Secretary), in such amounts as the Secretary estimates the State will be entitled to receive under this Act for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which would have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved.
“Sec. 104. [Financing provisions]. (a) [Use of extended unemployment compensation account funds; certification] (1) Funds in the extended unemployment compensation account (as established by section 905 of the Social Security Act) [42 U.S.C. 1105] of the Unemployment Trust Fund shall be used for the making of payments to States having agreements entered into under this Act.
“(2) The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this Act. The Secretary of the Treasury, prior to audit or settlement by the General Accounting Office, shall make payments to the State in accordance with such certification, by transfers from the extended unemployment compensation account (as established by section 905 of the Social Security Act) [42 U.S.C. 1105]) to the account of such State in the Unemployment Trust Fund.
“(b) [Authorization of appropriations; repayment of advances without interest]. There are hereby authorized to be appropriated, without fiscal year limitation, to the extended unemployment compensation account, such sums as may be necessary to carry out the purposes of this Act. Amounts appropriated and paid to the States under section 103 with respect to weeks of unemployment ending prior to April 1, 1977, shall be repaid, without interest, as provided in section 905(d) of the Social Security Act [42 U.S.C. 1105(d)].
“Sec. 105. (a) [Definitions]. For purposes of this Act--
“(1) the terms ‘compensation’, ‘regular compensation’, ‘extended compensation’, ‘base period’, ‘benefit year’, ‘State’, ‘State agency’, ‘State law’, and ‘week’ shall have the meanings assigned to them under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 205, set out below];
“(2) the term ‘period of eligibility’ means, in the case of any individual, the weeks in his benefit year which begin in an extended benefit period or an emergency benefit period and, if his benefit year ends within such extended benefit period, any weeks thereafter which begin in such extended benefit period or in such emergency benefit period;
“(3) the term ‘extended benefit period’ shall have the meaning assigned to such term under section 203 of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 203, set out below];
“(4) the term ‘additional eligibility period’ means the thirteen-week period following the week in which an emergency benefit period ends in a State, as determined under section 102(c)(3); but no individual shall have an additional eligibility period unless there was payable to him in such State, for the week in which such emergency benefit period ended, either emergency compensation under this Act or extended compensation under the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, set out below];
“(5) the term ‘rate of insured unemployment’ means the percentage arrived at by dividing the average weekly number of individuals filing claims for weeks of unemployment with respect to the specified period (as determined on the basis of the reports made by the State agency to the Secretary) by the average monthly covered employment for the specified period;
“(6) the rate of insured unemployment for any thirteen-week period shall be determined by reference to the average monthly covered employment under the State law for the first four of the most recent six calendar quarters ending before the close of such period; and
“(7) determinations with respect to the rate of insured unemployment in a State shall be made by the State agency in accordance with regulations prescribed by the Secretary.
For purposes of any State law which refers to an extension under Federal law of the duration of benefits under the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, set out below], this Act shall be treated as amendatory of such Act.
“(b) [Recovery of overpayments]. (1) If an individual knowingly has made, or caused to be made by another, a false statement or representation of a material fact, or knowingly has failed, or caused another to fail, to disclose a material fact, and as a result of such false statement or representation or of such nondisclosure such individual has received an amount of emergency compensation under this Act to which he was not entitled, such individual--
“(A) shall be ineligible for further emergency compensation under this Act in accordance with the provisions of the applicable State unemployment compensation law relating to fraud in connection with a claim for unemployment compensation; and
“(B) shall be subject to prosecution under section 1001 of title 18, United States Code.
“(2)(A) In the case of individuals who have received amounts of emergency compensation under this Act to which they were not entitled, the State is authorized to require such individuals to repay the amounts of such emergency compensation to the State agency, except that the State agency may waive such repayment if it determines that--
“(i) the payment of such emergency compensation was without fault on the part of any such individual, and
“(ii) such repayment would be contrary to equity and good conscience.
“(B) The State agency may recover the amount to be repaid, or any part thereof, by deductions from any emergency compensation payable to such individual under this Act or from any unemployment compensation payable to such individual under any Federal unemployment compensation law administered by the State agency or under any other Federal law administered by the State agency which provides for the payment of any assistance or allowance with respect to any week of unemployment, during the three-year period after the date such individuals received the payment of the emergency compensation to which they were not entitled, except that no single deduction may exceed 50 per centum of the weekly benefit amount from which such deduction is made.
“(C) No repayment shall be required, and no deduction shall be made, until a determination has been made, notice thereof and an opportunity for a fair hearing has been given to the individual, and the determination has become final.
“(3) Any determination by a State agency under paragraph (1) or (2) shall be subject to review in the same manner and to the same extent as determinations under the State unemployment compensation law, and only in that manner and to that extent.”
[Section 101(b) of Pub. L. 95-19 provided that: “The amendment made by subsection (a) [amending section 102(f)(2) of Pub. L. 93-572, set out above] shall apply to weeks of unemployment ending after March 31, 1977."]
[Section 102(d) of Pub. L. 95-19 provided that: “The amendments made by this section [amending sections 102(b)(2)(A)(ii), (B), (c)(3)(A)(ii), (e) and 105(a) of Pub. L. 93-572, set out above] shall apply to weeks of unemployment ending after April 30, 1977. For purposes of determining an individual's entitlement to emergency compensation for weeks ending after April 30, 1977, there shall be taken into account any emergency compensation paid to such individual for weeks which end after the beginning of the individual's most recent benefit year and before May 1, 1977."]
[Section 103(b) of Pub. L. 95-19 provided that: “The amendment made by subsection (a) [amending section 104(b) of Pub. L. 93-572, set out above] shall be effective on April 1, 1977."]
[Section 104(b) of Pub. L. 95-19 provided that: “The amendment made by subsection (a) [enacting section 102(h) of Pub. L. 93-572, set out above] shall apply to weeks of unemployment beginning after the date of the enactment of this Act [Apr. 12, 1977]."]
[Section 105(b) of Pub. L. 95-19 provided that: “The amendment made by subsection (a) [enacting section 105(b) of Pub. L. 93-572, set out above] shall take effect on the date of the enactment of this Act [Apr. 12, 1977]."]
[Section 107(b) of Pub. L. 95-19 provided that: “The amendment made by subsection (a) [amending section 102(b)(2) of Pub. L. 93-572, set out above] shall apply to weeks of unemployment ending after the date of enactment of this Act [Apr. 12, 1977]."]
[Section 116(f)(1) of Pub. L. 94-556, set out as an Effective Date of 1976 Amendment note above, provided in part that the deletion of “the Virgin Islands or” from section 102(b)(1)(C) of the Emergency Unemployment Compensation Act of 1974 shall take effect on the later of Oct. 1, 1976, or the day after the day on which the Secretary of Labor approves under section 3304(a) of this title an unemployment compensation law submitted to him by the Virgin Islands for approval.]
[Section 101(g) of Pub. L. 94-45 provided that: “The amendments made by subsections (a) through (e) of this section [enacting sections 102(c)(3)(B)(i)(II) and 105(4)-(8) and amending section 102(b)(2), (c)(3)(A)(ii), (c)(3)(B)(ii), (e) of Pub. L. 93-572, set out above] shall be effective with respect to weeks of compensation which begin on or after January 1, 1976."]
[Section 106 of Pub. L. 94-45 provided in part that the enactment of par. (4) of section 102(e) of Pub. L. 93-572, set out above, as that section 102(e) is in effect on June 29, 1975, is effective July 1, 1975.]
MODIFICATION OF AGREEMENTS WITH STATES TO REFLECT AMENDMENTS UNDER EMERGENCY UNEMPLOYMENT COMPENSATION EXTENSION ACT OF 1977
Section 106 of Pub. L. 95-19 provided that: “The Secretary of Labor shall, at the earliest practicable date after the date of the enactment of this Act [Apr. 12, 1977], propose to each State with which he has in effect an agreement under section 102 of the Emergency Compensation Act of 1974 [Pub. L. 93-572, set out above] a modification of such agreement designed to provide for the payment of emergency compensation under such Act in accordance with the amendments made by this title [enacting sections 102(h) and 105(b) of the Emergency Unemployment Compensation Act of 1974, amending sections 102(b)(2), (c)(3)(A)(ii), (e), (f)(2), 104(b), and 105(a) of that Act, and enacting provisions set out as notes under this section]. Notwithstanding any other provision of law, if any State fails or refuses, within the 3-week period beginning on the date the Secretary of Labor proposes such a modification of such State, to enter into such a modification of such agreement, the Secretary of Labor shall terminate such agreement effective with the end of the last week which ends on or before the last day of such 3-week period.”
MODIFICATION OF AGREEMENTS WITH STATES TO REFLECT AMENDMENTS UNDER UNEMPLOYMENT COMPENSATION AMENDMENTS OF 1976
Section 604 of Pub. L. 94-566 provided that: “ The Secretary of Labor shall, at the earliest practicable date after the date of the enactment of this Act [Oct. 20, 1976], propose to each State with which he has in effect an agreement under section 202 of the Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, 202, set out below] a modification of such agreement designed to provide for the payment of special unemployment assistance under such Act in accordance with the amendments made by sections 601, 602, and 603 of this title [set out as a Special Unemployment Assistance Programs note below]. Notwithstanding any other provision of law, if any State fails or refuses, within the three-week period beginning on the date the Secretary of Labor proposes such a modification to such State, to enter into such a modification of such agreement, the Secretary of Labor shall terminate such agreement effective with the end of the last week which ends on or before the last day of such three-week period.”
AGREEMENTS UNDER EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974 TO BE MODIFIED TO REFLECT AMENDMENT OF THE ACT BY EMERGENCY COMPENSATION AND SPECIAL UNEMPLOYMENT ASSISTANCE EXTENSION ACT OF 1975
Section 105 of Pub. L. 94-45, June 30, 1975, 89 Stat. 239, provided that: “The Secretary of Labor shall, at the earliest practicable date after the date of the enactment of this Act [June 30, 1975], propose to each State with which he has in effect an agreement under section 102 of the Emergency Unemployment Compensation Act of 1974 [Pub. L. 93-567, set out below] a modification of such agreement designed to provide for the payment of the emergency compensation benefits allowable under such Act by reason of the amendments made by this part. Notwithstanding any provision of the Emergency Unemployment Compensation Act of 1974, if any State fails or refuses, within the three-week period beginning on the date of the enactment of this Act, to enter into such a modification of such agreement, the Secretary of Labor shall terminate such agreement.”
AGREEMENTS UNDER EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1974 TO BE MODIFIED TO REFLECT AMENDMENT OF THE ACT BY TAX REDUCTION ACT OF 1975
Pub. L. 94-12, title VII, 701(b), Mar. 29, 1975, 89 Stat. 66, provided that: “The Secretary of Labor shall, at the earliest practicable date after the enactment of this Act [Mar. 29, 1975], propose to each State with which he has in effect an agreement entered into pursuant to section 102 of the Emergency Unemployment Compensation Act of 1974 [Pub. L. 93-572, set out above] a modification of such agreement designed to cause payments of emergency compensation thereunder to be made in the manner prescribed by such Act, as amended by subsection (a) of this section [amending section 102(e) of the Emergency Unemployment Compensation Act of 1974]. Notwithstanding any provision of the Emergency Unemployment Compensation Act of 1974, if any such State shall fail or refuse, within a reasonable time after the date of the enactment of this Act, to enter into such a modification of such agreement, the Secretary of Labor shall terminate such agreement.”
National Commission on Unemployment Compensation
Section 411 of Pub. L. 94-566, as amended by Pub. L. 95-19, title III, 303, Apr. 12, 1977, 91 Stat. 45; Pub. L. 96-84, 1(a), (b), 2, 3(a), Oct. 10, 1979, 93 Stat. 653, 654, related to establishment, membership, powers, duties, etc., of the National Commission on Unemployment Compensation, and required a final report not later than July 1, 1980, respecting findings, conclusions, and recommendations, with termination of the Commission on the ninetieth day after the date of submission of the final report to the President.
SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAMS
Pub. L. 93-567, title II, 201-224, Dec. 31, 1974, 88 Stat. 1850-1853, as amended by Pub. L. 94-45, title II, 201-203, June 30, 1975, 89 Stat. 240-242; Pub. L. 94-444, 6(a), (b), Oct. 1, 1976, 90 Stat. 1481; Pub. L. 94-566, title VI, 601(a), 602(a)-(d), 603(a), Oct. 20, 1976, 90 Stat. 2689-2691; Pub. L. 96-499, title X, 1021, Dec. 5, 1980, 94 Stat. 2656; Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“Part A--Special Unemployment Assistance
“Statement of purpose
“Sec. 201. It is the purpose of this part to establish a temporary Federal program of special unemployment assistance for workers who are unemployed during a period of aggravated unemployment and who are not otherwise eligible for unemployment allowances under any other law.
“Grants to states: agreement with states
“Sec. 202. Each State which enters into an agreement with the Secretary of Labor, pursuant to which it makes payments of special unemployment assistance in accordance with the provisions of this part and the rules and regulations prescribed by the Secretary of Labor hereunder, shall be paid by the United States from time to time, prior to audit or settlement by the General Accounting Office, such amounts as are deemed necessary by the Secretary of Labor to carry out the provisions of this part in the State. Assistance may be paid under this part to individuals only pursuant to such an agreement.
“Eligible individuals
“Sec. 203. (a) An individual shall be eligible to receive a payment of assistance or waiting period credit with respect to a week of unemployment occurring during and subsequent to a special unemployment assistance period in accordance with the provisions of this part if--
“(1) the individual is not eligible for compensation under any State or Federal unemployment compensation law (including the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.)) with respect to such week of unemployment, and is not receiving compensation with respect to such week of unemployment under the unemployment compensation law of Canada and is not eligible for assistance or an allowance payable with respect to such week of unemployment under such laws as the Public Works and Economic Development Act Amendments of 1974 [42 U.S.C. 3121 et seq.], the Disaster Relief Act of 1974 [42 U.S.C. 5121 et seq.], the Trade Expansion Act of 1962, as amended [19 U.S.C. 1801 et seq.], or any successor legislation or similar legislation, as determined by the Secretary: Provided, That the individual meets the qualifying employment and wage requirements of the applicable State unemployment compensation law in the base period; and, for purposes of this proviso, employment and wages which are not covered by the State law shall be treated as though they were covered, except that employment and wages covered by any State or Federal unemployment compensation law, including the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.), shall be excluded to the extent that the individual is or was entitled to compensation for unemployment thereunder on the basis of such employment and wages; and
“(2) the individual is totally or partially unemployed, and is able to work, available for work, and seeking work, within the meaning of, or as required by, the applicable State unemployment compensation law, and is not subject to disqualification under that law; and
“(3) the individual has filed a claim for assistance or waiting period credit under this part; and
“(4) in the area in which the individual was last employed for at least five work days prior to filing a claim under this part for assistance or waiting period credit with respect to such week of unemployment, a special unemployment assistance period is in effect with respect to such week of unemployment: Provided, That if the individual, except for the imposition of a disqualification in accordance with paragraph (2), was otherwise eligible for a payment of assistance or waiting period credit under this part with respect to a week of unemployment which began during a special unemployment assistance period, but did not exhaust entitlement to assistance during such period, entitlement shall continue after the end of the period but no assistance shall be paid under this part for any week of unemployment that begins more than twenty-six weeks after the end of such period; and
“(5) the State in which the individual was last employed for at least five work days prior to filing a claim under this part for assistance or waiting period credit with respect to such week of unemployment, has an agreement with the Secretary of Labor under section 202 which is in effect with respect to such week of unemployment.
“(b) An individual who performs services in an instructional, research, or principal administrative capacity for an educational institution or agency shall not be eligible to receive a payment of assistance or a waiting period credit with respect to any week commencing during the period between two successive academic years (or, when the contract provides instead for a similar period between two regular but not successive terms, during such similar period) if--
“(1) such individual performed services in any such capacity for any educational institution or agency in the first of such academic years or terms; and
“(2) such individual has a contract to perform services in any such capacity for any educational institution or agency for the later of such academic years or terms.
“(c) An individual who performs services for an educational institution or agency in a capacity (other than an instructional, research, or principal administrative capacity) shall not be eligible to receive a payment of assistance or a waiting period credit with respect to any week commencing during a period between two successive academic years or terms if--
“(1) such individual performed such services for any educational institution or agency in the first of such academic years or terms; and
“(2) there is a reasonable assurance that such individual will perform services for any educational institution or agency in any capacity (other than an instructional, research, or principal administrative capacity) in the second of such academic years or terms.
“Special unemployment assistance period
“Sec. 204. (a) A special unemployment assistance period shall commence in an area designated by the Secretary with the third week after the first week for which the Secretary determines that there is an ‘on’ indicator for such area, and shall terminate with the third week after the first week for which the Secretary determines that there is an ‘off’ indicator for such area except that no special unemployment assistance period shall have a duration of less than thirteen weeks.
“(b) The Secretary shall designate as an area under this section areas served by an entity which is eligible to be a prime sponsor under section 102(a) of the Comprehensive Employment and Training Act of 1973 (Public Law 93-203) [29 U.S.C. 812(a)].
“(c) There is an ‘on’ indicator in an area for a week, if for the most recent three consecutive calendar months for which data are available the Secretary determines that--
“(1) the rate (seasonally adjusted) of national unemployment averaged 6 per centum or more; or
“(2) the rate of unemployment in the area averaged 6.5 per centum or more.
“(d) There is an ‘off’ indicator for a week, if for the most recent three consecutive calendar months for which data are available the Secretary determines that both subsections (c)(1) and (c)(2) are not satisfied.
“(e) The determinations made under this section shall take into account the rates of unemployment for three consecutive months, even though any or all of such months may have occurred not more than three complete calendar months prior to the enactment of this Act [Dec. 31, 1974].
“Weekly benefit amount
“Sec. 205. (a) The amount of assistance under this part to which an eligible individual shall be entitled for a week of unemployment shall be the weekly benefit amount for a week of unemployment that would be payable to the individual as regular compensation as computed under the provisions of the applicable State unemployment compensation law. For purposes of the preceding sentence, employment and wages which are not covered by the applicable State unemployment compensation law shall be treated as though they were covered, except that employment and wages covered by any State or Federal unemployment compensation law, including the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.), shall be excluded to the extent that the individual is or was entitled to compensation for unemployment thereunder on the basis of such employment and wages.
“(b) Notwithstanding any provisions of State law, claims for assistance under this part may be determined, where an employment record is not available, on the basis of an affidavit submitted by an applicant.
“(c) If an individual knowingly has made, or caused to be made by another, a false statement or representation of a material fact, or knowingly has failed, or caused another to fail, to disclose a material fact, and as a result of such false statement or representation or of such nondisclosure such individual has received an amount of assistance under this part to which he was not entitled, such individual--
“(1) shall be ineligible for further assistance under this part in accordance with the provisions of the applicable State unemployment compensation law relating to fraud in connection with a claim for unemployment compensation; and
“(2) shall be subject to prosecution under section 1001 of title 18, United States Code.
“(d)(1) In the case of individuals who have received amounts of assistance under this part to which they were not entitled, the State is authorized to require such individuals to repay the amounts of such assistance to the State agency, except that the State agency may waive such repayment if it determines that--
“(A) the payment of such assistance was without fault on the part of any such individual, and
“(B) such repayment would be contrary to equity and good conscience.
“(2) The State agency may recover the amount to be repaid, or any part thereof, by deductions from any assistance payable under this part or from any unemployment compensation payable to such individual under any Federal unemployment compensation law administered by the State agency or under any other Federal law administered by the State agency which provides for the payment of any assistance or allowance with respect to any week of unemployment, during the three-year period after the date such individuals received the payment of the assistance to which they were not entitled, except that no single deduction may exceed 50 per centum of the weekly benefit amount from which such deduction is made.
“(3) No repayment shall be required, and no deduction shall be made, until a determination has been made, notice thereof and an opportunity for a fair hearing has been given to the individual, and the determination has become final.
“(e) Any determination by a State agency under subsection (c) or (d) shall be subject to review in the same manner and to the same extent as determinations under the State unemployment compensation law, and only in that manner and to that extent.
“Maximum benefits amount
“Sec. 206. (a) Except as provided by subsection (b), the maximum amount of assistance under this part which an eligible individual shall be entitled to receive during any special unemployment assistance benefit year shall be 150 per centum of the maximum amount that would have been payable to such individual during such benefit year as computed under the provisions of the applicable State unemployment compensation law, but not exceeding thirty-nine times the weekly benefit payable to the individual for a week of total unemployment as determined under subsection (a) of section 205. For purposes of the preceding sentence, employment and wages which are not covered by the applicable State unemployment compensation law shall be treated as though they were covered, except that employment and wages covered by any State or Federal unemployment compensation law, including the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.), shall be excluded to the extent that the individual is or was entitled to compensation for unemployment thereunder on the basis of such employment and wages.
“(b) In the case of any individual who files a claim for assistance under this part during a benefit year which such individual has established under any State unemployment compensation law, the maximum amount of assistance under this part which such individual shall be entitled to receive during the special unemployment assistance benefit year established pursuant to such claim (as determined under subsection (a) without regard to this subsection) shall be reduced by the amount of any unemployment compensation received during the benefit year established under the State unemployment compensation law.
“Applicable state law provisions
“Sec. 207. Except where inconsistent with the provisions of this part, the terms and conditions of the applicable State unemployment compensation law which apply to claims thereunder for regular compensation and the payment thereof shall apply to claims for assistance under this part and the payment thereof.
“Termination date
“Sec. 208. Notwithstanding any other provision of this part, no payment of assistance under this part shall be made to any individual with respect to any week of unemployment ending after June 30, 1978; and no individual shall be entitled to any assistance under this part with respect to any initial claim for assistance or waiting period credit which is effective in a week beginning after December 31, 1977.
“Authorization of appropriations
“Sec. 209. There are hereby authorized to be appropriated for purposes of this part such sums as may be necessary.
“Definitions
“Sec. 210. (a) As used in this part the term--
“(1) ‘Secretary’ means the Secretary of Labor;
“(2) ‘State’ means the States of the United States, the District of Columbia, Puerto Rico, and the Virgin Islands;
“(3) ‘applicable State unemployment compensation law’ means the law of the State in which the individual was last employed for at least five work days prior to filing a claim for assistance or waiting period credit under this part;
“(4) ‘week’ means a calendar week;
“(5) ‘State agency’ means the agency of the State which administers the program established by this part;
“(6) ‘special unemployment assistance benefit year’ means the benefit year as defined by the applicable State unemployment compensation law; and
“(7) ‘base period’ means the base period as determined under the applicable State unemployment compensation law.
“(b) Assistance under this part shall not be considered to be regular compensation for purposes of qualifying for benefits under the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, set out below], and claims filed under this part shall not be treated as claims for weeks of unemployment for purposes of determining the rate of insured unemployment under section 203(f)(1) of such Act.
“(c) Employment and wages which are not covered by the State law may be treated, under sections 203(a)(1), 205(a), and 206(a), as though they were covered only if the employment--
“(1) is performed by an employee (as defined in section 3121(d) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], and
“(2) constitutes employment as determined under section 3306(c) of such Code without regard to paragraphs (1) through (9), (10)(B)(ii), (14), (15), and (17) of such section.
For purposes of paragraph (2), section 3306(c) of such Code shall be applied as if the term ‘United States’ includes the Virgin Islands.
“Part B--Reimbursement for Unemployment Benefits Paid on Basis of Public Service Employment
“Payments to states
“Sec. 220. (a) Each State shall be paid by the United States with respect to each individual--
“(1) who receives compensation with respect to any benefit year, and
“(2) whose base period wages for such benefit year include public service wages. an amount which bears the same ratio to the total amount of compensation paid to such individual with respect to such benefit year for weeks of unemployment which begin on or after January 1, 1976, as the amount of the public service wages included in the individual's base period wages bears to the total amount of the individual's base period wages.
“(b) Each State shall be paid, either in advance or by way of reimbursement, as may be determined by the Secretary, the sum that the Secretary estimates is payable to such State under this part for each calendar month. The sum shall be reduced or increased by the amount which the Secretary finds that his estimate for an earlier calendar month was greater or less than the sum which should have been paid to the State. Estimates shall be made on the basis of reports made by the State to the Secretary as prescribed by the Secretary.
“(c) The Secretary shall, from time to time, certify to the Secretary of the Treasury the sum payable to each State under this part. The Secretary of the Treasury, prior to audit and settlement by the General Accounting Office, shall pay the State in accordance with the certification from funds for carrying out the purposes of this part.
“(d) Money paid to a State under this part may be used solely for the purpose of paying compensation. Money so paid which is not used for such purpose shall be returned, at the time specified by the Secretary, to the Treasury of the United States and credited to current applicable appropriations, funds, or accounts from which payments to States under this part may be made.
“(e) In the case of any political subdivision of a State which has in effect an unemployment compensation program which provides for the payment of compensation on the basis of services performed in its employ, such political subdivision shall be entitled to payments under this part in the same manner and to the same extent as if such political subdivision were a State.
“State law provisions
“Sec. 221. (a) The unemployment compensation law of any State may provide that any organization which elects to make payments (in lieu of contributions) into the State unemployment compensation fund--
“(1) shall not be liable to make such payments after the date of the enactment of this section with respect to any compensation to the extent that such State is entitled to payments with respect to such compensation under this part; and
“(2) shall receive credit against payments required to be made after such date of enactment for any such payments made on or before such date of enactment to the extent that such payments were made with respect to compensation for which the State is entitled to receive payments under this part.
“(b) The unemployment compensation law of any State may, without being deemed to violate the standards set forth in section 3303(a) of the Internal Revenue Code of 1986, provide for appropriate adjustments, as may be determined by the Secretary, in the account of any employer who has paid public service wages to reflect the payments to which such State is entitled under this part with respect to compensation attributable to such wages.
“Authorization of appropriations
“Sec. 222. There are hereby authorized to be appropriated for purposes of this part such sums as may be necessary.
“Definitions
“Sec. 223. As used in this part, the term--
“(1) ‘State’ means the States of the United States, the District of Columbia, Puerto Rico, and the Virgin Islands;
“(2) ‘compensation’ means cash benefits payable to individuals with respect to their unemployment, except that such term shall not include special unemployment assistance payable under part A;
“(3) ‘public service job’ means any public service job funded with assistance provided under the Comprehensive Employment and Training Act of 1973 [29 U.S.C. 801 et seq.];
“(4) ‘public service wages’ means remuneration for services performed in a public service job to the extent that such remuneration is paid with funds provided under the Comprehensive Employment and Training Act of 1973 [29 U.S.C. 801 et seq.];
“(5) ‘benefit year’ means the benefit year as defined by the applicable State unemployment compensation law;
“(6) ‘base period’ means the base period as defined by the applicable State unemployment compensation law for the benefit year; and
“(7) ‘Secretary’ means the Secretary of Labor.
“Termination
“Sec. 224. Notwithstanding any other provision of this part, the term ‘public service wages’ shall not include remuneration for services performed in weeks which begin after the date of the enactment of this section [Dec. 5, 1980].”
[Section 602(e) of Pub. L. 94-566 provided that: “The amendments made by this section [amending sections 203(a)(1), 205(a), 206(a), and 210(a) of the Emergency Jobs and Unemployment Assistance Act of 1974, Pub. L. 93-567, set out above] shall apply with respect to benefit years beginning after December 31, 1976. In the case of any benefit year of an individual which begins after December 31, 1976, for purposes of sections 203(a)(1), 205(a), and 206(a) of the Emergency Jobs and Unemployment Assistance Act of 1974, there shall not be taken into account any employment and wages to the extent that such individual was entitled on the basis of such employment and wages to assistance under such Act during a benefit year beginning before January 1, 1977."]
[Section 603(b) of Pub. L. 94-566 provided that: “The amendment made by subsection (a) [enacting subsec. (c) of section 203 of the Emergency Jobs and Unemployment Assistance Act of 1974, Pub. L. 93-567, set out above] shall apply to weeks of unemployment beginning after the date of the enactment of this Act [Oct. 20, 1976]."]
[Section 6(c) of Pub. L. 94-444 provided that: “The amendments made by this section [enacting sections 220 to 223 and amending sections 201 to 203 and 205 to 210 of the Emergency Jobs and Unemployment Assistance Act of 1974, Pub. L. 93-567, set out above] shall take effect on October 1, 1976, with respect to compensation paid for weeks of unemployment beginning after December 31, 1975."]
[Section 204(b)-(e) of Pub. L. 94-45 provided that:
["(b) Assistance shall be payable to individuals under agreements entered into by States under title II of the Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L. 93-567, set out above], by reason of the amendments made by section 201 of this Act [amending sections 206 and 208 of the Emergency Jobs and Unemployment Assistance Act of 1974], for weeks of unemployment beginning on or after July 1, 1975.
["(c) The amendments made by section 202 and subsections (c) and (d) of section 203 [enacting sections 203(b) and 206(b) of the Emergency Jobs and Unemployment Assistance Act of 1974] shall apply to weeks of unemployment beginning after the date of the enactment of this Act [June 30, 1975].
["(d) The amendment made by section 203(a) [enacting section 210(c) of the Emergency Jobs and Unemployment Assistance Act of 1974] shall take effect on December 31, 1974.
["(e) The amendments made by subsections (b) and (e) of section 203 [enacting sections 205(c) to (e) and 210(a)(5) and (6) of the Emergency Jobs and Unemployment Assistance Act of 1974] shall take effect on the date of the enactment of this Act [June 30, 1974]."]
AGREEMENTS UNDER SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAM TO BE MODIFIED TO REFLECT AMENDMENT OF PROGRAM BY EMERGENCY COMPENSATION AND SPECIAL UNEMPLOYMENT ASSISTANCE EXTENSION ACT OF 1975
Section 204(a) of Pub. L. 94-45, June 30, 1975, 89 Stat. 242, provided that: “The Secretary of Labor shall, at the earliest practicable date after the date of the enactment of this Act [June 30, 1975], propose to each State with which he has in effect an agreement under section 202 of the Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, set out above] a modification of such agreement designed to provide for the payment of the special unemployment assistance allowable under such Act by reason of the amendments made by section 201 [amending sections 206 and 208 of the Emergency Jobs and Unemployment Assistance Act of 1974]. Notwithstanding any other provision of law, if any State fails or refuses, within the three-week period beginning on the date of the enactment of this Act [June 30, 1975], to enter into such a modification of any such agreement, the Secretary of Labor shall terminate such agreement.”
SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAMS; INDIVIDUALS PERFORMING SERVICES FOR EDUCATIONAL INSTITUTIONS OR AGENCIES
Pub. L. 94-32, title I, 101, June 12, 1975, 89 Stat. 178, provided in part that: “Funds appropriated by this Act [Second Supplemental Appropriations Act, 1975], or any other Act, for the payments of special unemployment assistance under title II of the Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, set out above] shall not be used for making such payments of assistance or waiting period credit, beginning after the date of enactment of this Act [June 12, 1975], to any individual who performs services in an instructional, research, or principal administrative capacity for an educational institution or agency with respect to any week commencing during the period between two successive academic years (or, when the contract provides instead for a similar period between two regular but not successive terms, during such similar period) if--
“(1) such individual performed services in any such capacity for any educational institution or agency for the first of such academic years or terms; and
“(2) such individual has a contract to perform services in any such capacity for any educational institution or agency for the latter of such academic years or terms.”
EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1971
Pub. L. 92-224, title II, 201-206, Dec. 29, 1971, 85 Stat. 811-814, as amended by Pub. L. 92-329, 1, 2(e), June 30, 1972, 86 Stat. 398; Pub. L. 93-368, 4(a), Aug. 7, 1974, 88 Stat. 420; Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided:
“Sec. 201 [Short title]. This title may be cited as the ‘Emergency Unemployment Compensation Act of 1971’.
“Sec. 202 [Federal-State agreements]. (a) [State law requirements; termination of agreement] Any State, the State unemployment compensation law of which is approved by the Secretary of Labor (hereinafter in this title referred to as the ‘Secretary’), under section 3304 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], which desires to do so, may enter into and participate in an agreement with the Secretary under this title, if such State law contains (as of the date such agreement is entered into) a requirement that extended compensation be payable thereunder as provided by the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, set out below]. Any State which is a party to an agreement under this title may, upon providing 30 days' written notice to the Secretary, terminate such agreement.
“(b) [Emergency compensation] Any such agreement shall provide that the State agency of the State will make payments of emergency compensation--
“(1) to individuals who--
“(A)(i) have exhausted all rights to regular compensation under the State law;
“(ii) have exhausted all rights to extended compensation, or are not entitled thereto, because of the ending of their eligibility period for extended compensation, in such State;
“(B) have no rights to compensation (including both regular compensation and extended compensation) with respect to a week under such law or any other State unemployment compensation law or to compensation under any other Federal law; and
“(C) are not receiving compensation with respect to such week under the unemployment compensation law of the Virgin Islands or Canada.
“(2) for any week of unemployment which begins in--
“(A) an emergency benefit period (as defined in subsection (c)(3)); and
“(B) the individual's period of eligibility (as defined in section 205(b)).
“(c) [Regular and extended compensation rights, exhaustion; emergency benefit period; publication in Federal Register; State “emergency on” and “emergency off” indicators; rate of unemployment 13-week exhaustion rates] (1) For purposes of subsection (b)(1)(A), an individual shall be deemed to have exhausted his rights to regular compensation under a State law when--
“(A) no payments of regular compensation can be made under such law because such individual has re-received all regular compensation available to him based on employment or wages during his base period; or
“(B) his rights to such compensation have been terminated by reason of the expiration of the benefit year with respect to which such rights existed.
“(2) For purposes of subsection (b)(1)(B), an individual shall be deemed to have exhausted his rights to extended compensation under a State law when no payments of extended compensation under a State law can be made under such law because such individual has received all the extended compensation available to him from his extended compensation account (as established under State law in accordance with section 202(b)(1) of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 202(b)(1), set out below]).
“(3)(A)(i) For purposes of subsection (b)(2)(A), in the case of any State, an emergency benefit period--
“(I) shall begin with the third week after a week for which there is a State ‘emergency on’ indicator; and
“(II) shall end with the third week after the first week for which there is a State ‘emergency off’ indicator.
“(ii) In the case of any State, no emergency benefit period shall last for a period of less than 26 consecutive weeks.
“(iii) When a determination has been made that an emergency benefit period is beginning or ending with respect to any State, the Secretary shall cause notice of such determination to be published in the Federal Register.
“(B)(i) For purposes of subparagraph (A), there is a State ‘emergency on’ indicator for a week if--
“(I) the rate of unemployment (as determined under subparagraph (C)) in the State for the period consisting of such week and the immediately preceding 12 weeks equaled or exceeded 6.5 per centum; and
“(II) there (a) is a State or National ‘on’ indicator for such week (as determined under subsections (d) and (e) of section 203 of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 203(d), (e), set out below], or (b) there is neither a State nor National ‘on’ indicator for such week (as so determined), but (1) within the 52-week period ending with such week there has been a State or National ‘on’ indicator for a week (as so determined), and (2) there would be a State ‘on’ indicator for such week except for the provisions of section 203(e)(1)(A) of the Federal-State Extended Unemployment Compensation Act of 1970.
“(ii) For purposes of subparagraph (A), there is a State ‘emergency off’ indicator for a week if, for the period consisting of such week and the immediately preceding 12 weeks, the rate of unemployment (as determined under subparagraph (C)) is less than 6.5 per centum.
“(C)(i) For purposes of subparagraph (B), the term ‘rate of unemployment’ means--
“(I) the rate of insured unemployment (as determined under section 203(f) of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 203(f), set out below]), plus
“(II) the 13-week exhaustion rate (as determined under clause (ii)).
“(ii) The ‘13-week exhaustion rate’ is the percentage arrived at by dividing--
“(I) 25 per centum of the sum of the exhaustions, during the most recent 12 calendar months ending before the week with respect to which such rate is computed, of regular compensation under the State law, by
“(II) the average monthly covered employment (as that term is used in section 203(f) of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 203(f), set out below]) of the State with respect to the 13-week period referred to in subparagraph (B)(ii).
“(d) [Amount of emergency compensation; terms and conditions of State law for regular compensation] For purposes of any agreement under this title--
“(1) the amount of the emergency compensation which shall be payable to any individual for any week of total unemployment shall be equal to the amount of the regular compensation (including dependents' allowances) payable to him during his benefit year under the State law; and
“(2) the terms and conditions of the State law which apply to claims for regular compensation and to the payment thereof shall (except where inconsistent with the provisions of this title or regulations of the Secretary promulgated to carry out this title) apply to claims for emergency compensation and the payment thereof.
“(e) [Emergency compensation account] (1) Any agreement under this title with a State shall provide that the State will establish, for each eligible individual who files an application for emergency compensation, an emergency compensation account.
“(2) The amount established in such account for any individual shall be equal to the lesser of--
“(A) 50 per centum of the total amount of regular compensation (including dependents allowances) payable to him with respect to the benefit year (as determined under the State law) on the basis of which he most recently received regular compensation; or
“(B) thirteen times his average weekly benefit amount (as determined for purposes of section 202(b)(1)(C) of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 202(b)(1)(C), set out below]) for his benefit year.
“(f) [Effective dates] No emergency compensation shall be payable to any individual under an agreement entered into under this title for any week prior to the week following the week in which such agreement is entered into, or if later, the first week beginning more than 30 days after the date of enactment of this Act [Dec. 29, 1971]. No emergency compensation shall be payable to any individual under such an agreement for any week ending after--
“(1) December 31, 1972, or
“(2) March 31, 1973, in the case of an individual who (for a week ending before January 1, 1973) had a week with respect to which emergency compensation was payable under such agreement.
“Sec. 203. [Payments to States having agreements for the payment of emergency compensation]. (a) [Amount payable] There shall be paid to each State which has entered into an agreement under this title an amount equal to 100 per centum of the emergency compensation paid to individuals by the State pursuant to such agreement.
“(b) [Limitation] No payment shall be made to any State under this section in respect of compensation for which the State is entitled to reimbursement under the provisions of any Federal law other than this title.
“(c) [Calendar month basis; advances, reimbursement, and adjustments; method for estimates] Sums payable to any State by reason of such State's having an agreement under this title shall be payable, either in advance or by way of reimbursement (as may be determined by the Secretary), in such amounts as the Secretary estimates the State will be entitled to receive under this title for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which would have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved.
“Sec. 204 [Financing provisions]. (a) [Use of extended unemployment compensation account funds; certification] (1) Funds in the extended unemployment compensation account (as established by section 905 of the Social Security Act) [42 U.S.C. 1105] of the Unemployment Trust Fund shall be used for the making of payments to States having agreements entered into under this title.
“(2) The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this title. The Secretary of the Treasury, prior to audit or settlement by the General Accounting Office, shall make payments to the State in accordance with such certification, by transfers from the extended unemployment compensation account (as established by section 905 of the Social Security Act) [42 U.S.C. 1105] to the account of such State in the Unemployment Trust Fund.
“(b) [Authorization of appropriations; repayment of advances without interest] There are hereby authorized to be appropriated, without fiscal year limitation, to the extended unemployment compensation account, as repayable advances (without interest), such sums as may be necessary to carry out the purposes of this title. Amounts appropriated as repayable advances and paid to the States under section 203 shall be repaid, without interest, as provided in section 905(d) of the Social Security Act [42 U.S.C. 1105(d)].
“(c) [Subsec. (c) of section 204 enacted par. (3) of 42 U.S.C. 1103(b)].
“Sec. 205 [Definitions]. For purposes of this title--
“(a) the terms ‘compensation’, ‘regular compensation’, ‘extended compensation’, ‘base period’, ‘benefit year’, ‘State’, ‘State agency’, ‘State law’, and ‘week’ shall have the meanings assigned to them under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 205, set out below].
“(b) the term ‘period of eligibility’ means, in the case of any individual, the weeks in his benefit year which begin in an extended benefit period or an emergency benefit period and, if his benefit year ends within such extended benefit period, any weeks thereafter which begin in such extended benefit period or in such emergency benefit period; and
“(c) the term ‘extended benefit period’ shall have the meaning assigned to such term under section 203 of the Federal-State Extended Unemployment Compensation Act of 1970 [Pub. L. 91-373, title II, 203, set out below]. For purposes of any State law which refers to an extension under Federal law of the duration of benefits under the Federal-State Extended Unemployment Compensation Act of 1970, this title shall be treated as amendatory of such Act.
“Sec. 206 [Report by Secretary of Labor]. (a) The Secretary of Labor shall conduct a comprehensive study and review of the program established by the Emergency Unemployment Compensation Act of 1971, with a view to submitting to the Congress the report required to be submitted under subsection (b). Such study and review shall be conducted with particular regard to (1) the benefit payments made under such program, (2) projections of benefit payments which will be payable under such program after the period covered by such report, (3) the desirability of continuing such program after the period prescribed in section 202(f), and (4) the funding of the benefits payable under such program and the funding of benefits thereunder if such program should be continued after the period prescribed in section 202(f).
“(b) On or before May 1, 1972, the Secretary of Labor shall submit to the Congress a full and complete report on the study and review provided for in subsection (a). Such report shall cover the period ending March 31, 1972, and shall contain the recommendations of the Secretary of Labor with respect to such program, including but not limited to, the operation and funding of such program, and the desirability of extending such program after the period prescribed in section 202(f).”
FEDERAL—STATE EXTENDED UNEMPLOYMENT COMPENSATION ACT OF 1970
Pub. L. 91-373, title II, 201-207, Aug. 10, 1970, 84 Stat. 708-712, as amended by Pub. L. 92-599, title V, 501, Oct. 27, 1972, 86 Stat. 1326; Pub. L. 93-53, 5, July 1, 1973, 87 Stat. 137; Pub. L. 93-233, 20, Dec. 31, 1973, 87 Stat. 974; Pub. L. 93-256, 2, Mar. 28, 1974, 88 Stat. 53; Pub. L. 93-329, 2, June 30, 1974, 88 Stat. 288; Pub. L. 93-368, 3, Aug. 7, 1974, 88 Stat. 420; Pub. L. 93-572, 106-108, Dec. 31, 1974, 88 Stat. 1872; Pub. L. 94-45, title I, 102(b), June 30, 1975, 89 Stat. 238; Pub. L. 94-566, title I, 116(d)(1), (2), title II, 212(a), title III, 311(a), (b), Oct. 20, 1976, 90 Stat. 2672, 2677, 2678; Pub. L. 96-364, title IV, 416(a), Sept. 26, 1980, 94 Stat. 1310; Pub. L. 96-499, title X, 1022(a), 1024(a), Dec. 5, 1980, 94 Stat. 2656, 2658; Pub. L. 97-35, title XXIV, 2401(a), (b), 2402(a), 2403(a), 2404(a), (b), title XXV, 2505(b), Aug. 13, 1981, 95 Stat. 874, 875, 876, 884; Pub. L. 97-248, title I, 191(a), Sept. 3, 1982, 96 Stat. 407; Pub. L. 97-258, 5(b), Sept. 13, 1982, 96 Stat. 1068, 1081; Pub. L. 98-21, title V, 522(a), Apr. 20, 1983, 97 Stat. 148; Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided:
“Sec. 201. [Short Title] This title may be cited as the ‘Federal-State Extended Unemployment Compensation Act of 1970’.
“Sec. 202. [Payment of Extended Compensation]
“(a) [State Law Requirements] (1) For purposes of section 3304(a)(11) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], a State law shall provide the payment of extended compensation shall be made, for any week of unemployment which begins in the individual's eligibility period, to individuals who have exhausted all rights to regular compensation under the State law and who have no rights to regular compensation with respect to such week under such law or any other State unemployment compensation law or to compensation under any other Federal law and are not receiving compensation with respect to such week under the unemployment compensation law of Canada. For purposes of the preceding sentence, an individual shall have exhausted his rights to regular compensation under a State law (A) when no payments of regular compensation can be made under such law because such individual has received all regular compensations available to him based on employment or wages during his base period, or (B) when his rights to such compensation have terminated by reason of the expiration of the benefit year with respect to which such rights existed.
“(2) Except where inconsistent with the provisions of this title, the terms and conditions of the State law which apply to claims for regular compensation and to the payment thereof shall apply to claims for extended compensation and to the payment thereof.
“(3)(A) Notwithstanding the provisions of paragraph (2), payment of extended compensation under this Act [see Short Title of 1970 Amendment note set out under section 3311 of this title] shall not be made to any individual for any week of unemployment in his eligibility period--
“(i) during which he fails to accept any offer of suitable work (as defined in subparagraph (c) [probably means subpar. (C)]) or fails to apply for any suitable work to which he was referred by the State agency; or
“(ii) during which he fails to actively engage in seeking work, unless such individual is not actively engaged in seeking work because such individual is, as determined in accordance with State law--
“(I) before any court of the United States or any State pursuant to a lawfully issued summons to appear for jury duty (as such term may be defined by the Secretary of Labor), or
“(II) hospitalized for treatment of an emergency or a life-threatening condition (as such term may be defined by such Secretary),if such exemptions in clauses (I) and (II) apply to recipients of regular benefits, and the State chooses to apply such exemptions for recipients of extended benefits.
“(B) If any individual is ineligible for extended compensation for any week by reason of a failure described in clause (i) or (ii) of subparagraph (A), the individual shall be ineligible to receive extended compensation for any week which begins during a period which--
“(i) begins with the week following the week in which such failure occurs, and
“(ii) does not end until such individual has been employed during at least 4 weeks which begin after such failure and the total of the remuneration earned by the individual for being so employed is not less than the product of 4 multiplied by the individual's average weekly benefit amount (as determined for purposes of subsection (b)(1)(c) [probably means subsec. (b)(1)(C)]) for his benefit year.
“(C) For purposes of this paragraph, the term ‘suitable work’ means, with respect to any individual, any work which is within such individual's capabilities; except that, if the individual furnishes evidence satisfactory to the State agency that such individual's prospects for obtaining work in his customary occupation within a reasonably short period are good, the determination of whether any work is suitable work with respect to such individual shall be made in accordance with the applicable State law.
“(D) Extended compensation shall not be denied under clause (i) of subparagraph (A) to any individual for any week by reason of a failure to accept an offer of, or apply for, suitable work--
“(i) if the gross average weekly remuneration payable to such individual for the position does not exceed the sum of--
“(I) the individual's average weekly benefit amount (as determined for purposes of subsection (b)(1)(C)) for his benefit year, plus
“(II) the amount (if any) of supplemental unemployment compensation benefits (as defined in section 501(c)(17)(D) of the Internal Revenue Code of 1986) payable to such individual for such week;
“(ii) if the position was not offered to such individual in writing and was not listed with the State employment service;
“(iii) if such failure would not result in a denial of compensation under the provisions of the applicable State law to the extent that such provisions are not inconsistent with the provisions of subparagraphs (C) and (E); or
“(iv) if the position pays wages less than the higher of--
“(I) the minimum wage provided by section 6(a)(1) of the Fair Labor Standards Act of 1938 [29 U.S.C. 206(a)(1)], without regard to any exemption; or
“(II) any applicable State or local minimum wage.
“(E) For purposes of this paragraph, an individual shall be treated as actively engaged in seeking work during any week if--
“(i) the individual has engaged in a systematic and sustained effort to obtain work during such week, and
“(ii) the individual provides tangible evidence to the State agency that he has engaged in such an effort during such week.
“(F) For purposes of section 3304(a)(11) of the Internal Revenue Code of 1986, a State law shall provide for referring applicants for benefits under this Act [see Short Title of 1970 Amendment note set out under section 3311 of this title] to any suitable work to which clauses (i), (ii), (iii), and (iv) of subparagraph (D) would not apply.
“(4) No provision of State law which terminates a disqualification for voluntarily leaving employment, being discharged for misconduct, or refusing suitable employment shall apply for purposes of determining eligibility for extended compensation unless such termination is based upon employment subsequent to the date of such disqualification.
“(5) Notwithstanding the provisions of paragraph (2), an individual shall not be eligible for extended compensation unless, in the base period with respect to which the individual exhausted all rights to regular compensation under the State law, the individual had 20 weeks of full-time insured employment, or the equivalent in insured wages. For purposes of this paragraph, the equivalent in insured wages shall be earnings covered by the State law for compensation purposes which exceed 40 times the individual's most recent weekly benefit amount or 1-1/2 times the individual's insured wages in that calendar quarter of the base period in which the individual's insured wages were the highest (or one such quarter if his wages were the same for more than one such quarter). The State shall by law provide which one of the foregoing methods of measuring employment and earnings shall be used in that State.
“(6) No payment shall be made under this Act [see Short Title of 1970 Amendment note set out under section 3311 of this title] to any State in respect of any extended compensation or sharable regular compensation paid to any individual for any week if, under the rules of paragraphs (3), (4), and (5), extended compensation would not have been payable to such individual for such week.
“(b) [Individuals Compensation Accounts] (1) The State law shall provide that the State will establish, for each eligible individual who files an application therefor, an extended compensation account with respect to such individual's benefit year. The amount established in such account shall be not less than whichever of the following is the least:
“(A) 50 per centum of the total amount of regular compensation (including dependents' allowances) payable to him during such benefit year under such law,
“(B) thirteen times his average weekly benefit amount, or
“(C) thirty-nine times his average weekly benefit amount, reduced by the regular compensation paid (or deemed paid) to him during such benefit year under such law; except that the amount so determined shall (if the State law so provides) be reduced by the aggregate amount of additional compensation paid (or deemed paid) to him under such law for prior weeks of unemployment in such benefit year which did not begin in an extended benefit period.
“(2) For purposes of paragraph (1), an individual's weekly benefit amount for a week is the amount of regular compensation (including dependents' allowances) under the State law payable to such individual for such week for total unemployment.
“(c) [Cessation of Extended Benefits When Paid Under an Interstate Claim in a State Where Extended Benefit Period Is Not in Effect] (1) Except as provided in paragraph (2), payment of extended compensation shall not be made to any individual for any week if--
“(A) extended compensation would (but for this subsection) have been payable for such week pursuant to an interstate claim filed in any State under the interstate benefit payment plan, and
“(B) an extended benefit period is not in effect for such week in such State.
“(2) Paragraph (1) shall not apply with respect to the first 2 weeks for which extended compensation is payable (determined without regard to this subsection) pursuant to an interstate claim filed under the interstate benefit payment plan to the individual from the extended compensation account established for the benefit year.
“(3) Section 3304(a)(9)(A) of the Internal Revenue Code of 1986 shall not apply to any denial of compensation required under this subsection.
“Sec. 203. [Extended Benefit Period]
“(a) [Beginning and Ending] For purposes of this title, in the case of any State, an extended benefit period--
“(1) shall begin with the third week after the first week for which there is a State ‘on’ indicator; and
“(2) shall end with the third week after the first week for which there is a State ‘off’ indicator.
“(b) [Special Rules] (1) In the case of any State--
“(A) no extended benefit period shall last for a period of less than thirteen consecutive weeks, and
“(B) no extended benefit period may begin before the fourteenth week after the close of a prior extended benefit period with respect to such State.
“(2) When a determination has been made that an extended benefit period is beginning or ending with respect to a State, the Secretary shall cause notice of such determination to be published in the Federal Register.
“(c) [Eligibility Period] For purposes of this title, an individual's eligibility period under the State law shall consist of the weeks in his benefit year which begin in an extended benefit period and, if his benefit year ends within such extended benefit period, any weeks thereafter which begin in such extended benefit period.
“(d) [State ‘On’ and ‘Off’ Indicators] For purposes of this section--
“(1) There is a State ‘on’ indicator for a week if the rate of insured unemployment under the State law for the period consisting of such week and the immediately preceding twelve weeks--
“(A) equaled or exceeded 120 per centum of the average of such rates for the corresponding thirteen-week period ending in each of the preceding two calendar years, and
“(B) equaled or exceeded 5 per centum.
“(2) There is a State ‘off’ indicator for a week if, for the period consisting of such week and the immediately preceding twelve weeks, either subparagraph (A) or subparagraph (B) of paragraph (1) is not satisfied.
Effective with respect to compensation for weeks of unemployment beginning after March 30, 1977 (or, if later, the date established pursuant to State law), the State may by law provide that the determination of whether there has been a State ‘on’ or ‘off’ indicator beginning or ending any extended benefit period shall be made under this subsection as if (i) paragraph (1) did not contain subparagraph (A) thereof, and (ii) the figure ‘5’ contained in subparagraph (B) thereof were ‘6’; except that, notwithstanding any such provision of State law, any week for which there would otherwise be a State ‘on’ indicator shall continue to be such a week and shall not be determined to be a week for which there is a State ‘off’ indicator. For purposes of this subsection, the rate of insured unemployment for any thirteen-week period shall be determined by reference to the average monthly covered employment under the State law for the first four of the most recent six calendar quarters ending before the close of such period.
“(e) [Rate of Insured Unemployment; Covered Employment] (1) For purposes of subsection (d), the term ‘rate of insured unemployment’ means the percentage arrived at by dividing--
“(A) the average weekly number of individuals filing claims for regular compensation for weeks of unemployment with respect to the specified period, as determined on the basis of the reports made by the State agency to the Secretary, by
“(B) the average monthly covered employment for the specified period.
“(2) Determinations under subsection (d) shall be made by the State agency in accordance with regulations prescribed by the Secretary.
“Sec. 204. [Payments to States]
“(a) [Amount Payable] (1) There shall be paid to each State an amount equal to one-half of the sum of--
“(A) the sharable extended compensation, and
“(B) the sharable regular compensation, paid to individuals under the State law.
“(2) No payment shall be made to any State under this subsection in respect of compensation (A) for which the State is entitled to reimbursement under the provisions of any Federal law other than this Act, (B) paid for the first week in an individual's eligibility period for which extended compensation or sharable regular compensation is paid, if the State law of such State provides for payment (at any time or under any circumstances) of regular compensation to an individual for his first week of otherwise compensable unemployment, (C) paid for any week with respect to which such benefits are not payable by reason of section 233(d) of the Trade Act of 1974 [19 U.S.C. 2293(d)], or (D) paid to an individual with respect to a week of unemployment to the extent that such amount exceeds the amount of such compensation which would be paid to such individual if such State had a benefit structure which provided that the amount of compensation otherwise payable to any individual for any week shall be rounded (if not a full dollar amount) to the nearest lower full dollar amount.
“(3) The amount which, but for this paragraph, would be payable under this subsection to any State in respect of any compensation paid to an individual whose base period wages include wages for services to which section 3306(c)(7) of the Internal Revenue Code of 1986 applies shall be reduced by an amount which bears the same ratio to the amount which, but for this paragraph, would be payable under this subsection to such State in respect of such compensation as the amount of the base period wages attributable to such services bears to the total amount of the base period wages.
“(b) [Sharable Extended Compensation] For purposes of subsection (a)(1)(A), extended compensation paid to an individual for weeks of unemployment in such individual's eligibility period is sharable extended compensation to the extent that the aggregate extended compensation paid to such individual with respect to any benefit year does not exceed the smallest of the amounts referred to in subparagraphs (A), (B), and (C) of section 202(b)(1).
“(c) [Sharable Regular Compensation] For purposes of subsection (a)(1)(B), regular compensation paid to an individual for a week of unemployment is sharable regular compensation--
“(1) if such week is in such individual's eligibility period (determined under section 203(c)), and
“(2) to the extent that the sum of such compensation, plus the regular compensation paid (or deemed paid) to him with respect to prior weeks of unemployment in the benefit year, exceeds twenty-six times (and does not exceed thirty-nine times) the average weekly benefit amount (including allowances for dependents) for weeks of total unemployment payable to such individual under the State law in such benefit year.
“(d) [Payment On Calendar Month Basis] There shall be paid to each State either in advance or by way of reimbursement, as may be determined by the Secretary, such sum as the Secretary estimates the State will be entitled to receive under this title for each calendar month, reduced or increased, as the case may be, by any sum by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made upon the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency.
“(e) [Certification] The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section. The Secretary of the Treasury, prior to audit or settlement by the General Accounting Office, shall make payment to the State in accordance with such certification, by transfers from the extended unemployment compensation account to the account of such State in the Unemployment Trust Fund.
“Sec. 205. [Definitions] For purposes of this title--
“(1) The term ‘compensation’ means cash benefits payable to individuals with respect to their unemployment.
“(2) The term ‘regular compensation’ means compensation payable to an individual under any State unemployment compensation law (including compensation payable pursuant to 5 U.S.C. chapter 85), other than extended compensation and additional compensation.
“(3) The term ‘extended compensation’ means compensation (including additional compensation and compensation payable pursuant to 5 U.S.C. chapter 85) payable for weeks of unemployment beginning in an extended benefit period to an individual under those provisions of the State law which satisfy the requirements of this title with respect to the payment of extended compensation.
“(4) The term ‘additional compensation’ means compensation payable to exhaustees by reason of conditions of high unemployment or by reason of other special factors.
“(5) The term ‘benefit year’ means the benefit year as defined in the applicable State law.
“(6) The term ‘base period’ means the base period as determined under applicable State law for the benefit year.
“(7) The term ‘Secretary’ means the Secretary of Labor of the United States.
“(8) The term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.
“(9) The term ‘State agency’ means the agency of the State which administers its State law.
“(10) The term ‘State law’ means the unemployment compensation law of the State, approved by the Secretary under section 3304 of the Internal Revenue Code of 1986.
“(11) The term ‘week’ means a week as defined in the applicable State law.
“Sec. 206. [Approval of State Laws] [This section amended section 3304(a) of the Internal Revenue Code by adding par. (11) thereof.]
“Sec. 207. [Effective Dates] (a) Except as provided in subsection (b)--
“(1) in applying section 203, no extended benefit period may begin with a week beginning before January 1, 1972; and
“(2) section 204 shall apply only with respect to weeks of unemployment beginning after December 31, 1971.
“(b)(1) In the case of a State law approved under section 3304(a)(11) of the Internal Revenue Code of 1986, such State law may also provide that an extended benefit period may begin with a week established pursuant to such law which begins earlier than January 1, 1972, but not earlier than 60 days after the date of the enactment of this Act [Aug. 10, 1970].
“(2) For purposes of paragraph (1) with respect to weeks beginning before January 1, 1972, the extended benefit period for the State shall be determined under section 203(a) solely by reference to the State ‘on’ indicator and the State ‘off’ indicator.
“(3) In the case of a State law containing a provision described in paragraph (1), section 204 shall also apply with respect to weeks of unemployment in extended benefit periods determined pursuant to paragraph (1).
“(c) Section 3304(a)(11) of the Internal Revenue Code of 1986 (as added by section 206) shall not be a requirement for the State law of any State--
“(1) in the case of any State the legislature of which does not meet in a regular session which closes during the calendar year 1971, with respect to any week of unemployment which begins prior to July 1, 1972; or
“(2) in the case of any other State, with respect to any week of unemployment which begins prior to January 1, 1972.”
[Section 522(b) of Pub. L. 98-21 provided that: “The amendment made by this section [amending section 202(a)(3)(A)(ii) of Pub. L. 91-373, set out above] shall become effective on the date of the enactment of this Act [Apr. 20, 1983]."]
[Section 191(b) of Pub. L. 97-248 provided that:
["(1) Except as provided in paragraph (2), the amendments made by this section [amending section 204(a)(2) of Pub. L. 91-373, set out above] shall apply in the case of compensation paid to individuals during eligibility periods beginning on or after October 1, 1983.
["(2) In the case of a State with respect to which the Secretary of Labor has determined that State legislation is required in order to provide for rounding down of unemployment compensation amounts, the amendment made by this section [amending section 204(a)(2) of Pub. L. 91-373, set out above] shall apply in the case of compensation paid to individuals during eligibility periods which begin on or after October 1, 1983, and after the end of the first session of the State legislature which begins after the date of the enactment of this Act [Sept. 3, 1982], or which began prior to the date of the enactment of this Act and remained in session for at least twenty-five calendar days after such date of enactment. For purposes of the preceding sentence, the term ‘session’ means a regular, special, budget, or other session of a State legislature."]
[Section 2401(c) of Pub. L. 97-35 provided that: “The amendments made by this section [amending sections 203 and 204(a)(3), (4) of Pub. L. 91-373, set out above] shall apply to weeks beginning after the date of the enactment of this Act [Aug. 13, 1981]."]
[Section 2402(b) of Pub. L. 97-35 provided that: “The amendment made by subsection (a) [amending section 203(e)(1)(A) of Pub. L. 91-373, set out above] shall apply for purposes of determining whether there are State ‘on’ or ‘off’ indicators for weeks beginning after the date of the enactment of this Act [Aug. 13, 1981]. For purposes of making such determinations for such weeks, such amendment shall be deemed to be in effect for all weeks whether beginning before, on, or after such date of enactment."]
[Section 2403(b) of Pub. L. 97-35 provided that: “The amendments made by subsection (a) [amending section 203(d) of Pub. L. 91-373, set out above] shall apply to weeks beginning after September 25, 1982."]
[Section 2404(c) of Pub. L. 97-34 provided that: “The amendments made by this section [amending section 202(a)(5), (6) of Pub. L. 91-373, set out above] shall apply with respect to extended compensation and sharable regular compensation payable for weeks which begin after September 25, 1982."]
[Amendment by sections 2401-2404 of Pub. L. 97-35 (amending Pub. L. 91-373, set out above) required to be included in State unemployment compensation laws for purposes of certifications, see section 2408(b) of Pub. L. 97-35, set out above.]
[Amendment by section 2505(b) of Pub. L. 97-35 (amending section 204(a)(2)(C) of Pub. L. 91-373, set out above) applicable to allowances payable for weeks of unemployment which begin after Sept. 30, 1981, and transitional provisions applicable, see section 2514 of Pub. L. 97-35, set out as an Effective Date of 1981 Amendment and Transitional Provisions note under section 2291 of Title 19, Customs Duties.]
[Section 1022(b) of Pub. L. 96-499 provided that:
["(1) Except as provided in paragraph (2), the amendments made by this section [amending section 204(a)(2) of Pub. L. 91-373, set out above] shall apply in the case of compensation paid to individuals during eligibility periods beginning on or after the date of the enactment of this Act [Dec. 5, 1980].
["(2) In the case of a State with respect to which the Secretary of Labor has determined that State legislation is required in order to eliminate its current policy of paying regular compensation to an individual for his first week of otherwise compensable unemployment, the amendments made by this section [amending section 204(a)(2) of Pub. L. 91-373, set out above] shall apply in the case of compensation paid to individuals during eligibility periods beginning after the end of the first regularly scheduled session of the State legislature ending more than thirty days after the date of the enactment of this Act [Dec. 5, 1980]."]
[Section 1024(b) of Pub. L. 96-499 provided that: “The amendment made by this section [amending section 202(a) of Pub. L. 91-373, set out above] shall apply with respect to weeks of unemployment beginning after March 31, 1981."]
[Section 416(b) of Pub. L. 96-364, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
["(1) In general.--The amendment made by subsection (a) [amending subsec. 202(c) of Pub. L. 91-373, set out above] shall apply to weeks of unemployment beginning after October 1, 1980; except that such amendment shall not be a requirement of any State law under section 3304(a)(11) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] for any week which begins before June 1, 1981.
["(2) Special rule for certain states.--In the case of any State the legislature of which does not meet in a regular session which begins during calendar year 1981 and before April 1, 1981, paragraph (1) shall be applied by substituting ‘June 1, 1982’ for ‘June 1, 1981’."]
[Section 116(f)(1) of Pub. L. 94-566, set out as an Effective Date of 1976 Amendment note above, provided in part that the deletion of “the Virgin Islands or” from section 202(a)(1) of Pub. L. 91-373, set out above, and the insertion of “and the Virgin Islands” in section 205(8) thereof shall take effect on the later of Oct. 1, 1976, or the day after the day on which the Secretary of Labor approves under section 3304(a) of this title an unemployment compensation law submitted to him by the Virgin Islands for approval.]
[Section 212(b) of Pub. L. 94-566 provided that: “The amendment made by this section [enacting section 204(a)(4) of Pub. L. 91-373, set out above] shall apply with respect to compensation paid for weeks of unemployment beginning on or after January 1, 1979."]
[Section 311(c) of Pub. L. 94-566 provided that: “The amendment made by subsection (a) of this section [amending section 203(d) of Pub. L. 91-373, set out above] shall apply to weeks beginning after December 31, 1976, and the amendments made by subsection (b) of this section [amending section 203(e) of Pub. L. 91-373, set out above] shall apply to weeks beginning after March 30, 1977."]
STUDY AND REPORT BY SECRETARY OF LABOR COVERING EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM AND SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAM; REPORT ON OR BEFORE JAN. 1, 1977
Section 104 of Pub. L. 94-45, June 30, 1975, 89 Stat. 238, provided that: “The Secretary of Labor shall conduct a study and review of the program established by the Emergency Unemployment Compensation Act of 1974 [Pub. L. 93-572, set out above] and the program established under title II of the Emergency Jobs and Unemployment Assistance Act of 1974 [Pub. L. 93-567, title II, set out above] and shall submit to the Congress not later than January 1, 1977, a report on such study and review. Such study and review shall include--
“(1) the employment, economic, and demographic characteristics of individuals receiving benefits under either such program,
“(2) the needs of the long-term unemployed for job counseling, testing, referral and placement services, skill and apprenticeship training, career-related education programs, and public service employment opportunities, and
“(3) an examination of all other benefits to which individuals receiving benefits under either such program are eligible together with an investigation of important factors affecting unemployment, a comparison of the aggregate value of such other benefits plus benefits received under either such program with the amount of compensation received by such individuals in their most recent position of employment.”
LOANS TO UNEMPLOYMENT FUND OF VIRGIN ISLANDS
Pub. L. 94-45, title III, 301, June 30, 1975, 89 Stat. 243, as amended by Pub. L. 94-354, July 12, 1976, 90 Stat. 888; Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
“(a) The Secretary of Labor (hereinafter in this section referred to as the ‘Secretary’) may make loans to the Virgin Islands in such amounts as he determines to be necessary for the payment in any month of compensation under the unemployment compensation law of the Virgin Islands. A loan may be made under this subsection for the payment of compensation in any month only if--
“(1) the Governor of the Virgin Islands submits an application therefor no earlier than the first day of the preceding month; and
“(2) such application contains an estimate of the amount of the loan which will be required by the Virgin Islands for the payment of compensation in such month.
“(b) For purposes of this section--
“(1) an application for loan under subsection (a) shall be made on such forms and shall contain such information and data (fiscal and otherwise) concerning the operation and administration of the unemployment compensation law of the Virgin Islands as the Secretary deems necessary or relevant to the performance of his duties under this section;
“(2) the amount required by the Virgin Islands for the payment of compensation in any month shall be determined with due allowance for contingencies and taking into account all other amounts that will be available in the unemployment fund of the Virgin Islands for the payment of compensation in such month; and
“(3) the term ‘compensation’ means cash benefits payable to individuals with respect to their unemployment, exclusive of expenses of administration.
“(c) Any loan made under subsection (a) shall be repayable (without interest) not later than January 1, 1979. If after January 1, 1979, any portion of any such loan remains unpaid, the Virgin Islands shall pay interest thereon, until the loan is paid in full, at a rate equal to the rate of interest in effect under section 6621 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]. If at some future date the Federal Unemployment Tax Act [section 3301 et seq. of this title] shall be made applicable to the Virgin Islands, then, any amount of principal or interest due on any such loan remaining unpaid on such date shall be treated, for purposes of section 3302(c)(3) of the Internal Revenue Code of 1986, as an advance made to the Virgin Islands under title XII of the Social Security Act [42 U.S.C. 1321 et seq.].
“(d) No loan may be made under subsection (a) for any month beginning after September 30, 1977. The aggregate of the loans which may be made under subsection (a) shall not exceed $15,000,000.
“(e) There are authorized to be appropriated from the general fund of the Treasury such sums as may be necessary to carry out this section.”
UNEMPLOYMENT COMPENSATION LAW OF COMMONWEALTH OF PUERTO RICO
Section 543(b) of Pub. L. 86-778, title V, Sept. 13, 1960, 74 Stat. 986, provided that: “The unemployment compensation law of the Commonwealth of Puerto Rico shall be considered as meeting the requirements of--
“(1) Section 3304(a)(2) of the Federal Unemployment Tax Act [26 U.S.C. 3304(a)(2)], if such law provides that no compensation is payable with respect to any day of unemployment occurring before January 1, 1959.
“(2) Section 3304(a)(3) of the Federal Unemployment Tax Act [26 U.S.C. 3304(a)(3)] and section 303(a)(4) of the Social Security Act [42 U.S.C. 503(a)(4)], if such law contains the provisions required by those sections and if it requires that, on or before February 1, 1961, there be paid over to the Secretary of the Treasury, for credit to the Puerto Rico account in the Unemployment Trust Fund, an amount equal to the excess of--
“(A) the aggregate of the moneys received in the Puerto Rico unemployment fund before January 1, 1961, over
“(B) the aggregate of the moneys paid from such fund before January 1, 1961, as unemployment compensation or as refunds of contributions erroneously paid.”
sophocles
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Re: Dear Filipino's and Filipina's
Postby esperasave » Mon Apr 12, 2021 10:49 pm

But her Ilongga kababayans will fight for her. How they flooded the social media after her crowning to venerate her because she carried the name of their Province. And until now, they are already looking forward for her coronation. Let's see if that will work for them. They are so hungry but they have to pay for a price to vote her to be in the top 21 and watch the pay per view.
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Re: Dear Filipino's and Filipina's
Postby sophocles » Mon Apr 12, 2021 10:52 pm

I.R.C. § 3306(a) Employer — For purposes of this chapter—
I.R.C. § 3306(a)(1) In General — The term “employer” means, with respect to any calendar year, any person who—
I.R.C. § 3306(a)(1)(A) — during any calendar quarter in the calendar year or the preceding calendar year paid wages of $1,500 or more, or
I.R.C. § 3306(a)(1)(B) — on each of some 20 days during the calendar year or during the preceding calendar year, each day being in a different calendar week, employed at least one individual in employment for some portion of the day.
For purposes of this paragraph, there shall not be taken into account any wages paid to, or employment of, an employee performing domestic services referred to in paragraph (3).
I.R.C. § 3306(a)(2) Agricultural Labor — In the case of agricultural labor, the term “employer" means, with respect to any calendar year, any person who—
I.R.C. § 3306(a)(2)(A) — during any calendar quarter in the calendar year or the preceding calendar year paid wages of $20,000 or more for agricultural labor, or
I.R.C. § 3306(a)(2)(B) — on each of some 20 days during the calendar year or during the preceding calendar year, each day being in a different calendar week, employed at least 10 individuals in employment in agricultural labor for some portion of the day.
I.R.C. § 3306(a)(3) Domestic Service — In the case of domestic service in a private home, local college club, or local chapter of a college fraternity or sorority, the term “employer” means, with respect to any calendar year, any person who during any calendar quarter in the calendar year or the preceding calendar year paid wages in cash of $1,000 or more for such service.
I.R.C. § 3306(a)(4) Special Rule — A person treated as an employer under paragraph (3) shall not be treated as an employer with respect to wages paid for any service other than domestic service referred to in paragraph (3) unless such person is treated as an employer under paragraph (1) or (2) with respect to such other service.
I.R.C. § 3306(b) Wages — For purposes of this chapter, the term “wages” means all remuneration for employment, including the cash value of all remuneration (including benefits) paid in any medium other than cash; except that such term shall not include—
I.R.C. § 3306(b)(1) — that part of the remuneration which, after remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) equal to $7,000 with respect to employment has been paid to an individual by an employer during any calendar year, is paid to such individual by such employer during such calendar year. If an employer (hereinafter referred to as successor employer) during any calendar year acquires substantially all the property used in a trade or business of another employer (hereinafter referred to as a predecessor), or used in a separate unit of a trade or business of a predecessor, and immediately after the acquisition employs in his trade or business an individual who immediately prior to the acquisition was employed in the trade or business of such predecessor, then, for the purpose of determining whether the successor employer has paid remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment equal to $7,000 to such individual during such calendar year, any remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment paid (or considered under this paragraph as having been paid) to such individual by such predecessor during such calendar year and prior to such acquisition shall be considered as having been paid by such successor employer;
I.R.C. § 3306(b)(2) — the amount of any payment (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) made to, or on behalf of, an employee or any of his dependents under a plan or system established by an employer which makes provision for his employees generally (or for his employees generally and their dependents) or for a class or classes of his employees (or for a class or classes of his employees and their dependents), on account of—
I.R.C. § 3306(b)(2)(A) — sickness or accident disability (but, in the case of payments made to an employee or any of his dependents, this subparagraph shall exclude from the term “wages” only payments which are received under a workmen's compensation law), or
I.R.C. § 3306(b)(2)(B) — medical or hospitalization expenses in connection with sickness or accident disability, or
I.R.C. § 3306(b)(2)(C) — death;
I.R.C. § 3306(b)(3) — [Repealed. Pub. L. 98-21, title III, 324(b)(3)(B), Apr. 20, 1983, 97 Stat. 124]
I.R.C. § 3306(b)(4) — any payment on account of sickness or accident disability, or medical or hospitalization expenses in connection with sickness or accident disability, made by an employer to, or on behalf of, an employee after the expiration of 6 calendar months following the last calendar month in which the employee worked for such employer;
I.R.C. § 3306(b)(5) — any payment made to, or on behalf of, an employee or his beneficiary—
I.R.C. § 3306(b)(5)(A) — from or to a trust described in section 401(a) which is exempt from tax under section 501(a) at the time of such payment unless such payment is made to an employee of the trust as remuneration for services rendered as such employee and not as a beneficiary of the trust, or
I.R.C. § 3306(b)(5)(B) — under or to an annuity plan which, at the time of such payment, is a plan described in section 403(a),
I.R.C. § 3306(b)(5)(C) — under a simplified employee pension (as defined in section 408(k)(1)), other than any contributions described in section 408(k)(6),
I.R.C. § 3306(b)(5)(D) — under or to an annuity contract described in section 403(b), other than a payment for the purchase of such contract which is made by reason of a salary reduction agreement (whether evidenced by a written instrument or otherwise),
I.R.C. § 3306(b)(5)(E) — under or to an exempt governmental deferred compensation plan (as defined in section 3121(v)(3)),
I.R.C. § 3306(b)(5)(F) — to supplement pension benefits under a plan or trust described in any of the foregoing provisions of this paragraph to take into account some portion or all of the increase in the cost of living (as determined by the Secretary of Labor) since retirement but only if such supplemental payments are under a plan which is treated as a welfare plan under section 3(2)(B)(ii) of the Employee Retirement Income Security Act of 1974,
I.R.C. § 3306(b)(5)(G) — under a cafeteria plan (within the meaning of section 125) if such payment would not be treated as wages without regard to such plan and it is reasonable to believe that (if section 125 applied for purposes of this section) section 125 would not treat any wages as constructively received, or1
1 So in original. The comma probably should be a semicolon.
I.R.C. § 3306(b)(5)(H) — under an arrangement to which section 408(p) applies, other than any elective contributions under paragraph (2)(A)(i) thereof,
I.R.C. § 3306(b)(6) — the payment by an employer (without deduction from the remuneration of the employee)—
I.R.C. § 3306(b)(6)(A) — of the tax imposed upon an employee under section 3101, or
I.R.C. § 3306(b)(6)(B) — of any payment required from an employee under a State unemployment compensation law, with respect to remuneration paid to an employee for domestic service in a private home of the employer or for agricultural labor;
I.R.C. § 3306(b)(7) — remuneration paid in any medium other than cash to an employee for service not in the course of the employer's trade or business;
I.R.C. § 3306(b)(8) — [Repealed. Pub. L. 98-21, title III, 324(b)(3)(B), Apr. 20, 1983, 97 Stat. 124]
I.R.C. § 3306(b)(9) — remuneration paid to or on behalf of an employee if (and to the extent that) at the time of the payment of such remuneration it is reasonable to believe that a corresponding deduction is allowable under section 217 (determined without regard to section 274(n));
I.R.C. § 3306(b)(10) — any payment or series of payments by an employer to an employee or any of his dependents which is paid—
I.R.C. § 3306(b)(10)(A) — upon or after the termination of an employee's employment relationship because of (i) death, or (ii) retirement for disability, and
I.R.C. § 3306(b)(10)(B) — under a plan established by the employer which makes provision for his employees generally or a class or classes of his employees (or for such employees or class or classes of employees and their dependents), other than any such payment or series of payments which would have been paid if the employee's employment relationship had not been so terminated;
I.R.C. § 3306(b)(11) — remuneration for agricultural labor paid in any medium other than cash;
I.R.C. § 3306(b)(12) — [Repealed. Pub. L. 113-295, Div. A, title II, Sec. 221(a)(19)(B)(vi).]
I.R.C. § 3306(b)(13) — any payment made, or benefit furnished, to or for the benefit of an employee if at the time of such payment or such furnishing it is reasonable to believe that the employee will be able to exclude such payment or benefit from income under section 127, 129, 134(b)(4), or 134(b)(5);
I.R.C. § 3306(b)(14) — the value of any meals or lodging furnished by or on behalf of the employer if at the time of such furnishing it is reasonable to believe that the employee will be able to exclude such items from income under section 119;
I.R.C. § 3306(b)(15) — any payment made by an employer to a survivor or the estate of a former employee after the calendar year in which such employee died;
I.R.C. § 3306(b)(16) — any benefit provided to or on behalf of an employee if at the time such benefit is provided it is reasonable to believe that the employee will be able to exclude such benefit from income under section 74(c), 108(f)(4), 117, or 132;
I.R.C. § 3306(b)(17) — any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(b);
I.R.C. § 3306(b)(18) — any payment made to or for the benefit of an employee if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 106(d);
I.R.C. § 3306(b)(19) — remuneration on account of—
I.R.C. § 3306(b)(19)(A) — a transfer of a share of stock to any individual pursuant to an exercise of an incentive stock option (as defined in section 422(b)) or under an employee stock purchase plan (as defined in section 423(b)), or
I.R.C. § 3306(b)(19)(B) — any disposition by the individual of such stock; or
I.R.C. § 3306(b)(20) — any benefit or payment which is excludable from the gross income of the employee under section 139B(b).
Except as otherwise provided in regulations prescribed by the Secretary, any third party which makes a payment included in wages solely by reason of the parenthetical matter contained in subparagraph (A) of paragraph (2) shall be treated for purposes of this chapter and chapter 22 as the employer with respect to such wages. Nothing in the regulations prescribed for purposes of chapter 24 (relating to income tax withholding) which provides an exclusion from “wages” as used in such chapter shall be construed to require a similar exclusion from “wages” in the regulations prescribed for purposes of this chapter.
I.R.C. § 3306(c) Employment — For purposes of this chapter, the term “employment" means any service performed prior to 1955, which was employment for purposes of subchapter C of chapter 9 of the Internal Revenue Codeof 1939 under the law applicable to the period in which such service was performed, and (A) any service, of whatever nature, performed after 1954 by an employee for the person employing him, irrespective of the citizenship or residence of either, (i) within the United States, or (ii) on or in connection with an American vessel or American aircraft under a contract of service which is entered into within the United States or during the performance of which and while the employee is employed on the vessel or aircraft it touches at a port in the United States, if the employee is employed on and in connection with such vessel or aircraft when outside the United States, and (B) any service, of whatever nature, performed after 1971 outside the United States (except in a contiguous country with which the United States has an agreement relating to unemployment compensation) by a citizen of the United States as an employee of an American employer (as defined in subsection (j)(3)), except—
I.R.C. § 3306(c)(1) — agricultural labor (as defined in subsection (k)) unless—
I.R.C. § 3306(c)(1)(A) — such labor is performed for a person who—
I.R.C. § 3306(c)(1)(A)(i) — during any calendar quarter in the calendar year or the preceding calendar year paid remuneration in cash of $20,000 or more to individuals employed in agricultural labor (including labor performed by an alien referred to in subparagraph (B)), or
I.R.C. § 3306(c)(1)(A)(ii) — on each of some 20 days during the calendar year or the preceding calendar year, each day being in a different calendar week, employed in agricultural labor (including labor performed by an alien referred to in subparagraph (B)) for some portion of the day (whether or not at the same moment of time) 10 or more individuals; and
I.R.C. § 3306(c)(1)(B) — such labor is not agricultural labor performed by an individual who is an alien admitted to the United States to perform agricultural labor pursuant to sections 214(c) and 101(a)(15)(H) of the Immigration and Nationality Act;
I.R.C. § 3306(c)(2) — domestic service in a private home, local college club, or local chapter of a college fraternity or sorority unless performed for a person who paid cash remuneration of $1,000 or more to individuals employed in such domestic service in any calendar quarter in the calendar year or the preceding calendar year;
I.R.C. § 3306(c)(3) — service not in the course of the employer's trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for such service is $50 or more and such service is performed by an individual who is regularly employed by such employer to perform such service. For purposes of this paragraph, an individual shall be deemed to be regularly employed by an employer during a calendar quarter only if—
I.R.C. § 3306(c)(3)(A) — on each of some 24 days during such quarter such individual performs for such employer for some portion of the day service not in the course of the employer's trade or business, or
I.R.C. § 3306(c)(3)(B) — such individual was regularly employed (as determined under subparagraph (A)) by such employer in the performance of such service during the preceding calendar quarter;
I.R.C. § 3306(c)(4) — service performed on or in connection with a vessel or aircraft not an American vessel or American aircraft, if the employee is employed on and in connection with such vessel or aircraft when outside the United States;
I.R.C. § 3306(c)(5) — service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child under the age of 21 in the employ of his father or mother;
I.R.C. § 3306(c)(6) — service performed in the employ of the United States Government or of an instrumentality of the United States which is—
I.R.C. § 3306(c)(6)(A) — wholly or partially owned by the United States, or
I.R.C. § 3306(c)(6)(B) — exempt from the tax imposed by section 3301 by virtue of any provision of law which specifically refers to such section (or the corresponding section of prior law) in granting such exemption;
I.R.C. § 3306(c)(7) — service performed in the employ of a State, or any political subdivision thereof, or in the employ of an Indian tribe, or any instrumentality of any one or more of the foregoing which is wholly owned by one or more States or political subdivisions or Indian tribes; and any service performed in the employ of any instrumentality of one or more States or political subdivisions to the extent that the instrumentality is, with respect to such service, immune under the Constitution of the United States from the tax imposed by section 3301;
I.R.C. § 3306(c)(8) — service performed in the employ of a religious, charitable, educational, or other organization described in section 501(c)(3) which is exempt from income tax under section 501(a);
I.R.C. § 3306(c)(9) — service performed by an individual as an employee or employee representative as defined in section 1 of the Railroad Unemployment Insurance Act (45 U.S.C. 351);
I.R.C. § 3306(c)(10)
I.R.C. § 3306(c)(10)(A) — service performed in any calendar quarter in the employ of any organization exempt from income tax under section 501(a) (other than an organization described in section 401(a)) or under section 521, if the remuneration for such service is less than $50, or
I.R.C. § 3306(c)(10)(B) — service performed in the employ of a school, college, or university, if such service is performed (i) by a student who is enrolled and is regularly attending classes at such school, college, or university, or (ii) by the spouse of such a student, if such spouse is advised, at the time such spouse commences to perform such service, that (I) the employment of such spouse to perform such service is provided under a program to provide financial assistance to such student by such school, college, or university, and (II) such employment will not be covered by any program of unemployment insurance, or
I.R.C. § 3306(c)(10)(C) — service performed by an individual who is enrolled at a nonprofit or public educational institution which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at such institution, which combines academic instruction with work experience, if such service is an integral part of such program, and such institution has so certified to the employer, except that this subparagraph shall not apply to service performed in a program established for or on behalf of an employer or group of employers, or
I.R.C. § 3306(c)(10)(D) — service performed in the employ of a hospital, if such service is performed by a patient of such hospital;
I.R.C. § 3306(c)(11) — service performed in the employ of a foreign government (including service as a consular or other officer or employee or a nondiplomatic representative);
I.R.C. § 3306(c)(12) — service performed in the employ of an instrumentality wholly owned by a foreign government—
I.R.C. § 3306(c)(12)(A) — if the service is of a character similar to that performed in foreign countries by employees of the United States Government or of an instrumentality thereof; and
I.R.C. § 3306(c)(12)(B) — if the Secretary of State shall certify to the Secretary of the Treasury that the foreign government, with respect to whose instrumentality exemption is claimed, grants an equivalent exemption with respect to similar service performed in the foreign country by employees of the United States Government and of instrumentalities thereof;
I.R.C. § 3306(c)(13) — service performed as a student nurse in the employ of a hospital or a nurses' training school by an individual who is enrolled and is regularly attending classes in a nurses' training school chartered or approved pursuant to State law; and service performed as an intern in the employ of a hospital by an individual who has completed a 4 years' course in a medical school chartered or approved pursuant to State law;
I.R.C. § 3306(c)(14) — service performed by an individual for a person as an insurance agent or as an insurance solicitor, if all such service performed by such individual for such person is performed for remuneration solely by way of commission;
I.R.C. § 3306(c)(15)
I.R.C. § 3306(c)(15)(A) — service performed by an individual under the age of 18 in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution;
I.R.C. § 3306(c)(15)(B) — service performed by an individual in, and at the time of, the sale of newspapers or magazines to ultimate consumers, under an arrangement under which the newspapers or magazines are to be sold by him at a fixed price, his compensation being based on the retention of the excess of such price over the amount at which the newspapers or magazines are charged to him, whether or not he is guaranteed a minimum amount of compensation for such service, or is entitled to be credited with the unsold newspapers or magazines turned back;
I.R.C. § 3306(c)(16) — service performed in the employ of an international organization;
I.R.C. § 3306(c)(17) — service performed by an individual in (or as an officer or member of the crew of a vessel while it is engaged in) the catching, taking, harvesting, cultivating, or farming of any kind of fish, shellfish, crustacea, sponges, seaweeds, or other aquatic forms of animal and vegetable life (including service performed by any such individual as an ordinary incident to any such activity), except—
I.R.C. § 3306(c)(17)(A) — service performed in connection with the catching or taking of salmon or halibut, for commercial purposes, and
I.R.C. § 3306(c)(17)(B) — service performed on or in connection with a vessel of more than 10 net tons (determined in the manner provided for determining the register tonnage of merchant vessels under the laws of the United States);
I.R.C. § 3306(c)(18) — service described in section 3121(b)(20);
I.R.C. § 3306(c)(19) — service which is performed by a nonresident alien individual for the period he is temporarily present in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act, as amended (8 U.S.C. 1101(a)(15)(F), (J), (M), or (Q)), and which is performed to carry out the purpose specified in subparagraph (F), (J), (M), or (Q), as the case may be;
I.R.C. § 3306(c)(20) — service performed by a full time student (as defined in subsection (q)) in the employ of an organized camp—
I.R.C. § 3306(c)(20)(A) — if such camp—
I.R.C. § 3306(c)(20)(A)(i) — did not operate for more than 7 months in the calendar year and did not operate for more than 7 months in the preceding calendar year, or
I.R.C. § 3306(c)(20)(A)(ii) — had average gross receipts for any 6 months in the preceding calendar year which were not more than 331/3 percent of its average gross receipts for the other 6 months in the preceding calendar year; and
I.R.C. § 3306(c)(20)(B) — if such full time student performed services in the employ of such camp for less than 13 calendar weeks in such calendar year; or
I.R.C. § 3306(c)(21) — service performed by a person committed to a penal institution.
I.R.C. § 3306(d) Included And Excluded Service — For purposes of this chapter, if the services performed during one-half or more of any pay period by an employee for the person employing him constitute employment, all the services of such employee for such period shall be deemed to be employment; but if the services performed during more than one-half of any such pay period by an employee for the person employing him do not constitute employment, then none of the services of such employee for such period shall be deemed to be employment. As used in this subsection, the term “pay period” means a period (of not more than 31 consecutive days) for which a payment of remuneration is ordinarily made to the employee by the person employing him. This subsection shall not be applicable with respect to services performed in a pay period by an employee for the person employing him, where any of such service is excepted by subsection (c)(9).
I.R.C. § 3306(e) State Agency — For purposes of this chapter, the term “State agency" means any State officer, board, or other authority, designated under a State law to administer the unemployment fund in such State.
I.R.C. § 3306(f) Unemployment Fund — For purposes of this chapter, the term “unemployment fund” means a special fund, established under a State law and administered by a State agency, for the payment of compensation. Any sums standing to the account of the State agency in the Unemployment Trust Fund established by section 904 of the Social Security Act, as amended (42 U.S.C. 1104), shall be deemed to be a part of the unemployment fund of the State, and no sums paid out of the Unemployment Trust Fund to such State agency shall cease to be a part of the unemployment fund of the State until expended by such State agency. An unemployment fund shall be deemed to be maintained during a taxable year only if throughout such year, or such portion of the year as the unemployment fund was in existence, no part of the moneys of such fund was expended for any purpose other than the payment of compensation (exclusive of expenses of administration) and for refunds of sums erroneously paid into such fund and refunds paid in accordance with the provisions of section 3305(b); except that—
I.R.C. § 3306(f)(1) — an amount equal to the amount of employee payments into the unemployment fund of a State may be used in the payment of cash benefits to individuals with respect to their disability, exclusive of expenses of administration;
I.R.C. § 3306(f)(2) — the amounts specified by section 903(c)(2) or 903(d)(4) of the Social Security Act may, subject to the conditions prescribed in such section, be used for expenses incurred by the State for administration of its unemployment compensation law and public employment offices,2
2 So in original. The comma probably should be a semicolon.
I.R.C. § 3306(f)(3) — nothing in this subsection shall be construed to prohibit deducting any amount from unemployment compensation otherwise payable to an individual and using the amount so deducted to pay for health insurance, or the withholding of Federal, State, or local individual income tax, if the individual elected to have such deduction made and such deduction was made under a program approved by the Secretary of Labor;
I.R.C. § 3306(f)(4) — amounts may be deducted from unemployment benefits and used to repay overpayments as provided in section 303(g) of the Social Security Act;
I.R.C. § 3306(f)(5) — amounts may be withdrawn for the payment of short-time compensation under a short-time compensation program (as defined in subsection (v)); and
I.R.C. § 3306(f)(6) — amounts may be withdrawn for the payment of allowances under a self-employment assistance program (as defined in subsection (t)).
I.R.C. § 3306(g) Contributions — For purposes of this chapter, the term “contributions" means payments required by a State law to be made into an unemployment fund by any person on account of having individuals in his employ, to the extent that such payments are made by him without being deducted or deductible from the remuneration of individuals in his employ.
I.R.C. § 3306(h) Compensation — For purposes of this chapter, the term “compensation" means cash benefits payable to individuals with respect to their unemployment.
I.R.C. § 3306(i) Employee — For purposes of this chapter, the term “employee” has the meaning assigned to such term by section 3121(d), except that paragraph (4) and subparagraphs (B) and (C) of paragraph (3) shall not apply.
I.R.C. § 3306(j) State, United States, And American Employer — For purposes of this chapter—
I.R.C. § 3306(j)(1) State — The term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.
I.R.C. § 3306(j)(2) United States — The term “United States” when used in a geographical sense includes the States, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.
I.R.C. § 3306(j)(3) American Employer — The term “American employer” means a person who is—
I.R.C. § 3306(j)(3)(A) — an individual who is a resident of the United States,
I.R.C. § 3306(j)(3)(B) — a partnership, if two-thirds or more of the partners are residents of the United States,
I.R.C. § 3306(j)(3)(C) — a trust, if all of the trustees are residents of the United States, or
I.R.C. § 3306(j)(3)(D) — a corporation organized under the laws of the United States or of any State.
An individual who is a citizen of the Commonwealth of Puerto Rico or the Virgin Islands (but not otherwise a citizen of the United States) shall be considered, for purposes of this section, as a citizen of the United States.
I.R.C. § 3306(k) Agricultural Labor — For purposes of this chapter, the term “agricultural labor” has the meaning assigned to such term by subsection (g) of section 3121, except that for purposes of this chapter subparagraph (B) of paragraph (4) of such subsection (g) shall be treated as reading:
“(B) in the employ of a group of operators of farms (or a cooperative organization of which such operators are members) in the performance of service described in subparagraph (A), but only if such operators produced more than one-half of the commodity with respect to which such service is performed;”.
I.R.C. § 3306(l) — [Repealed. Sept. 1, 1954, ch. 1212, 4(c), 68 Stat. 1135]
I.R.C. § 3306(m) American Vessel And Aircraft — For purposes of this chapter, the term “American vessel" means any vessel documented or numbered under the laws of the United States; and includes any vessel which is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew is employed solely by one or more citizens or residents of the United States or corporations organized under the laws of the United States or of any State; and the term “American aircraft” means an aircraft registered under the laws of the United States.
I.R.C. § 3306(n) Vessels Operated By General Agents Of United States — Notwithstanding the provisions of subsection (c)(6), service performed by officers and members of the crew of a vessel which would otherwise be included as employment under subsection (c) shall not be excluded by reason of the fact that it is performed on or in connection with an American vessel—
I.R.C. § 3306(n)(1) — owned by or bareboat chartered to the United States and
I.R.C. § 3306(n)(2) — whose business is conducted by a general agent of the Secretary of Transportation.
For purposes of this chapter, each such general agent shall be considered a legal entity in his capacity as such general agent, separate and distinct from his identity as a person employing individuals on his own account, and the officers and members of the crew of such an American vessel whose business is conducted by a general agent of the Secretary of Transportation shall be deemed to be performing services for such general agent rather than the United States. Each such general agent who in his capacity as such is an employer within the meaning of subsection (a) shall be subject to all the requirements imposed upon an employer under this chapter with respect to service which constitutes employment by reason of this subsection.
I.R.C. § 3306(o) Special Rule In Case Of Certain Agricultural Workers
I.R.C. § 3306(o)(1) Crew Leaders Who Are Registered Or Provide Specialized Agricultural Labor — For purposes of this chapter, any individual who is a member of a crew furnished by a crew leader to perform agricultural labor for any other person shall be treated as an employee of such crew leader—
I.R.C. § 3306(o)(1)(A) — if—
I.R.C. § 3306(o)(1)(A)(i) — such crew leader holds a valid certificate of registration under the Migrant and Seasonal Agricultural Worker Protection Act; or
I.R.C. § 3306(o)(1)(A)(ii) — substantially all the members of such crew operate or maintain tractors, mechanized harvesting or crop-dusting equipment, or any other mechanized equipment, which is provided by such crew leader; and
I.R.C. § 3306(o)(1)(B) — if such individual is not an employee of such other person within the meaning of subsection (i).
I.R.C. § 3306(o)(2) Other Crew Leaders — For purposes of this chapter, in the case of any individual who is furnished by a crew leader to perform agricultural labor for any other person and who is not treated as an employee of such crew leader under paragraph (1)—
I.R.C. § 3306(o)(2)(A) — such other person and not the crew leader shall be treated as the employer of such individual; and
I.R.C. § 3306(o)(2)(B) — such other person shall be treated as having paid cash remuneration to such individual in an amount equal to the amount of cash remuneration paid to such individual by the crew leader (either on his behalf or on behalf of such other person) for the agricultural labor performed for such other person.
I.R.C. § 3306(o)(3) Crew Leader — For purposes of this subsection, the term “crew leader" means an individual who—
I.R.C. § 3306(o)(3)(A) — furnishes individuals to perform agricultural labor for any other person,
I.R.C. § 3306(o)(3)(B) — pays (either on his behalf or on behalf of such other person) the individuals so furnished by him for the agricultural labor performed by them, and
I.R.C. § 3306(o)(3)(C) — has not entered into a written agreement with such other person under which such individual is designated as an employee of such other person.
I.R.C. § 3306(p) Concurrent Employment By Two Or More Employers — For purposes of sections 3301, 3302, and 3306(b)(1), if two or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual amounts actually disbursed to such individual by another of such corporations.
I.R.C. § 3306(q) Full Time Student — For purposes of subsection (c)(20), an individual shall be treated as a full time student for any period—
I.R.C. § 3306(q)(1) — during which the individual is enrolled as a full time student at an educational institution, or
I.R.C. § 3306(q)(2) — which is between academic years or terms if—
I.R.C. § 3306(q)(2)(A) — the individual was enrolled as a full time student at an educational institution for the immediately preceding academic year or term, and
I.R.C. § 3306(q)(2)(B) — there is a reasonable assurance that the individual will be so enrolled for the immediately succeeding academic year or term after the period described in subparagraph (A).
I.R.C. § 3306(r) Treatment Of Certain Deferred Compensation And Salary Reduction Arrangements
I.R.C. § 3306(r)(1) Certain Employer Contributions Treated As Wages — Nothing in any paragraph of subsection (b) (other than paragraph (1)) shall exclude from the term “wages"—
I.R.C. § 3306(r)(1)(A) — any employer contribution under a qualified cash or deferred arrangement (as defined in section 401(k)) to the extent not included in gross income by reason of section 402(e)(3), or
I.R.C. § 3306(r)(1)(B) — any amount treated as an employer contribution under section 414(h)(2) where the pickup referred to in such section is pursuant to a salary reduction agreement (whether evidenced by a written instrument or otherwise).
I.R.C. § 3306(r)(2) Treatment Of Certain Nonqualified Deferred Compensation Plans
I.R.C. § 3306(r)(2)(A) In General — Any amount deferred under a nonqualified deferred compensation plan shall be taken into account for purposes of this chapter as of the later of—
I.R.C. § 3306(r)(2)(A)(i) — when the services are performed, or
I.R.C. § 3306(r)(2)(A)(ii) — when there is no substantial risk of forfeiture of the rights to such amount.
I.R.C. § 3306(r)(2)(B) Taxed Only Once — Any amount taken into account as wages by reason of subparagraph (A) (and the income attributable thereto) shall not thereafter be treated as wages for purposes of this chapter.
I.R.C. § 3306(r)(2)(C) Nonqualified Deferred Compensation Plan — For purposes of this paragraph, the term “nonqualified deferred compensation plan” means any plan or other arrangement for deferral of compensation other than a plan described in subsection (b)(5).
I.R.C. § 3306(s) Tips Treated As Wages — For purposes of this chapter, the term “wages” includes tips which are—
I.R.C. § 3306(s)(1) — received while performing services which constitute employment, and
I.R.C. § 3306(s)(2) — included in a written statement furnished to the employer pursuant to section 6053(a).
I.R.C. § 3306(t) Self-Employment Assistance Program — For the purposes of this chapter, the term “self-employment assistance program” means a program under which—
I.R.C. § 3306(t)(1) — individuals who meet the requirements described in paragraph (3) are eligible to receive an allowance in lieu of regular unemployment compensation under the State law for the purpose of assisting such individuals in establishing a business and becoming self-employed;
I.R.C. § 3306(t)(2) — the allowance payable to individuals pursuant to paragraph (1) is payable in the same amount, at the same interval, on the same terms, and subject to the same conditions, as regular unemployment compensation under the State law, except that—
I.R.C. § 3306(t)(2)(A) — State requirements relating to availability for work, active search for work, and refusal to accept work are not applicable to such individuals;
I.R.C. § 3306(t)(2)(B) — State requirements relating to disqualifying income are not applicable to income earned from self-employment by such individuals; and
I.R.C. § 3306(t)(2)(C) — such individuals are considered to be unemployed for the purposes of Federal and State laws applicable to unemployment compensation,
as long as such individuals meet the requirements applicable under this subsection;
I.R.C. § 3306(t)(3) — individuals may receive the allowance described in paragraph (1) if such individuals—
I.R.C. § 3306(t)(3)(A) — are eligible to receive regular unemployment compensation under the State law, or would be eligible to receive such compensation except for the requirements described in subparagraph (A) or (B) of paragraph (2);
I.R.C. § 3306(t)(3)(B) — are identified pursuant to a State worker profiling system as individuals likely to exhaust regular unemployment compensation; and
I.R.C. § 3306(t)(3)(C) — are participating in self-employment assistance activities which—
I.R.C. § 3306(t)(3)(C)(i) — include entrepreneurial training, business counseling, and technical assistance; and
I.R.C. § 3306(t)(3)(C)(ii) — are approved by the State agency; and
I.R.C. § 3306(t)(3)(D) — are actively engaged on a full-time basis in activities (which may include training) relating to the establishment of a business and becoming self-employed;
I.R.C. § 3306(t)(4) — the aggregate number of individuals receiving the allowance under the program does not at any time exceed 5 percent of the number of individuals receiving regular unemployment compensation under the State law at such time;
I.R.C. § 3306(t)(5) — the program does not result in any cost to the Unemployment Trust Fund (established by section 904(a) of the Social Security Act) in excess of the cost that would be incurred by such State and charged to such fund if the State had not participated in such program; and
I.R.C. § 3306(t)(6) — the program meets such other requirements as the Secretary of Labor determines to be appropriate.
I.R.C. § 3306(u) Indian Tribe — For purposes of this chapter, the term “Indian tribe" has the meaning given to such term by section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304(e)), and includes any subdivision, subsidiary, or business enterprise wholly owned by such an Indian tribe.
I.R.C. § 3306(v) Short-Time Compensation Program — For purposes of this section, the term “short-time compensation program” means a program under which—
I.R.C. § 3306(v)(1) — the participation of an employer is voluntary;
I.R.C. § 3306(v)(2) — an employer reduces the number of hours worked by employees in lieu of layoffs;
I.R.C. § 3306(v)(3) — such employees whose workweeks have been reduced by at least 10 percent, and by not more than the percentage, if any, that is determined by the State to be appropriate (but in no case more than 60 percent), are not disqualified from unemployment compensation;
I.R.C. § 3306(v)(4) — the amount of unemployment compensation payable to any such employee is a pro rata portion of the unemployment compensation which would otherwise be payable to the employee if such employee were unemployed;
I.R.C. § 3306(v)(5) — such employees meet the availability for work and work search test requirements while collecting short-time compensation benefits, by being available for their workweek as required by the State agency;
I.R.C. § 3306(v)(6) — eligible employees may participate, as appropriate, in training (including employer-sponsored training or worker training funded under the Workforce Innovation and Opportunity Act) to enhance job skills if such program has been approved by the State agency;
I.R.C. § 3306(v)(7) — the State agency shall require employers to certify that if the employer provides health benefits and retirement benefits under a defined benefit plan (as defined in section 414(j)) or contributions under a defined contribution plan (as defined in section 414(i)) to any employee whose workweek is reduced under the program that such benefits will continue to be provided to employees participating in the short-time compensation program under the same terms and conditions as though the workweek of such employee had not been reduced or to the same extent as other employees not participating in the short-time compensation program;
I.R.C. § 3306(v)(8) — the State agency shall require an employer to submit a written plan describing the manner in which the requirements of this subsection will be implemented (including a plan for giving advance notice, where feasible, to an employee whose workweek is to be reduced) together with an estimate of the number of layoffs that would have occurred absent the ability to participate in short-time compensation and such other information as the Secretary of Labor determines is appropriate;
I.R.C. § 3306(v)(9) — the terms of the employer's written plan and implementation shall be consistent with employer obligations under applicable Federal and State laws; and
I.R.C. § 3306(v)(10) — upon request by the State and approval by the Secretary of Labor, only such other provisions are included in the State law that are determined to be appropriate for purposes of a short-time compensation program.
(Aug. 16, 1954, ch. 736, 68A Stat. 447; Sept. 1, 1954, ch. 1212, Sec. 1, 4(c), 68 Stat. 1130, 1135; June 25, 1959, Pub. L. 86-70, Sec. 22(a), 73 Stat. 146; July 12, 1960, Pub. L. 86-624, Sec. 18(d), 74 Stat. 416; Sept. 13, 1960, Pub. L. 86-778, title V, Sec. 531(c), 532-534, 543(a), 74 Stat. 983, 984, 986; Sept. 21, 1961, Pub. L. 87-256, Sec. 110(f), 75 Stat. 537; Oct. 10, 1962, Pub. L. 87-792, Sec. 7(k), 76 Stat. 830; Oct. 13, 1964, Pub. L. 88-650, Sec. 4(c), 78 Stat. 1077; Jan. 2, 1968, Pub. L. 90-248, title V, Sec. 504(b), 81 Stat. 935; Aug. 7, 1969, Pub. L. 91-53, Sec. 1, 83 Stat. 91; Aug. 10, 1970, Pub. L. 91-373, title I, Sec. 101(a), 102(a), 103(a), 105(a), (b), 106(a), title III, Sec. 302, 84 Stat. 696, 697, 699, 700, 713; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1903(a)(16), 1906(b)(13)(C), 90 Stat. 1810, 1834; Oct. 20, 1976, Pub. L. 94-566, title I, Sec. 111 (a), (b), 112(a), 113(a), 114(a), 116(b), title II, Sec. 211(a), 90 Stat. 2667-2669, 2672, 2676; Dec. 20, 1977, Pub. L. 95-216, title III, Sec. 314(b), 91 Stat. 1536; Oct. 17, 1978, Pub. L. 95-472, Sec. 3(a), 92 Stat. 1333; Nov. 6, 1978, Pub. L. 95-600, title I, Sec. 164(b)(2), 92 Stat. 2813; Oct. 10, 1979, Pub. L. 96-84, Sec. 4(a), (b), 93 Stat. 654; Apr. 1, 1980, Pub. L. 96-222, title I, Sec. 101(a)(10)(B)(ii), 94 Stat. 201; Dec. 5, 1980, Pub. L. 96-499, title XI, Sec. 1141(b), 94 Stat. 2694; Aug. 13, 1981, Pub. L. 97-34, title I, Sec. 124(e)(2)(A), title VIII, Sec. 822(a), 95 Stat. 200, 351; Sept. 3, 1982, Pub. L. 97-248, title II, Sec. 271(a), 276(a)(1), (b)(1), (2), 277, 96 Stat. 554, 558, 559; Apr. 20, 1983, Pub. L. 98-21, title III, Sec. 324(b)(1)-(4)(B), 327(c), 328(c), 97 Stat. 123, 124, 127, 128; Oct. 24, 1983, Pub. L. 98-135, title II, Sec. 201(a), 202, 97 Stat. 860; July 18, 1984, Pub. L. 98-369, div. A, title IV, Sec. 491(d)(37), title V, Sec. 531(d)(3), div. B, title VI, Sec. 2661(o)(4), 98 Stat. 851, 884, 1159; Apr. 7, 1986, Pub. L. 99-272, title XII, Sec. 12401(b)(2), title XIII, Sec. 13303(a), 100 Stat. 297, 327; Oct. 21, 1986, Pub. L. 99-509, title IX, Sec. 9002(b)(2)(B), 100 Stat. 1971; Oct. 22, 1986, Pub. L. 99-514, title I, Sec. 122(e)(3), title XI, Sec. 1108(g)(8), 1151(d)(2)(B), title XVIII, Sec. 1884(3), 1899A(44), (45), 100 Stat. 2112, 2435, 2505, 2919, 2961; Oct. 31, 1986, Pub. L. 99-595, 100 Stat. 3348; Nov. 10, 1988, Pub. L. 100-647, title I, Sec. 1001(d)(2)(C)(iii), (g)(4)(B)(ii), 1011B(a) (22)(C), (23)(A), 1018(u)(50), title VIII, Sec. 8016(a)(3)(B), 102 Stat. 3351, 3352, 3486, 3593, 3792; Nov. 8, 1989, Pub. L. 101-140, title II, Sec. 203(a)(2), 103 Stat. 830; Aug. 15, 1994, Pub. L. 103-296, title III, Sec. 320(a)(1)(E); Dec. 8, 1994, Pub. L. 103-465, title VII, Sec. 702(c)(2); Aug. 20, 1996, Pub. L. 104-188, Secs. 1203, 1421, 1704, 110 Stat. 1755; Aug. 21, 1996, Pub. L. 104-191, Sec. 301, 110 Stat. 1936; Aug. 21, 1996, Pub. L. 105-33, title V, Sec. 5406(a), 111 Stat. 251; Aug. 5, 1997, Pub. L. 106-554, Sec. 166, 114 Stat. 2763; Dec. 21, 2000, Pub. L. 107-147, title II, Sec. 209(d)(1), 116 Stat. 21; Mar. 9, 2002, Nov. 11, 2003, Pub. L. 108-121, Sec. 106(b), 117 Stat. 1335; Dec. 8, 2003, Pub. L. 108-173, Sec. 1201(d), 117 Stat. 2066, Pub. L. 108-357, title II, title III, Sec. 251(a)(3), Sec. 320(b)(3). Oct. 22, 2004, 118 Stat. 1418; Pub. L. 108-375, Sec. 585(b)(2)(C), Oct. 28, 2004, 118 Stat. 1811; Pub. L. 110-245, Sec. 115(b), June 17, 2008, 122 Stat. 1624; Pub. L. 112-96, title II, Sec. 2161, Feb. 22, 2012, 126 Stat. 156; Pub. L. 113-295, Div. A, title II, Sec. 221(a)(19)(B)(vi), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-92, Div. C, title XXXV, Sec. 3503, Nov. 25, 2015; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(212)-(215), Mar. 23, 2018, 132 Stat. 348; Pub. L. 116-136, Div. A, title II, Sec. 2108(f), Mar. 27, 2020.)
BACKGROUND NOTES
AMENDMENTS
2020—Subsec. (v)(6). Pub. L. 116-136, Sec. 2108(f), amended par. (6) by substituting “Workforce Innovation and Opportunity Act” for “Workforce Investment Act of 1998”.
2018--Subsec. (b)(5)(F). Pub. L. 115-141, Div. U, Sec. 401(a)(212), subpar. (5)(F) is amended by striking the semicolon at the end and inserting a comma.
Subsec. (c)(19). Pub. L. 115-141, Div. U, Sec. 401(a)(213), par. (19) is amended by substituting “service” for “Service”.
Subsec. (u). Pub. L. 115-141, Div. U, Sec. 401(a)(214), is amended by substituting “25 U.S.C. 5304(e)” for “25 U.S.C. 450b(e)”.
Subsec. (v). Pub. L. 115-141, Div. U, Sec. 401(a)(215), is amended by substituting “this section” for “this part”.
2015--Subsec.(n). Pub. L. 114-92, Div. C, Sec. 3503, substituted “Secretary of Transportation” for “Secretary of Commerce” each place it appeared.
2014--Subsec. (b)(12). Pub. L. 113-295, Div. A, Sec. 221(a)(19)(B)(vi), struck par. (12). Before being struck, it read as follows:
“(12) any contribution, payment, or service, provided by an employer which may be excluded from the gross income of an employee, his spouse, or his dependents, under the provisions of section 120 (relating to amounts received under qualified group legal services plans);”.
2012 - Subsec. (f)(5). Pub. L. 112-96, Sec. 2161(b)(1)(B), amended subsec. (f) by striking par. (5) (relating to short-time compensation) and adding a new par. (5) and by redesignating par. (5) (relating to self-employment assistance program) as par. (6). Before being struck, par. (5) read as follows:
“(5) amounts may be withdrawn for the payment of short-time compensation under a plan approved by the Secretary of Labor.”
Subsec. (v). Pub. L. 112-96, Sec. 2161(a)(1), added subsec. (v).
2008--Subsec. (b)(18)-(20). Pub. L. 110-245, Sec. 115(b), amended subsec. (b) by striking “or” at the end of par. (18); by substituting “; or” for the period at the end of par. (19); and by adding par. (20).
2004--Subsec. (b)(13). Pub. L. 108-375, Sec. 585(b)(2)(C), amended par. (13) by substituting “134(b)(4), or 134(b)(5)” for “or 134(b)(4)”.
Subsec. (b)(16). Pub. L. 108-357, Sec. 320(b)(3), amended par. (16) by inserting “108(f)(4),” after “74(c)”.
Subsec. (b)(17)-(19). Pub. L. 108-357, Sec. 251(a)(3), amended par. (17) by striking “or” at the end, amended par. (18) by substituing “; or” for the period at the end; and added par. (19).
2003--Subsec. (b)(16)-(18). Pub. L. 108-173, Sec. 1201(d), amended par. (16) by striking “or” at the end, amended par. (17) by substituting “; or” for the period at the end; and added par. (18).
Subsec. (b)(13). Pub. L. 108-121, Sec. 106(b), amended par. (13) by substituting “, 129, or 134(b)(4)” for “or 129”.
2002--Subsec. (f)(2). Pub. L. 107-147, Sec. 209(d)(1), amended par. (2) by inserting “or 903(d)(4)” before “of the Social Security Act”.
2000--Subsec. (c)(7). Pub. L. 106-554, Sec. 166(a), inserted “or in the employ of an Indian tribe,” after “service performed in the employ of a State, or any political subdivision thereof," and inserted “or Indian tribes” after “wholly owned by one or more States or political subdivisions”.
Subsec. (u). Pub. L. 106-554, Sec. 166(d), added subsec. (u).
1997--Subsec. (c). Pub. L. 105-33, Sec. 5406(a), struck “or” at the end of par. (19); substituted “; or” for “.” at the end of par. (20); and added par. (21).
1996--Subsec. (b)(15), (16), (17). Pub. L. 104-191, Sec. 301(c)(2)(B), struck “or” in par. (15); struck the period at the end of par. (16) and inserted “; or”, and added par. (17).
Subsec. (b)(5)(F)-(H). Pub. L. 104-188, Sec. 1421(b)(8), struck “or” at the end of subpar. (F); added “or” at the end of subpar. (G); and added subpar. (H).
Subsec. (c)(1)(B). Pub. L. 104-188, Sec. 1203(a), struck “before January 1, 1995” after “agriculture labor performed”.
Subsec. (k). Pub. L. 104-188, Sec. 1704(t)(10), added a period at the end.
1994--Subsec. (f)(3)-(5). Pub. L. 103-465, Sec. 702(c)(2), redesignated paras. (3) and (4) [and (5)] as paras. (4) and (5) [and (6)], respectively, and inserted a new para. (3) after paragraph (2), effective for payments made after December 31, 1996.
Subsec. (c)(19). Pub. L. 103-296, Sec. 320(a)(1)(E), struck out ‘(J), or (M)’ and substituted ‘(J), (M), or (Q)’, effective with the calendar quarter following the date of enactment of this Act.
1993--Subsec. (t). Pub. L. 103-182, Sec. 507(a), added new subsection (t) to read as above, effective Dec. 8, 1993. Pub. L. 103-182, Sec. 507(e)(2), before repeal by Pub. L. 105-306, Sec. 3(a), provided the following:
(2) Sunset--The authority provided by this section, and the amendments made by this section, shall terminate 5 years after the date of the enactment of this Act [12/8/93].
Subsec. (f)(3)-(5). Pub. L. 103-182, Sec. 507(b)(2), amended (f) by striking “; and” in paragraph (3) and inserting a semicolon; by striking the period in paragraph (4) and inserting “; and”; and by adding at the end new paragraph (5) to read as above, effective Dec. 8, 1993. Pub. L. 103-182, Sec. 507(e)(2), before repeal by Pub. L. 105-306, Sec. 3(a), provided the following:
(2) Sunset--The authority provided by this section, and the amendments made by this section, shall terminate 5 years after the date of the enactment of this Act [12/8/93].
1992--Subsec. (c)(1)(B). Pub. L. 102-213, Sec. 303, amended this section by striking “January 1, 1993” and inserting “January 1, 1995”, effective July 3, 1992.
Subsec. (f). Pub. L. 102-213, Sec. 401(a)(2), amended this section by striking “and” at the end of paragraph (2), by striking the period at the end of the paragraph (3), and inserting “; and”, and by adding at the end thereof the new paragraph (4), effective December 8, 1993.
Subsec. (r)(1)(A). Pub. L. 102-318, Sec. 521(b)(35), amended subpar. (A) by substituting “section 402(e)(3)” for “section 402(a)(8)”.
1989--Subsec. (t). Pub. L. 101-140 amended this section to read as if amendments by Pub. L. 100-647, Sec. 1011B(a)(22)(C), had not been enacted, see 1988 Amendment note below.
1988--Subsec. (b)(5)(G). Pub. L. 100-647, Sec. 1011B(a)(23)(A), inserted ‘if such payment would not be treated as wages without regard to such plan and it is reasonable to believe that (if section 125 applied for purposes of this section) section 125 would not treat any wages as constructively received’ after ‘section 125)’.
Subsec. (b)(9). Pub. L. 100-647, Sec. 1001(g)(4)(B)(ii), inserted ‘(determined without regard to section 274(n))’ after ‘section 217’.
Subsec. (c)(1)(B). Pub. L. 100-647, Sec. 1018(u)(50), amended Pub. L. 99-272, Sec. 13303(a), see 1986 Amendment notes below.
Subsec. (c)(19). Pub. L. 100-647, Sec. 1001(d)(2)(C)(iii), substituted ‘(F), (J), or (M)’ for ‘(F) or (J)’ in three places.
Subsec. (i). Pub. L. 100-647, Sec. 8016(a)(3)(B), substituted ‘paragraph (4) and subparagraphs (B) and (C) of paragraph (3)’ for ‘paragraph (3) and subparagraphs (B) and (C) of paragraph (4)’.
Subsec. (t). Pub. L. 100-647, Sec. 1011B(a)(22)(C), added subsec. (t) relating to benefits provided under certain employee benefit plans.
1986--Subsec. (b)(2)(A). Pub. L. 99-514, Sec. 1899A(44), substituted ‘workmen's compensation' for ‘workman's compensation'.
Subsec. (b)(5)(C). Pub. L. 99-514, Sec. 1108(g)(8), added subpar. (C) and struck out former subpar. (C) which read as follows: ‘under a simplified employee pension if, at the time of the payment, it is reasonable to believe that the employee will be entitled to a deduction under section 219(b)(2) for such payment,’.
Subsec. (b)(5)(G). Pub. L. 99-514, Sec. 1151(d)(2)(B), added subpar. (G).
Subsec. (b)(13). Pub. L. 99-514, Sec. 1899A(45), substituted a semicolon for a comma.
Subsec. (b)(16). Pub. L. 99-514, Sec. 122(e)(3), inserted reference to section 74(c).
Subsec. (c)(1)(B). Pub. L. 99-595 substituted ‘January 1, 1993’ for ‘January 1, 1988’.
Pub. L. 99-272, Sec. 13303(a), as amended by Pub. L. 100-647, Sec. 1018(u)(50), substituted ‘January 1, 1988’ for ‘January 1, 1986’.
Subsec. (f)(3). Pub. L. 99-272, Sec. 12401(b)(2), added par. (3).
Subsec. (i). Pub. L. 99-509 substituted ‘paragraph (3) and subparagraphs (B) and (C) of paragraph (4)’ for ‘subparagraphs (B) and (C) of paragraph (3)’.
Subsec. (o)(1)(A)(i). Pub. L. 99-514, Sec. 1884(3), substituted ‘Migrant and Seasonal Agricultural Worker Protection Act’ for ‘Farm Labor Contractor Registration Act of 1963’.
1984--Subsec. (b). Pub. L. 98-369, Sec. 531(d)(3)(A), in provisions preceding par. (1), inserted ‘(including benefits)’.
Subsec. (b)(5)(C) to (G). Pub. L. 98-369, Sec. 491(d)(37), struck out subpar. (C) which provided: ‘under or to a bond purchase plan which, at the time of such payment, is a qualified bond purchase plan described in section 405(a),’ and redesignated subpars. (D) to (G) as (C) to (F), respectively.
Subsec. (b)(16). Pub. L. 98-369, Sec. 531(d)(3)(B), added par. (16).
Subsec. (r)(1)(B). Pub. L. 98-369, Sec. 2661(o)(4), substituted ‘section 414(h)(2) where the pickup referred to in such section is pursuant to a salary reduction agreement (whether evidenced by a written instrument or otherwise)’ for ‘section 414(h)(2)’.
Subsec. (s). Pub. L. 98-369, Sec. 1073(a), added subsec. (s).
1983--Subsec. (b). Pub. L. 98-21, Sec. 327(c)(4), added sentence at end providing that nothing in the regulations prescribed for purposes of chapter 24 (relating to income tax withholding) which provides an exclusion from ‘wages’ as used in such chapter shall be construed to require a similar exclusion from ‘wages’ in regulations prescribed for purposes of this chapter.
Pub. L. 98-21, Sec. 324(b)(4)(B), added sentence at end providing that, except as otherwise provided in regulations prescribed by the Secretary, any third party which makes a payment included in wages solely by reason of parenthetical text contained in subpar. (A) of par. (2) shall be treated for purposes of this chapter and chapter 22 as the employer with respect to such wages.
Subsec. (b)(2). Pub. L. 98-21, Sec. 324(b)(3)(A), (4)(A), struck out ‘(A) retirement or’, redesignated subpars. (B) to (D) as (A) to (C), respectively, and in subpar. (A), as so redesignated, substituted ‘sickness or accident disability (but, in the case of payments made to an employee or any of his dependents, this subparagraph shall exclude from the term ‘wages’ only payments which are received under a workman's compensation law)' for ‘sickness or accident disability’.
Subsec. (b)(3). Pub. L. 98-21, Sec. 324(b)(3)(B), struck out par. (3) which related to any payment made to an employee (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) on account of retirement.
Subsec. (b)(5)(D). Pub. L. 98-21, Sec. 328(c), substituted ‘section 219(b)(2)’ for ‘section 219’.
Subsec. (b)(5)(E) to (G). Pub. L. 98-21, Sec. 324(b)(2), added subpars. (E) to (G).
Subsec. (b)(8). Pub. L. 98-21, Sec. 324(b)(3)(B), struck out par. (8) which related to any payment (other than vacation or sick pay) made to an employee after the month in which he attained the age of 65, if he did not work for the employer in the period for which such payment was made.
Subsec. (b)(10)(A). Pub. L. 98-21, Sec. 324(b)(3)(C), struck out cl. (iii) which related to retirement after attaining an age specified in the plan referred to in subpar. (B) or in a pension plan of the employer.
Subsec. (b)(14). Pub. L. 98-21, Sec. 327(c)(1)-(3), added par. (14).
Subsec. (b)(15). Pub. L. 98-135, Sec. 201(a), added par. (15).
Subsec. (c)(1)(B). Pub. L. 98-135, Sec. 202, substituted ‘1986’ for ‘1984’.
Subsec. (r). Pub. L. 98-21, Sec. 324(b)(1), added subsec. (r).
1982--Subsec. (b)(1). Pub. L. 97-248, Sec. 271(a), substituted ‘$7,000’ for ‘$6,000’ wherever appearing.
Subsec. (c)(1)(B). Pub. L. 97-248, Sec. 277, substituted ‘1984’ for ‘1982’.
Subsec. (c)(10)(C). Pub. L. 97-248, Sec. 276(a)(1), struck out ‘under the age of 22’ after ‘service performed by an individual’.
Subsec. (c)(20). Pub. L. 97-248, Sec. 276(b)(1), added par. (20).
Subsec. (q). Pub. L. 97-248, Sec. 276(b)(2), added subsec. (q).
1981--Subsec. (b)(13). Pub. L. 97-34, Sec. 124(e)(2)(A), substituted ‘section 127 or 129’ for ‘section 127’.
Subsec. (c)(18), (19). Pub. L. 97-34, Sec. 822(a), added par. (18) and redesignated former par. (18) as (19).
1980--Subsec. (b)(5)(D). Pub. L. 96-222 added subpar. (D).
Subsec. (b)(6). Pub. L. 96-499 struck out ‘(or the corresponding section of prior law)’ after ‘section 3101’ in subpar. (A) and inserted ‘with respect to remuneration paid to an employee for domestic service in a private home of the employer or for agricultural labor’ following subpar. (B).
1979--Subsec. (c)(1)(A). Pub. L. 96-84, Sec. 4(b), substituted ‘including labor performed by an alien’ for ‘not taking into account labor performed before January 1, 1980, by an alien’ in parenthetical text of cls. (i) and (ii).
Subsec. (c)(1)(B). Pub. L. 96-84, Sec. 4(a), substituted ‘January 1, 1982’ for ‘January 1, 1980’.
1978--Subsec. (b)(12). Pub. L. 95-472 added par. (12).
Subsec. (b)(13). Pub. L. 95-600 added par. (13).
1977--Subsec. (p). Pub. L. 95-216 added subsec. (p).
1976--Subsec. (a). Pub. L. 94-566, Sec. 114(a), redesignated existing provisions, consisting of an introductory phrase and pars. (1) and (2), as par. (1), consisting of an introductory phrase and subpars. (A) and (B), inserted provisions following subpar. (B) as so redesignated, and added pars. (2), (3), and (4).
Subsec. (b)(1). Pub. L. 94-566, Sec. 211(a), substituted ‘$6,000’ for ‘$4,200’ wherever appearing.
Subsec. (b)(11). Pub. L. 94-566, Sec. 111(a), added par. (11).
Subsec. (c). Pub. L. 94-566, Sec. 116(b)(1), struck out ‘or in the Virgin Islands’ after ‘agreement relating to unemployment compensation’ in parenthetical provisions of cl. (B) preceding par. (1).
Subsec. (c)(1). Pub. L. 94-566, Sec. 111(b), inserted ‘unless’ after ‘subsection (k))’ and added subpars. (A) and (B).
Subsec. (c)(2). Pub. L. 94-566, Sec. 113(a), inserted ‘unless performed for a person who paid cash remuneration of $1,000 or more to individuals employed in such domestic service in any calendar quarter in the calendar year or the preceding calendar year’ after ‘sorority’.
Subsec. (c)(9). Pub. L. 94-455, Sec. 1903(a)(16)(A), struck out ‘52 Stat. 1094, 1095;' before ‘45 U.S.C. 351‘.
Subsec. (c)(12)(B). Pub. L. 94-455, Sec. 1906(b)(13)(C), substituted ‘to the Secretary of the Treasury’ for ‘to the Secretary’.
Subsec. (c)(18). Pub. L. 94-455, Sec. 1903(a)(16)(B), inserted ‘(8 U.S.C. 1101(a)(15)(F) or (J))' after ‘Immigration and Nationality Act, as amended’.
Subsec. (f). Pub. L. 94-455, Sec. 1903(a)(16)(C), struck out ‘49 Stat. 640; 52 Stat. 1104, 1105;' before ‘42 U.S.C. 1104‘.
Subsec. (j). Pub. L. 94-566, Sec. 116(b)(2), inserted reference to the Virgin Islands in pars. (1) and (2) and in provisions following par. (3).
Subsec. (n). Pub. L. 94-455, Sec. 1903(a)(16)(D), struck out ‘on or after July 1, 1953,’ after ‘service performed’.
Subsec. (o). Pub. L. 94-566, Sec. 112(a), added subsec. (o).
1970--Subsec. (a). Pub. L. 91-373, Sec. 101(a), expanded definition of ‘employer’ by reducing from 4 to 1 the number of individuals which a person had to employ on each of some 20 days during the calendar year or the preceding calendar year in order to qualify as an employer and inserted provisions making a person an employer who paid wages of $1,500 or more during any calendar quarter in the calendar year or the preceding calendar year.
Subsec. (b)(1). Pub. L. 91-373, Sec. 302, substituted ‘$4,200’ for ‘$3,000’.
Subsec. (c). Pub. L. 91-373, Sec. 105(a), inserted reference to service performed after 1971 outside the United States by a citizen of the United States as an employee of an American employer.
Subsec. (c)(10). Pub. L. 91-373, Sec. 106(a), designated existing provisions of subpar. (B) as cl. (i) thereof and added cl. (ii) of subpar. (B) and subpars. (C) and (D).
Subsec. (i). Pub. L. 91-373, Sec. 102(a), substituted meaning assigned ‘employee’ by section 3121(d) of this title, except that subpars. (B) and (C) of par. (3) were not applicable, as meaning of ‘employee’ for purposes of this chapter for a definition of ‘employee’ as persons including officers of corporations but not including independent contractors under common law rules or persons not employees under such rules.
Subsec. (j)(3). Pub. L. 91-373, Sec. 105(b), inserted definition of ‘American employer’.
Subsec. (k). Pub. L. 91-373, Sec. 103(a), substituted as definition of ‘agricultural labor’ a simple reference to that term as defined, with a minor exception, in section 3121 of this title for a full definition of the term, the result of which, in view of the substance of section 3121, excluded from the definition of agricultural labor services performed in connection with the production or harvesting of maple sirup, maple sugar, or mushrooms, or the hatching of poultry unless performed on a farm, and provided a new series of tests to determine whether the handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering agricultural or horticultural commodities constitute agricultural labor.
1969--Subsec. (a). Pub. L. 90-53 made status of employer depend also on employment during preceding taxable year.
1968--Subsec. (b)(10). Pub. L. 90-248 added par. (10).
1964--Subsec. (b)(9). Pub. L. 88-650 added par. (9).
1962--Subsec. (b)(5). Pub. L. 87-792 substituted ‘is a plan described in section 403(a)’ for ‘meets the requirements of section 401(a)(3), (4), (5), and (6)’ in subpar. (B), and added subpar. (C).
1961--Subsec. (c)(18). Pub. L. 87-256 added par. (18).
1960--Subsec. (c). Pub. L. 86-778, Sec. 532(a), included employment on or in connection with an American aircraft within cl. (B) of the opening provisions.
Subsec. (c)(4). Pub. L. 86-778, Sec. 532(b), excluded service performed on or in connection with an aircraft that is not an American aircraft.
Subsec. (c)(6). Pub. L. 86-778, Sec. 531(c), substituted ‘wholly or partially owned’ for ‘wholly owned’ in cl. (A), and inserted ‘which specifically refers to such section (or the corresponding section of prior law) in granting such exemption’ in cl. (B).
Subsec. (c)(8). Pub. L. 86-778, Sec. 533, substituted ‘service performed in the employ of a religious, charitable, educational, or other organization described in section 501(c)(3) which is exempt from income tax under section 501(a)’ for ‘service performed in the employ of a corporation, community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation.’
Subsec. (c)(10). Pub. L. 86-778, Sec. 534, struck out provisions which excepted from definition of ‘employment’ service in connection with the collection of dues or premiums for a fraternal beneficiary society, order, or association which is performed away from the home office or is ritualistic service in connection with any such society, order, or association, service performed in the employ of an agricultural or horticultural organization described in section 501(c)(5) of this title, service performed in the employ of a voluntary employees' beneficiary association providing for the payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries, and service performed in the employ of a school, college, or university, not exempt from income tax under section 501(a) of this title if such service is performed by a student who is enrolled and regularly attending classes.
Subsec. (j). Pub. L. 86-778, Sec. 543(a), included the Commonwealth of Puerto Rico and struck out ‘Hawaii’ from definition of ‘State’, defined ‘United States’, and inserted provisions requiring an individual who is a citizen of the Commonwealth of Puerto Rico (but not otherwise a citizen of the United States) to be considered for purposes of this section, as a citizen of the United States.
Pub. L. 86-624 struck out ‘Hawaii, and’ before ‘the District of Columbia’.
Subsec. (m). Pub. L. 86-778, Sec. 532(c), included aircraft in heading and defined ‘American aircraft’.
1959--Subsec. (j). Pub. L. 86-70 struck out ‘Alaska,’ before ‘Hawaii’.
1954--Subsec. (a). Act Sept. 1, 1954, changed definition of employer from ‘eight or more’ to ‘4 or more’.
Subsec. (l). Act Sept. 1, 1954, repealed subsec. (l) which related to certain employees of Bonneville Power Administrator.
EFFECTIVE DATE OF 2020 AMENDMENT
Amendment by Pub. L. 116-136, Sec. 2108(f), effective March 27, 2020.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(212)-(215), effective March 23, 2018.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendment by Section 3503 of Pub. L. 114-92 effective on the date of the enactment of this Act [Enacted: Nov. 25, 2015].
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendment by Pub. L. 113-295, Div. A, Sec. 221(a)(19)(B), effective on the date of the enactment of this Act [Enacted: Dec. 19, 2014].
Section 221(b)(2) of Pub. L. 113-295, Div. A, provided the following Savings Provision:
“(2) SAVINGS PROVISION.—If—
“(A) any provision amended or repealed by the amendments made by this section applied to—
“(i) any transaction occurring before the date of the enactment of this Act [Enacted: Dec. 19, 2014],
“(ii) any property acquired before such date of enactment, or
“(iii) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(B) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by this section) affect the liability for tax for periods ending after date of enactment, nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2012 AMENDMENTS
Amendments by section 2161 of Pub. L. 112-96 effective on the date of the enactment of this Act [Enacted: Feb. 22, 2012].
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendment by section 115(b) of Pub. L. 110-245 effective as if included in section 5 of the Mortgage Forgiveness Debt Relief Act of 2007 [Pub. L. 110-142, effective for taxable years beginning after Dec. 31, 2007].
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendment by section 585(b)(2)(C) of Pub. L. 108-375 effective for travel benefits provided after the date of the enactment of this Act [Enacted: Oct. 28, 2004].
Amendments by section 251(a)(3) of Pub. L. 108-357 applicable to stock acquired pursuant to options exercised after the date of enactment of this Act [Enacted: Oct. 22, 2004].
Amendment by section 320(b)(3) of Pub. L. 108-357 applicable to amounts received by an individual in taxable years beginning after December 31, 2003.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendments by section 1201(d) of Pub. L. 108-173 effective for taxable years beginning after December 31, 2003.
Amendments by section 106(b) of Pub. L. 108-121 effective with respect to taxable years beginning after December 31, 2002.
Section 106(d) of Pub. L. 108-121 provided that:
“(d) No INFERENCE-No inference may be drawn from the amendments made by this section with respect to the tax treatment of any amounts under the program described in section 134(b)(4) of the Internal Revenue Code of 1986 (as added by this section) for any taxable year beginning before January 1, 2003.”
EFFECTIVE DATE OF 2002 AMENDMENTS
Amendment by Sec. 209(d)(1) of Pub. L. 107-147 effective on the date of the enactment of this Act [enacted: Mar. 9, 2002].
EFFECTIVE DATE OF 2000 AMENDMENTS
Section 166(e) of Pub. L. 106-554 provides:
“(e) EFFECTIVE DATE; TRANSITION RULE.--
“(1) EFFECTIVE DATE.--The amendments made by this section shall apply to service performed on or after the date of the enactment of this Act [Enactment Date: Dec. 21, 2000].
“(2) TRANSITION RULE.--For purposes of the Federal Unemployment Tax Act, service performed in the employ of an Indian tribe (as defined in section 3306(u) of the Internal Revenue Codeof 1986 (as added by this section)) shall not be treated as employment (within the meaning of section 3306 of such Code) if--
“(A) it is service which is performed before the date of the enactment of this Act and with respect to which the tax imposed under the Federal Unemployment Tax Act has not been paid, and
“(B) such Indian tribe reimburses a State unemployment fund for unemployment benefits paid for service attributable to such tribe for such period.”
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 5406(a) of Pub. L. 105-33 applicable with respect to service performed after January 1, 1994.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188, Sec. 1421, effective for taxable years beginning after December 31, 1996.
Amendment by Pub. L. 104-188, Sec. 1203(a), effective for services performed after December 31, 1994.
Amendment by Pub. L. 104-191 effective for taxable years beginning after Dec. 31, 1996.
EFFECTIVE DATE OF 1994 AMENDMENTS
Amendment by Pub. L. 103-296, Sec. 320(a)(1)(E), effective with the calendar quarter following August 15, 1994.
Amendment by Pub. L. 103-465, Sec. 702(c)(2), effective for payments made after December 31, 1996.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-182, Sec. 507(a), effective on the date of the enactment of this Act [Enacted: Dec. 8, 1993]. Sec. 507(e)(2) of Pub. L. 103-182, before repeal by Pub. L. 105-306, Sec. 3(a), provided:
“(2) Sunset.—The authority provided by this section, and the amendments made by this section, shall terminate 5 years after the date of the enactment of this Act [Enacted: Dec. 8, 1993].”
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102-318, Sec. 303(a), effective on the date of the enactment of this Act [Enacted: July 3, 1992].
Amendment by Pub. L. 102-318, Sec. 521(b)(35), effective for distributions after December 31, 1992.
EFFECTIVE DATE OF 1989 AMENDMENTS
Amendment by Pub. L. 101-140 effective as if included in section 1151 of Pub. L. 99-514, see section 203(c) of Pub. L. 101-140, set out as a note under section 79 of this title.
EFFECTIVE DATE OF 1988 AMENDMENTS
Amendment by section 1011B(a)(22)(C) of Pub. L. 100-647 not applicable to any individual who separated from service with the employer before Jan. 1, 1989, see section 1011B(a)(22)(F) of Pub. L. 100-647, set out as a note under section 3121 of this title.
Section 1018(u)(50) of Pub. L. 100-647 provided that the amendment made by that section is effective Apr. 7, 1986.
Amendment by sections 1001(d)(2)(C)(iii), (g)(4)(B)(ii), and 1011B(a)(23)(A) of Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
Amendment by section 8016(a)(3)(B) of Pub. L. 100-647 effective Nov. 10, 1988, except that any amendment to a provision of a particular Public Law which is referred to by its number, or to a provision of the Social Security Act (42 U.S.C. 301 et seq.), or to this title as added or amended by a provision of a particular Public Law which is so referred to, effective as though included or reflected in the relevant provisions of that Public Law at the time of its enactment, see section 8016(b) of Pub. L. 100-647, set out as a note under section 3111 of this title.
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by section 122(e)(3) of Pub. L. 99-514 applicable to prizes and awards granted after Dec. 31, 1986, see section 151(c) of Pub. L. 99-514, set out as a note under section 1 of this title.
Amendment by section 1108(g)(8) of Pub. L. 99-514 applicable to years beginning after Dec. 31, 1986, see section 1108(h) of Pub. L. 99-514, set out as a note under section 219 of this title.
Amendment by section 1151(d)(2)(B) of Pub. L. 99-514 applicable to taxable years beginning after Dec. 31, 1983, see section 1151(k)(5) of Pub. L. 99-514, set out as a note under section 79 of this title.
Amendment by Pub. L. 99-509 effective, except as otherwise provided, with respect to payments due with respect to wages paid after Dec. 31, 1986, including wages paid after such date by a State (or political subdivision thereof) that modified its agreement pursuant to section 418(e)(2) of Title 42, The Public Health and Welfare, see section 9002(d) of Pub. L. 99-509, set out as a note under section 418 of Title 42.
Amendment by Pub. L. 99-272 applicable to recoveries made on or after Apr. 7, 1986, and applicable with respect to overpayments made before, on, or after such date, see section 12401(c) of Pub. L. 99-272, set out as a note under section 503 of Title 42.
EFFECTIVE DATE OF 1984 AMENDMENTS
Amendment by section 491(d)(37) of Pub. L. 98-369 applicable to obligations issued after Dec. 31, 1983, see section 491(f)(1) of Pub. L. 98-369, set out as a note under section 62 of this title.
Amendment by section 531(d)(3) of Pub. L. 98-369 effective Jan. 1, 1985, see section 531(h) of Pub. L. 98-369, set out as an Effective Date note under section 132 of this title.
Section 1073(b) of Pub. L. 98-369 provided that:
‘(1) In general. - Except as provided in paragraph (2), the amendment made by subsection (a) (amending this section) shall take effect on January 1, 1986.
‘(2) Exception for certain states. - In the case of any State the legislature of which -
‘(A) did not meet in a regular session which begins during 1984 and after the date of the enactment of this Act (July 18, 1984), and
‘(B) did not meet in a session which began before the date of the enactment of this Act and remained in session for at least 25 calendar days after such date of enactment, the amendment made by subsection (a) shall take effect on January 1, 1987.’
Section 2661(o)(4) of Pub. L. 98-369 provided that the amendment made by that section is effective Jan. 1, 1985.
EFFECTIVE DATE OF 1983 AMENDMENTS
Section 201(b) of Pub. L. 98-135 provided that: ‘The amendments made by subsection (a) (amending this section) shall apply to remuneration paid after the date of the enactment of this Act (Oct. 24, 1983).’
Amendment by section 324(b)(1)-(4)(B) of Pub. L. 98-21 applicable to remuneration paid after Dec. 31, 1984, except for certain employer contributions made during 1984 under a qualified cash or deferred arrangement, and except in the case of an agreement with certain nonqualified deferred compensation plans in existence on Mar. 24, 1983, see section 324(d) of Pub. L. 98-21 set out as a note under section 3121 of this title.
Amendment by section 327(c)(1)-(3) of Pub. L. 98-21 applicable to remuneration paid after Dec. 31, 1984, see section 327(d)(3) of Pub. L. 98-21, as amended, set out as a note under section 3121 of this title.
Amendment by section 327(c)(4) of Pub. L. 98-21 applicable to remuneration (other than amounts excluded under 26 U.S.C. 119) paid after Mar. 4, 1983, and to any such remuneration paid on or before such date which the employer treated as wages when paid, see section 327(d)(2) of Pub. L. 98-21, as amended, set out as a note under section 3121 of this title.
Amendment by section 328(c) of Pub. L. 98-21 applicable to remuneration paid after Dec. 31, 1984, see section 328(d)(2) of Pub. L. 98-21, set out as a note under section 3121 of this title.
EFFECTIVE AND TERMINATION DATES OF 1982 AMENDMENTS
Amendment by section 271(a) of Pub. L. 97-248 applicable to remuneration paid after Dec. 31, 1982, see section 271(d)(1) of Pub. L. 97-248, as amended, set out as a note under section 3301 of this title.
Section 276(a)(2) of Pub. L. 97-248 provided that: ‘The amendment made by paragraph (1) (amending this section) shall apply with respect to services performed after the date of the enactment of this Act (Sept. 3, 1982).’
Section 276(b)(3) of Pub. L. 97-248 provided that: ‘The amendments made by this subsection (amending this section) shall apply to remuneration paid after December 31, 1982, and before January 1, 1984.’
EFFECTIVE DATE OF 1981 AMENDMENTS
Amendment by section 124(e)(2)(A) of Pub. L. 97-34 applicable to remuneration paid after Dec. 31, 1981, see section 124(f) of Pub. L. 97-34, set out as an Effective Date of 1981 Amendment note under section 21 of this title.
Section 822(b) of Pub. L. 97-34, as amended by Pub. L. 97-362, title II, Sec. 203, Oct. 25, 1982, 96 Stat. 1733; Pub. L. 98-369, div. A, title X, Sec. 1074, July 18, 1984, 98 Stat. 1053; Pub. L. 99-272, title XIII, Sec. 13303(c)(1), Apr. 7, 1986, 100 Stat. 327, provided that: ‘The amendments made by subsection (a) (amending this section) shall apply to remuneration paid after December 31, 1980.’
EFFECTIVE DATE OF 1980 AMENDMENTS
For effective date of amendment by Pub. L. 96-499, see section 1141(c) of Pub. L. 96-499, set out as a note under section 3121 of this title.
Amendment by Pub. L. 96-222 applicable to payments made on or after Jan. 1, 1979, see section 101(b)(1)(E) of Pub. L. 96-222, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1979 AMENDMENTS
Section 4(c) of Pub. L. 96-84 provided that: ‘The amendments made by this section (amending this section) shall apply to remuneration paid after December 31, 1979, for services performed after such date.’
EFFECTIVE DATE OF 1978 AMENDMENTS
Amendment by Pub. L. 95-600 applicable with respect to taxable years beginning after Dec. 31, 1978, see section 164(d) of Pub. L. 95-600, set out as an Effective Date note under section 127 of this title.
Amendment by Pub. L. 95-472 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 3(d) of Pub. L. 95-472, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1977 AMENDMENTS
Amendment by Pub. L. 95-216 applicable with respect to wages paid after Dec. 31, 1978, see section 314(c) of Pub. L. 95-216, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1976 AMENDMENTS
Section 111(c) of Pub. L. 95-566 provided that: ‘The amendments made by this section (amending this section) shall apply with respect to remuneration paid after December 31, 1977, for services performed after such date.’
Section 112(b) of Pub. L. 94-566 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply with respect to remuneration paid after December 31, 1977, for services performed after such date.’
Section 113(b) of Pub. L. 94-566 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply with respect to remuneration paid after December 31, 1977, for services performed after such date.’
Section 114(c) of Pub. L. 94-566 provided that: ‘The amendments made by this section (amending this section and section 6157 of this title) shall apply with respect to remuneration paid after December 31, 1977, for services performed after such date.’
Amendment by section 116(b) of Pub. L. 94-566 applicable with respect to remuneration paid after Dec. 31 of the year in which the Secretary of Labor approves for the first time an unemployment compensation law submitted to him by the Virgin Islands for approval, for services performed after such Dec. 31, see section 116(f)(2) of Pub. L. 94-566, set out as a note under section 3304 of this title.
Section 211(d)(1) of Pub. L. 94-566 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply to remuneration paid after December 31, 1977.’
EFFECTIVE DATE OF 1970 AMENDMENTS
Section 101(c)(1) of Pub. L. 91-373 provided that: ‘The amendments made by subsections (a) and (b)(1) (amending this section and section 6157 of this title) shall apply with respect to calendar years beginning after December 31, 1971.’
Section 102(c) of Pub. L. 91-373 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply with respect to remuneration paid after December 31, 1971, for services performed after such date.’
Section 103(b) of Pub. L. 91-373 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply with respect to remuneration paid after December 31, 1971, for services performed after such date.’
Section 105(c) of Pub. L. 91-373 provided that: ‘The amendments made by this section (amending this section) shall apply with respect to service performed after December 31, 1971.’
Section 106(b) of Pub. L. 91-373 provided that: ‘Subsection (a) (amending this section) shall apply with respect to remuneration paid after December 31, 1969.’
Section 302 of Pub. L. 91-373 provided that the amendment made by that section is effective with respect to remuneration paid after Dec. 31, 1971.
EFFECTIVE DATE OF 1969 AMENDMENTS
Amendment by Pub. L. 91-53 applicable with respect to calendar years beginning after Dec. 31, 1969, see section 4(a) of Pub. L. 91-53, set out as an Effective Date note under section 6157 of this title.
EFFECTIVE DATE OF 1968 AMENDMENTS
Amendment by Pub. L. 90-248 applicable with respect to renumeration paid after Jan. 2, 1968, see section 504(d) of Pub. L. 90-248, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1964 AMENDMENTS
Amendment by Pub. L. 88-650 applicable with respect to remuneration paid on or after first day of first calendar month which begins more than ten days after Oct. 13, 1964, see section 4(d) of Pub. L. 88-650, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1962 AMENDMENTS
Amendment by Pub. L. 87-792 applicable to taxable years beginning after Dec. 31, 1962, see section 8 of Pub. L. 87-792, set out as a note under section 22 of this title.
EFFECTIVE DATE OF 1961 AMENDMENTS
Amendment by Pub. L. 87-256 applicable with respect to service performed after Dec. 31, 1961, see section 110(h)(3) of Pub. L. 87-256, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1960 AMENDMENTS
Amendment by sections 531(c) and 532 to 534 of Pub. L. 86-778 applicable with respect to remuneration paid after 1961 for services performed after 1961, see section 535 of Pub. L. 86-778, set out as a note under section 3305 of this title.
Section 543(a) of Pub. L. 86-778 provided that the amendment made by that section is effective with respect to remuneration paid after Dec. 31, 1960, for services performed after such date.
Amendment by Pub. L. 86-624 effective on Aug. 21, 1959, see section 18(k) of Pub. L. 86-624, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1959 AMENDMENTS
Amendment by Pub. L. 86-70 effective Jan. 3, 1959, see section 22(i) of Pub. L. 86-70, set out as a note under section 3121 of this title.
EFFECTIVE DATE OF 1954 AMENDMENTS
Section 1 of act Sept. 1, 1954, provided that the amendment made by that section is effective with respect to services performed after Dec. 31, 1955.
Section 4(c) of act Sept. 1, 1954, provided that the amendment made by that section is effective with respect to services performed after Dec. 31, 1954.
EXCLUSION FROM WAGES AND COMPENSATION OF REFUNDS REQUIRED FROM EMPLOYERS TO COMPENSATE FOR DUPLICATION OF MEDICARE BENEFITS BY HEALTH CARE BENEFITS PROVIDED BY EMPLOYERS
For purposes of this chapter, the term ‘wages’ shall not include the amount of any refund required under section 421 of Pub. L. 100-360, 42 U.S.C. 1395b note, see section 10202 of Pub. L. 101-239, set out as a note under section 1395b of Title 42, The Public Health and Welfare.
NONENFORCEMENT OF AMENDMENT MADE BY SECTION 1151 OF PUB. L. 99-514 FOR FISCAL YEAR 1990
No monies appropriated by Pub. L. 101-136 to be used to implement or enforce section 1151 of Pub. L. 99-514 or the amendments made by such section, see section 528 of Pub. L. 101-136, set out as a note under section 89 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of this title.
APPLICABILITY OF UNEMPLOYMENT COMPENSATION TAX TO CERTAIN SERVICES PERFORMED FOR CERTAIN INDIAN TRIBAL GOVERNMENTS
Section 1705 of Pub. L. 99-514 provided that:
‘(a) In General. - For purposes of the Federal Unemployment Tax Act (this chapter), service performed in the employ of a qualified Indian tribal government shall not be treated as employment (within the meaning of section 3306 of such Act) if it is service -
‘(1) which is performed -
‘(A) before, on, or after the date of the enactment of this Act (Oct. 22, 1986), but before January 1, 1988, and
‘(B) during a period in which the Indian tribal government is not covered by a State unemployment compensation program, and
‘(2) with respect to which the tax imposed under the Federal Unemployment Tax Act has not been paid.
‘(b) Definition. - For purposes of this section, the term ‘qualified Indian tribal government’ means an Indian tribal government the service for which is not covered by a State unemployment compensation program on June 11, 1986.'
REMUNERATION PAID AFTER SEPT. 30, 1985, TO FULL-TIME STUDENTS EMPLOYED BY SUMMER CAMPS
Section 13303(b) of Pub. L. 99-272 provided that: ‘Notwithstanding paragraph (3) of section 276(b) of the Tax Equity and Fiscal Responsibility Act of 1982 (see Effective Date of 1982 Amendments note above), the amendments made by paragraphs (1) and (2) of such section 276(b) (amending this section) shall also apply to remuneration paid after September 19, 1985.’
ADMINISTRATION OF PROVISIONS COVERING PAYMENTS TO EMPLOYEES ON ACCOUNT OF SICKNESS OR ACCIDENT DISABILITY
Section 324(b)(4)(C) of Pub. L. 98-21 provided that: ‘Rules similar to the rules of subsections (d) and (e) of section 3 of the Act entitled ‘An Act to amend the Omnibus Reconciliation Act of 1981 to restore minimum benefits under the Social Security Act’ (Public Law 97-123), approved December 29, 1981 (set out as notes under section 3121 of this title), shall apply in the administration of section 3306(b)(2)(A) of such Code (as amended by subparagraph (A)).'
APPLICABILITY TO FEDERAL LAND BANKS, FEDERAL INTERMEDIATE CREDIT BANKS, AND BANKS FOR COOPERATIVES
Applicability of subsec. (c)(6) of this section to Federal land banks, Federal intermediate credit banks, and banks for cooperatives, see section 531(g) of Pub. L. 86-778, set out as a note under section 3305 of this title.
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I.R.C. § 5002(a) In General — For purposes of this chapter—
I.R.C. § 5002(a)(1) Distilled Spirits Plant — The term “distilled spirits plant” means an establishment which is qualified under subchapter B to perform any distilled spirits operation.
I.R.C. § 5002(a)(2) Distilled Spirits Operation — The term “distilled spirits operation” means any operation for which qualification is required under subchapter B.
I.R.C. § 5002(a)(3) Bonded Premises — The term “bonded premises”, when used with respect to distilled spirits, means the premises of a distilled spirits plant, or part thereof, on which distilled spirits operations are authorized to be conducted.
I.R.C. § 5002(a)(4) Distiller — The term “distiller” includes any person who—
I.R.C. § 5002(a)(4)(A) — produces distilled spirits from any source or substance,
I.R.C. § 5002(a)(4)(B) — brews or makes mash, wort, or wash fit for distillation or for the production of distilled spirits (other than the making or using of mash, wort, or wash in the authorized production of wine or beer, or the production of vinegar by fermentation),
I.R.C. § 5002(a)(4)(C) — by any process separates alcoholic spirits from any fermented substance, or
I.R.C. § 5002(a)(4)(D) — making or keeping mash, wort, or wash, has a still in his possession or use.
I.R.C. § 5002(a)(5) Processor
I.R.C. § 5002(a)(5)(A) In General — The term “processor”, when used with respect to distilled spirits, means any person who—
I.R.C. § 5002(a)(5)(A)(i) — manufactures, mixes, or otherwise processes distilled spirits, or
I.R.C. § 5002(a)(5)(A)(ii) — manufactures any article.
I.R.C. § 5002(a)(5)(B) Rectifier, Bottler, Etc., Included — The term “processor” includes (but is not limited to) a rectifier, bottler, and denaturer.
I.R.C. § 5002(a)(6) Certain Operations Not Treated As Processing — In applying paragraph (5), there shall not be taken into account—
I.R.C. § 5002(a)(6)(A) Operations As Distiller — Any process which is the operation of a distiller.
I.R.C. § 5002(a)(6)(B) Mixing Of Tax Paid Spirits For Immediate Consumption — Any mixing (after determination of tax) of distilled spirits for immediate consumption.
I.R.C. § 5002(a)(6)(C) Use By Apothecaries — Any process performed by an apothecary with respect to distilled spirits which such apothecary uses exclusively in the preparation or making up of medicines unfit for use for beverage purposes.
I.R.C. § 5002(a)(7) Warehouseman — The term “warehouseman”, when used with respect to distilled spirits, means any person who stores bulk distilled spirits.
I.R.C. § 5002(a)(8) Distilled Spirits — The terms “distilled spirits”, “alcoholic spirits”, and “spirits” mean that substance known as ethyl alcohol, ethanol, or spirits of wine in any form (including all dilutions and mixtures thereof from whatever source or by whatever process produced).
I.R.C. § 5002(a)(9) Bulk Distilled Spirits — The term “bulk distilled spirits” means distilled spirits in a container having a capacity in excess of 1 wine gallon.
I.R.C. § 5002(a)(10) Proof Spirits — The term “proof spirits” means that liquid which contains one-half its volume of ethyl alcohol of a specific gravity of 0.7939 at 60 degrees Fahrenheit (referring to water at 60 degrees Fahrenheit as unity).
I.R.C. § 5002(a)(11) Proof Gallon — The term “proof gallon” means a United States gallon of proof spirits, or the alcoholic equivalent thereof.
I.R.C. § 5002(a)(12) Container — The term “container”, when used with respect to distilled spirits, means any receptacle, vessel, or form of package, bottle, tank, or pipeline used, or capable of use, for holding, storing, transferring, or conveying distilled spirits.
I.R.C. § 5002(a)(13) Approved Container — The term “approved container”, when used with respect to distilled spirits, means a container the use of which is authorized by regulations prescribed by the Secretary.
I.R.C. § 5002(a)(14) Article — Unless another meaning is distinctly expressed or manifestly intended, the term “article” means any substance in the manufacture of which denatured distilled spirits are used.
I.R.C. § 5002(a)(15) Export — The terms “export”, “exported”, and “exportation” include shipments to a possession of the United States.
I.R.C. § 5002(b) Cross References
I.R.C. § 5002(b)(1) — For definition of manufacturer of stills, see section 5102.
I.R.C. § 5002(b)(2) — For definition of dealer, see section 5121(c)(3).
I.R.C. § 5002(b)(3) — For definitions of wholesale dealers, see section 5121(c).
I.R.C. § 5002(b)(4) — For definitions of retail dealers, see section 5122(c).
I.R.C. § 5002(b)(5) — For definitions of general application to this title, see chapter 79.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1315, and amended Pub. L. 89-44, title VIII, 807(a), June 21, 1965, 79 Stat. 164; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, 805(e), July 26, 1979, 93 Stat. 278; Pub. L. 103-465, title I, 136, Dec. 8, 1994, 108 Stat. 4809; Pub. L. 109-59, title XI, Sec. 11125(b)(13), Aug. 10, 2005, 119 Stat. 1144.)
BACKGROUND NOTES
Prior Provisions
A prior section 5002, act Aug. 16, 1954, ch. 736, 68A Stat. 597, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising subsec. (a)(6), (9) and (11) of this section were contained in prior sections 5213(a)(1) and 5319(1), (2) and (7), act Aug. 16, 1954, ch. 736, 68A Stat. 639, 661, prior to the general revision of this chapter by Pub. L. 85-859.
Amendments
2005 - Subsec. (b). Pub. L. 109-59, Sec. 11125(b)(13), amended subsec. (b) by substituting “section 5121(c)(3)” for “section 5112(a)”; “section 5121(c)” for “section 5112”; and “section 5122(c)" for “section 5122”.
1994--Subsec. (b). Pub. L. 103-465 struck par. (1) and redesignated pars. (2) - (6) as pars. (1) - (5), respectively. Before is was struck, par. (1) read as follows:
“(1) For definition of wine gallon, see section 5041(c).”
1979--Subsec. (a)(1). Pub. L. 96-39 substituted “distilled spirits operation” for “operation, or any combination of operations, for which qualification is required under such subchapter”.
Subsec. (a)(2), (3). Pub. L. 96-39 added par. (2) and redesignated former par. (2) as (3). Former par. (3), defining “bottling premises”, was struck out.
Subsec. (a)(4). Pub. L. 96-39 redesignated par. (5) as (4). Former par. (4), defining “bonded warehouseman”, was struck out.
Subsec. (a)(5) to (7). Pub. L. 96-39 added pars. (5) to (7) and redesignated former pars. (5) to (7) as (4), (8), and (10), respectively.
Subsec. (a)(8). Pub. L. 96-39 redesignated former par. (6) as (8). Former par. (8) redesignated (11).
Subsec. (a)(9). Pub. L. 96-39 added par. (9) and redesignated par. (9) as (12).
Subsec. (a)(10) to (15). Pub. L. 96-39 redesignated former pars. (7) to (12) as (10) to (15), respectively.
Subsec. (b). Pub. L. 95-39 struck out par. (2) which provided for a cross reference to section 5082 for a definition of rectifier and redesignated pars. (3) to (7) as (2) to (6), respectively.
1976--Subsec. (a)(10). Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
1965--Subsec. (a). Pub. L. 89-44 added par. (12).
EFFECTIVE DATE OF 2005 AMENDMENT
Amendments by Pub. L. 109-59, Sec. 11125(b)(13), effective July 1, 2008, except for taxes imposed for periods before such date.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective January 1, 1995.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Section 807(c) of Pub. L. 89-44 provided that: “The amendments made by subsections (a) and (b) [amending this section and section 5053 of this title] shall take effect on July 1, 1965.”
I.R.C. § 5001(a) Rate Of Tax
I.R.C. § 5001(a)(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.
I.R.C. § 5001(a)(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.
I.R.C. § 5001(a)(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.
I.R.C. § 5001(a)(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.
I.R.C. § 5001(a)(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.
I.R.C. § 5001(a)(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.
I.R.C. § 5001(a)(7) Imported Liqueurs And Cordials — Imported liqueurs and cordials, or similar compounds, containing distilled spirits, shall be taxed as distilled spirits.
I.R.C. § 5001(a)(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.
I.R.C. § 5001(a)(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.
I.R.C. § 5001(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.
I.R.C. § 5001(c) Reduced Rate
I.R.C. § 5001(c)(1) In General — In the case of a distilled spirits operation, the otherwise applicable tax rate under subsection (a)(1) shall be—
I.R.C. § 5001(c)(1)(A) — $2.70 per proof gallon on the first 100,000 proof gallons of distilled spirits, and
I.R.C. § 5001(c)(1)(B) — $13.34 per proof gallon on the first 22,130,000 of proof gallons of distilled spirits to which subparagraph (A) does not apply,
which have been distilled or processed by such operation and removed during the calendar year for consumption or sale, or which have been imported by the importer into the United States during the calendar year but only if the importer is an electing importer under paragraph (3) and the proof gallons of distilled spirits have been assigned to the importer pursuant to such paragraph.
I.R.C. § 5001(c)(2) Controlled Groups
I.R.C. § 5001(c)(2)(A) In General — In the case of a controlled group, the proof gallon quantities specified under subparagraphs (A) and (B) of paragraph (1) shall be applied to such group and apportioned among the members of such group in such manner as the Secretary or their delegate shall by regulations prescribe.
I.R.C. § 5001(c)(2)(B) Definition — For purposes of subparagraph (A), the term “controlled group” shall have the meaning given such term by subsection (a) of section 1563, except that “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears in such subsection.
I.R.C. § 5001(c)(2)(C) Rules For Non-Corporations — Under regulations prescribed by the Secretary, principles similar to the principles of subparagraphs (A) and (B) shall be applied to a group under common control where one or more of the persons is not a corporation.
I.R.C. § 5001(c)(2)(D) Single Taxpayer — Pursuant to rules issued by the Secretary, two or more entities (whether or not under common control) that produce or process distilled spirits under a license, franchise, or other arrangement shall be treated as a single taxpayer for purposes of the application of this subsection.
I.R.C. § 5001(c)(3) Reduced Tax Rate For Foreign Manufacturers And Importers
I.R.C. § 5001(c)(3)(A) In General — In the case of any proof gallons of distilled spirits which have been produced outside of the United States and imported into the United States, the rate of tax applicable under paragraph (1) (referred to in this paragraph as the “reduced tax rate”) may be assigned by the distilled spirits operation (provided that such operation makes an election described in subparagraph (B)(ii)) to any electing importer of such proof gallons pursuant to the requirements established by the Secretary under subparagraph (B).
I.R.C. § 5001(c)(3)(B) Assignment — The Secretary of the Treasury, after consultation with the Secretary of the Department of Homeland Security, shall, through such rules, regulations, and procedures as are determined appropriate, establish procedures for assignment of the reduced tax rate provided under this paragraph, which shall include—
I.R.C. § 5001(c)(3)(B)(i) — a limitation to ensure that the number of proof gallons of distilled spirits for which the reduced tax rate has been assigned by a distilled spirits operation—
I.R.C. § 5001(c)(3)(B)(i)(I) — to any importer does not exceed the number of proof gallons produced by such operation during the calendar year which were imported into the United States by such importer, and
I.R.C. § 5001(c)(3)(B)(i)(II) — to all importers does not exceed the 22,230,000 proof gallons of distilled spirits to which the reduced tax rate applies,
I.R.C. § 5001(c)(3)(B)(ii) — procedures that allow the election of a distilled spirits operation to assign and an importer to receive the reduced tax rate provided under this paragraph,
I.R.C. § 5001(c)(3)(B)(iii) — requirements that the distilled spirits operation provide any information as the Secretary determines necessary and appropriate for purposes of carrying out this paragraph, and
I.R.C. § 5001(c)(3)(B)(iv) — procedures that allow for revocation of eligibility of the distilled spirits operation and the importer for the reduced tax rate provided under this paragraph in the case of any erroneous or fraudulent information provided under clause (iii) which the Secretary deems to be material to qualifying for such reduced rate.
I.R.C. § 5001(c)(3)(C) Controlled Group
I.R.C. § 5001(c)(3)(C)(i) In General — For purposes of this section, any importer making an election described in subparagraph (B)(ii) shall be deemed to be a member of the controlled group of the distilled spirits operation, as described under paragraph (2).
I.R.C. § 5001(c)(3)(C)(ii) Apportionment — For purposes of this paragraph, in the case of a controlled group, rules similar to section 5051(a)(5)(B) shall apply.
I.R.C. § 5001(c)(4) Refunds In Lieu Of Reduced Rates For Foreign Production Removed After December 31, 2022 —
Editor's Note: Sec. 5001(c)(4), below, added by Pub. L. 116-260, Div. EE, Sec. 107(a)(1), is effective for distilled spirits brought into the United States and removed after December 31, 2022.
I.R.C. § 5001(c)(4)(A) In General — In the case of any proof gallons of distilled spirits which have been produced outside the United States and imported into the United States, if such proof gallons of distilled spirits are removed after December 31, 2022—
I.R.C. § 5001(c)(4)(A)(i) — paragraph (1) shall not apply, and
I.R.C. § 5001(c)(4)(A)(ii) — the amount determined under subparagraph (B) shall be allowed as a refund, determined for periods not less frequently than quarterly, to the importer in the same manner as if such amount were an overpayment of tax imposed by this section.
I.R.C. § 5001(c)(4)(B) Amount Of Refund — The amount determined under this subparagraph with respect to any importer for any period is an amount equal to the sum of—
I.R.C. § 5001(c)(4)(B)(i) — the excess (if any) of—
I.R.C. § 5001(c)(4)(B)(i)(I) — the amount of tax imposed under this subpart on proof gallons of distilled spirits referred to in subparagraph (A) which were removed during such period, over
I.R.C. § 5001(c)(4)(B)(i)(II) — the amount of tax which would have been imposed under this subpart on such proof gallons of distilled spirits if this section were applied without regard to this paragraph, plus
I.R.C. § 5001(c)(4)(B)(ii) — the amount of interest which would be allowed and paid on an overpayment of tax at the overpayment rate established under section 6621(a)(1) (without regard to the second sentence thereof) were such rate applied to the excess (if any) determined under clause (i) for the number of days in the filing period for which the refund under this paragraph is being determined.
I.R.C. § 5001(c)(4)(C) Application Of Rules Related To Elections And Assignments — Subparagraph (A)(ii) shall apply only if the importer is an electing importer under paragraph (3) and the proof gallons of distilled spirits have been assigned to the importer pursuant to such paragraph.
I.R.C. § 5001(c)(4)(D) Rules For Refunds Within 90 Days — For purposes of refunds allowed under this paragraph, section 6611(e) shall be applied by substituting “90 days” for “45 days” each place it appears.
I.R.C. § 5001(c)(5) Processed Distilled Spirits —
Editor's Note: Sec. 5001(c)(5), below, added by Pub. L. 116-260, Div. EE, Sec. 109(a), is effective for distilled spirits removed after Dec. 31, 2021.
A distilled spirit shall not be treated as processed for purposes of this subsection unless a process described in section 5002(a)(5)(A) (other than bottling) is performed with respect to such distilled spirit.
I.R.C. § 5001(d) 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 by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1314, and 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, Sec. 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, Dec. 8, 1994, 108 Stat. 4809; Pub. L. 115-97, title I, Sec. 13807(a), (c), Dec. 22, 2017, 131 Stat. 2054; Pub. L. 116-94, Div. Q, title I, Sec. 144(g)(1), (2), Dec. 20, 2019; Pub. L. 116-260, Div. EE, title I, Sec. 106(g)(1), 107(a)(1), 109(a), 110(c), Dec. 27, 2020, 134 Stat. 1182)
BACKGROUND NOTES
Amendments
1988--Pub. L. 100-647, title V, 5061(c)(4), Nov. 10, 1988, 102 Stat. 3680, substituted “Cigars, cigarettes, smokeless tobacco, pipe tobacco, and cigarette papers and tubes” for “Tobacco, cigars, cigarettes, smokeless tobacco, and cigarette papers and tubes” in item relating to chapter 52.
Pub. L. 100-647, title I, 1018(u)(16), Nov. 10, 1988, 102 Stat. 3590, inserted “smokeless tobacco,” after “cigarettes,” in item relating to chapter 52.
1987--Pub. L. 100-203, title X, 10228(c), Dec. 22, 1987, 101 Stat. 1330-418, added item relating to chapter 54.
Prior Provisions
The provisions of a prior chapter 51, Distilled Spirits, Wines, and Beer, were set out as:
Subchapter A, Gallonage and occupational taxes, comprising sections 5001 to 5012, 5021 to 5028, 5041 to 5045, 5051 to 5057, 5061 to 5065, 5081 to 5084, 5091 to 5093, 5101 to 5106, 5111 to 5116, 5121 to 5124, 5131 to 5134, and 5141 to 5149.
Subchapter B, Distilleries, comprising sections 5171 to 5180, 5191 to 5197, and 5211 to 5217.
Subchapter C, Internal Revenue bonded warehouses, comprising sections 5231 to 5233 and 5241 to 5252.
Subchapter D, Rectifying plants, comprising sections 5271 to 5275 and 5281 to 5285.
Subchapter E, Industrial alcohol plants, bonded warehouses, denaturing plants, and denaturation, comprising sections 5301 to 5320 and 5331 to 5334.
Subchapter F, Bonded and taxpaid wine premises, comprising sections 5351 to 5357, 5361 to 5373, 5381 to 5388, 5391, and 5392.
Subchapter G, Breweries, comprising sections 5401 to 5403 and 5411 to 5416.
Subchapter H, Miscellaneous plants and warehouses, comprising sections 5501, 5502, 5511, 5512, and 5521 to 5523.
Subchapter I, Miscellaneous general provisions, comprising sections 5551 to 5557.
Subchapter J, Penalties, seizures, and forfeitures relating to liquors, comprising sections 5601 to 5650, 5661 to 5663, 5671 to 5676, 5681 to 5690, and 5691 to 5693.
Amendments
1979--Pub. L. 96-39, title VIII, 807(b)(1), July 26, 1979, 93 Stat. 290, struck out item relating to subpart B “Rectification”.
Prior Provisions
A prior subpart A, comprising sections 5001 to 5012, related to tax on distilled spirits, prior to the general revision of this chapter by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1313.
Amendments
1980--Pub. L. 96-598, 6(b), Dec. 24, 1980, 94 Stat. 3489, added item 5010.
1979--Pub. L. 96-39, title VIII, 807(b)(2), July 26, 1979, 93 Stat. 290, struck out item 5009 “Drawback”.
PRIOR PROVISIONS
A prior section 5001, acts Aug. 16, 1954, ch. 736, 68A Stat. 595; Mar. 30, 1955, ch. 18, Sec. 3(a)(4), (5), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(4), (5), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, Sec. 3(a)(2), (3), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec. 3(a)(2), (3), 72 Stat. 259, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859. See section 5061(d) of this title.
AMENDMENTS
2020 — Subsec. (c). Pub. L. 116-260, Div. EE, Sec. 106(g)(1)(A), amended the heading by substituting “REDUCED RATE” for “TEMPORARY REDUCED RATE”.
Subsec. (c)(2)(D). Pub. L. 116-260, Div. EE, Sec. 110(c)(1) and (2), amended subpar. (D) by substituting “under a license” for “marketed under a similar brand, license” and by inserting “or process” after “that produce”, respectively.
Subsec. (c)(3)(B). Pub. L. 116-260, Div. EE, Sec. 106(g)(1)(B), amended subpar. (B) by substituting “The Secretary of the Treasury, after consultation with the Secretary of the Department of Homeland Security,” for “The Secretary”.
Subsec. (c)(4). Pub. L. 116-260, Div. EE, Sec. 106(g)(1)(C), amended subsec. (c) by striking par. (4). Before being struck, it read as follows:
“(4) Termination.—This subsection shall not apply to distilled spirits removed after December 31, 2020.”
Subsec. (c)(4). Pub. L. 116-260, Div. EE, Sec. 107(a)(1), amended subsec. (c) by adding a new par. (4).
Subsec. (c)(5). Pub. L. 116-260, Div. EE, Sec. 109(a), amended subsec. (c) by adding a new par. (5).
2019 — Subsec. (c). Pub. L. 116-94, Div. Q, Sec. 144(g)(2), amended the heading by substituting “TEMPORARY REDUCED RATE” for “REDUCED RATE FOR 2018 AND 2019”.
Subsec. (c)(4). Pub. L. 116-94, Div. Q, Sec. 144(g)(1), amended subsec. (c)(4) by substituting “December 31, 2020” for “December 31, 2019”.
2017 — Subsec. (c)-(d). Pub. L. 115-97, Sec. 13807(a), redesignated subsec. (c) as subsec. (d) and added a new subsec. (c).
Sec. (c)(1). Pub. L. 115-97, Sec. 13807(c)(1), amended par. (1) by inserting “but only if the importer is an electing importer under paragraph (3) and the proof gallons of distilled spirits have been assigned to the importer pursuant to such paragraph” after “into the United States during the calendar year”.
Sec. (c)(3)-(4). Pub. L. 115-97, Sec. 13807(c)(2), amended subsec. (c) by redesignating par. (3) as par. (4) and by inserting a new par. (3).
1994 - Subsec. (a)(3). Pub. L. 103-465 struck par. (3) and redesignated pars. (4) - (10) as pars. (3) - (9), respectively. Before it was struck, par. (3) read as follows:
“(3) Imported perfumes containing distilled spirits
“There is hereby imposed on all perfumes imported into the United States containing distilled spirits a tax of $13.50 per wine gallon, and a proportionate tax at a like rate on all fractional parts of such wine gallon.”
1990 - Subsec. (a)(1), (3). Pub. L. 101-508 substituted ‘$13.50’ for ‘$12.50’.
1984 - Subsec. (a)(1), (3). Pub. L. 98-369 substituted ‘$12.50’ for ‘$10.50’.
1979 - Subsec. (a)(1). Pub. L. 96-39, Sec. 802, struck out ‘in bond or’ after ‘distilled spirits’ and ‘or wine gallon when below proof’ after ‘each proof gallon’ and substituted ‘a tax’ for ‘an internal revenue tax’ and ‘proof gallon’ for ‘such proof or wine gallon’.
Subsec. (a)(2). Pub. L. 96-39, Sec. 805(d), inserted ‘, and any alcoholic ingredient added to such products’ after ‘has not been paid’.
1965 - Subsec. (a)(1). Pub. L. 89-44 struck out last sentence which provided that the rate of tax imposed by par. (1) would be $9 on and after July 1, 1965.
Subsec. (a)(3). Pub. L. 89-44 struck out last sentence which provided that the rate of tax imposed by par. (3) would be $9 on and after July 1, 1965.
1964 - Subsec. (a)(1). Pub. L. 88-348 substituted ‘July 1, 1965’ for ‘July 1, 1964’.
Subsec. (a)(3). Pub. L. 88-348 substituted ‘July 1, 1965’ for ‘July 1, 1964’.
1963 - Subsec. (a)(1). Pub. L. 88-52, Sec. 3(a)(4), substituted ‘July 1, 1964’ for ‘July 1, 1963’.
Subsec. (a)(3). Pub. L. 88-52, Sec. 3(a)(5), substituted ‘July 1, 1964’ for ‘July 1, 1963’.
1962 - Subsec. (a)(1). Pub. L. 87-508, Sec. 3(a)(3), substituted ‘July 1, 1963’ for ‘July 1, 1962’.
Subsec. (a)(3). Pub. L. 87-508, Sec. 3(a)(4), substituted ‘July 1, 1963’ for ‘July 1, 1962’.
1961 - Subsec. (a)(1). Pub. L. 87-72, Sec. 3(a)(4), substituted ‘July 1, 1962’ for ‘July 1, 1961’.
Subsec. (a)(3). Pub. L. 87-72, Sec. 3(a)(5), substituted ‘July 1, 1962’ for ‘July 1, 1961’.
1960 - Subsec. (a)(1). Pub. L. 86-564, Sec. 202(a)(4), substituted ‘July 1, 1961’ for ‘July 1, 1960’.
Subsec. (a)(3). Pub. L. 86-564, Sec. 202(a)(5), substituted ‘July 1, 1961’ for ‘July 1, 1960’.
1959 - Subsec. (a)(1). Pub. L. 86-75, Sec. 3(a)(2), substituted ‘July 1, 1960’ for ‘July 1, 1959’.
Subsec. (a)(3). Pub. L. 86-75, Sec. 3(a)(3), substituted ‘July 1, 1960’ for ‘July 1, 1959’.
EFFECTIVE DATE OF 2020 AMENDMENTS
Amendments by Pub. L. 116-260, Div. EE, Sec. 106(g), effective for distilled spirits removed after December 31, 2020.
Amendment by Pub. L. 116-260, Div. EE, Sec. 107(a)(1), effective for distilled spirits brought into the United States and removed after December 31, 2122.
Amendment by Pub. L. 116-260, Div. EE, Sec. 109(a), effective for distilled spirits removed after December 31, 2021.
Amendments by Pub. L. 116-260, Div. EE, Sec. 110(c), effective for beer, wine, and distilled spirits removed after December 31, 2020.
EFFECTIVE DATE OF 2019 AMENDMENTS
Amendments by Pub. L. 116-94, Div. Q, Sec. 144(g)(1), (2), applicable to distilled spirits removed after December 31, 2019.
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendments by Pub. L. 115-97, Sec. 13807, effective for distilled spirits removed after December 31, 2017.
Sec. 41111 of Pub. L. 115-123 provided that:
“SEC. 41111. RULE OF CONSTRUCTION FOR CRAFT BEVERAGE MODERNIZATION AND TAX REFORM
“(a) IN GENERAL.—Subpart A of part IX of subtitle C of title I of Public Law 115–97 is amended by adding at the end the following new section:
‘SEC. 13809. RULE OF CONSTRUCTION.—Nothing in this subpart, the amendments made by this subpart, or any regulation promulgated under this subpart or the amendments made by this subpart, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverages.’.
“(b) EFFECTIVE DATE.—The amendment made by this section shall take effect as if included in Public Law 115–97.”
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective on January 1, 1995.
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11201(d) of Pub. L. 101-508 provided that: ‘The amendments made by this section (amending this section and sections 5010, 5041, 5051, and 5061 of this title) shall take effect on January 1, 1991.’
EFFECTIVE DATE OF 1984 AMENDMENT
Section 27(d) of Pub. L. 98-369 provided that:
‘(1) In general. - Except as provided in paragraph (2), the amendments made by this section (amending this section and section 5010 of this title and enacting provisions set out as a note under this section) shall take effect on October 1, 1985.
‘(2) Electronic transfer provisions. - The amendments made by subsection (c) (amending sections 5061 and 5703 of this title) shall apply to taxes required to be paid on or after September 30, 1984.’
EFFECTIVE DATE OF 1979 AMENDMENT
Section 810 of title VIII of Pub. L. 96-39 provided that: ‘The amendments made by this title (amending this section and sections 5002 to 5008, 5043, 5061, 5064, 5066, 5116, 5171 to 5173, 5175 to 5178, 5180, 5181, 5201 to 5205, 5207, 5211 to 5215, 5221 to 5223, 5231, 5232, 5235, 5241, 5273, 5291, 5301, 5352, 5361 to 5363, 5365, 5381, 5391, 5551, 5601, 5604, 5610, 5612, 5615, 5663, 5681, 5682, and 5691 of this title, repealing sections 5009, 5021 to 5026, 5081 to 5084, 5174, 5233, 5234, 5251, 5252, 5364, and 5521 to 5523 of this title, and enacting provisions set out as notes under sections 1, 5061, 5171, and 5173 of this title) shall take effect on January 1, 1980.’
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 applicable on and after July 1, 1965, see section 701(d) of Pub. L. 89-44, set out as a note under section 5701 of this title.
EFFECTIVE DATE
Section 210(a)(1) of Pub. L. 85-859 provided that: ‘The amendments made by sections 201 and 205 (amending this chapter and repealing acts Mar. 3, 1877, 114, 19 Stat. 393, and Oct. 18, 1888, ch. 1194, 25 Stat. 560) shall take effect on July 1, 1959, except that any provision having the effect of a provision contained in such amendments may be made effective at an earlier date by the promulgation of regulations by the Secretary or his delegate to effectuate such provision, in which case the effective date shall be that prescribed in such regulations. The amendments made by paragraphs (17) and (18) of section 204 (amending section 7652 of this title) shall take effect on July 1, 1959. Except as provided in section 206(f), all other provisions of this title (enacting sections 5849, 5854, 5855, and 7608 of this title, amending chapter 52 of this title and sections 5801, 5811, 5814, 5821, 5843, 5848, 5851, 6071, 6207, 6422, 7214, 7272, 7301, 7324 to 7326, 7609, and 7655 of this title, and repealing former section 5854 of this title) shall take effect on the day following the date of the enactment of this Act (September 2, 1958).’
ADMINISTRATION OF REFUNDS
Sec. 107(e) of Pub. L. 116-260, Div. EE, provided that:
“(e) ADMINISTRATION OF REFUNDS.—The Secretary of the Treasury (or the Secretary's delegate within the Department of the Treasury) shall implement and administer sections 5001(c)(4), 5041(c)(7), and 5051(a)(6) of the Internal Revenue Codeof 1986, as added by this Act, in coordination with the United States Customs and Border Protection of the Department of Homeland Security.”
REGULATIONS
Sec. 107(f) of Pub. L. 116-260, Div. EE, provided that:
“(f) REGULATIONS.—The Secretary of the Treasury (or the Secretary's delegate within the Department of the Treasury) shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations to require foreign producers to provide information necessary to enforce the volume limitations under sections 5001(c), 5041(c), and 5051(a) of such Code.”
REPORT
Sec. 107(g) of Pub. L. 116-260, Div. EE, provided that:
“(g) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate within the Department of the Treasury) shall, in coordination with the United States Customs and Border Protection of the Department of Homeland Security, prepare, submit to Congress, and make publicly available a report detailing the plans for implementing and administering sections 5001(c)(4), 5041(c)(7), and 5051(a)(6) of such Code, as added by this Act.”
RULE OF CONSTRUCTION FOR CRAFT BEVERAGE MODERNIZATION AND TAX REFORM
Sec. 41111(a) of Pub. L. 115-123 provided that:
“(a) IN GENERAL.—Subpart A of part IX of subtitle C of title I of Public Law 115–97 is amended by adding at the end the following new section:
‘SEC. 13809. RULE OF CONSTRUCTION.—Nothing in this subpart, the amendments made by this subpart, or any regulation promulgated under this subpart or the amendments made by this subpart, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverages.’.
“(b) EFFECTIVE DATE.—The amendment made by this section shall take effect as if included in Public Law 115–97.”
STUDY OF FEASIBILITY OF MOVING COLLECTION POINT FOR DISTILLED SPIRITS EXCISE TAX
Sec. 909 of Pub. L. 105-34 provided that:
“(a) In General.--The Secretary of the Treasury or his delegate shall conduct a study of options for changing the event on which the tax imposed by section 5001 of the Internal Revenue Code of 1986 is determined. One such option which shall be studied is determining such tax on removal from registered wholesale warehouses. In studying each such option, such Secretary shall focus on administrative issues including--
(1) tax compliance,
(2) the number of taxpayers required to pay the tax,
(3) the types of financial responsibility requirements that might be required, and
(4) special requirements regarding segregation of non-tax-paid distilled spirits from other products.
Such study shall review the effects of each such option on the Department of the Treasury (including staffing and other demands on budgetary resources) and the change in the period between the time such tax is currently paid and the time such tax would be paid under each such option.
(b) Report.--The report of such study shall be submitted to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not later than March 31, 1998.”
FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER
Section 11201(e) of Pub. L. 101-508 provided that:
‘(1) Imposition of tax. -
‘(A) In general. - In the case of any tax-increased article -
‘(i) on which tax was determined under part I of subchapter A of chapter 51 of the Internal Revenue Code of 1986 or section 7652 of such Code before January 1, 1991, and
‘(ii) which is held on such date for sale by any person, there shall be imposed a tax at the applicable rate on each such article.
‘(B) Applicable rate. - For purposes of subparagraph (A), the applicable rate is -
‘(i) $1 per proof gallon in the case of distilled spirits,
‘(ii) $0.90 per wine gallon in the case of wine described in paragraph (1), (2), (3), or (5) of section 5041(b) of such Code, and
‘(iii) $9 per barrel in the case of beer.
In the case of a fraction of a gallon or barrel, the tax imposed by subparagraph (A) shall be the same fraction as the amount of such tax imposed on a whole gallon or barrel.
‘(C) Tax-increased article. - For purposes of this subsection, the term ‘tax-increased article’ means distilled spirits, wine described in paragraph (1), (2), (3), or (5) of section 5041(b) of such Code, and beer.
‘(2) Exception for small domestic producers. -
‘(A) In the case of wine held by the producer thereof on January 1, 1991, if a credit would have been allowable under section 5041(c) of such Code (as added by this section) on such wine had the amendments made by subsection (b) (amending sections 5041 and 5061 of this title) applied to all wine removed during 1990 and had the wine so held been removed for consumption on December 31, 1990, the tax imposed by paragraph (1) on such wine shall be reduced by the credit which would have been so allowable.
‘(B) In the case of beer held by the producer thereof on January 1, 1991, if the rate of the tax imposed by section 5051 of such Code would have been determined under subsection (a)(2) thereof had the beer so held been removed for consumption on December 31, 1990, the tax imposed by paragraph (1) on such beer shall not apply.
‘(C) For purposes of this paragraph, an article shall not be treated as held by the producer if title thereto had at any time been transferred to any other person.
‘(3) Exception for certain small wholesale or retail dealers. - No tax shall be imposed by paragraph (1) on tax- increased articles held on January 1, 1991, by any dealer if -
‘(A) the aggregate liquid volume of tax-increased articles held by such dealer on such date does not exceed 500 wine gallons, and
‘(B) such dealer submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph.
‘(4) Credit against tax. - Each dealer shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to -
‘(A) $240 to the extent such taxes are attributable to distilled spirits,
‘(B) $270 to the extent such taxes are attributable to wine, and
‘(C) $87 to the extent such taxes are attributable to beer.
Such credit shall not exceed the amount of taxes imposed by paragraph (1) with respect to distilled spirits, wine, or beer, as the case may be, for which the dealer is liable.
‘(5) Liability for tax and method of payment. -
‘(A) Liability for tax. - A person holding any tax-increased article on January 1, 1991, to which the tax imposed by paragraph (1) applies shall be liable for such tax.
‘(B) Method of payment. - The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
‘(C) Time for payment. - The tax imposed by paragraph (1) shall be paid on or before June 30, 1991.
‘(6) Controlled groups. -
‘(A) Corporations. - In the case of a controlled group -
‘(i) the 500 wine gallon amount specified in paragraph (3), and
‘(ii) the $240, $270, and $87 amounts specified in paragraph (4),shall be apportioned among the dealers who are component members of such group in such manner as the Secretary shall by regulations prescribe. For purposes of the preceding sentence, the term ‘controlled group’ has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase ‘more than 50 percent’ shall be substituted for the phrase ‘at least 80 percent’ each place it appears in such subsection.
‘(B) Nonincorporated dealers under common control. - Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of dealers under common control where 1 or more of such dealers is not a corporation.
‘(7) Other laws applicable. -
‘(A) In general. - All provisions of law, including penalties, applicable to the comparable excise tax with respect to any tax-increased article shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by the comparable excise tax.
‘(B) Comparable excise tax. - For purposes of subparagraph (A), the term ‘comparable excise tax’ means -
‘(i) the tax imposed by section 5001 of such Code in the case of distilled spirits,
‘(ii) the tax imposed by section 5041 of such Code in the case of wine, and
‘(iii) the tax imposed by section 5051 of such Code in the case of beer.
‘(8) Definitions. - For purposes of this subsection -
‘(A) In general. - Terms used in this subsection which are also used in subchapter A of chapter 51 of such Code shall have the respective meanings such terms have in such part.
‘(B) Person. - The term ‘person’ includes any State or political subdivision thereof, or any agency or instrumentality of a State or political subdivision thereof.
‘(C) Secretary. - The term ‘Secretary’ means the Secretary of the Treasury or his delegate.
‘(9) Treatment of imported perfumes containing distilled spirits. - For purposes of this subsection, any article described in section 5001(a)(3) of such Code shall be treated as distilled spirits; except that the tax imposed by paragraph (1) shall be imposed on a wine gallon basis in lieu of a proof gallon basis. To the extent provided by regulations prescribed by the Secretary, the preceding sentence shall not apply to any article held on January 1, 1991, on the premises of a retail establishment.’
FLOOR STOCKS TAX TREATMENT OF ARTICLES IN FOREIGN TRADE ZONES
Section 11218 of Pub. L. 101-508 provided that: ‘Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other provision of law, any article which is located in a foreign trade zone on the effective date of any increase in tax under the amendments made by this part or part I (part I (Sec. 11201-11203) or part II (Sec. 11211-11218) of subtitle B of title XI of Pub. L. 101-508, see Tables for classification) shall be subject to floor stocks taxes imposed by such parts if -
‘(1) internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act (19 U.S.C. 81c(a)), or
‘(2) such article is held on such date under the supervision of a customs officer pursuant to the 2d proviso of such section 3(a).’
FLOOR STOCKS TAXES ON DISTILLED SPIRITS
Section 27(b) of Pub. L. 98-369, as amended by Pub. L. 99-514, Sec. 2, title XVIII, Sec. 1801(c)(3), Oct. 22, 1986, 100 Stat. 2095, 2786, provided that:
‘(1) Imposition of tax. - On distilled spirits on which tax was imposed under section 5001 or 7652 of the Internal Revenue Code of 1986 (formerly I.R.C. 1954) before October 1, 1985, and which were held on such date for sale by any person, there shall be imposed a tax at the rate of $2.00 for each proof gallon and a proportionate tax at the like rate on all fractional parts of a proof gallon.
‘(2) Exception for certain small wholesale or retail dealers. - No tax shall be imposed by paragraph (1) on distilled spirits held on October 1, 1985, by any dealer if -
‘(A) the aggregate liquid volume of distilled spirits held by such dealer on such date does not exceed 500 wine gallons, and
‘(B) such dealer submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph.
‘(3) Credit against tax. - Each dealer shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $800. Such credit shall not exceed the amount of taxes imposed by paragraph (1) for which the dealer is liable.
‘(4) Liability for tax and method of payment. -
‘(A) Liability for tax. - A person holding distilled spirits on October 1, 1985, to which the tax imposed by paragraph (1) applies shall be liable for such tax.
‘(B) Method of payment. - The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall by regulations prescribe.
‘(C) Time for payment. -
‘(i) In general. - Except as provided in clause (ii), the tax imposed by paragraph (1) shall be paid on or before April 1, 1986.
‘(ii) Installment payment of tax in case of small or middle-sized dealers. - In the case of any small or middle-sized dealer, the tax imposed by paragraph (1) may be paid in 3 equal installments due as follows:
‘(I) The first installment shall be paid on or before April 1, 1986.
‘(II) The second installment shall be paid on or before July 1, 1986.
‘(III) The third installment shall be paid on or before October 1, 1986.
If the taxpayer does not pay any installment under this clause on or before the date prescribed for its payment, the whole of the unpaid tax shall be paid upon notice and demand from the Secretary.
‘(iii) Small or middle-sized dealer. - For purposes of clause (ii), the term ‘small or middle-sized dealer’ means any dealer if the aggregate gross sales receipts of such dealer for its most recent taxable year ending before October 1, 1985, does not exceed $500,000.
‘(5) Controlled groups. -
‘(A) Controlled groups of corporations. - In the case of a controlled group -
‘(i) the 500 wine gallon amount specified in paragraph (2),
‘(ii) the $800 amount specified in paragraph (3), and
‘(iii) the $500,000 amount specified in paragraph (4)(C)(iii), shall be apportioned among the dealers who are component members of such group in such manner as the Secretary shall by regulations prescribe. For purposes of the preceding sentence, the term ‘controlled group’ has the meaning given to such term by subsection (a) of section 1563 of the Internal Revenue Code of 1986; except that for such purposes the phrase ‘more than 50 percent’ shall be substituted for the phrase ‘at least 80 percent’ each place it appears in such subsection.
‘(B) Nonincorporated dealers under common control. - Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of dealers under common control where 1 or more of such dealers is not a corporation.
‘(6) Other laws applicable. - All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5001 of the Internal Revenue Code of 1986 shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply in respect of the taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 5001.
‘(7) Definitions and special rules. - For purposes of this subsection -
‘(A) Dealer. - The term ‘dealer’ means -
‘(i) any wholesale dealer in liquors (as defined in section 5112(b) of the Internal Revenue Codeof 1986), and
‘(ii) any retail dealer in liquors (as defined in section 5122(a) of such Code).
‘(B) Distilled spirits. - The term ‘distilled spirits’ has the meaning given such term by section 5002(a)(8) of the Internal Revenue Code of 1986.
‘(C) Person. - The term ‘person’ includes any State or political subdivision thereof, or any agency or instrumentality of a State or political subdivision thereof.
‘(D) Secretary. - The term ‘Secretary’ means the Secretary of the Treasury or his delegate.
‘(E) Treatment of imported perfumes containing distilled spirits. - Any article described in section 5001(a)(3) of such Code shall be treated as distilled spirits; except that the tax imposed by paragraph (1) shall be imposed on a wine gallon basis in lieu of a proof gallon basis. To the extent provided in regulations prescribed by the Secretary, the preceding sentence shall not apply to any article held on October 1, 1985, on the premises of a retail establishment.
‘(F) Treatment of distilled spirits in foreign trade zones. - Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other provision of law, distilled spirits which are located in a foreign trade zone on October 1, 1985, shall be subject to the tax imposed by paragraph (1) and shall be treated for purposes of this subsection as held on such date for sale if
‘(i) internal revenue taxes have been determined, or customs duties liquidated, with respect to such distilled spirits before such date pursuant to a request made under the first proviso of section 3(a) of such Act (19 U.S.C. 81c(a)), or
‘(ii) such distilled spirits are held on such date under the supervision of customs pursuant to the second proviso of such section 3(a).
Under regulations prescribed by the Secretary, provisions similar to sections 5062 and 5064 of such Code shall apply to distilled spirits with respect to which tax is imposed by paragraph (1) by reason of this subparagraph.'
REFERENCES TO OTHER PROVISIONS OF LAW
Section 210(d) of title II of Pub. L. 85-859 provided that: ‘For the purpose of applying any provision of this title (see Savings Provision note above) to any occurrence on or after the effective date of such provision, any reference in this title to another provision thereof shall also be deemed to be a reference to the corresponding provision of prior law, when consistent with the purpose of the provision to be applied.’
REPEAL OF ACTS MAR. 3, 1877 AND OCT. 18, 1888
Section 205 of Pub. L. 85-859 repealed acts March 3, 1877, ch. 114, 19 Stat. 393 and Oct. 18, 1888, ch. 1194, 25 Stat. 560, which related to production and warehousing of fruit brandy, and are covered by this chapter. For effective date of repeal, see section 210(a)(1) of Pub. L. 85-859, set out as an Effective Date note above.
SHORT TITLE
Section 1(a) of Pub. L. 85-859 provided that: ‘This Act (see Tables for classification) may be cited as the ‘Excise Tax Technical Changes Act of 1958’.'
SAVINGS PROVISION
Section 210(b) of title II of Pub. L. 85-859, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘The amendment of any provision of the Internal Revenue Code of 1986 (formerly I.R.C. 1954) by this title (enacting sections 5849, 5854, 5855, and 7608 of this title, amending this chapter, chapter 52 of this title and sections 5801, 5811, 5814, 5821, 5843, 5848, 5851, 6071, 6207, 6422, 7214, 7272, 7301, 7324 to 7326, 7609, 7652, and 7655 of this title, and enacting provisions set out as notes under this section and sections 5006, 5025, 5064, 5175, 5304, and 5601 of this title) shall not affect any act done or any right accruing or accrued, or any suit or proceeding had or commenced in any civil cause before such amendment; but all rights and liabilities under such code prior to such amendment shall continue, and may be enforced in the same manner, as if such amendment had not been made.'
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I.R.C. § 5004(a) Distilled Spirits Subject To Lien
I.R.C. § 5004(a)(1) General — The tax imposed by section 5001(a)(1) shall be a first lien on the distilled spirits from the time the spirits are in existence as such until the tax is paid.
I.R.C. § 5004(a)(2) Exceptions — The lien imposed by paragraph (1), or any similar lien imposed on the spirits under prior provisions of internal revenue law, shall terminate in the case of distilled spirits produced on premises qualified under internal revenue law for the production of distilled spirits when such distilled spirits are—
I.R.C. § 5004(a)(2)(A) — withdrawn from bonded premises on determination of tax; or
I.R.C. § 5004(a)(2)(B) — withdrawn from bonded premises free of tax under provisions of section 5214(a)(1), (2), (3), (11), or (12), or section 7510; or
I.R.C. § 5004(a)(2)(C) — exported, deposited in a foreign-trade zone, used in the production of wine, laden as supplies upon, or used in the maintenance or repair of, certain vessels or aircraft, deposited in a customs bonded warehouse, or used in certain research, development, or testing, as provided by law.
I.R.C. § 5004(b) Cross Reference — For provisions relating to extinguishing of lien in case of redistillation, see section 5223(e).
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1317, and amended Pub. L. 89-44, title VIII, 805(f)(1), June 21, 1965, 79 Stat. 161; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176, 4(c), Nov. 14, 1977, 91 Stat. 1366; Pub. L. 96-39, title VIII, 807(a)(2), July 26, 1979, 93 Stat. 280; Pub. L. 96-223, title II, 232(e)(2)(C), Apr. 2, 1980, 94 Stat. 280.)
BACKGROUND NOTES
Prior Provisions
A prior section 5004, act Aug. 16, 1954, ch. 736, 68A Stat. 598, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising subsec. (b)(1) of this section were contained in prior section 5007(e)(1), act Aug. 16, 1954, ch. 736, 68A Stat. 600, prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1980--Subsec. (a)(2)(B). Pub. L. 96-223 substituted “(11), or (12),” for “or (11),”.
1979--Subsec. (a)(2)(B). Pub. L. 96-39, 807(a)(2)(C), substituted “(3), or (11)” for “or (3)”.
Subsecs. (b), (c). Pub. L. 96-39, 807(a)(2)(A), (B), redesignated subsec. (c) as (b). Former subsec. (b), relating to other property subject to lien, was repealed.
1977--Subsec. (a)(2). Pub. L. 95-176 struck out reference to par. (9) of section 5214(a) in subpar. (B), and in subpar. (C) substituted “a customs bonded warehouse” for “customs manufacturing bonded warehouses” and provided for termination of the lien for tax when the distilled spirits are used in certain research, development, or testing.
1976--Subsec. (b)(3)(B), (4). Pub. L. 94-455 struck out “or his delegate” after “Secretary”, wherever appearing.
1965--Subsec. (c). Pub. L. 89-44 substituted “5223(e)" for “5223(d)”.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 effective on the first day of the first calendar month beginning more than 60 days after Apr. 2, 1980, see section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date note under section 5181 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Section 805(g)(2) of Pub. L. 89-44 provided that: “The amendments made by subsections (b), (d), and (f) (other than paragraph (6)) [amending sections 5004, 5025, 5083, 5223, and 5234 of this title], shall take effect on October 1, 1965.”
I.R.C. § 5005(a) General — The distiller or importer of distilled spirits shall be liable for the taxes imposed thereon by section 5001(a)(1).
I.R.C. § 5005(b) Domestic Distilled Spirits
I.R.C. § 5005(b)(1) Liability Of Persons Interested In Distilling — Every proprietor or possessor of, and every person in any manner interested in the use of, any still, distilling apparatus, or distillery, shall be jointly and severally liable for the taxes imposed by law on the distilled spirits produced therefrom.
I.R.C. § 5005(b)(2) Exception — A person owning or having the right of control of not more than 10 percent of any class of stock of a corporate proprietor of a distilled spirits plant shall not be deemed to be a person liable for the tax for which such proprietor is liable under the provisions of paragraph (1). This exception shall not apply to an officer or director of such corporate proprietor.
I.R.C. § 5005(c) Proprietors Of Distilled Spirits Plants
I.R.C. § 5005(c)(1) Bonded Storage — Every person operating bonded premises of a distilled spirits plant shall be liable for the internal revenue tax on all distilled spirits while the distilled spirits are stored on such premises, and on all distilled spirits which are in transit to such premises (from the time of removal from the transferor's bonded premises) pursuant to application made by him. Such liability for the tax on distilled spirits shall continue until the distilled spirits are transferred or withdrawn from bonded premises as authorized by law, or until such liability for tax is relieved by reason of the provisions of section 5008(a). Nothing in this paragraph shall relieve any person from any liability imposed by subsection (a) or (b).
I.R.C. § 5005(c)(2) Transfers In Bond — When distilled spirits are transferred in bond in accordance with the provisions of section 5212, persons liable for the tax on such spirits under subsection (a) or (b), or under any similar prior provisions of internal revenue law, shall be relieved of such liability, if proprietors of transferring and receiving premises are independent of each other and neither has a proprietary interest, directly or indirectly, in the business of the other, and all persons liable for the tax under subsection (a) or (b), or under any similar prior provisions of internal revenue law, have divested themselves of all interest in the spirits so transferred. Such relief from liability shall be effective from the time of removal from the transferor's bonded premises, or from the time of divestment of interest, whichever is later.
I.R.C. § 5005(d) Withdrawals Free Of Tax — All persons liable for the tax under subsection (a) or (b), or under any similar prior provisions of internal revenue law, shall be relieved of such liability as to distilled spirits withdrawn free of tax under the provisions of section 5214(a)(1), (2), (3), (11), or (12), or under section 7510, at the time such spirits are so withdrawn from bonded premises.
I.R.C. § 5005(e) Withdrawals Without Payment Of Tax
I.R.C. § 5005(e)(1) Liability For Tax — Any person who withdraws distilled spirits from the bonded premises of a distilled spirits plant without payment of tax, as provided in section 5214(a)(4), (5), (6), (7), (8), (9), (10), or (13), shall be liable for the internal revenue tax on such distilled spirits, from the time of such withdrawal; and all persons liable for the tax on such distilled spirits under subsection (a) or (b), or under any similar prior provisions of internal revenue law, shall, at the time of such withdrawal, be relieved of any such liability on the distilled spirits so withdrawn if the person withdrawing such spirits and the person, or persons, liable for the tax under subsection (a) or (b), or under any similar prior provisions of internal revenue law, are independent of each other and neither has a proprietary interest, directly or indirectly, in the business of the other, and all persons liable for the tax under subsection (a) or (b), or under any similar prior provisions of internal revenue law, have divested themselves of all interest in the spirits so withdrawn.
I.R.C. § 5005(e)(2) Relief From Liability — All persons liable for the tax on distilled spirits under paragraph (1) of this subsection, or under subsection (a) or (b), or under any similar prior provisions of internal revenue law, shall be relieved of any such liability at the time, as the case may be, the distilled spirits are exported, deposited in a foreign-trade zone, used in the production of wine, used in the production of nonbeverage wine or wine products, deposited in customs bonded warehouses, laden as supplies upon, or used in the maintenance or repair of, certain vessels or aircraft, or used in certain research, development, or testing, as provided by law.
I.R.C. § 5005(f) Cross References
I.R.C. § 5005(f)(1) — For provisions requiring bond covering operations at, and withdrawals from, distilled spirits plants, see section 5173.
I.R.C. § 5005(f)(2) — For provisions relating to transfer of tax liability to redistiller in case of redistillation, see section 5223.
I.R.C. § 5005(f)(3) — For liability for tax on denatured distilled spirits, articles, and volatile fruit-flavor concentrates, see section 5001(a)(5) and (6).
I.R.C. § 5005(f)(4) — For liability for tax on distilled spirits withdrawn free of tax, see section 5001(a)(4).
I.R.C. § 5005(f)(5) — For liability of wine producer for unlawfully using wine spirits withdrawn for the production of wine, see section 5391.
I.R.C. § 5005(f)(6) — For provisions relating to transfer of tax liability for wine, see section 5043(a)(1)(A).
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1318, and amended Pub. L. 94-455, title XIX, 1905(a)(1), Oct. 4, 1976, 90 Stat. 1818; Pub. L. 95-176, 4(b), (d), Nov. 14, 1977, 91 Stat. 1366; Pub. L. 96-39, title VIII, 807(a)(3), July 26, 1979, 93 Stat. 280; Pub. L. 96-223, title II, 232(e)(2)(D), Apr. 2, 1980, 94 Stat. 280; Pub. L. 98-369, div. A, title IV, 455(b), July 18, 1984, 98 Stat. 823; Pub. L. 103-465, title I, 136, Dec. 8, 1994, 108 Stat. 4809.)
BACKGROUND NOTES
Prior Provisions
A prior section 5005, act Aug. 16, 1954, ch. 736, 68A Stat. 599; Sept. 2, 1958, Pub. L. 85-859, title II, 206(d), 72 Stat. 1431, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising subsec. (c)(1), (2) of this section were contained in prior sections 5194(f), 5217(a), and 5232(a), act Aug. 16, 1954, ch. 736, 68A Stat. 634, 641, 643, prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1994--Subsec. (f). Pub. L. 103-465, Sec. 136(c)(2), substituted “section 5001(a)(5) and (6)” for “section 5001(a)(6) and (7)” in par. (3) and “section 5001(a)(4)” for section 5001(a)(5)" in par. (4).
1984--Subsec. (e)(1). Pub. L. 98-369, 455(b)(1), substituted “(10), or (13)” for “or (10)”.
Subsec. (e)(2). Pub. L. 98-369, 455(b)(2), inserted “used in the production of nonbeverage wine or wine products,”.
1980--Subsec. (d). Pub. L. 96-223 substituted “(11), or (12),” for “or (11),”.
1979--Subsec. (c)(3). Pub. L. 96-39, 807(a)(3)(A), struck out par. (3) which related to liability for taxes with regard to withdrawals of distilled spirits from the bonded premises of a distilled spirits plant.
Subsec. (d). Pub. L. 96-39, 807(a)(3)(B), substituted “(3), or (11)" for “or (3)”.
Subsec. (f)(1). Pub. L. 96-39, 807(a)(3)(C), substituted “requiring bond covering operations at, and withdrawals from, distilled spirits plants" for “conditioning warehousing bonds on the payment of the tax” and “5173” for “5173(c)”.
Subsec. (f)(6). Pub. L. 96-39, 807(a)(3)(D), added par. (6).
1977--Subsec. (d). Pub. L. 95-176, 4(d)(1), struck out reference to par. (9) of section 5214(a).
Subsec. (e)(1). Pub. L. 95-176, 4(d)(2), inserted reference to pars. (9) and (10) of section 5214(a).
Subsec. (e)(2). Pub. L. 95-176, 4(b), substituted “customs bonded warehouses" for “customs manufacturing bonded warehouses” and provided for relief from liability for tax on distilled spirits used in certain research, development, or testing.
1976--Subsec. (c)(2). Pub. L. 94-455 substituted “Such relief from liability shall be effective from the time of removal from the transferor's bonded premises, or from the time of divestment of interest, whichever is later.” for “Such liability for the tax on distilled spirits shall continue until the distilled spirits are transferred or withdrawn from bonded premises as authorized by law, or until such liability for tax is relieved by reason of the provisions of section 5008(a). Nothing in this paragraph shall relieve any person from any liability imposed by subsection (a) or (b).”.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective January 1, 1995.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 18, 1984, see section 456(c) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 effective on the first day of the first calendar month beginning more than 60 days after Apr. 2, 1980, see section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date note under section 5181 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1905(d) of Pub. L. 94-455 provided that: “The amendments made by this section [amending sections 5005, 5007 to 5009, 5025, 5026, 5043, 5054, 5061, 5105, 5111, 5113, 5114, 5117, 5121, 5122, 5131, 5142, 5148, 5171, 5174, 5177, 5179, 5214, 5222, 5232 to 5234, 5272, 5314, 5362, 5368, 5392, 5505, 5551, 5601, 5662, 5685, 5701, 5703, 5704, 5712, 5723, 5751, 5752, 5762, and 5763 of this title and repealing sections 5104, 5144, 5315, 5676, and 5689 of this title] shall take effect on the first day of the first month which begins more than 90 days after the date of the enactment of this Act [Oct. 4, 1976].”
I.R.C. § 5006(a) Requirements
I.R.C. § 5006(a)(1) In General — Except as otherwise provided in this section, the tax on distilled spirits shall be determined when the spirits are withdrawn from bond. Such tax shall be determined by such means as the Secretary shall by regulations prescribe, and with the use of such devices and apparatus (including but not limited to tanks and pipelines) as the Secretary may require. The tax on distilled spirits withdrawn from the bonded premises of a distilled spirits plant shall be determined upon completion of the gauge for determination of tax and before withdrawal from bonded premises, under such regulations as the Secretary shall prescribe.
I.R.C. § 5006(a)(2) Distilled Spirits Not Accounted For — If the Secretary finds that the distiller has not accounted for all the distilled spirits produced by him, he shall, from all the evidence he can obtain, determine what quantity of distilled spirits was actually produced by such distiller, and an assessment shall be made for the difference between the quantity reported and the quantity shown to have been actually produced at the rate of tax imposed by law for every proof gallon.
I.R.C. § 5006(b) Taxable Loss
I.R.C. § 5006(b)(1) On Original Quantity — Where there is evidence satisfactory to the Secretary that there has been any loss of distilled spirits from any cask or other package deposited on bonded premises, other than a loss which by reason of section 5008(a) is not taxable, the Secretary may require the withdrawal from bonded premises of such distilled spirits, and direct the officer designated by him to collect the tax accrued on the original quantity of distilled spirits entered for deposit on bonded premises in such cask or package; except that, under regulations prescribed by the Secretary, when the extent of any loss from causes other than theft or unauthorized voluntary destruction can be established by the proprietor to the satisfaction of the Secretary an allowance of the tax on the loss so established may be credited against the tax on the original quantity. If such tax is not paid on demand it shall be assessed and collected as other taxes are assessed and collected.
I.R.C. § 5006(b)(2) Alternative Method — Where there is evidence satisfactory to the Secretary that there has been access, other than is authorized by law, to the contents of casks or packages stored on bonded premises, and the extent of such access is such as to evidence a lack of due diligence or a failure to employ necessary and effective controls on the part of the proprietor, the Secretary (in lieu of requiring the casks or packages to which such access has been had to be withdrawn and tax paid on the original quantity of distilled spirits entered for deposit on bonded premises in such casks or packages as provided in paragraph (1)) may assess an amount equal to the tax on 5 proof gallons of distilled spirits at the prevailing rate on each of the total number of such casks or packages as determined by him.
I.R.C. § 5006(b)(3) Application Of Subsection — The provisions of this subsection shall apply to distilled spirits which are filled into casks or packages, as authorized by law, after entry and deposit on bonded premises, whether by recasking, filling from storage tanks, consolidation of packages, or otherwise; and the quantity filled into such casks or packages shall be deemed to be the original quantity for the purpose of this subsection, in the case of loss from such casks or packages.
I.R.C. § 5006(c) Distilled Spirits Not Bonded
I.R.C. § 5006(c)(1) General — The tax on any distilled spirits, removed from the place where they were distilled and (except as otherwise provided by law) not deposited in storage on bonded premises of a distilled spirits plant, shall, at any time within the period of limitation provided in section 6501, when knowledge of such fact is obtained by the Secretary, be assessed on the distiller of such distilled spirits (or other person liable for the tax) and payment of such tax immediately demanded and, on the neglect or refusal of payment, the Secretary shall proceed to collect the same by distraint. This paragraph shall not exclude any other remedy or proceeding provided by law.
I.R.C. § 5006(c)(2) Production At Other Than Qualified Plants — Except as otherwise provided by law, the tax on any distilled spirits produced in the United States at any place other than a qualified distilled spirits plant shall be due and payable immediately upon production.
I.R.C. § 5006(d) Unlawfully Imported Distilled Spirits — Distilled spirits smuggled or brought into the United States unlawfully shall, for purposes of this chapter, be held to be imported into the United States, and the internal revenue tax shall be due and payable at the time of such importation.
I.R.C. § 5006(e) Cross Reference — For provisions relating to removal of distilled spirits from bonded premises on determination of tax, see section 5213.
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1320, and amended Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, 804(a), 807(a)(4), July 26, 1979, 93 Stat. 274, 280.)
BACKGROUND NOTES
Prior Provisions
A prior section 5006, act Aug. 16, 1954, ch. 736, 68A Stat. 599; Sept. 2, 1958, Pub. L. 85-859, title II, 206(a), 72 Stat. 1431, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising subsecs. (a)(2)(A), (3) of this section were contained in prior sections 5007(e)(1) and 5232(a), act Aug. 16, 1954, ch. 736, 68A Stat. 600, 643, prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1979--Subsec. (a)(1). Pub. L. 96-39, 804(a), struck out “internal revenue” after “provided in this section, the” and “storage, gauging, and bottling” after “but not limited to”.
Subsec. (a)(2), (3). Pub. L. 96-39, 804(a), redesignated par. (3) as (2). Former par. (2), relating to distilled spirits entered for storage, was struck out.
Subsec. (b)(1). Pub. L. 96-39, 807(a)(4)(A), (B), substituted “on bonded premises” for “in storage in internal revenue bond” in two places and “; except” for “,notwithstanding that the time specified in any bond given for the withdrawal of the spirits entered in storage in such cask or package has not expired, except”.
Subsec. (b)(2), (3). Pub. L. 96-39, 807(a)(4)(B), substituted “on bonded premises" for “in storage in internal revenue bond”.
1976--Subsecs. (a) to (c). Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
APPLICATION OF 1972 AMENDMENTS TO PRIOR SECTIONS
Section 206(f) of Pub. L. 85-859, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided:
“(1) The amendments made by this section [amending sections 5005, 5006, 5232, 5242, and 5243 of this title] shall apply with respect to:
“(A) distilled spirits which on the date of the enactment of this Act [Sept. 2, 1958] are in internal revenue bonded warehouses or are in transit to or between such warehouses, and in respect of which the 8-year bonding period has not expired before the date of enactment of this Act; and
“(B) distilled spirits which after the date of the enactment of this Act [Sept. 2, 1958] are entered for deposit in an internal revenue bonded warehouse.
“(2) If the 8 years from the date of original entry of any distilled spirits for deposit in internal revenue bonded warehouses expires at any time during the 10-day period which begins on the date of the enactment of this Act [Sept. 2, 1958], the amendments made by this section shall apply with respect to such spirits if (and only if) before the close of such 10-day period there is filed with the Secretary of the Treasury or his delegate either—
“(A) a consent of surety which changes (for periods on and after the date of the enactment of this Act) the condition based on the withdrawal of spirits from the internal revenue bonded warehouse within 8 years from the date of original entry for deposit to a condition based on the withdrawal of spirits from the internal revenue bonded warehouse within 20 years from the date of original entry for deposit, or
“(B) a bond which applies to periods on and after the date of the enactment of this Act and which satisfies the requirements of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], as amended by this section, and is conditioned on the withdrawal of spirits from the internal revenue bonded warehouse within 20 years from the date of original entry for deposit.”
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sophocles
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Re: Dear Filipino's and Filipina's
Postby sophocles » Mon Apr 12, 2021 10:59 pm

I.R.C. § 5007(a) Tax On Distilled Spirits Removed From Bonded Premises — The tax on domestic distilled spirits and on distilled spirits removed from customs custody under section 5232 shall be paid in accordance with section 5061.
I.R.C. § 5007(b) Collection Of Tax On Imported Distilled Spirits — The internal revenue tax imposed by section 5001(a)(1) and (2) upon imported distilled spirits shall be collected by the Secretary and deposited as internal revenue collections, under such regulations as the Secretary may prescribe. Section 5688 shall be applicable to the disposition of imported spirits.
I.R.C. § 5007(c) Cross References
I.R.C. § 5007(c)(1) — For authority of the Secretary to make determinations and assessments of internal revenue taxes and penalties, see section 6201(a).
I.R.C. § 5007(c)(2) — For authority to assess tax on distilled spirits not bonded, see section 5006(c).
I.R.C. § 5007(c)(3) — For provisions relating to payment of tax, under certain conditions, on distilled spirits withdrawn free of tax, denatured distilled spirits, articles, and volatile fruit-flavor concentrates, see section 5001(a)(4), (5), and (6).
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1322, and amended Pub. L. 94-455, title XIX, 1905(b)(2)(A), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1822, 1834; Pub. L. 96-39, title VIII, 807(a)(5), July 26, 1979, 93 Stat. 280; Pub. L. 103-465, title I, 136, Dec. 8, 1994, 108 Stat. 4809.)
BACKGROUND NOTES
Prior Provisions
A prior section 5007, act Aug. 16, 1954, ch. 736, 68A Stat. 600, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
Prior section 5007(c) related to “payment of tax on alcoholic compounds from Puerto Rico and Virgin Islands”. See section 7652 of this title.
Prior section 5007(e)(1) related to “assessment for deficiencies in production and excess of materials used” and “requirement”. See sections 5004(b)(1) and 5006(a)(3) of this title.
Prior section 5007(e)(2) related to “relief from assessment for deficiencies in production and excess of materials used” and is obsolete.
AMENDMENTS
1994--Subsec. (b). Pub. L. 103-465 amended subsec. (b). Prior to amendment, it read as follows:
“(b) Collection of tax on imported distilled spirits and perfumes containing distilled spirits
“(1) Distilled spirits
“The internal revenue tax imposed by section 5001(a)(1) and (2) upon imported distilled spirits shall be collected by the Secretary and deposited as internal revenue collections, under such regulations as the Secretary may prescribe. Section 5688 shall be applicable to the disposition of imported spirits.
“(2) Perfumes containing distilled spirits
“The internal revenue tax imposed by section 5001(a)(3) upon imported perfumes containing distilled spirits shall be collected by the Secretary and deposited as internal revenue collections, under such regulations as the Secretary may prescribe.”
Subsec. (c)(3). Pub. L. 103-465 substituted “section 5001(a)(4), (5), and (6)” for “section 5001(a)(5), (6), and (7).”
1979--Subsec. (a). Pub. L. 96-39 struck out “(1) General" before “The tax on domestic” and par. (2) which related to distilled spirits withdrawn to bottling premises under withdrawal bond.
1976--Subsec. (a)(2). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (b)(1). Pub. L. 94-455, 1905(b)(2)(A), 1906(b)(13)(A), struck out second sentence “Such tax shall be in addition to any customs duty imposed under the Tariff Act of 1930 (46 Stat. 590; 19 U.S.C., chapter 4), or any subsequent act.” and “or his delegate” after “Secretary" wherever appearing.
Subsecs. (b)(2), (c)(1). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
EFFECTIVE DATE OF 1994 AMENDMENTS
Amendments by Pub. L. 103-465 effective on January 1, 1995.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(b)(2)(A) of Pub. L. 94-455 effective on the first day of the 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.
I.R.C. § 5008(a) Distilled Spirits Lost Or Destroyed In Bond
I.R.C. § 5008(a)(1) Extent Of Loss Allowance — No tax shall be collected in respect of distilled spirits lost or destroyed while in bond, except that such tax shall be collected—
I.R.C. § 5008(a)(1)(A) Theft — In the case of loss by theft, unless the Secretary finds that the theft occurred without connivance, collusion, fraud, or negligence on the part of the proprietor of the distilled spirits plant, owner, consignor, consignee, bailee, or carrier, or the employees or agents of any of them;
I.R.C. § 5008(a)(1)(B) Voluntary Destruction — In the case of voluntary destruction, unless such destruction is carried out as provided in subsection (b); and
I.R.C. § 5008(a)(1)(C) Unexplained Shortage — In the case of an unexplained shortage of bottled distilled spirits.
I.R.C. § 5008(a)(2) Proof Of Loss — In any case in which distilled spirits are lost or destroyed, whether by theft or otherwise, the Secretary may require the proprietor of the distilled spirits plant or other person liable for the tax to file a claim for relief from the tax and submit proof as to the cause of such loss. In every case where it appears that the loss was by theft, the burden shall be upon the proprietor of the distilled spirits plant or other person responsible for the distilled spirits tax to establish to the satisfaction of the Secretary that such loss did not occur as the result of connivance, collusion, fraud, or negligence on the part of the proprietor of the distilled spirits plant, owner, consignor, consignee, bailee, or carrier, or the employees or agents of any of them.
I.R.C. § 5008(a)(3) Refund Of Tax — In any case where the tax would not be collectible by virtue of paragraph (1), but such tax has been paid, the Secretary shall refund such tax.
I.R.C. § 5008(a)(4) Limitations — Except as provided in paragraph (5), no tax shall be abated, remitted, credited, or refunded under this subsection where the loss occurred after the tax was determined (as provided in section 5006(a)). The abatement, remission, credit, or refund of taxes provided for by paragraphs (1) and (3) in the case of loss of distilled spirits by theft shall only be allowed to the extent that the claimant is not indemnified against or recompensed in respect of the tax for such loss.
I.R.C. § 5008(a)(5) Applicability — The provisions of this subsection shall extend to and apply in respect of distilled spirits lost after the tax was determined and before completion of the physical removal of the distilled spirits from the bonded premises.
I.R.C. § 5008(b) Voluntary Destruction — The proprietor of the distilled spirits plant or other persons liable for the tax imposed by this chapter or by section 7652 with respect to any distilled spirits in bond may voluntarily destroy such spirits, but only if such destruction is under such supervision and under such regulations as the Secretary may prescribe.
I.R.C. § 5008(c) Distilled Spirits Returned To Bonded Premises
I.R.C. § 5008(c)(1) In General — Whenever any distilled spirits on which tax has been determined or paid are returned to the bonded premises of a distilled spirits plant under section 5215(a), the Secretary shall abate or (without interest) credit or refund the tax imposed under section 5001(a)(1) (or the tax equal to such tax imposed under section 7652) on the spirits so returned.
I.R.C. § 5008(c)(2) Claim Must Be Filed Within 6 Months Of Return Of Spirits — No allowance under paragraph (1) may be made unless claim therefor is filed within 6 months of the date of the return of the spirits. Such claim may be filed only by the proprietor of the distilled spirits plant to which the spirits were returned, and shall be filed in such form as the Secretary may by regulations prescribe.
I.R.C. § 5008(d) Distilled Spirits Withdrawn Without Payment Of Tax — The provisions of subsection (a) shall be applicable to loss of distilled spirits occurring during transportation from bonded premises of a distilled spirits plant to—
I.R.C. § 5008(d)(1) — the port of export, in case of withdrawal under section 5214(a)(4);
I.R.C. § 5008(d)(2) — the customs manufacturing bonded warehouse, in case of withdrawal under section 5214(a)(6);
I.R.C. § 5008(d)(3) — the vessel or aircraft, in case of withdrawal under section 5214(a)(7);
I.R.C. § 5008(d)(4) — the foreign-trade zone, in case of withdrawal under section 5214(a)(8); and
I.R.C. § 5008(d)(5) — the customs bonded warehouse in the case of withdrawal under sections 5066 and 5214(a)(9).
The provisions of subsection (a) shall be applicable to loss of distilled spirits withdrawn from bonded premises without payment of tax under section 5214(a)(10) for certain research, development, or testing, until such distilled spirits are used as provided by law.
I.R.C. § 5008(e) Other Laws Applicable — All provisions of law, including penalties, applicable in respect of the internal revenue tax on distilled spirits, shall, insofar as applicable and not inconsistent with subsection (c), be applicable to the credits or refunds provided for under such subsection to the same extent as if such credits or refunds constituted credits or refunds of such tax.
I.R.C. § 5008(f) Cross Reference — For provisions relating to allowance for loss in case of wine spirits withdrawn for use in wine production, see section 5373(b)(3).
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1323, and amended Pub. L. 89-44, title VIII, 805(a), June 21, 1965, 79 Stat. 160; Pub. L. 90-630, 1, Oct. 22, 1968, 82 Stat. 1328; Pub. L. 91-659, 1, 2(a), (b), Jan. 8, 1971, 84 Stat. 1964; Pub. L. 94-273, 47, Apr. 21, 1976, 90 Stat. 382; Pub. L. 94-455, title XIX, 1905(a)(2), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834; Pub. L. 95-176, 2(f), 4(e), Nov. 14, 1977, 91 Stat. 1364, 1366; Pub. L. 96-39, title VIII, 807(a)(6), July 26, 1979, 93 Stat. 281 ;Pub. L. 105-34, title XIV, Sec. 1411(a), Aug. 5, 1997, 111 Stat 788.)
BACKGROUND NOTES
Prior Provisions
A prior section 5008, act Aug. 16, 1954, ch. 736, 68A Stat. 602, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859. See sections 5205(a), (g) and 5604(a)(1) of this title.
Provisions similar to those comprising subsecs. (a)(1) to (4) and (f)(1), (2) of this section were contained in prior sections 5011(a)(1) to (4), 5023, 5247(e) and 5522(b), act Aug. 16, 1954, ch. 736, 68A Stat. 604, 606, 648, 679, prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
1997--Subsec. (c)(1). Pub. L. 105-34, Sec. 1411(a), amended par. (1) by substituting “on which tax has been determined or paid” for “withdrawn from bonded premises on payment or determination of tax”.
1979--Subsec. (a)(1)(C). Pub. L. 96-39, 807(a)(6)(A), added subpar. (C).
Subsec. (a)(5). Pub. L. 96-39, 807(a)(6)(B), substituted “before” for “prior to the completion” and struck out provisions relating to the applicability of this subsection where the loss occurred after the time prescribed for the withdrawal of the distilled spirits from the bonded premises under section 5006(a)(2) and relating to the applicability of this paragraph to any loss of distilled spirits for which abatement, remission, credit, or refund of tax is allowed under subsec. (c).
Subsec. (b). Pub. L. 96-39, 807(a)(6)(C), struck out “(1) Distilled spirits in bond” before “The proprietor of” and provisions relating to distilled spirits withdrawn for rectification or bottling.
Subsec. (c). Pub. L. 96-39, 807(a)(6)(C), added subsec. (c). Former subsec. (c), which related to loss of distilled spirits withdrawn from bond for rectification or bottling, was struck out.
Subsec. (d). Pub. L. 96-39, 807(a)(6)(D), redesignated subsec. (f) as (d). Former subsec. (d), which related to distilled spirits returned to bonded premises, was struck out.
Subsec. (e). Pub. L. 96-39, 807(a)(6)(D), (E), redesignated subsec. (g) as (e) and substituted “subsection (c)” for “subsections (b)(2), (c), and (d)” and “under such subsection” for “under such subsections”. Former subsec. (e), which related to samples of distilled spirits used for analysis or testing by United States, was struck out.
Subsec. (f). Pub. L. 96-39, 807(a)(6)(D), redesignated subsec. (h) as (f). Former subsec. (f) redesignated (d).
Subsecs. (g), (h). Pub. L. 96-39, 807(a)(6)(D), redesignated subsecs. (g) and (h) as (e) and (f), respectively.
1977--Subsec. (d). Pub. L. 95-176, 2(f), reenacted par. (1) and substituted heading “General” for “Allowance of tax” and “(or the tax equal to such tax imposed under section 7652)” for “or under section 7652”; added pars. (2) and (3); and redesignated as par. (4) provisions of former par. (2) and inserted reference to allowance of claims under par. (2) or (3).
Subsec. (f)(5). Pub. L. 95-176, 4(e), added par. (5).
1976--Subsec. (b)(1). Pub. L. 94-455, 1905(a)(2)(A), 1906(b)(13)(A), inserted “or by section 7652” after “tax imposed by this chapter" and struck out “or his delegate” after “Secretary”.
Subsec. (b)(2). Pub. L. 94-455, 1905(a)(2)(B), 1906(b)(13)(A), struck out “or his delegate” after “Secretary” and inserted “,or under section 7652” after “under subpart B of this part”.
Subsec. (c)(1). Pub. L. 94-455, 1905(a)(2)(C), 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing and inserted “or under section 7652” after “under section 5001(a)(1)”.
Subsec. (c)(2), (3). Pub. L. 94-273 substituted “computation year” for “fiscal year” wherever appearing.
Subsec. (c)(5). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate" after “Secretary”.
Subsec. (d)(1). Pub. L. 94-455, 1905(a)(2)(C), (D), 1906(b)(13)(A), struck out “on or after July 1, 1959,” after “from bonded premises,” and “or his delegate” after “Secretary” and inserted “or under section 7652” after “under section 5001(a)(1)”.
1971--Subsec. (b)(2). Pub. L. 91-659, 2(a), struck out condition that the distilled spirits can be destroyed only before bottling and permitted destruction after completion of bottling so long as the distilled spirits are on the bottling premises and added taxes imposed under subpart B of this Part as additional taxes which can be claimed for abatement, remission, credit or refund.
Subsec. (c)(1)(A). Pub. L. 91-659, 1, added cl. (iii).
Subsec. (c)(5). Pub. L. 91-659, 2(b), permits distilled spirits returned to bottling premises to be treated for purposes of the various loss provisions as though they had not been removed from the bottling premises.
1968--Subsec. (c)(1). Pub. L. 90-630 inserted provisions allowing abatement, remission, and refund if the casualty loss occurs after completion of the packaging but before the spirits have been removed from the premises of the distilled spirits plant to which the spirits were removed from bond.
1965--Subsec. (d)(2). Pub. L. 89-44 struck out final clause prohibiting the allowance of a claim in respect to any distilled spirits withdrawn from bonded premises of a distilled spirits plant more than 6 months prior to the date of such return.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 1411(a) of Pub. L. 105-34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [enacted: Aug. 5, 1997].
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(2) of Pub. L. 94-455 effective on the first day of the 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 1971 AMENDMENT
Amendment by Pub. L. 91-659 effective on the first day of the first calendar month which begins more than 90 days after January 8, 1971, see section 6 of Pub. L. 91-659, set out as an Effective Date note under section 5066 of this title.
EFFECTIVE DATE OF 1968 AMENDMENT
Section 4 of Pub. L. 90-630 provided that:
“(a) For purposes of subsection (b), the effective date of this Act is the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Oct. 22, 1968].
“(b) The amendments made by the first section of this Act [amending this section] shall apply only to losses sustained on or after such effective date. The amendments made by section 2 [amending section 5062 of this title and section 1313 of Title 19, Customs Duties] shall apply only to articles exported on or after such effective date. The amendments made by section 3 [amending section 5232 of this title] shall apply only to withdrawals from customs custody on or after such effective date.”
EFFECTIVE DATE OF 1965 AMENDMENT
Section 805(g)(1) of Pub. L. 89-44 provided that: “The amendments made by subsections (a), (c), (e), and (f)(6) [amending sections 5008, 5062, 5215, and 5608 of this title] shall take effect on July 1, 1965.”
DISTILLED SPIRITS RETURNED TO BONDED PREMISES OF DISTILLED SPIRITS PLANT DURING 1980
Subsec. (c)(1) of this section to be treated as including a reference to section 5041 of this title with respect to distilled spirits returned to the bonded premises of distilled spirits plants during 1980, see section 808(d) of Pub. L. 96-39, set out as a note under section 5061 of this title.
[5009. Repealed. Pub. L. 96-39, title VIII, 807(a)(7), July 26, 1979, 93 Stat. 281]
Section, added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1327, and amended Pub. L. 94-455, title XIX, 1905(a)(3), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834, related to drawback on the exportation of distilled spirits in casks or packages.
A prior section 5009, act Aug. 16, 1954, ch. 736, 68A Stat. 603, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859. See sections 5205(c)(1), (f), (i)(4) and 5206(c) of this title.
EFFECTIVE DATE OF REPEAL
Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as an Effective Date of 1979 Amendment note under section 5001 of this title.
I.R.C. § 5010(a) Allowance Of Credit
I.R.C. § 5010(a)(1) Wine Content — On each proof gallon of the wine content of distilled spirits, there shall be allowed a credit against the tax imposed by section 5001 (or 7652) equal to the excess of—
I.R.C. § 5010(a)(1)(A) — $13.50, over
I.R.C. § 5010(a)(1)(B) — the rate of tax which would be imposed on the wine under section 5041(b) but for its removal to bonded premises.
I.R.C. § 5010(a)(2) Flavors Content — On each proof gallon of the flavors content of distilled spirits, there shall be allowed a credit against the tax imposed by section 5001 (or 7652) equal to $13.50.
I.R.C. § 5010(a)(3) Fractional Part Of Proof Gallon — In the case of any fractional part of a proof gallon of the wine content, or of the flavors content, of distilled spirits, a proportionate credit shall be allowed.
I.R.C. § 5010(b) Time For Determining And Allowing Credit
I.R.C. § 5010(b)(1) In General — The credit allowable by subsection (a)—
I.R.C. § 5010(b)(1)(A) — shall be determined at the same time the tax is determined under section 5006 (or 7652) on the distilled spirits containing the wine or flavors, and
I.R.C. § 5010(b)(1)(B) — shall be allowable at the time the tax imposed by section 5001 (or 7652) on such distilled spirits is payable as if the credit allowable by this section constituted a reduction in the rate of tax.
I.R.C. § 5010(b)(2) Determination Of Content In The Case Of Imports — For purposes of this section, the wine content, and the flavors content, of imported distilled spirits shall be established by such chemical analysis, certification, or other methods as may be set forth in regulations prescribed by the Secretary.
I.R.C. § 5010(c) Definitions — For purposes of this section—
I.R.C. § 5010(c)(1) Wine Content
I.R.C. § 5010(c)(1)(A) In General — The term “wine content” means alcohol derived from wine.
I.R.C. § 5010(c)(1)(B) Wine — The term “wine”—
I.R.C. § 5010(c)(1)(B)(i) — means wine on which tax would be imposed by paragraph (1), (2), or (3) of section 5041(b) but for its removal to bonded premises, and
I.R.C. § 5010(c)(1)(B)(ii) — does not include any substance which has been subject to distillation at a distilled spirits plant after receipt in bond.
I.R.C. § 5010(c)(2) Flavors Content
I.R.C. § 5010(c)(2)(A) In General — Except as provided in subparagraph (B), the term “flavors content” means alcohol derived from flavors of a type for which drawback is allowable under section 5114.
I.R.C. § 5010(c)(2)(B) Exceptions — The term “flavors content” does not include—
I.R.C. § 5010(c)(2)(B)(i) — alcohol derived from flavors made at a distilled spirits plant,
I.R.C. § 5010(c)(2)(B)(ii) — alcohol derived from flavors distilled at a distilled spirits plant, and
I.R.C. § 5010(c)(2)(B)(iii) — in the case of any distilled spirits product, alcohol derived from flavors to the extent such alcohol exceeds (on a proof gallon basis) 2 1/2 percent of the finished product.
(Added Pub. L. 96-598, Sec. 6(a), Dec. 24, 1980, 94 Stat. 3488, and amended Pub. L. 98-369, div. A, title I, Sec. 27(a)(2), July 18, 1984, 98 Stat. 507; Pub. L. 100-647, title V, Sec. 5063(a), Nov. 10, 1988, 102 Stat. 3681; Pub. L. 101-508, title XI, Sec. 11201(a)(2), Nov. 5, 1990, 104 Stat. 1388-415; Pub. L. 109-59, title XI, Sec. 11125(b)(14), Aug. 10, 2005, 119 Stat. 1144.)
BACKGROUND NOTES
PRIOR PROVISIONS
A prior section 5010, act Aug. 16, 1954, ch. 736, 68A Stat. 603, related to miscellaneous stamp provisions, prior to the general revision of this chapter by Pub. L. 85-859.
A prior section 5011, act Aug. 16, 1954, ch. 736, 68A Stat. 604, related to abatement, remission, refund and allowance for loss or destruction of distilled spirits, prior to the general revision of this chapter by Pub. L. 85-859.
A prior section 5012, act Aug. 16, 1954, ch. 736, 68A Stat. 605, related to drawback on exportation of distilled spirits, prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
2005 - Subsec. (c)(2)(A). Pub. L. 109-59, Sec. 11125(b)(14), amended subpar. (A) by substituting “section 5114” for “section 5134”.
1990 - Subsec. (a)(1), (2). Pub. L. 101-508 substituted ‘$13.50’ for ‘$12.50’.
1988 - Subsec. (c)(2)(B). Pub. L. 100-647 added cl. (ii) and redesignated former cl. (ii) as (iii).
1984 - Subsec. (a)(1), (2). Pub. L. 98-369 substituted ‘$12.50’ for ‘$10.50’.
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Pub. L. 109-59, Sec. 11125(b)(14) effective July 1, 2008, but not to taxes imposed for periods before such date.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 effective Jan. 1, 1991, see section 11201(d) of Pub. L. 101-508, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 5063(b) of Pub. L. 100-647 provided that: ‘The amendments made by this section (amending this section) shall apply with respect to distilled spirits withdrawn from bond after the date of the enactment of this Act (Nov. 10, 1988).’
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective Oct. 1, 1985, see section 27(d)(1) of Pub. L. 98-369, set out as a note under section 5001 of this title.
EFFECTIVE DATE
Section 6(c) of Pub. L. 96-598 provided that: ‘The amendments made by subsections (a) and (b) (enacting this section) shall take effect on January 1, 1980.’
[5021 to 5026. Repealed. Pub. L. 96-39, title VIII, 803(a), July 26, 1979, 93 Stat. 274]
Section 5021, added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1328, provided for imposition of a tax on rectified distilled spirits or wines.
A prior section 5021, act Aug. 16, 1954, ch. 736, 68A Stat. 606, related to imposition and rate of tax, prior to the general revision of this chapter by Pub. L. 85-859.
Section 5022, added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1328, and amended Pub. L. 86-75, 3(a)(4), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, 202(a)(6), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, 3(a)(6), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, 3(a)(5), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, 3(a)(6), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, 2(a)(6), June 30, 1964, 78 Stat. 237; Pub. L. 89-44, title V, 501(b), June 21, 1965, 79 Stat. 150, imposed a tax on cordials and liqueurs containing wine.
A prior section 5022, acts Aug. 16, 1954, ch. 736, 68A Stat. 606; Mar. 30, 1955, ch. 18, 3(a)(6), 69 Stat. 14; Mar. 29, 1956, ch. 115, 3(a)(6), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, 3(a)(4), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, 3(a)(4), 72 Stat. 259, imposed a tax on cordials and liqueurs containing wine, prior to the general revision of this chapter by Pub. L. 85-859.
Section 5023, added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1328, imposed a tax on the blending of beverage rums and brandies.
A prior section 5023, act Aug. 16, 1954, ch. 736, 68A Stat. 606, imposed a tax on blending of beverage brandies, prior to the general revision of this chapter by Pub. L. 85-859.
Section 5024, added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1328, indicated the sources for the definitions of “rectifier”, “products of rectification”, and “distilled spirits” and referred to other definitions relating to distilled spirits as well as other definitions of general application to this title.
A prior section 5024, act Aug. 16, 1954, ch. 736, 68A Stat. 607, defined “rectifier” and “products of rectification”, prior to the general revision of this chapter by Pub. L. 85-859.
Section 5025, added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1328, and amended Pub. L. 89-44, title VIII, 805(b), (f)(2)-(5), June 21, 1965, 79 Stat. 161; Pub. L. 94-455, title XIX, 1905(a)(4), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834; Pub. L. 95-176, 5(b), 6, Nov. 14, 1977, 91 Stat. 1366, 1367, enumerated 12 exemptions from the rectification tax.
A prior section 5025, act Aug. 16, 1954, ch. 736, 68A Stat. 607, related to exemption from rectification tax, prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising section 5025(e)(1), (2), (4) of this title were contained in former sections 5023, 5217(a), and 5306 of this title, act Aug. 16, 1954, ch. 736, 68A Stat. 606, 641, 657, prior to the general revision of this chapter by Pub. L. 85-859.
Section 5026, added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1330; Pub. L. 94-455, title XIX, 1905(b)(2)(B), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1822, 1834, related to the determination and collection of the rectification tax.
A prior section 5026, act Aug. 16, 1954, ch. 736, 68A Stat. 608, related to determination and collection of rectification tax, prior to the general revision of this chapter by Pub. L. 85-859.
A prior section 5027, act Aug. 16, 1954, ch. 736, 68A Stat. 609, related to stamp provisions applicable to rectifiers, prior to the general revision of this chapter by Pub. L. 85-859.
A prior section 5028, act Aug. 16, 1954, ch. 736, 68A Stat. 609, related to cross references for penalty provisions, prior to the general revision of this chapter by Pub. L. 85-859.
Effective Date of Repeal
Repeal effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as an Effective Date of 1979 Amendment note under section 5001 of this title.
Prior Provisions
A prior subpart C, comprising sections 5041 to 5045, related to wines, prior to the general revision of this chapter by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1313.
I.R.C. § 5041(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. Subject to subsection (h), 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.
I.R.C. § 5041(b) Rates Of Tax
I.R.C. § 5041(b)(1) — On still wines containing not more than 16 percent alcohol by volume, $1.07 per wine gallon;
I.R.C. § 5041(b)(2) — On still wines containing more than 16 percent and not exceeding 21 percent of alcohol by volume, $1.57 per wine gallon;
I.R.C. § 5041(b)(3) — On still wines containing more than 21 percent and not exceeding 24 percent of alcohol by volume, $3.15 per wine gallon;
I.R.C. § 5041(b)(4) — On champagne and other sparkling wines, $3.40 per wine gallon;
I.R.C. § 5041(b)(5) — On artificially carbonated wines, $3.30 per wine gallon; and
I.R.C. § 5041(b)(6) — On hard cider, 22.6 cents per wine gallon.
I.R.C. § 5041(c) Credit
I.R.C. § 5041(c)(1) Allowance Of Credit
I.R.C. § 5041(c)(1)(A) In General — There shall be allowed as a credit against any tax imposed by this title (other than chapters 2, 21, and 22) an amount equal to the sum of—
I.R.C. § 5041(c)(1)(A)(i) — $1 per wine gallon on the first 30,000 wine gallons of wine, plus
I.R.C. § 5041(c)(1)(A)(ii) — 90 cents per wine gallon on the first 100,000 wine gallons of wine to which clause (i) does not apply, plus
I.R.C. § 5041(c)(1)(A)(iii) — 53.5 cents per wine gallon on the first 620,000 wine gallons of wine to which clauses (i) and (ii) do not apply,
which are produced by the producer and removed during the calendar year for consumption or sale, or which are imported by the importer into the United States during the calendar year but only if the importer is an electing importer under paragraph (6) and the wine gallons of wine have been assigned to the importer pursuant to such paragraph.
I.R.C. § 5041(c)(1)(B) Adjustment Of Credit For Hard Cider — In the case of wine described in subsection (b)(6), subparagraph (A) of this paragraph shall be applied—
I.R.C. § 5041(c)(1)(B)(i) — in clause (i) of such subparagraph, by substituting “6.2 cents” for “$1”,
I.R.C. § 5041(c)(1)(B)(ii) — in clause (ii) of such subparagraph, by substituting “5.6 cents” for “90 cents”, and
I.R.C. § 5041(c)(1)(B)(iii) — in clause (iii) of such subparagraph, by substituting “3.3 cents” for “53.5 cents”.
I.R.C. § 5041(c)(2) Time For Determining And Allowing Credit — The credit allowable by paragraph (1)—
I.R.C. § 5041(c)(2)(A) — shall be determined at the same time the tax is determined under subsection (a) of this section, and
I.R.C. § 5041(c)(2)(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.
I.R.C. § 5041(c)(3) Controlled Groups — Rules similar to rules of section 5051(a)(5) shall apply for purposes of this subsection.
I.R.C. § 5041(c)(4) 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.
I.R.C. § 5041(c)(5) Credit For Transferee In Bond — If—
I.R.C. § 5041(c)(5)(A) — wine produced by any person would be eligible for any credit under paragraph (1) if removed by such person during the calendar year,
I.R.C. § 5041(c)(5)(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
I.R.C. § 5041(c)(5)(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.
I.R.C. § 5041(c)(6) Allowance Of Credit For Foreign Manufacturers And Importers
I.R.C. § 5041(c)(6)(A) In General — In the case of any wine gallons of wine which have been produced outside of the United States and imported into the United States, the credit allowable under paragraph (1) (referred to in this paragraph as the “tax credit”) may be assigned by the person who produced such wine (referred to in this paragraph as the “foreign producer”), provided that such person makes an election described in subparagraph (B)(ii), to any electing importer of such wine gallons pursuant to the requirements established by the Secretary under subparagraph (B).
I.R.C. § 5041(c)(6)(B) Assignment — The Secretary of the Treasury, after consultation with the Secretary of the Department of Homeland Security, shall, through such rules, regulations, and procedures as are determined appropriate, establish procedures for assignment of the tax credit provided under this paragraph, which shall include—
I.R.C. § 5041(c)(6)(B)(i) — a limitation to ensure that the number of wine gallons of wine for which the tax credit has been assigned by a foreign producer—
I.R.C. § 5041(c)(6)(B)(i)(I) — to any importer does not exceed the number of wine gallons of wine produced by such foreign producer during the calendar year which were imported into the United States by such importer, and
I.R.C. § 5041(c)(6)(B)(i)(II) — to all importers does not exceed the 750,000 wine gallons of wine to which the tax credit applies,
I.R.C. § 5041(c)(6)(B)(ii) — procedures that allow the election of a foreign producer to assign and an importer to receive the tax credit provided under this paragraph,
I.R.C. § 5041(c)(6)(B)(iii) — requirements that the foreign producer provide any information as the Secretary determines necessary and appropriate for purposes of carrying out this paragraph, and
I.R.C. § 5041(c)(6)(B)(iv) — procedures that allow for revocation of eligibility of the foreign producer and the importer for the tax credit provided under this paragraph in the case of any erroneous or fraudulent information provided under clause (iii) which the Secretary deems to be material to qualifying for such credit.
I.R.C. § 5041(c)(6)(C) Controlled Group — For purposes of this section, any importer making an election described in subparagraph (B)(ii) shall be deemed to be a member of the controlled group of the foreign producer, as described under paragraph (3).
I.R.C. § 5041(c)(7) Regulations —
Editor's Note: Sec. 5041(c)(7), below, before redesignation by Pub. L. 116-260, Div. EE, Sec. 107(c)(1), is effective for wine removed before January 1, 2023.
The Secretary may prescribe such regulations as may be necessary to carry out the purposes of this subsection, including regulations to ensure proper calculation of the credit provided in this subsection.
I.R.C. § 5041(c)(7) Refunds In Lieu Of Tax Credits For Foreign Production Removed After December 31, 2022 —
Editor's Note: Sec. 5041(c)(7), below, added by Pub. L. 116-260, Div. EE, Sec. 107(c)(1), is effective for wine removed after December 31, 2022.
I.R.C. § 5041(c)(7)(A) In General — In the case of any wine gallons of wine which have been produced outside the United States and imported into the United States, if such wine gallons are removed after December 31, 2022—
I.R.C. § 5041(c)(7)(A)(i) — paragraph (1) shall not apply, and
I.R.C. § 5041(c)(7)(A)(ii) — the amount determined under subparagraph (B) shall be allowed as a refund, determined for periods not less frequently than quarterly, to the importer in the same manner as if such amount were an overpayment of tax imposed by this section.
I.R.C. § 5041(c)(7)(B) Amount Of Refund — The amount determined under this subparagraph with respect to any importer for any period is an amount equal to the sum of—
I.R.C. § 5041(c)(7)(B)(i) — excess (if any) of—
I.R.C. § 5041(c)(7)(B)(i)(I) — the amount of tax imposed under this section on wine gallons of wine referred to in subparagraph (A) which were removed during such period, over
I.R.C. § 5041(c)(7)(B)(i)(II) — the amount of tax which would have been imposed under this section (including any allowable credits) on such gallons of wine if this section were applied without regard to this paragraph, plus
I.R.C. § 5041(c)(7)(B)(ii) — the amount of interest which would be allowed and paid on an overpayment of tax at the overpayment rate established under section 6621(a)(1) (without regard to the second sentence thereof) were such rate applied to the excess (if any) determined under clause (i) for the number of days in the filing period for which the refund under this paragraph is being determined.
I.R.C. § 5041(c)(7)(C) Application Of Rules Related To Elections And Assignments — Subparagraph (A)(ii) shall apply only if the importer is an electing importer under paragraph (6) and the wine gallons of wine have been assigned to the importer pursuant to such paragraph.
I.R.C. § 5041(c)(7)(D) Rules For Refunds Within 90 Days — For purposes of refunds allowed under this paragraph, section 6611(e) shall be applied by substituting “90 days” for “45 days” each place it appears.
I.R.C. § 5041(c)(8) Regulations —
Editor's Note: Sec. 5041(c)(8), below, after redesignation by Pub. L. 116-260, Div. EE, Sec. 107(c)(1), is effective for wine removed after December 31, 2022.
The Secretary may prescribe such regulations as may be necessary to carry out the purposes of this subsection, including regulations to ensure proper calculation of the credit provided in this subsection.
I.R.C. § 5041(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).
I.R.C. § 5041(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.
I.R.C. § 5041(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.
I.R.C. § 5041(g) Hard Cider — For purposes of subsection (b)(6), the term “hard cider” means a wine—
I.R.C. § 5041(g)(1) — containing not more than 0.64 gram of carbon dioxide per hundred milliliters of wine, except that the Secretary may by regulations prescribe such tolerances to this limitation as may be reasonably necessary in good commercial practice,
I.R.C. § 5041(g)(2) — which is derived primarily—
I.R.C. § 5041(g)(2)(A) — from apples or pears, or
I.R.C. § 5041(g)(2)(B) — from—
I.R.C. § 5041(g)(2)(B)(i) — apple juice concentrate or pear juice concentrate, and
I.R.C. § 5041(g)(2)(B)(ii) — water,
I.R.C. § 5041(g)(3) — which contains no fruit product or fruit flavoring other than apple or pear, and
I.R.C. § 5041(g)(4) — which contains at least one-half of 1 percent and less than 8.5 percent alcohol by volume.
I.R.C. § 5041(h) Mead And Low Alcohol By Volume Wine
I.R.C. § 5041(h)(1) In General — For purposes of subsections (a) and (b)(1), mead and low alcohol by volume wine shall be deemed to be still wines containing not more than 16 percent of alcohol by volume.
I.R.C. § 5041(h)(2) Definitions
I.R.C. § 5041(h)(2)(A) Mead — For purposes of this section, the term “mead” means a wine—
I.R.C. § 5041(h)(2)(A)(i) — containing not more than 0.64 gram of carbon dioxide per hundred milliliters of wine, except that the Secretary may by regulations prescribe such tolerances to this limitation as may be reasonably necessary in good commercial practice,
I.R.C. § 5041(h)(2)(A)(ii) — which is derived solely from honey and water,
I.R.C. § 5041(h)(2)(A)(iii) — which contains no fruit product or fruit flavoring, and
I.R.C. § 5041(h)(2)(A)(iv) — which contains less than 8.5 percent alcohol by volume.
I.R.C. § 5041(h)(2)(B) Low Alcohol By Volume Wine — For purposes of this section, the term “low alcohol by volume wine” means a wine—
I.R.C. § 5041(h)(2)(B)(i) — containing not more than 0.64 gram of carbon dioxide per hundred milliliters of wine, except that the Secretary may by regulations prescribe such tolerances to this limitation as may be reasonably necessary in good commercial practice,
I.R.C. § 5041(h)(2)(B)(ii) — which is derived—
I.R.C. § 5041(h)(2)(B)(ii)(I) — primarily from grapes, or
I.R.C. § 5041(h)(2)(B)(ii)(II) — from grape juice concentrate and water,
I.R.C. § 5041(h)(2)(B)(iii) — which contains no fruit product or fruit flavoring other than grape, and
I.R.C. § 5041(h)(2)(B)(iv) — which contains less than 8.5 percent alcohol by volume.
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1331, and 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. 1755 ;Pub. L. 105-34, title IX, Sec. 908(a), Aug. 5, 1997, 111 Stat 788; Pub. L. 105-206, title VI, Sec. 6009(a), July 22, 1998, 112 Stat 685; Pub. L. 114-113, Div. Q, title III, Sec. 335(a); Pub. L. 115-97, title I, Sec. 13804, 13805, 13806, Dec. 22, 2017, 131 Stat. 2054; Pub. L. 116-94, Div. Q, title I, Sec. 144(d)(1), (2), (e)(1), (f)(1), (j)(1), Dec. 20, 2019; Pub. L. 116-260, Div. EE, title I, Sec. 106(d), (e), (f), 107(c), Dec. 27, 2020, 134 Stat. 1182.)
BACKGROUND NOTES
PRIOR PROVISIONS
A prior section 5041, acts Aug. 16, 1954, ch. 736, 68A Stat. 609; Mar. 30, 1955, ch. 18, Sec. 3(a)(7), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(7), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, Sec. 3(a)(5), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec. 3(a)(5), 72 Stat. 259, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
2020 — Subsec. (b)(1). Pub. L. 116-260, Div. EE, Sec. 106(e)(1), amended par. (1) by substituting “16 percent” for “14 percent (16 percent in the case of wine removed after December 31, 2017, and before January 1, 2021”.
Subsec. (b)(2). Pub. L. 116-260, Div. EE, Sec. 106(e)(1), amended par. (2) by substituting “16 percent” for “14 percent (16 percent in the case of wine removed after December 31, 2017, and before January 1, 2021”.
Subsec. (c). Pub. L. 116-260, Div. EE, Sec. 106(d)(1)(A), amended the heading by striking “FOR SMALL DOMESTIC PRODUCERS” after “CREDIT”.
Subsec. (c)(1). Pub. L. 116-260, Div. EE, Sec. 106(d)(1)(B), amended par. (1). Before amendment, it read as follows:
“(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”.”
Subsec. (c)(1)(A). Pub. L. 116-260, Div. EE, Sec. 106(d)(2)(A), amended subpar. (A) by inserting “but only if the importer is an electing importer under paragraph (6) and the wine gallons of wine have been assigned to the importer pursuant to such paragraph’’ after ‘‘into the United States during the calendar year’’.
Subsec. (c)(2). Pub. L. 116-260, Div. EE, Sec. 106(d)(1)(C), amended subsec. (c) by striking par. (2). Before being struck, it read as follows:
“(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.”
Subsec. (c)(3)-(6). Pub. L. 116-260, Div. EE, Sec. 106(d)(1)(D), amended subsec. (c) by redesignating par. (3)-(6) as par. (2)-(5), respectively.
Subsec. (c)(6)(A). Pub. L. 116-260, Div. EE, Sec. 106(d)(2)(B)(i), amended subpar. (A) by substituting “paragraph (1)” for “paragraph (8)”.
Subsec. (c)(6)(B). Pub. L. 116-260, Div. EE, Sec. 106(d)(2)(B)(ii), amended subpar. (B) by substituting “The Secretary of the Treasury, after consultation with the Secretary of the Department of Homeland Security,” for “The Secretary”.
Subsec. (c)(6)(C). Pub. L. 116-260, Div. EE, Sec. 106(d)(2)(B)(iii), amended subpar. (C) by substituting “paragraph (3)” for “paragraph (4)”.
Subsec. (c)(7). Pub. L. 116-260, Div. EE, Sec. 106(d)(1)(F), amended par. (7). Before amendment, it read as follows:
“(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.”
Subsec. (c)(7)-(8). Pub. L. 116-260, Div. EE, Sec. 107(c)(1), amended subsec. (c) by redesignating par. (7) as par. (8) and by adding a new par. (7).
Subsec. (c)(8). Pub. L. 116-260, Div. EE, Sec. 106(d)(1)(C), amended subsec. (c) by striking par. (8). Before being struck, it read as follows:
“(8) Temporary Special Rule.—
“(A) In General.—In the case of wine removed after December 31, 2017, and before January 1, 2021, paragraphs (1) and (2) shall not apply and there shall be allowed as a credit against any tax imposed by this title (other than chapters 2, 21, and 22) an amount equal to the sum of—
“(i) $1 per wine gallon on the first 30,000 wine gallons of wine, plus
“(ii) 90 cents per wine gallon on the first 100,000 wine gallons of wine to which clause (i) does not apply, plus
“(iii) 53.5 cents per wine gallon on the first 620,000 wine gallons of wine to which clauses (i) and (ii) do not apply,
“which are produced by the producer and removed during the calendar year for consumption or sale, or which are imported by the importer into the United States during the calendar year but only if the importer is an electing importer under paragraph (9) and the wine gallons of wine have been assigned to the importer pursuant to such paragraph.
“(B) Adjustment Of Credit For Hard Cider.—In the case of wine described in subsection (b)(6), subparagraph (A) of this paragraph shall be applied—
“(i) in clause (i) of such subparagraph, by substituting “6.2 cents” for “$1”,
“(ii) in clause (ii) of such subparagraph, by substituting “5.6 cents” for “90 cents”, and
“(iii) in clause (iii) of such subparagraph, by substituting “3.3 cents” for “53.5 cents”.
“(C) Application Of Certain Rules.—Paragraphs (3) and (6) shall be applied by substituting ‘paragraph (1) or (8)’ for ‘paragraph (1)’ each place it appears therein.”
Subsec. (c)(9). Pub. L. 116-260, Div. EE, Sec. 106(d)(1)(E), amended subsec. (c) by redesignating par. (9) as par. (6).
Subsec. (h)(2). Pub. L. 116-260, Div. EE, Sec. 106(f)(1)(A), amended par. (2) by substituting “the Secretary may” for “the Secretary shall” each place it appeared.
Subsec. (h)(3). Pub. L. 116-260, Div. EE, Sec. 106(f)(1)(B), amended subsec. (h) by striking par. (3). Before being struck, it read as follows:
“(3) Termination.—This subsection shall not apply to wine removed after December 31, 2020.”
2019 - Subsec. (b)(1). Pub. L. 116-94, Div. Q, Sec. 144(e)(1), amended par. (1) by substituting “January 1, 2021” for “January 1, 2020”.
Subsec. (b)(2). Pub. L. 116-94, Div. Q, Sec. 144(e)(1), amended par. (2) by substituting “January 1, 2021” for “January 1, 2020”.
Subsec. (c)(8) heading. Pub. L. 116-94, Div. Q, Sec. 144(d)(2), amended par. (8) by substituting “Temporary Special Rule” for “Special Rule For 2018 And 2019”.
Subsec. (c)(8)(A). Pub. L. 116-94, Div. Q, Sec. 144(d)(1), amended subpar. (A) by substituting “January 1, 2021” for “January 1, 2020”.
Subsec. (c)(8)(C). Pub. L. 116-94, Div. Q, Sec. 144(j)(1), amended par. (8) by adding subpar. (C).
Subsec. (h)(3). Pub. L. 116-94, Div. Q, Sec. 144(f)(1), amended par. (3) by substituting “December 31, 2020” for “December 31, 2019”.
2017 - Subsec. (a). Pub. L. 115-97, Sec. 13806(a)(1), amended subsec. (a) by substituting “Subject to subsection (h), still wines” for “Still wines”.
Subsec. (b)(1). Pub. L. 115-97, Sec. 13805(a), amended par. (1) by inserting ‘‘(16 percent in the case of wine removed after December 31, 2017, and before January 1, 2020’’ after ‘‘14 percent’’.
Subsec. (b)(2). Pub. L. 115-97, Sec. 13805(a), amended par. (2) by ‘‘(16 percent in the case of wine removed after December 31, 2017, and before January 1, 2020’’ after ‘‘14 percent’’.
Subsec. (c)(4). Pub. L. 115-97, Sec. 13804(b), amended par. (4) by substituting “section 5051(a)(5)” for “section 5051(a)(2)(B)”.
Subsec. (c)(8). Pub. L. 115-97, Sec. 13804(a), added par. (8).
Subsec. (c)(8)(A). Pub. L. 115-97, Sec. 13804(c)(1), amended subpar. (A) by inserting ‘‘but only if the importer is an electing importer under paragraph (9) and the wine gallons of wine have been assigned to the importer pursuant to such paragraph’’ after ‘‘into the United States during the calendar year’’.
Subsec. (c)(9). Pub. L. 115-97, Sec. 13804(c)(2), added par. (9).
Subsec. (h). Pub. L. 115-97, Sec. 13806(a)(2), added subsec. (h).
2015 - Subsec. (b)(6). Pub. L. 114-113, Div. Q, Sec. 335(a)(1), amended par. (6) by striking “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”.
Subsec. (g). Pub. L. 114-113, Div. Q, Sec. 335(a)(2), added subsec. (g).
1998 - Subsec. (b)(6). Pub. L. 105-206, Sec. 6009(a), amended par. (6) by inserting “which is a still wine” after “hard cider”.
1997 - Subsec. (b). Pub. L. 105-34, Sec. 908(a), amended subsec. (b) by striking “and” at the end of par. (4); by substituting “; and” for “.” at the end of par. (5); and by adding par. (6).
Subsec. (c)(1). Pub. L. 105-34, Sec. 908(b), amended par. (1) by adding a sentence at the end.
1996 - Subsec. (c)(6)-(7). Pub. L. 104-188, Sec. 1702, struck par. (6) and added new pars. (6) and (7). Before being struck, par. (6) read as follows:
“(6) Regulations--The Secretary may prescribe such regulations as may be necessary 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 to assure proper reduction of such credit for persons producing more than 150,000 wine gallons of wine during a calendar year.”
1990 - Subsec. (b)(1). Pub. L. 101-508, Sec. 11201(b)(1)(A), substituted ‘$1.07’ for ‘17 cents’.
Subsec. (b)(2). Pub. L. 101-508, Sec. 11201(b)(1)(B), substituted ‘$1.57’ for ‘67 cents’.
Subsec. (b)(3). Pub. L. 101-508, Sec. 11201(b)(1)(C), substituted ‘$3.15’ for ‘$2.25’.
Subsec. (b)(5). Pub. L. 101-508, Sec. 11201(b)(1)(D), substituted ‘$3.30’ for ‘$2.40’.
Subsecs. (c) to (f). Pub. L. 101-508, Sec. 11201(b)(2), added subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to (f), respectively.
1988 - Subsecs. (d), (e). Pub. L. 100-647 added subsec. (d) and redesignated former subsec. (d) as (e).
1976 - Subsec. (a). Pub. L. 94-455 struck out ‘or his delegate’ after ‘Secretary’.
1974 - Subsec. (a). Pub. L. 93-490 substituted ‘0.392’ for ‘0.277’.
1965 - Subsec. (a). Pub. L. 89-44, Sec. 806(a), substituted ‘0.277’ for ‘0.256’.
Subsec. (b). Pub. L. 89-44, Sec. 501(c)(1)-(5), struck out provisions at end of each par. setting out a specified reduced rate to be applied on and after July 1, 1965.
1964 - Subsec. (b). Pub. L. 88-348 substituted ‘July 1, 1965’ for ‘July 1, 1964’ in five places.
1963 - Subsec. (b). Pub. L. 88-52 substituted ‘July 1, 1964’ for ‘July 1, 1963’ in five places.
1962 - Subsec. (b). Pub. L. 87-508 substituted ‘July 1, 1963’ for ‘July 1, 1962’ in five places.
1961 - Subsec. (b). Pub. L. 87-72 substituted ‘July 1, 1962’ for ‘July 1, 1961’ in five places.
1960 - Subsec. (b). Pub. L. 86-564 substituted ‘July 1, 1961’ for ‘July 1, 1960’ in five places.
1959 - Subsec. (b). Pub. L. 86-75 substituted ‘July 1, 1960’ for ‘July 1, 1959’ in five places.
EFFECTIVE DATE OF 2020 AMENDMENTS
Amendments by Pub. L. 116-260, Div. EE, Sec. 106(d), (e), and (f), effective for wine removed after December 31, 2020.
Amendments by Pub. L. 116-260, Div. EE, Sec. 107(c)(1), effective for wine removed after December 31, 2022.
EFFECTIVE DATE OF 2019 AMENDMENTS
Amendments by Pub. L. 116-94, Div. Q, Sec. 144(d)(1), (2), (e)(1), (f)(1), applicable to wine removed after December 31, 2019.
Amendments by Pub. L. 116-94, Div. Q, Sec. 144(j)(1), effective as if included in sec. 13804 of Public Law 115-97 [Effective date: Wine removed after December 31, 2017].
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendments by Pub. L. 115-97, Secs. 13804, 13805, and 13806, effective for wine removed after December 31, 2017.
Sec. 41111 of Pub. L. 115-123 provided that:
“SEC. 41111. RULE OF CONSTRUCTION FOR CRAFT BEVERAGE MODERNIZATION AND TAX REFORM
“(a) IN GENERAL.—Subpart A of part IX of subtitle C of title I of Public Law 115–97 is amended by adding at the end the following new section:
‘SEC. 13809. RULE OF CONSTRUCTION.—Nothing in this subpart, the amendments made by this subpart, or any regulation promulgated under this subpart or the amendments made by this subpart, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverages.’.
“(b) EFFECTIVE DATE.—The amendment made by this section shall take effect as if included in Public Law 115–97.”
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendments by Pub. L. 114-113, Div. Q, effective for hard cider removed during calendar years beginning after December 31, 2016.
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendment by Sec. 6009(a) of Pub. L. 105-206 effective as if included in the provisions of the Taxpayer Relief Act of 1997 to which it relates [Effective Date of Pub. L. 105-34, Sec. 908: October 1, 1997].
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 908 of Pub. L. 105-34 effective on October 1, 1997.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188, Sec. 1702 effective as in included in the related provision of the Revenue Reconciliation Act of 1990.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 effective Jan. 1, 1991, see section 11201(d) of Pub. L. 101-508, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 6101(b) of Pub. L. 100-647 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply to wine removed after December 31, 1988.’
EFFECTIVE DATE OF 1974 AMENDMENT
Section 6(b) of Pub. L. 93-490 provided that: ‘The amendment made by this section (amending this section) shall take effect on the first day of the first calendar month which begins more than 90 days after the date of enactment of this Act (Oct. 26, 1974).’
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by section 501(c) of Pub. L. 89-44 applicable on and after July 1, 1965, see section 701(d) of Pub. L. 89-44, set out as a note under section 5701 of this title.
Section 806(d)(1) of Pub. L. 89-44 provided that: ‘The amendment made by subsection (a) (amending this section) shall take effect on July 1, 1965.’
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.
ADMINISTRATION OF REFUNDS
Sec. 107(e) of Pub. L. 116-260, Div. EE, provided that:
“(e) ADMINISTRATION OF REFUNDS.—The Secretary of the Treasury (or the Secretary's delegate within the Department of the Treasury) shall implement and administer sections 5001(c)(4), 5041(c)(7), and 5051(a)(6) of the Internal Revenue Code of 1986, as added by this Act, in coordination with the United States Customs and Border Protection of the Department of Homeland Security.”
REGULATIONS
Sec. 107(f) of Pub. L. 116-260, Div. EE, provided that:
“(f) REGULATIONS.—The Secretary of the Treasury (or the Secretary's delegate within the Department of the Treasury) shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations to require foreign producers to provide information necessary to enforce the volume limitations under sections 5001(c), 5041(c), and 5051(a) of such Code.”
REPORT
Sec. 107(g) of Pub. L. 116-260, Div. EE, provided that:
“(g) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate within the Department of the Treasury) shall, in coordination with the United States Customs and Border Protection of the Department of Homeland Security, prepare, submit to Congress, and make publicly available a report detailing the plans for implementing and administering sections 5001(c)(4), 5041(c)(7), and 5051(a)(6) of such Code, as added by this Act.”
FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER
Imposition of tax on wine, exception for small domestic producers, exception for certain small wholesale or retail dealers, credit against tax, liability for tax and method of payment, controlled groups, other laws applicable, and definitions, see section 11201(e) of Pub. L. 101-508, set out as a note under section 5001 of this title.
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I.R.C. § 5052(a) Beer — For purposes of this chapter (except when used with reference to distilling or distilling material) the term beer means beer, ale, porter, stout, and other similar fermented beverages (including sake or similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute therefor.
I.R.C. § 5052(b) Gallon — For purposes of this subpart, the term gallon means the liquid measure containing 231 cubic inches.
I.R.C. § 5052(c) Removed For Consumption Of Sale — Except as provided for in the case of removal of beer without payment of tax, the term “removed for consumption or sale”, for the purposes of this subpart means--
I.R.C. § 5052(c)(1) Sale Of Beer — The sale and transfer of possession of beer for consumption at the brewery; or
I.R.C. § 5052(c)(2) Removals — Any removal of beer from the brewery.
I.R.C. § 5052(d) Brewer — For purposes of this chapter, the term “brewer” means any person who brews beer or produces beer for sale. Such term shall not include any person who produces only beer exempt from tax under section 5053(e).
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1333, and amended Pub. L. 91-673, Sec. 1(b), Jan. 12, 1971, 84 Stat. 2056; Pub. L. 109-59, title XI, Sec. 11125(b)(15), Aug. 10, 2005, 119 Stat. 1144.)
BACKGROUND NOTES
Prior Provisions
A prior section 5052, act Aug. 16, 1954, ch. 736, 68A Stat. 612, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
2005 - Subsec. (d). Pub. L. 109-59, Sec. 11125(b)(15), amended subsec. (d). Before amendment, it read as follows:
“(d) Brewer
“For definition of brewer, see section 5092.”
1971--Subsec. (c)(2). Pub. L. 91-673 struck out proviso that removal of beer shall not include beer returned to the brewery on the same day such beer is removed from the brewery.
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Pub. L. 109-59, Sec. 11125(b)(15) effective July 1, 2008, but shall not apply to taxes imposed for periods before such date.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-673 effective on the first day of the first calendar month which begins more than 90 days after January 12, 1971, see section 5 of Pub. L. 91-673, set out as a note under section 5056 of this title

.I.R.C. § 5051(a) Rate Of Tax
I.R.C. § 5051(a)(1) In General
I.R.C. § 5051(a)(1)(A) Imposition Of Tax — 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—
I.R.C. § 5051(a)(1)(A)(i) — $16 on the first 6,000,000 barrels of beer—
I.R.C. § 5051(a)(1)(A)(i)(I) — brewed by the brewer and removed during the calendar year for consumption or sale, or
I.R.C. § 5051(a)(1)(A)(i)(II) — imported by the importer into the United States during the calendar year but only if the importer is an electing importer under paragraph (4) and the barrels have been assigned to the importer pursuant to such paragraph, and
I.R.C. § 5051(a)(1)(A)(ii) — $18 on any barrels of beer to which clause (i) does not apply.
I.R.C. § 5051(a)(1)(B) Barrel — For purposes of this section, a barrel shall contain not more than 31 gallons of beer, and any tax imposed under this section shall be applied at a like rate for any other quantity or for fractional parts of a barrel.
I.R.C. § 5051(a)(2) Reduced Rate For Certain Domestic Production
I.R.C. § 5051(a)(2)(A) $3.50 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 $3.50 A BARREL rate of the tax imposed by this section shall be $3.50 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.
I.R.C. § 5051(a)(2)(B) 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.
I.R.C. § 5051(a)(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.
I.R.C. § 5051(a)(4) Reduced Tax Rate For Foreign Manufacturers And Importers
I.R.C. § 5051(a)(4)(A) In General — In the case of any barrels of beer which have been brewed or produced outside of the United States and imported into the United States, the rate of tax applicable under clause (i) of paragraph (1)(A) (referred to in this paragraph as the “reduced tax rate”) may be assigned by the brewer (provided that the brewer makes an election described in subparagraph (B)(ii)) to any electing importer of such barrels pursuant to the requirements established by the Secretary under subparagraph (B).
I.R.C. § 5051(a)(4)(B) Assignment — The Secretary, after consultation with the Secretary of the Department of Homeland Security, shall, through such rules, regulations, and procedures as are determined appropriate, establish procedures for assignment of the reduced tax rate provided under this paragraph, which shall include—
I.R.C. § 5051(a)(4)(B)(i) — a limitation to ensure that the number of barrels of beer for which the reduced tax rate has been assigned by a brewer—
I.R.C. § 5051(a)(4)(B)(i)(I) — to any importer does not exceed the number of barrels of beer brewed or produced by such brewer during the calendar year which were imported into the United States by such importer, and
I.R.C. § 5051(a)(4)(B)(i)(II) — to all importers does not exceed the 6,000,000 barrels to which the reduced tax rate applies,
I.R.C. § 5051(a)(4)(B)(ii) — procedures that allow the election of a brewer to assign and an importer to receive the reduced tax rate provided under this paragraph,
I.R.C. § 5051(a)(4)(B)(iii) — requirements that the brewer provide any information as the Secretary determines necessary and appropriate for purposes of carrying out this paragraph, and
I.R.C. § 5051(a)(4)(B)(iv) — procedures that allow for revocation of eligibility of the brewer and the importer for the reduced tax rate provided under this paragraph in the case of any erroneous or fraudulent information provided under clause (iii) which the Secretary deems to be material to qualifying for such reduced rate.
I.R.C. § 5051(a)(4)(C) Controlled Group — For purposes of this section, any importer making an election described in subparagraph (B)(ii) shall be deemed to be a member of the controlled group of the brewer, as described under paragraph (5).
I.R.C. § 5051(a)(5) Controlled Group And Single Taxpayer Rules
I.R.C. § 5051(a)(5)(A) In General — Except as provided in subparagraph (B), in the case of a controlled group, the 6,000,000 barrel quantity specified in paragraph (1)(A)(i) and the 2,000,000 barrel quantity specified in paragraph (2)(A) shall be applied to the controlled group, and the 6,000,000 barrel quantity specified in paragraph (1)(A)(i) and the 60,000 barrel quantity specified in paragraph (2)(A) shall be apportioned among the brewers who are members of such group in such manner as the Secretary or their delegate shall by regulations prescribe. 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, 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.
I.R.C. § 5051(a)(5)(B) Foreign Manufacturers And Importers — For purposes of paragraph (4), in the case of a controlled group, the 6,000,000 barrel quantity specified in paragraph (1)(A)(i) shall be applied to the controlled group and apportioned among the members of such group in such manner as the Secretary shall by regulations prescribe. For purposes of the preceding sentence, the term “controlled group” has the meaning given such term under subparagraph (A). Under regulations prescribed by the Secretary, 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.
I.R.C. § 5051(a)(5)(C) Single Taxpayer — Pursuant to rules issued by the Secretary, two or more entities (whether or not under common control) that produce beer under a license, franchise, or other arrangement shall be treated as a single taxpayer for purposes of the application of this subsection.
I.R.C. § 5051(a)(6) Refunds In Lieu Of Reduced Rates For Foreign Production Removed After December 31, 2022
I.R.C. § 5051(a)(6)(A) In General — In the case of any barrels of beer which have been produced outside the United States and imported into the United States, if such barrels of beer are removed after December 31, 2022—
I.R.C. § 5051(a)(6)(A)(i) — paragraph (1)(A)(i) shall not apply, and
I.R.C. § 5051(a)(6)(A)(ii) — the amount determined under subparagraph (B) shall be allowed as a refund, determined for periods not less frequently than quarterly, to the importer in the same manner as if such amount were an overpayment of tax imposed by this section.
I.R.C. § 5051(a)(6)(B) Amount Of Refund — The amount determined under this subparagraph with respect to any importer for any period is an amount equal to the sum of—
I.R.C. § 5051(a)(6)(B)(i) — excess (if any) of—
I.R.C. § 5051(a)(6)(B)(i)(I) — the amount of tax imposed under this section on barrels of beer referred to in subparagraph (A) which were removed during such period, over
I.R.C. § 5051(a)(6)(B)(i)(II) — the amount of tax which would have been imposed under this section on such barrels of beer if this section were applied without regard to this paragraph, plus
I.R.C. § 5051(a)(6)(B)(ii) — the amount of interest which would be allowed and paid on an overpayment of tax at the overpayment rate established under section 6621(a)(1) (without regard to the second sentence thereof) were such rate applied to the excess (if any) determined under clause (i) for the number of days in the filing period for which the refund under this paragraph is being determined.
I.R.C. § 5051(a)(6)(C) Application Of Rules Related To Elections And Assignments — Subparagraph (A)(ii) shall apply only if the importer is an electing importer under paragraph (4) and the barrels of beer have been assigned to the importer pursuant to such paragraph.
I.R.C. § 5051(a)(6)(D) Rules For Refunds Within 90 Days — For purposes of refunds allowed under this paragraph, section 6611(e) shall be applied by substituting “90 days” for “45 days” each place it appears.
I.R.C. § 5051(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.
I.R.C. § 5051(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—
I.R.C. § 5051(c)(1) — such beer is produced in a brewery qualified under the provisions of subchapter G, or
I.R.C. § 5051(c)(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, and 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; Pub. L. 115-97, title I, Sec. 13802, Dec. 22, 2017; Pub. L. 116-94, Div. Q, title I, Sec. 144(b)(1), Dec. 20, 2019; Pub. L. 116-260, Div. EE, title I, Secs. 106(b), 107(b), 110(a), Dec. 27, 2020, 134 Stat. 1182.)
BACKGROUND NOTES
PRIOR PROVISIONS
A prior section 5051, act Aug. 16, 1954, ch. 736, 68A Stat. 611, as amended by acts Mar. 30, 1955, ch. 18, Sec. 3(a)(8), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(8), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, Sec. 3(a)(6), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec. 3(a)(6), 72 Stat. 259, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
2020 - Subsec. (a)(1). Pub. L. 116-260, Div. EE, Sec. 106(b)(1), amended par. (1). Prior to amendment it read as follows:
“(1) In General
“(A) Imposition Of Tax.—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 the amount determined under this paragraph.
“(B) Rate.—Except as provided in subparagraph (C), the rate of tax shall be $18 for per barrel.
“(C) Special Rule.—In the case of beer removed after December 31, 2017, and before January 1, 2021, the rate of tax shall be—
“(i) $16 on the first 6,000,000 barrels of beer—
“(I) brewed by the brewer and removed during the calendar year for consumption or sale, or
“(II) imported by the importer into the United States during the calendar year but only if the importer is an electing importer under paragraph (4) and the barrels have been assigned to the importer pursuant to such paragraph, and
“(ii) $18 on any barrels of beer to which clause (i) does not apply.
“(D) Barrel.—For purposes of this section, a barrel shall contain not more than 31 gallons of beer, and any tax imposed under this section shall be applied at a like rate for any other quantity or for fractional parts of a barrel.
Subsec. (a)(2)(A). Pub. L. 116-260, Div. EE, Sec. 106(b)(2), amended subpar. (A) by inserting “$3.50 A BARREL” before “RATE” in the heading and by substituting “$3.50” for “$7 ($3.50 in the case of beer removed after December 31, 2017, and before January 1, 2021)”.
Subsec. (a)(1)(A)(i)(II). Pub. L. 116-260, Div. EE, Sec. 106(b)(3)(A), amended subclause (II) by inserting “but only if the importer is an electing importer under paragraph (4) and the barrels have been assigned to the importer pursuant to such paragraph” after “during the calendar year”.
Subsec. (a)(4)(A). Pub. L. 116-260, Div. EE, Sec. 106(b)(3)(B)(i), amended subpar. (A) by substituting “paragraph (1)(A)” for “paragraph (1)(C)”.
Subsec. (a)(4)(B). Pub. L. 116-260, Div. EE, Sec. 106(b)(3)(B)(ii), amended subpar. (B) by substituting “The Secretary, after consultation with the Secretary of the Department of Homeland Security,” for “The Secretary”.
Subsec. (a)(5). Pub. L. 116-260, Div. EE, Sec. 106(b)(4), amended par. (5) by substituting “paragraph (1)(A)(i)” for “paragraph (1)(C)(i)” each place it appears.
Subsec. (a)(5)(C). Pub. L. 116-260, Div. EE, Sec. 110(a), amended subpar. (C) by substituting “under a license” for “marketed under a similar brand, license”.
Subsec. (a)(6). Pub. L. 116-260, Div. EE, Sec. 107(b), amended subsec. (a) by adding new par. (6).
2019 - Subsec. (a)(1)(C). Pub. L. 116-94, Div. Q, Sec. 144(b)(1), amended subpar. (C) by substituting “January 1, 2021” for “January 1, 2020”.
Subsec. (a)(2)(A). Pub. L. 116-94, Div. Q, Sec. 144(b)(1), amended subpar. (A) by substituting “January 1, 2021” for “January 1, 2020”.
2017 - Subsec. (a)(1). Pub. L. 115-97, Sec. 13802(a), amended par. (1). Before amendment it read as follows:
“(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.”
Subsec. (a)(1)(C)(i)(II). Pub. L. 115-97, Sec. 13802(c)(1), amended subclause (II) by inserting “but only if the importer is an electing importer under paragraph (4) and the barrels have been assigned to the importer pursuant to such paragraph’’ after ‘‘during the calendar year’’.
Subsec. (a)(2)(A). Pub. L. 115-97, Sec. 13802(b), amended subpar. (A) (as amended) by striking “$7 A Barrel” in the heading and by inserting ‘‘($3.50 in the case of beer removed after December 31, 2017, and before January 1, 2020)’’ after ‘‘$7’’.
Subsec. (a)(2)(B)-(C). Pub. L. 115-97, Sec. 13802(d)(1), amended par. (2) by striking subpar. (B) and by redesignating subpar. (C) as subpar. (B). Before being struck, subpar. (B) read as follows:
“(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.”
Subsec. (a)(4). Pub. L. 115-97, Sec. 13802(c)(2), added par. (4).
Subsec. (a)(5). Pub. L. 115-97, Sec. 13802(d)(2), added par. (5).
1990 - Subsec. (a)(1). Pub. L. 101-508, Sec. 11201(c)(1), substituted ‘$18’ for ‘$9’.
Subsec. (a)(2)(C). Pub. L. 101-508, Sec. 11201(c)(2), added subpar. (C).
1978 - Subsec. (c). Pub. L. 95-458 added subsec. (c).
1976 - Subsec. (a). Pub. L. 94-529 reduced the excise tax on beer for small brewers to $7 per barrel on the first 60,000 barrels produced in the United States and removed for sale or consumption or sale during the calendar year, the reduced rate to be applicable only to brewers producing no more than 2 million barrels of beer in a calendar year, and inserted provision that if several brewers are members of a controlled group, the 2-million barrel limit is to be applied to the controlled group and the 60,000-barrel limit is to be apportioned among the members of the controlled group in accordance with Treasury Department regulations promulgated by the Secretary or his delegate.
1965 - Subsec. (a). Pub. L. 89-44 struck out sentence providing for the imposition on and after July 1, 1965, of a tax of $8 in lieu of the tax imposed by the section.
1964 - Subsec. (a). Pub. L. 88-348 substituted ‘July 1, 1965’ for ‘July 1, 1964’.
1963 - Subsec. (a). Pub. L. 88-52 substituted ‘July 1, 1964’ for ‘July 1, 1963’.
1962 - Subsec. (a). Pub. L. 87-508 substituted ‘July 1, 1963’ for ‘July 1, 1962’.
1961 - Subsec. (a). Pub. L. 87-72 substituted ‘July 1, 1962’ for ‘July 1, 1961’.
1960 - Subsec. (a). Pub. L. 86-564 substituted ‘July 1, 1961’ for ‘July 1, 1960’.
1959 - Subsec. (a). Pub. L. 86-75 substituted ‘July 1, 1960’ for ‘July 1, 1959’.
EFFECTIVE DATE OF 2020 AMENDMENTS
Amendments by Pub. L. 116-260, Div. EE, Sec. 106(b), applicable to beer removed after December 31, 2020.
Amendment by Pub. L. 116-260, Div. EE, Sec. 107(b), applicable to beer removed after December 31, 2022.
Amendment by Pub. L. 116-260, Div. EE, Sec. 110(a), applicable to beer, wine, and distilled spirits removed after December 31, 2020.
EFFECTIVE DATE OF 2019 AMENDMENTS
Amendments by Pub. L. 116-94, Div. Q, Sec. 144(b)(1), applicable to beer removed after December 31, 2019.
EFFECTIVE DATE OF 2017 AMENDMENTS
Amendments by Pub. L. 115-97, Sec. 13802, effective for beer removed after December 31, 2017.
Sec. 41111 of Pub. L. 115-123 provided that:
“SEC. 41111. RULE OF CONSTRUCTION FOR CRAFT BEVERAGE MODERNIZATION AND TAX REFORM
“(a) IN GENERAL.—Subpart A of part IX of subtitle C of title I of Public Law 115–97 is amended by adding at the end the following new section:
‘SEC. 13809. RULE OF CONSTRUCTION.—Nothing in this subpart, the amendments made by this subpart, or any regulation promulgated under this subpart or the amendments made by this subpart, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverages.’.
“(b) EFFECTIVE DATE.—The amendment made by this section shall take effect as if included in Public Law 115–97.”
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 effective Jan. 1, 1991, see section 11201(d) of Pub. L. 101-508, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-458 effective on first day of first calendar month beginning more than 90 days after Oct. 14, 1978, see section 2(c) of Pub. L. 95-458, set out as a note under section 5042 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 2 of Pub. L. 94-529 provided that: ‘The amendment made by the first section of this Act (amending this section) shall take effect on the first day of the first calendar year which begins after the date of the enactment of this Act (Oct. 17, 1976).’
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 applicable on and after July 1, 1965, see section 701(d) of Pub. L. 89-44, set out as a note under section 5701 of this title.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.
ADMINISTRATION OF REFUNDS
Sec. 107(e) of Pub. L. 116-260, Div. EE, provided that:
“(e) ADMINISTRATION OF REFUNDS.—The Secretary of the Treasury (or the Secretary's delegate within the Department of the Treasury) shall implement and administer sections 5001(c)(4), 5041(c)(7), and 5051(a)(6) of the Internal Revenue Code of 1986, as added by this Act, in coordination with the United States Customs and Border Protection of the Department of Homeland Security.”
REGULATIONS
Sec. 107(f) of Pub. L. 116-260, Div. EE, provided that:
“(f) REGULATIONS.—The Secretary of the Treasury (or the Secretary's delegate within the Department of the Treasury) shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations to require foreign producers to provide information necessary to enforce the volume limitations under sections 5001(c), 5041(c), and 5051(a) of such Code.”
REPORT
Sec. 107(g) of Pub. L. 116-260, Div. EE, provided that:
“(g) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate within the Department of the Treasury) shall, in coordination with the United States Customs and Border Protection of the Department of Homeland Security, prepare, submit to Congress, and make publicly available a report detailing the plans for implementing and administering sections 5001(c)(4), 5041(c)(7), and 5051(a)(6) of such Code, as added by this Act.”
FLOOR STOCKS TAXES ON DISTILLED SPIRITS, WINE, AND BEER
Imposition of tax on beer, exception for small domestic producers, exception for certain small wholesale or retail dealers, credit against tax, liability for tax and method of payment, controlled groups, other laws applicable, and definitions, see section 11201(e) of Pub. L. 101-508, set out as a note under section 5001 of this title.

.R.C. § 5053(a) Removals For Export — Beer may be removed from the brewery, without payment of tax, for export, in such containers and under such regulations, and on the giving of such notices, entries, and bonds and other security, as the Secretary may by regulations prescribe.
I.R.C. § 5053(b) Removals When Unfit For Beverage Use — When beer has become sour or damaged, so as to be incapable of use as such, a brewer may remove the same from his brewery without payment of tax, for manufacturing purposes, under such regulations as the Secretary may prescribe.
I.R.C. § 5053(c) Removals For Laboratory Analysis — Beer may be removed from the brewery, without payment of tax, for laboratory analysis, subject to such limitations and under such regulations as the Secretary may prescribe.
I.R.C. § 5053(d) Removals For Research, Development, Or Testing — Under such conditions and regulations as the Secretary may prescribe, beer may be removed from the brewery without payment of tax for use in research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials, or equipment relating to beer or brewery operations.
I.R.C. § 5053(e) Beer For Personal Or Family Use — Subject to regulation prescribed by the Secretary, any adult may, without payment of tax, produce beer for personal or family use and not for sale. The aggregate amount of beer exempt from tax under this subsection with respect to any household shall not exceed—
I.R.C. § 5053(e)(1) — 200 gallons per calendar year if there are 2 or more adults in such household, or
I.R.C. § 5053(e)(2) — 100 gallons per calendar year if there is only 1 adult in such household.
For purposes of this subsection, the term “adult” means an individual who has attained 18 years of age, or the minimum age (if any) established by law applicable in the locality in which the household is situated at which beer may be sold to individuals, whichever is greater.
I.R.C. § 5053(f) Removal For Use As Distilling Material — Subject to such regulations as the Secretary may prescribe, beer may be removed from a brewery without payment of tax to any distilled spirits plant for use as distilling material.
I.R.C. § 5053(g) Removals For Use Of Foreign Embassies, Legations, Etc.
I.R.C. § 5053(g)(1) In General — Subject to such regulations as the Secretary may prescribe
I.R.C. § 5053(g)(1)(A) — beer may be withdrawn from the brewery without payment of tax for transfer to any customs bonded warehouse for entry pending withdrawal therefrom as provided in subparagraph (B), and
I.R.C. § 5053(g)(1)(B) — beer entered into any customs bonded warehouse under subparagraph (A) may be withdrawn for consumption in the United States by, and for the official and family use of, such foreign governments, organizations, and individuals as are entitled to withdraw imported beer from such warehouses free of tax.
Beer transferred to any customs bonded warehouse under subparagraph (A) shall be entered, stored, and accounted for in such warehouse under such regulations and bonds as the Secretary may prescribe, and may be withdrawn therefrom by such governments, organizations, and individuals free of tax under the same conditions and procedures as imported beer.
I.R.C. § 5053(g)(2) Other Rules To Apply — Rules similar to the rules of paragraphs (2) and (3) of section 5362(e) shall apply for purposes of this subsection.
I.R.C. § 5053(h) Removals For Destruction — Subject to such regulations as the Secretary may prescribe, beer may be removed from the brewery without payment of tax for destruction.
I.R.C. § 5053(i) Removal As Supplies For Certain Vessels And Aircraft — For exemption as to supplies for certain vessels and aircraft, see section 309 of the Tariff Act of 1930, as amended (19 U.S.C. 1309).
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1334, and amended Pub. L. 89-44, title VIII, 807(b), June 21, 1965, 79 Stat. 164; Pub. L. 91-673, 2, Jan. 12, 1971, 84 Stat. 2056; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-458, 2(b)(1), Oct. 14, 1978, 92 Stat. 1255 ;Pub. L. 105-34, title XIV, Sec. 1414(b), 1418(a), 1419(a), Aug. 5, 1997, 111 Stat 788.)
BACKGROUND NOTES
AMENDMENTS
1997--Subsec. (f). Pub. L. 105-34, Sec. 1414(b), redesignated subsec. (f) as subsec. (I) and added a new subsec. (f).
Subsec. (g). Pub. L. 105-34, Sec. 1418(a), added subsec. (g).
Subsec. (h). Pub. L. 105-34, Sec. 1419(a), added subsec. (h).
1978--Subsecs. (e), (f). Pub. L. 95-458 added subsec. (e) and redesignated former subsec. (e) as (f).
1976--Subsecs. (a) to (d). Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
1971--Subsecs. (d), (e). Pub. L. 91-673 added subsec. (d) and redesignated former subsec. (d) as (e).
1965--Subsec. (a). Pub. L. 89-44 struck out “to a foreign country” after “export”.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 1414(b) of Pub. L. 105-34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [enacted: Aug. 5, 1997].
Amendment by Sec. 1418(a) of Pub. L. 105-34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [enacted: Aug. 5, 1997].
Amendment by Sec. 1419(a) of Pub. L. 105-34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [enacted: Aug. 5, 1997].
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-458 effective on the first day of the first calendar month beginning more than 90 days after Oct. 14, 1978, see section 2(c) of Pub. L. 95-458, set out as a note under section 5042 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 91-673 effective on the first day of the first calendar month which begins more than 90 days after January 12, 1971, see section 5 of Pub. L. 91-673, set out as a note under section 5056 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective July 1, 1965, see section 807(c) of Pub. L. 89-44, set out as a note under section 5002 of this title.
PRIOR PROVISIONS
A prior section 5053, act Aug. 16, 1954, ch. 736, 68A Stat. 612, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5054(a) Time Of Determination
I.R.C. § 5054(a)(1) Beer Produced In The United States; Certain Imported Beer — Except as provided in paragraph (3), the tax imposed by section 5051 on beer produced in the United States, or imported into the United States and transferred to a brewery free of tax under section 5418, shall be determined at the time it is removed for consumption or sale, and shall be paid by the brewer thereof in accordance with section 5061.
I.R.C. § 5054(a)(2) Beer Imported Into The United States — Except as provided in paragraph (4), the tax imposed by section 5051 on beer imported into the United States and not transferred to a brewery free of tax under section 5418 shall be determined at the time of the importation thereof, or, if entered for warehousing, at the time of removal from the 1st such warehouse.
I.R.C. § 5054(a)(3) Illegally Produced Beer — The tax on any beer produced in the United States shall be due and payable immediately upon production unless—
I.R.C. § 5054(a)(3)(A) — such beer is produced in a brewery qualified under the provisions of subchapter G, or
I.R.C. § 5054(a)(3)(B) — such production is exempt from tax under section 5053(e) (relating to beer for personal or family use).
I.R.C. § 5054(a)(4) Unlawfully Imported Beer — Beer smuggled or brought into the United States unlawfully shall, for purposes of this chapter, be held to be imported into the United States, and the internal revenue tax shall be due and payable at the time of such importation.
I.R.C. § 5054(b) Tax On Returned Beer — Beer which has been removed for consumption or sale and is thereafter returned to the brewery shall be subject to all provisions of this chapter relating to beer prior to removal for consumption or sale, including the tax imposed by section 5051. The tax on any such returned beer which is again removed for consumption or sale shall be determined and paid without respect to the tax which was determined at the time of prior removal of the beer for consumption or sale.
I.R.C. § 5054(c) Applicability Of Other Provisions Of Law — All administrative and penal provisions of this title, insofar as applicable, shall apply to any tax imposed by section 5051.
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1334, and amended Pub. L. 94-455, title XIX, 1905(a)(5), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1818, 1834; Pub. L. 95-458, 2(b)(2)(B), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 99-509, title VIII, 8011(b)(2), Oct. 21, 1986, 100 Stat. 1953; Pub. L. 100-647, title I, 1018(u)(19), Nov. 10, 1988, 102 Stat. 3591; Pub. L. 105-206, title VI, Sec. 6014(a), July 22, 1998, 112 Stat 685; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(239), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
Prior Provisions
A prior section 5054, act Aug. 16, 1954, ch. 736, 68A Stat. 613, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising subsecs. (a)(1), (2) and (b) to (d) of this section were contained in prior sections 5055 and 5057(a), act Aug. 16, 1954, ch. 736, 68A Stat. 613, prior to the general revision of this chapter by Pub. L. 85-859.
AMENDMENTS
2018 - Subsec. (a)(3)(B). Pub. L. 115-141, Div. U, Sec. 401(a)(239), amended subpar. (B) by substituting “section” for “sections”.
1998--Subsec. (a)(1). Pub. L. 105-206, Sec. 6014(a)(1), amended par. (1) by inserting “; certain imported beer” after “produced in the United States” in the heading; and by inserting “; or imported into the United States and transferred to a brewery free of tax under section 5418,” after “produced in the United States”.
Subsec. (a)(2). Pub. L. 105-206, Sec. 6014(a)(2), amended par. (2) by inserting “and not transferred to a brewery free of tax under section 5418” after “United States”.
1988--Subsec. (a)(2). Pub. L. 100-647 added period at end.
1986--Subsec. (a)(2). Pub. L. 99-509 substituted “if entered for warehousing, at the time of removal from the 1st such warehouse" for “if entered into customs custody, at the time of removal from such custody, and shall be paid under such regulations as the Secretary shall prescribe.”.
1978--Subsec. (a)(3). Pub. L. 95-458 inserted provision excluding from tax the beer exempt from tax under section 5053(e).
1976--Subsec. (a)(2). Pub. L. 94-455, 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsecs. (c), (d). Pub. L. 94-455, 1905(a)(5), redesignated subsec. (d) as (c) and struck out former subsec. (c) respecting stamps or other devices as evidence of payment of tax.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115-141, Div. U, Sec. 401(a)(239), effective on the date of the enactment of this Act [Enacted: Mar. 23, 2018].
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendment by Sec. 6014(a) of Pub. L. 105-206 effective as if included in the provisions of the Taxpayer Relief Act of 1997 to which it relates [Effective Date of Pub. L. 105-34, Sec. 1421: 1st day of the 1st calendar quarter that begins at least 180 days after Aug. 5, 1997].
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-509 applicable to articles imported, entered for warehousing, or brought into the United States or a foreign trade zone after Dec. 15, 1986, see section 8011(c) of Pub. L. 99-509, set out as a note under section 5061 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-458 effective on the first day of the first calendar month beginning more than 90 days after Oct. 14, 1978, see section 2(c) of Pub. L. 95-458, set out as a note under section 5042 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(5) of Pub. L. 94-455 effective on the first day of the 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.

On the exportation of beer, brewed or produced in the United States, the brewer thereof shall be allowed a drawback equal in amount to the tax paid on such beer if there is such proof of exportation as the Secretary may by regulations require. For the purpose of this section, exportation shall include delivery for use as supplies on the vessels and aircraft described in section 309 of the Tariff Act of 1930, as amended (19 U.S.C. 1309).
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1335, and amended Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834 ;Pub. L. 105-34, title XIV, Sec. 1420(a), Aug. 5, 1997, 111 Stat 788.)
BACKGROUND NOTES
AMENDMENTS
1997--Pub. L. 105-34, Sec. 1420(a) substituted “paid on such beer if there is such proof of exportation as the Secretary may by regulations require.” for “found to have been paid on such beer, to be paid on submission of such evidence, records and certificates indicating exportation, as the Secretary may by regulations prescribe." in the first sentence.
1976--Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 1420(a) of Pub. L. 105-34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [Enacted: Aug. 5, 1997].
PRIOR PROVISIONS
A prior section 5055, act Aug. 16, 1954, ch. 736, 68A Stat. 613, related to “determination and collection of tax on beer”, prior to the general revision of this chapter by Pub. L. 85-859. See section 5054(a)(1), (2), (c), (d) of this title.
Provisions similar to those comprising this section were contained in prior section 5056, act Aug. 16, 1954, ch. 736, 68A Stat. 613, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5056(a) Beer Returned Or Voluntarily Destroyed — Any tax paid by any brewer on beer removed for consumption or sale may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, under such regulations as the Secretary may prescribe, if such beer is returned to any brewery of the brewer or is destroyed under the supervision required by such regulations. In determining the amount of tax due on beer removed on any day, the quantity of beer returned to the same brewery from which removed shall be allowed, under such regulations as the Secretary may prescribe, as an offset against or deduction from the total quantity of beer removed from that brewery on the day of such return.
I.R.C. § 5056(b) Beer Lost By Fire, Theft, Casualty, Or Act Of God — Subject to regulations prescribed by the Secretary, the tax paid by any brewer on beer removed for consumption or sale may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, if such beer is lost, whether by theft or otherwise, or is destroyed or otherwise rendered unmerchantable by fire, casualty, or act of God before the transfer of title thereto to any other person. In any case in which beer is lost or destroyed, whether by theft or otherwise, the Secretary may require the brewer to file a claim for relief from the tax and submit proof as to the cause of such loss. In every case where it appears that the loss was by theft, the first sentence shall not apply unless the brewer establishes to the satisfaction of the Secretary that such theft occurred before removal from the brewery and occurred without connivance, collusion, fraud, or negligence on the part of the brewer, consignor, consignee, bailee, or carrier, or the employees or agents of any of them.
I.R.C. § 5056(c) Beer Received At A Distilled Spirits Plant — Any tax paid by any brewer on beer removed for consumption or sale may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, under regulations as the Secretary may prescribe, if such beer is received on the bonded premises of a distilled spirits plant pursuant to the provisions of section 5222(b)(2), for use in the production of distilled spirits.
I.R.C. § 5056(d) Limitations — No claim under this section shall be allowed (1) unless filed within 6 months after the date of the return, loss, destruction, rendering unmerchantable, or receipt on the bonded premises of a distilled spirits plant or (2) if the claimant was indemnified by insurance or otherwise in respect of the tax.
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1335, and amended Pub. L. 91-673, 1(a), Jan. 12, 1971, 84 Stat. 2056; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834 ;Pub. L. 105-34, title XIV, Sec. 1414(c)(1), 1414(c)(2), Aug. 5, 1997, 111 Stat 788; Pub. L. 105-206, title VI, Sec. , July 22, 1998, 112 Stat 685.)
BACKGROUND NOTES
AMENDMENTS
1998-Sec. 5056. Pub. L. 105-206, Sec. 6014(a)(3), amended sec. 5056 by substituting “removed for consumption or sale" for “produced in the United States” each place it appeared.
1997--Subsec. (c). Pub. L. 105-34, Sec. 1414(c)(1), redesignated subsec. (c) as subsec. (d) and added a new subsec. (c).
Subsec. (d). Pub. L. 105-34, Sec. 1414(c)(2), amended subsec. (d) by substituting “rendering unmerchantable, or receipt on the bonded premises of a distilled spirits plant” for “or rendering unmerchantable”
1976--Subsecs. (a), (b). Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
1971--Subsec. (a). Pub. L. 91-673 inserted provision permitting credit or refund of tax if the beer is returned to any brewery of the brewer who paid the tax, and provided for offset or deduction against amount of beer removed from the brewery on the day of return if the beer is returned to the same brewery from which it was withdrawn.
Subsec. (b). Pub. L. 91-673 inserted provisions for credit or refund or relief from liability of tax when the beer is lost by theft or otherwise or rendered unmerchantable by fire, casualty or act of God, before the transfer of title to any other party, and required the brewer to file claim for relief from the tax and submit proof of the cause of the loss, and in the case of theft, to further prove that such theft occurred before removal from the brewery and without connivance, collusion, fraud, or negligence on the part of the brewer, consignor, consignee, bailee, or carrier, or the employees or agents of any of them.
Subsec. (c). Pub. L. 91-673 substantially reenacted subsec. (c) to reflect changes in subsec. (b).
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendments by Sec. 6014(a)(3) of Pub. L. 105-206 effective as if included in the provisions of the Taxpayer Relief Act of 1997 to which they relate [Effective Date of Pub. L. 105-34, Sec. 1421: 1st day of the 1st calendar quarter that begins at least 180 days after Aug. 5, 1997].
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 1414(c) of Pub. L. 105-34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [enacted: Aug. 5, 1997].
EFFECTIVE DATE OF 1971 AMENDMENT
Section 5 of Pub. L. 91-673 provided that: “The amendments made by the first four sections of this Act [enacting section 5417 of this title and amending sections 5052, 5053, 5056, 5401, 5402, 5411, 5412, and 5416 of this title] shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [January 12, 1971].”
PRIOR PROVISIONS
A prior section 5056, act Aug. 16, 1954, ch. 736, 68A Stat. 613, related to “drawback of tax” prior to the general revision of this chapter by Pub. L. 85-859. See section 5055 of this title.
A prior section 5057, act Aug. 16, 1954, ch. 736, 68A Stat. 613, related to refund and credit of tax or relief from liability, prior to the general revision of this chapter by Pub. L. 85-859.
Prior Provisions
A prior subpart E, comprising sections 5061 to 5065, related to general provisions, prior to the general revision of this chapter by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1313.
Amendments
1978--Pub. L. 95-423, 1(b), Oct. 6, 1978, 92 Stat. 936, substituted “Losses resulting from disaster, vandalism, or malicious mischief” for “Losses caused by disaster” in item 5064.
1971--Pub. L. 91-659, 3(b), Jan. 8, 1971, 84 Stat. 1966, added item 5066 and redesignated former item 5066 as 5067.
1965--Pub. L. 89-44, title V, 501(e), June 21, 1965, 79 Stat. 150, struck out item 5063 “Floor stocks tax refunds on distilled spirits, wines, cordials, and beer”.
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Re: Dear Filipino's and Filipina's
Postby sophocles » Mon Apr 12, 2021 11:11 pm

I.R.C. § 5061(a) Collection By Return — The taxes on distilled spirits, wines, and beer shall be collected on the basis of a return. The Secretary shall, by regulation, prescribe the period or event for which such return shall be filed, the time for filing such return, the information to be shown in such return, and the time for payment of such tax.
I.R.C. § 5061(b) Exceptions — Notwithstanding the provisions of subsection (a), any taxes imposed on, or amounts to be paid or collected in respect of, distilled spirits, wines, and beer under—
I.R.C. § 5061(b)(1) — section 5001(a)(4), (5), or (6),
I.R.C. § 5061(b)(2) — section 5006(c) or (d),
I.R.C. § 5061(b)(3) — section 5041(f),
I.R.C. § 5061(b)(4) — section 5043(a)(3),
I.R.C. § 5061(b)(5) — section 5054(a)(3) or (4), or
I.R.C. § 5061(b)(6) — section 5505(a), shall be immediately due and payable at the time provided by such provisions (or if no specific time for payment is provided, at the time the event referred to in such provision occurs). Such taxes and amounts shall be assessed and collected by the Secretary on the basis of the information available to him in the same manner as taxes payable by return but with respect to which no return has been filed.
I.R.C. § 5061(c) Import Duties — The internal revenue taxes imposed by this part shall be in addition to any import duties unless such duties are specifically designated as being in lieu of internal revenue tax.
I.R.C. § 5061(d) Time For Collecting Tax On Distilled Spirits, Wines, And Beer
I.R.C. § 5061(d)(1) In General — Except as otherwise provided in this subsection, in the case of distilled spirits, wines, and beer to which this part applies (other than subsection (b) of this section) which are withdrawn under bond for deferred payment of tax, the last day for payment of such tax shall be the 14th day after the last day of the semimonthly period during which the withdrawal occurs.
I.R.C. § 5061(d)(2) Imported Articles — In the case of distilled spirits, wines, and beer which are imported into the United States (other than in bulk containers)—
I.R.C. § 5061(d)(2)(A) In General — The last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is entered into the customs territory of the United States.
I.R.C. § 5061(d)(2)(B) Special Rule For Entry For Warehousing — Except as provided in subparagraph (D), in the case of an entry for warehousing, the last day for payment of tax shall not be later than the 14th day after the last day of the semimonthly period during which the article is removed from the 1st such warehouse.
I.R.C. § 5061(d)(2)(C) Foreign Trade Zones — Except as provided in subparagraph (D) and in regulations prescribed by the Secretary, articles brought into a foreign trade zone shall, notwithstanding any other provision of law, be treated for purposes of this subsection as if such zone were a single customs warehouse.
I.R.C. § 5061(d)(2)(D) Exception For Articles Destined For Export — Subparagraphs (B) and (C) shall not apply to any article which is shown to the satisfaction of the Secretary to be destined for export.
I.R.C. § 5061(d)(3) Distilled Spirits, Wines, And Beer Brought Into The United States From Puerto Rico — In the case of distilled spirits, wines, and beer which are brought into the United States (other than in bulk containers) from Puerto Rico, the last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is brought into the United States.
I.R.C. § 5061(d)(4) Taxpayers Liable For Taxes Of Not More Than $50,000
I.R.C. § 5061(d)(4)(A) In General
I.R.C. § 5061(d)(4)(A)(i) More Than $1,000 And Not More Than $50,000 In Taxes — Except as provided in clause (ii), in the case of any taxpayer who reasonably expects to be liable for not more than $50,000 in taxes imposed with respect to distilled spirits, wines, and beer under subparts A, C, and D and section 7652 for the calendar year and who was liable for not more than $50,000 in such taxes in the preceding calendar year, the last day for the payment of tax on withdrawals, removals, and entries (and articles brought into the United States from Puerto Rico) shall be the 14th day after the last day of the calendar quarter during which the action giving rise to the imposition of such tax occurs.
I.R.C. § 5061(d)(4)(A)(ii) Not More Than $1,000 In Taxes — In the case of any taxpayer who reasonably expects to be liable for not more than $1,000 in taxes imposed with respect to distilled spirits, wines, and beer under subparts A, C, and D and section 7652 for the calendar year and who was liable for not more than $1,000 in such taxes in the preceding calendar year, the last day for the payment of tax on withdrawals, removals, and entries (and articles brought into the United States from Puerto Rico) shall be the 14th day after the last day of the calendar year.
I.R.C. § 5061(d)(4)(B) No Application After Limit Exceeded
I.R.C. § 5061(d)(4)(B)(i) Exceeds $50,000 Limit — Subparagraph (A)(i) shall not apply to any taxpayer for any portion of the calendar year following the first date on which the aggregate amount of tax due under subparts A, C, and D and section 7652 from such taxpayer during such calendar year exceeds $50,000, and any tax under such subparts which has not been paid on such date shall be due on the 14th day after the last day of the semimonthly period in which such date occurs.
I.R.C. § 5061(d)(4)(B)(ii) Exceeds $1,000 Limit — Subparagraph (A)(ii) shall not apply to any taxpayer for any portion of the calendar year following the first date on which the aggregate amount of tax due under subparts A, C, and D and section 7652 from such taxpayer during such calendar year exceeds $1,000, and any tax under such subparts which has not been paid on such date shall be due on the 14th day after the last day of the calendar quarter in which such date occurs.
I.R.C. § 5061(d)(4)(C) Calendar Quarter — For purposes of this paragraph, the term “calendar quarter” means the three-month period ending on March 31, June 30, September 30, or December 31.
I.R.C. § 5061(d)(5) Special Rule For Tax Due In September
I.R.C. § 5061(d)(5)(A) In General — Notwithstanding the preceding provisions of this subsection, the taxes on distilled spirits, wines, and beer for the period beginning on September 16 and ending on September 26 shall be paid not later than September 29.
I.R.C. § 5061(d)(5)(B) Safe Harbor — The requirement of subparagraph (A) shall be treated as met if the amount paid not later than September 29 is not less than 11/15 of the taxes on distilled spirits, wines, and beer for the period beginning on September 1 and ending on September 15.
I.R.C. § 5061(d)(5)(C) Taxpayers Not Required To Use Electronic Funds Transfer — In the case of payments not required to be made by electronic funds transfer, subparagraphs (A) and (B) shall be applied by substituting “September 25” for “September 26”, “September 28” for “September 29”, and “2/3” for “11/15”.
I.R.C. § 5061(d)(6) Special Rule Where Due Date Falls On Saturday, Sunday, Or Holiday — Notwithstanding section 7503, if, but for this paragraph, the due date under this subsection for payment of tax would fall on a Saturday, Sunday, or a legal holiday (within the meaning of section 7503), such due date shall be the immediately preceding day which is not a Saturday, Sunday, or such a holiday (or the immediately following day where the due date described in paragraph (5) falls on a Sunday).
I.R.C. § 5061(e) Payment By Electronic Fund Transfer
I.R.C. § 5061(e)(1) In General — Any person who in any 12-month period ending December 31, was liable for a gross amount equal to or exceeding $5,000,000 in taxes imposed on distilled spirits, wines, or beer by sections 5001, 5041, and 5051 (or 7652), respectively, shall pay such taxes during the succeeding calendar year by electronic fund transfer to a Federal Reserve Bank.
I.R.C. § 5061(e)(2) Electronic Fund Transfer — The term “electronic fund transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account.
I.R.C. § 5061(e)(3) Controlled Groups
I.R.C. § 5061(e)(3)(A) In General — In the case of a controlled group of corporations, all corporations which are component members of such group shall be treated as 1 taxpayer. For purposes of the preceding sentence, the term “controlled group of corporations” has the meaning given to such term by subsection (a) of section 1563, except that “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears in such subsection.
I.R.C. § 5061(e)(3)(B) Controlled Groups Which Include Nonincorporated Persons — Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation.
(Added by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1335, and amended Pub. L. 94-455, title XIX, Sec. 1905(a)(6), (b)(2)(E)(iii), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1819, 1822, 1834; Pub. L. 96-39, title VIII, Sec. 804(b), 807(a)(9), July 26, 1979, 93 Stat. 274, 281; Pub. L. 98-369, div. A, title I, Sec. 27(c)(1), July 18, 1984, 98 Stat. 509; Pub. L. 99-509, title VIII, Sec. 8011(b)(1), Oct. 21, 1986, 100 Stat. 1952; Pub. L. 99-514, title XVIII, Sec. 1801(c)(1), Oct. 22, 1986, 100 Stat. 2786; Pub. L. 100-647, title II, Sec. 2003(b)(1)(A), (B), Nov. 10, 1988, 102 Stat. 3598; Pub. L. 101-508, title XI, Sec. 11201(b)(3), 11704(a)(21), Nov. 5, 1990, 104 Stat. 1388-416, 1388-519; Dec. 8, 1994, Pub. L. 103-465, titles I and VII, Secs. 136, 712(b)(2), (b)(1); Pub. L. 104-188, title I, Sec. 1702, Aug. 20, 1996, 110 Stat. 1755; Pub. L. 109-59, title XI, Sec. 11127, Aug. 10, 2005, 119 Stat. 1144; Pub. L. 114-113, Div. Q, title III, Sec. 332(a), Dec. 18, 2015.)
BACKGROUND NOTES
AMENDMENTS
2015 - Subsec. (d)(4)(A) Pub. L. 114-113, Div. Q, Sec. 332(a)(1), amended subpar. (A) by substituting “(i) More Than $1,000 And Not More Than $50,000 In Taxes.—Except as provided in clause (ii), in the case of” for “In the case of”, by striking “under bond for deferred payment” in clause (i), and by adding clause (ii).
Subsec. (d)(4)(B). Pub. L. 114-113, Div. Q, Sec. 332(a)(2), amended subpar. (B) by substituting “(i) Exceeds $50,000 Limit.—Subparagraph (A)(i)” for “Subparagraph (A)” and by adding clause (ii).
2005 - Subsec. (d)(4)-(6). Pub. L. 109-59, Sec. 11127(a), amended subsec. (d) by redesignating par. (4) and (5) as par. (5) and (6), respectively, and added par. (4).
Subsec. (d)(6). Pub. L. 109-59, Sec. 11127(b), amended par. (6), as redesignated, by substituting “paragraph (5)" for “paragraph (4)”.
1996 - Subsec. (b)(3). Pub. L. 104-188, Sec. 1702(b)(6), amended par. (3). Before amendment, par. (3) read as follows:
“(3) section 5041(e),”
[Editor's Note] Inexplicably, section 11201(b)(3) of the 1990 Act amended section 5061(b)(3) to read as it already existed. Section 11704(a)(21) amended the provision to read as it appears.
1994 - Subsec. (b)(1). Pub. L. 103-465, Sec. 136 substituted “section 5001(a)(4), (5), or (6)” for “section 5001(a)(5), (6), or (7)”.
Subsec. (d)(5). Pub. L. 103-465, Sec. 712(b)(2), redesignated (d)(4) as (d)(5), amended redesignated (d)(5) by changing “14th day” to “due date” in the heading, and adding the parenthetical at the end, effective January 1, 1995.
Subsec. (d)(4). Pub. L. 103-465, Sec. 712(b)(1), redesignated (d)(4) as (d)(5) and added a new (d)(4) to read as above, effective January 1, 1995.
1990 - Subsec. (b)(3). Pub. L. 101-508, Sec. 11201(b)(3), 11704(a)(21), amended par. (3) identically, substituting ‘section 5041(e)’ for ‘section 5041(d)’.
1988 - Subsec. (d)(2)(A), (B), (3). Pub. L. 100-647 substituted ‘last day of the semimonthly period during’ for ‘date on’.
1986 - Subsec. (d). Pub. L. 99-509 amended subsec. (d) generally, substituting provisions relating to time for collecting tax on distilled spirits, wines, and beer, for provisions relating to extension of time for collecting tax on distilled spirits.
Subsec. (e)(3). Pub. L. 99-514 added par. (3).
1984 - Subsec. (e). Pub. L. 98-369 added subsec. (e).
1979 - Subsec. (a). Pub. L. 96-39, Sec. 807(a)(9)(A), struck out ‘rectified distilled spirits and wines,’ after ‘distilled spirits, wines,’.
Subsec. (b). Pub. L. 96-39, Sec. 807(a)(9)(B), in provisions preceding par. (1) struck out ‘rectified distilled spirits and wines’ after ‘spirits, wines,’ and redesignated pars. (4) to (7) as (3) to (6), respectively. Former par. (3), which made reference to section 5026(a)(2), was struck out.
Subsec. (d). Pub. L. 96-39, Sec. 804(b), added subsec. (d).
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1905(a)(6)(A), 1906(b)(13)(A), struck out last sentence providing for continued payment of taxes by stamp until the Secretary shall by regulation provide for collection of the taxes on the basis of a return and struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (b). Pub. L. 94-455, Sec. 1905(a)(6)(B), substituted the exceptions provisions for discretion method of collection providing that ‘Whether or not the method of collecting any tax imposed by this part is specifically provided in this part, any such tax may, under regulations prescribed by the Secretary or his delegate, be collected by stamp, coupon, serially-numbered ticket, or the use of tax-stamp machines, or by such other reasonable device or method as may be necessary or helpful in securing collection of the tax.’
Subsec. (c). Pub. L. 94-455, Sec. 1905(a)(6)(C), substituted the import duties provision for provision respecting applicability of other provisions of law and reading ‘All administrative and penalty provisions of this title, insofar as applicable, shall apply to the collection of any tax which the Secretary or his delegate determines or prescribes shall be collected in any manner provided in this section.’
Subsec. (d). Pub. L. 94-455, Sec. 1905(b)(2)(E)(iii), struck out subsec. (d) which provided cross reference to section 5689 for penalty and forfeiture for tampering with a stamp machine.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendments by Pub. L. 114-113, Div. Q, Sec. 332(a)), effective for any calendar quarters beginning more than 1 year after the date of the enactment of this Act [Enacted: Dec. 18, 2015].
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendments by section 11127 of Pub. L. 109-59 effective with respect to quarterly periods beginning on and after January 1, 2006.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 1702 of Pub. L. 104-188 effective as if included in the provision of the Revenue Reconciliation Act of 1990 to which such amendment relates.
EFFECTIVE DATE OF 1994 AMENDMENTS
Amendments by sections 136 and 712 of Pub. L. 103-465 effective Jan. 1, 1995.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11201(b)(3) of Pub. L. 101-508 effective Jan. 1, 1991, see section 11201(d) of Pub. L. 101-508, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 2003(b)(2) of Pub. L. 100-647 provided that: ‘The amendments made by paragraph (1) (amending this section and section 5703 of this title) shall take effect as if included in the amendments made by section 8011 of the Omnibus Budget Reconciliation Act of 1986 (Pub. L. 99-509).'
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by Pub. L. 99-514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99-514, set out as a note under section 48 of this title.
Section 8011(c) of Pub. L. 99-509, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(1) In general. - Except as provided in paragraph (2), the amendments made by this section (amending this section and sections 5054, 5703, and 5704 of this title) shall apply to removals during semimonthly periods ending on or after December 31, 1986.
‘(2) Imported articles, etc. - Subparagraphs (B) and (C) of section 5703(b)(2) of the Internal Revenue Code of 1986 (formerly I.R.C. 1954) (as added by this section), paragraphs (2) and (3) of section 5061(d) of such Code (as amended by this section), and the amendments made by subsections (a)(2) and (b)(2) (amending sections 5054 and 5704 of this title) shall apply to articles imported, entered for warehousing, or brought into the United States or a foreign trade zone after December 15, 1986.
‘(3) Special rule for distilled spirits and tobacco for semimonthly period ending december 15, 1986. - With respect to remittances of -
‘(A) taxes imposed on distilled spirits by section 5001 or 7652 of such Code, and
‘(B) taxes imposed on tobacco products and cigarette papers and tubes by section 5701 or 7652 of such Code, for the semimonthly period ending December 15, 1986, the last day for payment of such remittances shall be January 14, 1987.
‘(4) Treatment of smokeless tobacco in inventory on June 30, 1986. - The tax imposed by section 5701(e) of the Internal Revenue Code of 1986 shall not apply to any smokeless tobacco which -
‘(A) on June 30, 1986, was in the inventory of the manufacturer or importer, and
‘(B) on such date was in a form ready for sale.’
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to taxes required to be paid on or after Sept. 30, 1984, see section 27(d)(2) of Pub. L. 98-369, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(6), (b)(2)(E)(iii) of 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a note under section 401 of this title.
TRANSITIONAL RULES RELATING TO DETERMINATION AND PAYMENT OF TAX
Section 808 of Pub. L. 96-39, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(a) Liability for Payment of Tax. - Except as otherwise provided in this section, the tax on all distilled spirits which have been withdrawn from bond on determination of tax and on which tax has not been paid by the close of December 31, 1979, shall become due on January 1, 1980, and shall be payable in accordance with section 5061 of the Internal Revenue Code of 1986 (formerly I.R.C. 1954).
‘(b) Treatment of Controlled Stock and Bulk Wine. -
‘(1) Election with respect to controlled stock. - The proprietor of a distilled spirits plant may elect to convert any distilled spirits or wine which on January 1, 1980, is controlled stock.
‘(2) Election with respect to wine. - The proprietor of a distilled spirits plant may elect to convert any bulk wine which on January 1, 1980, is on the premises of a distilled spirits plant.
‘(3) Effect of election. - If an election under paragraph (1) or (2) is in effect with respect to any controlled stock or wine
‘(A) any distilled spirits, wine, or rectification tax previously paid or determined on such controlled stock or wine shall be abated or (without interest) credited or refunded under such regulations as the Secretary shall prescribe, and
‘(B) such controlled stock or wine shall be treated as distilled spirits or wine on which tax has not been paid or determined.
‘(4) Making of elections. - The elections under this subsection shall be made at such time and in such manner as the Secretary shall by regulations prescribe.
‘(c) Taxpaid Stock. -
‘(1) Taxpaid stock may remain on bonded premises during 1980. - Section 5612(a) of the Internal Revenue Code of 1986 (relating to forfeiture of taxpaid distilled spirits remaining on bonded premises) shall not apply during 1980.
‘(2) Separation of taxpaid stock. - All distilled spirits and wine on which tax has been paid and which are on the bonded premises of a distilled spirits plant shall be physically separated from other distilled spirits and wine. Such separation shall be by the use of separate tanks, rooms, or buildings, or by partitioning, or by such other methods as the Secretary finds will distinguish such distilled spirits and wine from other distilled spirits and wine on the bonded premises of the distilled spirits plant.
‘(d) Return of Distilled Spirits Products Containing Taxpaid Wine. - With respect to distilled spirits returned to the bonded premises of distilled spirits plants during 1980, section 5008(c)(1) of the Internal Revenue Code of 1986 (relating to refunds for distilled spirits returned to bonded premises) shall be treated as including a reference to section 5041 of such Code.
‘(e) Return of Distilled Spirits Products Containing Other Alcoholic Ingredients. - With respect to distilled spirits to which alcoholic ingredients other than distilled spirits have been added and which have been withdrawn from a distilled spirits plant before January 1, 1980, section 5215(a) of the Internal Revenue Codeof 1986 shall apply only if such spirits are returned to the distilled spirits plant from which withdrawn.
‘(f) Secretary Defined. - For purposes of this section, the term ‘Secretary’ means the Secretary of the Treasury or his delegate.'
PRIOR PROVISIONS
A prior section 5061, act Aug. 16, 1954, ch. 736, 68A Stat. 614, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.
Provisions similar to those comprising subsec. (d) of this section were contained in former section 5001(c), act Aug. 16, 1954, ch. 736, 68A Stat. 597, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5062(a) Refund — Under such regulations as the Secretary may prescribe, the amount of any internal revenue tax erroneously or illegally collected in respect to exported articles may be refunded to the exporter of the article, instead of to the manufacturer, if the manufacturer waives any claim for the amount so to be refunded.
I.R.C. § 5062(b) Drawback — On the exportation of distilled spirits or wines manufactured, produced, bottled, or packaged in casks or other bulk containers in the United States on which an internal revenue tax has been paid or determined, and which are contained in any cask or other bulk container, or in bottles packed in cases or other containers, there shall be allowed, under regulations prescribed by the Secretary, a drawback equal in amount to the tax found to have been paid or determined on such distilled spirits or wines. In the case of distilled spirits, the preceding sentence shall not apply unless the claim for drawback is filed by the bottler or packager of the spirits and unless such spirits have been marked, especially for export, under regulations prescribed by the Secretary. The Secretary is authorized to prescribe regulations governing the determination and payment or crediting of drawback of internal revenue tax on spirits and wines eligible for drawback under this subsection, including the requirements of such notices, bonds, bills of lading, and other evidence indicating payment or determination of tax and exportation as shall be deemed necessary.
I.R.C. § 5062(c) Exportation Of Imported Liquors
I.R.C. § 5062(c)(1) Allowance Of Tax — Upon the exportation of imported distilled spirits, wines, and beer upon which the duties and internal revenue taxes have been paid or determined incident to their importation into the United States, and which have been found after entry to be unmerchantable or not to conform to sample or specifications, and which have been returned to customs custody, the Secretary shall, under such regulations as he shall prescribe, refund, remit, abate, or credit, without interest, to the importer thereof, the full amount of the internal revenue taxes paid or determined with respect to such distilled spirits, wines, or beer.
I.R.C. § 5062(c)(2) Destruction In Lieu Of Exportation — At the option of the importer, such imported distilled spirits, wines, and beer, after return to customs custody, may be destroyed under customs supervision and the importer thereof granted relief in the same manner and to the same extent as provided in this subsection upon exportation.
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1336, and amended Pub. L. 88-539, 1, Aug. 31, 1964, 78 Stat. 746; Pub. L. 89-44, title VIII, 805(f)(6), June 21, 1965, 79 Stat. 161; Pub. L. 90-630, 2(a), Oct. 22, 1968, 82 Stat. 1328; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176, 1, Nov. 14, 1977, 91 Stat. 1363; Pub. L. 98-369, div. A, title IV, 454(c)(1), July 18, 1984, 98 Stat. 820.)
BACKGROUND NOTES
AMENDMENTS
1984--Subsec. (b). Pub. L. 98-369 substituted “have been marked” for “have been stamped or restamped, and marked”.
1977--Subsec. (b). Pub. L. 95-176 substituted in first sentence “manufactured, produced, bottled, or packaged in casks or other bulk containers” and “other bulk container” for “manufactured or produced” and “package” and in last sentence “spirits and wines eligible for drawback under this subsection, including the requirements" for “domestic distilled spirits and wines, including the requirement”.
1976--Subsecs. (a), (b), (c)(1). Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
1968--Subsec. (b). Pub. L. 90-630 permitted, under Treasury regulations, drawback of the tax where the stamping, restamping, or marking is done after the spirits have been removed from the original bottling plant.
1965--Subsec. (c)(1). Pub. L. 89-44 struck out “within six months of their release therefrom” after “customs custody”.
1964--Subsec. (c). Pub. L. 88-539 added subsec. (c).
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section 456(b) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by Pub. L. 90-630 applicable only to articles exported on or after the first day of the first calendar month which begins more than 90 days after Oct. 22, 1968, see section 4 of Pub. L. 90-630, set out as a note under section 5008 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by Pub. L. 89-44 effective July 1, 1965, see section 805(g)(1) of Pub. L. 89-44, set out as a note under section 5008 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 2 of Pub. L. 88-539 provided that: “The amendment made by the first section of this Act [amending this section] shall apply with respect to articles exported or destroyed after the date of the enactment of this Act [Aug. 31, 1964].”
[5063. Repealed. Pub. L. 89-44, title V, 501(e), June 21, 1965, 79 Stat. 150]
Section, Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1336; Pub. L. 86-75, 3(b)(1), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, 202(b)(1), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, 3(b)(1), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, 3(b)(1), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, 3(b)(1)(A), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, 2(b)(1)(A), June 30, 1964, 78 Stat. 237, made provision for floor stocks refunds on distilled spirits, wines, cordials, and beer and set out limitations on the eligibility for such refunds or credits.
A prior section 5063, act Aug. 16, 1954, ch. 736, 68A Stat. 615, consisted of provisions similar to those comprising section 5063, prior to the general revision of this chapter by Pub. L. 85-859.
Effective Date of Repeal
Repeal applicable on and after July 1, 1965, see section 701(d) of Pub. L. 89-44, set out as an Effective Date of 1965 Amendment note under section 5701 of this title.
PRIOR PROVISIONS
A prior section 5062, act Aug. 16, 1954, ch. 736, 68A Stat. 614, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5064(a) Payments — The Secretary, under such regulations as he may prescribe, shall pay (without interest) an amount equal to the amount of the internal revenue taxes paid or determined and customs duties paid on distilled spirits, wines, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of—
I.R.C. § 5064(a)(1) — fire, flood, casualty, or other disaster, or
I.R.C. § 5064(a)(2) — breakage, destruction, or other damage (but not including theft) resulting from vandalism or malicious mischief,
if such disaster or damage occurred in the United States and if such distilled spirits, wines, or beer were held and intended for sale at the time of such disaster or other damage. The payments provided for in this section shall be made to the person holding such distilled spirits, wines, or beer for sale at the time of such disaster or other damage.
I.R.C. § 5064(b) Claims
I.R.C. § 5064(b)(1) Period For Making Claim; Proof — No claim shall be allowed under this section unless—
I.R.C. § 5064(b)(1)(A) — filed within 6 months after the date on which such distilled spirits, wines, or beer were lost, rendered unmarketable, or condemned by a duly authorized official, and
I.R.C. § 5064(b)(1)(B) — the claimant furnishes proof satisfactory to the Secretary that the claimant—
I.R.C. § 5064(b)(1)(B)(i) — was not indemnified by any valid claim of insurance or otherwise in respect of the tax, or tax and duty, on the distilled spirits, wines, or beer covered by the claim; and
I.R.C. § 5064(b)(1)(B)(ii) — is entitled to payment under this section.
I.R.C. § 5064(b)(2) Minimum Claim — Except as provided in paragraph (3)(A), no claim of less than $250 shall be allowed under this section with respect to any disaster or other damage (as the case may be).
I.R.C. § 5064(b)(3) Special Rules For Major Disasters — If 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, and if the disaster referred to in subsection (a)(1) occurs in such part of the United States by reason of such major disaster, then—
I.R.C. § 5064(b)(3)(A) — paragraph (2) shall not apply, and
I.R.C. § 5064(b)(3)(B) — the filing period set forth in paragraph (1)(A) shall not expire before the day which is 6 months after the date on which the President makes the determination that such major disaster has occurred.
I.R.C. § 5064(b)(4) Regulations — Claims under this section shall be filed under such regulations as the Secretary shall prescribe.
I.R.C. § 5064(c) Destruction Of Distilled Spirits, Wines, Or Beer — When the Secretary has made payment under this section in respect of the tax, or tax and duty, on the distilled spirits, wines, or beer condemned by a duly authorized official or rendered unmarketable, such distilled spirits, wines, or beer shall be destroyed under such supervision as the Secretary may prescribe, unless such distilled spirits, wines, or beer were previously destroyed under supervision satisfactory to the Secretary.
I.R.C. § 5064(d) Products Of Puerto Rico — The provisions of this section shall not be applicable in respect of distilled spirits, wines, and beer of Puerto Rican manufacture brought into the United States and so lost or rendered unmarketable or condemned.
I.R.C. § 5064(e) Other Laws Applicable — All provisions of law, including penalties, applicable in respect of internal revenue taxes on distilled spirits, wines, and beer 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.
(Added Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1337, and amended Pub. L. 91-606, title III, 301(i), Dec. 31, 1970, 84 Stat. 1759; Pub. L. 93-288, title VI, 602(i), May 22, 1974, 88 Stat. 164; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-423, 1(a), Oct. 6, 1978, 92 Stat. 935; Pub. L. 96-39, title VIII, 807(a)(10), July 26, 1979, 93 Stat. 282; Pub. L. 100-707, title I, 109(l), Nov. 23, 1988, 102 Stat. 4709; Pub. L. 108-311, title IV, 408(a)(7), Oct. 4, 2004, 118 Stat. 1166.)
BACKGROUND NOTES
AMENDMENTS
2004-Subsec. (b)(3). Pub. L. 108-311, Sec. 408(a)(7), amended par. (3) by inserting “Robert T. Stafford” before “Disaster Relief and Emergency Assistance Act”.
1988--Subsec. (b)(3). Pub. L. 100-707 substituted “and Emergency Assistance Act” for “Act of 1974”.
1979--Pub. L. 96-39 struck out “rectified products,” after “distilled spirits, wines,” wherever appearing.
1978--Pub. L. 95-423 substituted “Losses resulting from disaster, vandalism, or malicious mischief” for “Losses caused by disaster” in section catchline.
Subsec. (a). Pub. L. 95-423 substituted provisions authorizing the Secretary, under such regulations as he may prescribe, to pay the prescribed amount on distilled spirits, etc., lost, rendered unmarketable, or condemned by a duly authorized official by reason of fire, flood, casualty or other disaster, breakage, destruction, or other damage (but not including theft) resulting from vandalism or malicious mischief, for provisions authorizing such payment where the President has determined under the Disaster Relief Act of 1974 that a “major disaster” has occurred, and that distilled spirits, etc., were lost, rendered unmarketable, or condemned by a duly authorized official by reason of such disaster occurring after June 30, 1959.
Subsec. (b). Pub. L. 95-423 redesignated par. (1) as (1)(A), substituted provisions disallowing a claim unless filed within 6 months after such distilled spirits, etc., were lost, rendered unmarketable or condemned, for provisions disallowing a claim unless filed within 6 months after the President determined that such disaster occurred, and added par. (1)(B); in par. (2) substituted provisions limiting claims to no less than $250, except as provided in par. (3)(A), for provisions demanding proof that claimant was not indemnified by any valid claim of insurance and that he is entitled to payment under this section; and added pars. (3) and (4).
1976--Subsecs. (a) to (c). 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)”.
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108-311, Sec. 408(a)(7), effective on the date of the enactment of this Act [Enacted: Oct. 4, 2004].
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 1(c) of Pub. L. 95-423 provided that: “The amendments made by this section [amending this section] shall apply to disasters (or other damage) occurring on or after the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Enacted: Oct. 6, 1978].”
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-288 effective Apr. 1, 1974, see section 605 of Pub. L. 93-288, set out as an Effective Date note under section 5121 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment 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 July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.
EXCEPTION TO EFFECTIVE DATE
Section 210(a)(3) of Pub. L. 85-859, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “Provisions having the effect of section 5064 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as such section is included in chapter 51 of such Code as amended by section 201 of this Act) shall be deemed to be included in the Internal Revenue Code of 1986, effective on the day following the date of the enactment of this Act [Sept. 2, 1958], and shall apply with respect to disasters occurring after such date of enactment, and not later than June 30, 1959.”
BEER LOST BY REASON OF FLOODS OF 1951 OR HURRICANES OF 1954
Section 207 of Pub. L. 85-859 provided for payment of an amount equal to the amount of taxes paid under section 3150(a) of the Internal Revenue Code of 1939 on fermented malt liquor which was lost, rendered unmarketable, or condemned by reason of the floods of 1951 or the hurricanes of 1954, under certain conditions and under regulations to be prescribed.
LOSSES OF ALCOHOLIC LIQUORS CAUSED BY DISASTER
Section 208 of Pub. L. 85-859 provided for payment of an amount equal to the amount of taxes and customs duties paid on distilled spirits, wines, rectified products, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by reason of a major disaster occurring after Dec. 31, 1954, and not later than Sept. 2, 1958, under certain conditions and under regulations to be prescribed.
PRIOR PROVISIONS
A prior section 5064, act Aug. 16, 1954, ch. 736, 68A Stat. 615, related to “territorial extent of law”, prior to the general revision of this chapter by Pub. L. 85-859. See section 5065 of this title.

I.R.C. § 5066(a) Entry Into Customs Bonded Warehouses
I.R.C. § 5066(a)(1) Bottled Distilled Spirits Withdrawn From Bonded Premises — Under such regulations as the Secretary may prescribe, bottled distilled spirits may be withdrawn from bonded premises as provided in section 5214(a)(4) for transfer to customs bonded warehouses in which imported distilled spirits are permitted to be stored in bond for entry therein pending withdrawal therefrom as provided in subsection (b). For the purposes of this chapter, the withdrawal of distilled spirits from bonded premises under the provisions of this paragraph shall be treated as a withdrawal for exportation and all provisions of law applicable to distilled spirits withdrawn for exportation under the provisions of section 5214(a)(4) shall apply with respect to spirits withdrawn under this paragraph.
I.R.C. § 5066(a)(2) Bottled Distilled Spirits Eligible For Export With Benefit Of Drawback — Under such regulations as the Secretary may prescribe, distilled spirits marked especially for export under the provisions of section 5062(b) may be shipped to a customs bonded warehouse in which imported distilled spirits are permitted to be stored, and entered in such warehouses pending withdrawal therefrom as provided in subsection (b), and the provisions of this chapter shall apply in respect of such distilled spirits as if such spirits were for exportation.
I.R.C. § 5066(a)(3) Time Deemed Exported — For the purposes of this chapter, distilled spirits entered into a customs bonded warehouse as provided in this subsection shall be deemed exported at the time so entered.
I.R.C. § 5066(b) Withdrawal From Customs Bonded Warehouses — Notwithstanding any other provisions of law, distilled spirits entered into customs bonded warehouses under the provisions of subsection (a) may, under such regulations as the Secretary may prescribe, be withdrawn from such warehouses for consumption in the United States by and for the official or family use of such foreign governments, organizations, and individuals who are entitled to withdraw imported distilled spirits from such warehouses free of tax. Distilled spirits transferred to customs bonded warehouses under the provisions of this section shall be entered, stored, and accounted for in such warehouses under such regulations and bonds as the Secretary may prescribe, and may be withdrawn therefrom by such governments, organizations, and individuals free of tax under the same conditions and procedures as imported distilled spirits.
I.R.C. § 5066(c) Withdrawal For Domestic Use — Distilled spirits entered into customs bonded warehouses as authorized by this section may be withdrawn therefrom for domestic use, in which event they shall be treated as American goods exported and returned.
I.R.C. § 5066(d) Sale Or Unauthorized Use Prohibited — No distilled spirits withdrawn from customs bonded warehouses or otherwise brought into the United States free of tax for the official or family use of such foreign governments, organizations, or individuals as are authorized to obtain distilled spirits free of tax shall be sold, or shall be disposed of or possessed for any use other than an authorized use. The provisions of section 5001(a)(4) are hereby extended and made applicable to any person selling, disposing of, or possessing any distilled spirits in violation of the preceding sentence, and to the distilled spirits involved in any such violation.
(Added Pub. L. 91-659, 3(a), Jan. 8, 1971, 84 Stat. 1965, and amended Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176, 2(d), Nov. 14, 1977, 91 Stat. 1364; Pub. L. 96-39, title VIII, 807(a)(11), July 26, 1979, 93 Stat. 282; Pub. L. 98-369, div. A, title IV, 454(c)(2), July 18, 1984, 98 Stat. 820; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(240), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018--Subsec. (d). Pub. L. 115-141, Div. U, Sec. 401(a)(240), amended subsec. (d) by substituting “section 5001(a)(4)” for “section 5001(a)(5)”.
1984--Subsec. (a)(2). Pub. L. 98-369 substituted “marked" for “stamped or restamped, and marked,”.
1979--Subsec. (a)(1). Pub. L. 96-39, 807(a)(11)(A), substituted “bottled distilled spirits” for “distilled spirits bottled in bond for export under the provisions of section 5233, or bottled distilled spirits returned to bonded premises under section 5215(b),”.
Subsec. (b). Pub. L. 96-39, 807(a)(11)(B), struck out “or domestic distilled spirits transferred to customs bonded warehouses under section 5521(d)(2)” after “the provisions of subsection (a)”.
1977--Subsec. (a)(1). Pub. L. 95-176 substituted par. (1) heading “Bottled distilled spirits withdrawn from bonded premises" for “Distilled spirits bottled in bond for export” and authorized withdrawal of bottled distilled spirits returned to bonded premises under section 5215(b) as provided in section 5214(a)(4).
1976--Subsecs. (a), (b). Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. No. 115-141, Div. U, Sec. 401(a)(240), effective on the date of the enactment of this Act [Enacted: Mar. 23, 2018].
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section 456(b) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
EFFECTIVE DATE
Section 6 of Pub. L. 91-659 provided that: “This Act [enacting this section and amending sections 5008, 5173, 5178, 5215, and 5232 of this title] shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Jan. 8, 1971].”
PRIOR PROVISIONS
A prior section 5066 was renumbered 5067.

I.R.C. § 5101(a) Notice Requirements
I.R.C. § 5101(a)(1) Notice Of Manufacture Of Still — The Secretary may, pursuant to regulations, require any person who manufactures any still, boiler, or other vessel to be used for the purpose of distilling, to give written notice, before the still, boiler, or other vessel is removed from the place of manufacture, setting forth by whom it is to be used, its capacity, and the time of removal from the place of manufacture.
I.R.C. § 5101(a)(2) Notice Of Set Up Of Still — The Secretary may, pursuant to regulations, require that no still, boiler, or other vessel be set up without the manufacturer of the still, boiler, or other vessel first giving written notice to the Secretary of that purpose.
I.R.C. § 5101(b) Penalties, Etc.
I.R.C. § 5101(b)(1) — For penalty and forfeiture for failure to give notice of manufacture, or for setting up a still without first giving notice, when required by the Secretary, see sections 5615(2) and 5687.
I.R.C. § 5101(b)(2) — For penalty and forfeiture for failure to register still or distilling apparatus when set up, see section 5601(a)(1) and 5615(1).
(Added by Pub. L. 98-369, div. A, title IV, 451(a), July 18, 1984, 98 Stat. 818.)
BACKGROUND NOTES
Amendment
Pub. L. 109-59, Sec. 11125(b)(1), amended the heading for Part II by substituting “Miscellaneous Provisions" for “Occupational Tax”, effective July 1, 2008, but does not apply to taxes imposed before such date.
Repeal Of Subpart A
Section 11125(a)(1)(A) of Pub. L. 109-59 repealed Subpart A, Proprietors of Distilled Spirits Plants, Bonded Wine Cellars, etc. (Sec. 5081), effective July 1, 2008, but does not apply to taxes imposed for periods before such date. Prior to repeal, Sec. 5081 read as follows:
“Sec. 5081. Imposition And Rate Of Tax
“(a) General Rule.—Every proprietor of—
“(1) a distilled spirits plant,
“(2) a bonded wine cellar,
“(3) a bonded wine warehouse, or
“(4) a taxpaid wine bottling house,
“shall pay a tax of $1,000 per year in respect of each such premises.
“(b) Reduced Rates For Small Proprietors.—
“(1) In General.—Subsection (a) shall be applied by substituting “$500” for “$1,000” with respect to any taxpayer not described in subsection (c) the gross receipts of which (for the most recent taxable year ending before the 1st day of the taxable period to which the tax imposed by subsection (a) relates) are less than $500,000.
“(2) Controlled Group Rules.— All persons treated as 1 taxpayer under section 5061(e)(3) shall be treated as 1 taxpayer for purposes of paragraph (1).
“(3) Certain Rules To Apply.— For purposes of paragraph (1), rules similar to the rules of subparagraphs (B) and (C) of section 448(c)(3) shall apply.
“(c) Exemption For Small Producers.— Subsection (a) shall not apply with respect to any taxpayer who is a proprietor of an eligible distilled spirits plant (as defined in section 5181(c)(4)).
Amendment Of Subpart
Pub. L. 109-59, Sec. 11125(b)(2) redesignated Subpart C (Sec. 5101 - 5102, relating to manufacturer of stills) as Subpart A, effective July 1, 2008, but does not apply to taxes imposed before such date.
Prior Provisions
Prior sections 5081 to 5084 of this title constituted a former subpart A of this part.
EFFECTIVE DATE
Section 456 of part II (451-456) of subtitle D of title IV of division A of Pub. L. 98-369, as amended by Pub. L. 99-514, title XVIII, 1845, Oct. 22, 1986, 100 Stat. 2856, provided that:
“(a) In General.--Except as otherwise provided in this section the amendments made by this part [enacting sections 5101 and 5102 of this title, amending sections 5005, 5062, 5066, 5116, 5134, 5179, 5204, 5206, 5207, 5214, 5215, 5235, 5301, 5354, 5555, 5604, 5613, 5615, 5691, 6103, 6801, and 7213 of this title, repealing section 5205 of this title, and omitting sections 5103, 5105, and 5106 of this title] shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act [Enacted: July 18, 1984].
“(b) Repeal of Stamp Requirement.--The amendments made by section 454 [amending sections 5062, 5066, 5116, 5204, 5206, 5207, 5215, 5235, 5301, 5555, 5604, 5613, and 6801 of this title and repealing section 5205 of this title] shall take effect on July 1, 1985.
“(c) Fortification of Cooking Wine.--The amendments made by section 455 [amending sections 5005, 5214, and 5354 of this title] shall take effect on the date of the enactment of this Act [July 18, 1984].
“(d) Section 452.--The amendment made by section 452 [amending section 5134 of this title] shall apply to products manufactured or produced after October 31, 1984.”
PRIOR PROVISIONS
A prior section 5101, added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1339, contained provisions relating to imposition and rate of tax, prior to the general revision of this subpart by Pub. L. 98-369.
Another prior section 5101, act Aug. 16, 1954, ch. 736, 68A Stat. 617, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5131(a) General — The Secretary may, at his discretion and under such regulations as he may prescribe, authorize a dealer (as defined in section 5121(c)) engaging in the business of supplying distilled spirits for industrial uses to package distilled spirits, on which the tax has been paid or determined, for such uses in containers of a capacity in excess of 1 wine gallon and not more than 5 wine gallons.
I.R.C. § 5131(b) Cross Reference — For provisions relating to containers of distilled spirits, see section 5206.
(Added by Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1343, and amended Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, Sec. 807(a)(12), July 26, 1979, 93 Stat. 282; Pub. L. 98-369, div. A, title IV, Sec. 454(c)(3), July 18, 1984, 98 Stat. 821; Pub. L. 109-59, title XI, Sec. 11125(b)(11), Aug. 10, 2005, 119 Stat. 1144.)
BACKGROUND NOTES
Repeal of Subpart D
Section 11125(a)(1)(C) of Pub. L. 109-59 repealed Subpart D, Wholesale Dealers (other than sections 5114 and 5116, which were redesignated as Sec. 5121 and 5131, respectively), effective July 1, 2008, but does not apply to taxes imposed for periods before such date. See the Background Notes to Sec. 5111 for text of repealed sections 5111, 5112, 5113, 5115, and 5117.
Amendment
Pub. L. 109-59, Sec. 11125(b)(10), added Subpart D, Other Provisions, effective July 1, 2008, but does not apply to taxes imposed before such date.
AMENDMENTS
2005—Sec. 5116. Pub. L. 109-59, Sec. 11125(b)(11), redesignated Sec. 5116 as Sec. 5131.
Subsec. (a). Pub. L. 109-59, Sec. 11125(b)(11), amended subsec. (a) by inserting “(as defined in section 5121(c))" after “dealer”.
1984--Subsec. (b). Pub. L. 98-369 substituted “reference” for “references” in heading, struck out former par. (1) which provided a cross reference to section 5205(a)(1) of this title regarding stamps for immediate containers, and struck out designation “(2)” preceding provisions relating to containers of distilled spirits.
1979--Subsec. (b)(1). Pub. L. 96-39 substituted “section 5205(a)(1)” for “section 5205(a)(2)”.
1976--Subsec. (a). Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 2005 AMENDMENT
Redesignation and amendment by Section 11125(b)(11) of Pub. L. 109-59 effective July 1, 2008, but does not apply to taxes imposed before such date.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section 456(b) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
PRIOR PROVISIONS
A prior section 5116, act Aug. 16, 1954, ch. 736, 68A Stat. 620, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

Any person using distilled spirits on which the tax has been determined, in the manufacture or production of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which are unfit for beverage purposes shall be eligible for drawback at the time when such distilled spirits are used in the manufacture of such products as provided for in this subpart.
BACKGROUND NOTES
Repeal Of Subpart B
Section 11125(a)(1)(B) of Pub. L. 109-59 repealed Subpart B, Brewer (Secs. 5091-5093) effective July 1, 2008, but does not apply to taxes imposed for periods before such date. Prior to repeal, Sections 5091-5093 read as follows:
“Sec. 5091. Imposition And Rate Of Tax
“(a) General Rule.— Every brewer shall pay a tax of $1,000 per year in respect of each brewery.”
“(b) Reduced Rates For Small Brewers.— Rules similar to the rules of section 5081(b) shall apply for purposes of subsection (a).”
“Sec. 5092. Definition Of Brewer
“ Every person who brews beer (except a person who produces only beer exempt from tax under section 5053(e)) and every person who produces beer for sale shall be deemed to be a brewer.”
“Sec. 5093. Cross References
“(1) For exemption of brewer from special tax as wholesale and retail dealer, see section 5113(a).
“(2) For provisions relating to liability for special tax for carrying on business in more than one location, see section 5143(c).
“(3) For exemption from special tax in case of sales made on purchaser dealers' premises, see section 5113(d).”
Repeal of Subpart D
Section 11125(a)(1)(C) of Pub. L. 109-59 repealed Subpart D, Wholesale Dealers (other than sections 5114 and 5116, which were redesignated as Sec. 5121 and 5131, respectively), effective July 1, 2008, but does not apply to taxes imposed for periods before such date. Before repeal, Secs. 5111, 5112, 5113, 5115, and 5117 read as follows:
“Section 5111. Imposition and Rate of Tax
“(a) Wholesale Dealers In Liquors.— Every wholesale dealer in liquors shall pay a special tax of $500 a year.
“(b) Wholesale Dealers In Beer.— Every wholesale dealer in beer shall pay a special tax of $500 a year.”
“Section 5112. Definitions
“(a) Dealer.— When used in this subpart, subpart E, or subpart G, the term “dealer” means any person who sells, or offers for sale, any distilled spirits, wines, or beer.
“(b) Wholesale Dealer In Liquors.— When used in this chapter, the term “wholesale dealer in liquors” means any dealer, other than a wholesale dealer in beer, who sells, or offers for sale, distilled spirits, wines, or beer, to another dealer.
“(c) Wholesale Dealer In Beer.— When used in this chapter, the term “wholesale dealer in beer” means a dealer who sells, or offers for sale, beer, but not distilled spirits or wines, to another dealer.”
“Sec. 5113. Exemptions
“(a) Sales By Proprietors Of Controlled Premises.—No proprietor of a distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, shall be required to pay special tax under section 5111 or section 5121 on account of the sale at his principal business office as designated in writing to the Secretary, or at his distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, as the case may be, of distilled spirits, wines, or beer, which, at the time of sale, are stored at his distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, as the case may be, or had been removed from such premises to a taxpaid storeroom operated in connection therewith and are stored therein. However, on such proprietor shall have more than one place of sale, as to each distilled spirits plant, bonded wine cellar, taxpaid wine bottling house, or brewery, that shall be exempt from special taxes by reason of the sale of distilled spirits, wines, or beer stored at such premises (or removed therefrom and stored as provided in this section), by reason of this subsection.
“(b) Sales By Liquor Stores Operated By States, Political Subdivisions, Etc.—No liquor store engaged in the business of selling to persons other than dealers, which is operated by a State, by a political subdivision of a State or by the District of Columbia, shall be required to pay any special tax imposed under section 5111, by reason of selling distilled spirits, wines, or beer to dealers qualified to do business as such in such State, subdivision, or District, if such State, political subdivision, or District has paid the applicable special tax imposed under section 5121, and if such State, political subdivision, or District has paid special tax under section 5111 at its principal place of business.
“(c) Casual Sales.—
“(1) Sales By Creditors, Fiduciaries, And Officers Of Court.—No person shall be deemed to be a dealer by reason of the sale of distilled spirits, wines, or beer which have been received by him as security for or in payment of a debt, or as an executor, administrator, or other fiduciary, or which have been levied on by any officer under order or process of any court or magistrate, if such distilled spirits, wines, or beer are sold by such person in one parcel only or at public auction in parcels of not less than 20 wine gallons.
“(2) Sales By Retiring Partners Or Representatives Of Deceased Partners To Incoming Or Remaining Partners.—No person shall be deemed to be a dealer by reason of a sale of distilled spirits, wines, or beer made by such person as a retiring partner or the representative of a deceased partner to the incoming, remaining, or surviving partner or partners of a firm.
“(3) Return Of Liquors For Credit, Refund, Or Exchange.—No person shall be deemed to be a dealer by reason of the bona fide return of distilled spirits, wines, or beer to the dealer from whom purchased (or to the successor of the vendor's business or line of merchandise) for credit, refund, or exchange, and the giving of such credit, refund, or exchange shall not be deemed to be a purchase within the meaning of section 5117.
“(d) Dealers Making Sales On Purchaser Dealer's Premises.—
“(1) Wholesale Dealers In Liquors No wholesale dealer in liquors who has paid the special tax as such dealer shall again be required to pay special tax as such dealer on account of sales of wines or beer to wholesale or retail dealers in liquors, or to limited retail dealers, or of beer to wholesale or retail dealers in beer, consummated at the purchaser's place of business.
“(2) Wholesale Dealers In Beer No.—wholesale dealer in beer who has paid the special tax as such a dealer shall again be required to pay special tax as such dealer on account of sales of beer to wholesale or retail dealers in liquors or beer, or to limited retail dealers, consummated at the purchaser's place of business.
“(e) Sales By Retail Dealers In Liquidation.—No retail dealer in liquors or retail dealer in beer, selling in liquidation his entire stock of liquors in one parcel or in parcels embracing not less than his entire stock of distilled spirits, of wines, or of beer to any other dealer, shall be deemed to be a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be, by reason of such sale or sales.
“(f) Sales To Limited Retail Dealers.—
“(1) Retail Dealers In Liquors.—No retail dealer in liquors who has paid special tax as such dealer under section 5121(a) shall be required to pay special tax under section 5111 on account of the sale at his place of business of distilled spirits, wines, or beer to limited retail dealers as defined in section 5122(c).
“(2) Retail Dealers In Beer.—No retail dealer in beer who has paid special tax as such dealer under section 5121(b) shall be required to pay special tax under section 5111 on account of the sale at his place of business of beer to limited retail dealers as defined in section 5122(c).
“(g) Coordination Of Taxes Under Section 5111.—No tax shall be imposed by section 5111(a) with respect to a person's activities at any place during a year if such person has paid the tax imposed by section 5111(b) with respect to such place for such year.”
“Section 5115. Sign Required On Premises
“(a) Requirements
Every wholesale dealer in liquors who is required to pay special tax as such dealer shall, in the manner and form prescribed by regulations issued by the Secretary, place and keep conspicuously on the outside of the place of such business a sign, exhibiting, in plain and legible letters, the name or firm of the wholesale dealer, with the words: “wholesale liquor dealer.” The requirements of this subsection will be met by the posting of a sign of the character prescribed herein, but with words conforming to the designation on the dealer's special tax stamp.
“(b) Penalty
For penalty for failure to post sign, or for posting sign without paying the special tax, see section 5681.”
“Sec. 5117. Prohibited Purchases By Dealers
“(a) General.— It shall be unlawful for any dealer to purchase distilled spirits for resale from any person other than—
“(1) a wholesale dealer in liquors who has paid the special tax as such dealer to cover the place where such purchase is made; or
“(2) a wholesale dealer in liquors who is exempt, at the place where such purchase is made, from payment of such tax under any provision of this chapter; or
“(3) a person who is not required to pay special tax as a wholesale dealer in liquors.
“(b) Limited Retail Dealers.— A limited retail dealer may lawfully purchase distilled spirits for resale from a retail dealer in liquors.
“(c) Penalty And Forfeiture.— For penalty and forfeiture provisions applicable to violation of subsection (a), see sections 5687 and 7302.
“(d) Special Rule During Suspension Period.— Except as provided in subsection (b) or by the Secretary, during the suspension period (as defined in section 5148) it shall be unlawful for any dealer to purchase distilled spirits for resale from any person other than a wholesale dealer in liquors who is required to keep records under section 5114.”
AMENDMENTS
2005 — Sec. 5111. Pub. L. 109-59, Sec. 11125(b)(3)(C), amended the heading of Sec. 5111, as redesignated, by striking “and rate of tax”.
Subsec. (a). Pub. L. 109-59, Sec. 11125(b)(3)(C), struck the heading of subsec. (a). Before being struck, it read as follows: “Eligibility for drawback”.
Subsec. (b). Pub. L. 109-59, Sec. 11125(b)(3)(C), struck subsec. (b). Before being struck, it read as follows:
”(b) Rate of tax.—The special tax imposed by subsection (a) shall be $500 per year.”
Sec. 5131(a). Pub. L. 109-59, Sec. 11125(a)(2), struck “, on payment of a special tax per annum,” after “beverage purposes”.
Sec. 5131. Pub. L. 109-59, Sec. 11125(b)(3)(A), redesignated Sec. 5131 as Sec. 5111.
1994--Subsec. (a). Pub. L. 103-465 substituted “flavoring extracts, or perfume" for “or flavoring extracts”.
1987--Subsec. (b). Pub. L. 100-203 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The special tax imposed by subsection (a) shall be graduated in amount as follows: (1) for total annual use not exceeding 25 proof gallons, $25 a year; (2) for total annual use not exceeding 50 proof gallons, $50 a year; (3) for total annual use of more than 50 proof gallons, $100 a year.”
1976--Subsec. (a). Pub. L. 94-455 struck out “produced in a domestic registered distillery or industrial alcohol plant and withdrawn from bond, or using distilled spirits withdrawn from the bonded premises of a distilled spirits plant,” after “Any person using distilled spirits”.
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendments by section 11125 of Pub. L. 109-59 effective July 1, 2008, but does not apply to taxes imposed before such date.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective Jan. 1, 1995.
EFFECTIVE DATE OF 1987 AMENDMENT
Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section 10512(h) of Pub. L. 100-203, set out as an Effective Date note under section 5081 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 effective on the first day of the 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
Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.

I.R.C. § 5114(a) Rate Of Drawback — In the case of distilled spirits on which the tax has been paid or determined, and which have been used as provided in this subpart, a drawback shall be allowed on each proof gallon at a rate of $1 less than the rate at which the distilled spirits tax has been paid or determined.
I.R.C. § 5114(b) Claims — Such drawback shall be due and payable quarterly upon filing of a proper claim with the Secretary; except that, where any person entitled to such drawback shall elect in writing to file monthly claims therefor, such drawback shall be due and payable monthly upon filing of a proper claim with the Secretary. The Secretary may require persons electing to file monthly drawback claims to file with him a bond or other security in such amount and with such conditions as he shall by regulations prescribe. Any such election may be revoked on filing of notice thereof with the Secretary. No claim under this subpart shall be allowed unless filed with the Secretary within the 6 months next succeeding the quarter in which the distilled spirits covered by the claim were used as provided in this subpart.
I.R.C. § 5114(c) Allowance Of Drawback Even Where Certain Requirements Not Met
I.R.C. § 5114(c)(1) In General — No claim for drawback under this section shall be denied in the case of a failure to comply with any requirement imposed under this subpart or any rule or regulation issued thereunder upon the claimant's establishing to the satisfaction of the Secretary that distilled spirits on which the tax has been paid or determined were in fact used in the manufacture or production of medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume, which were unfit for beverage purposes.
I.R.C. § 5114(c)(2) Penalty
I.R.C. § 5114(c)(2)(A) In General — In the case of a failure to comply with any requirement imposed under this subpart or any rule or regulation issued thereunder, the claimant shall be liable for a penalty of $1,000 for each failure to comply unless it is shown that the failure to comply was due to reasonable cause.
I.R.C. § 5114(c)(2)(B) Penalty May Not Exceed Amount Of Claim — The aggregate amount of the penalties imposed under subparagraph (A) for failures described in paragraph (1) in respect of any claim shall not exceed the amount of such claim (determined without regard to subparagraph (A)).
I.R.C. § 5114(c)(3) Penalty Treated As Tax — The penalty imposed by paragraph (2) shall be assessed, collected, and paid in the same manner as taxes, as provided in section 6665(a).
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1346, and amended Pub. L. 90-615, 2(a), Oct. 21, 1968, 82 Stat. 1210; Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title IV, 452, July 18, 1984, 98 Stat. 819; Pub. L. 103-465, title I, 136, Dec. 8, 1994, 108 Stat. 4809; Pub. L. 104-188, title I, 1704(t), Aug. 20, 1996, 110 Stat. 1755; redesignated by Pub. L. 109-59, title XI, Sec. 11125(b)(3), Aug. 10, 2005, 119 Stat. 1144.)
BACKGROUND NOTES
AMENDMENTS
2005 -- Sec. 5134. Pub. L. 109-59, Sec. 11125(b)(3), redesignated Sec. 5134 as Sec. 5114.
1996--Subsec. (c)(3). Pub. L. 104-188, 1704(t)(12), substituted “section 6665(a)” for “section 6662(a)”.
1994--Subsec. (c)(1). Pub. L. 103-465, 136, substituted “flavoring extracts, or perfume" for “or flavoring extracts” in par. (3).
1984--Subsec. (c). Pub. L. 98-369 added subsec. (c).
1976--Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
1968--Subsec. (b). Pub. L. 90-615 substituted “6 months” for “3 months” in last sentence.
EFFECTIVE DATE OF 2005 AMENDMENT
Redesignation by Section 11125(b)(3) of Pub. L. 109-59 effective July 1, 2008, but does not apply to taxes imposed before such date.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188 effective on August 20, 1996.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-465 effective January 1, 1995.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 applicable to products manufactured or produced after Oct. 31, 1984, see section 456(d) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1968 AMENDMENT
Section 2(b) of Pub. L. 90-615 provided that: “The amendment made by subsection (a) [amending this section] shall apply to claims filed on or after the date of the enactment of this Act [Oct. 21, 1968].”
Prior Provisions
A prior subpart G, consisting of sections 5141 to 5149, related to general provisions, prior to the general revision of this chapter by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1313.
Amendments
1976--Pub. L. 94-455, title XIX, 1905(b)(3)(D)(ii), Oct. 4, 1976, 90 Stat. 1822, struck out item 5144 “Supply of stamps”.
Prior Provisions
A prior section 5134, acts Aug. 16, 1954, ch. 736, 68A Stat. 623; Mar. 30, 1955, ch. 18, 3(b)(2), 69 Stat. 15; Mar. 29, 1956, ch. 115, 3(b)(2), 70 Stat. 67; Mar. 29, 1957, Pub. L. 85-12, 3(b)(2), 71 Stat. 10; June 30, 1958, Pub. L. 85-475, 3(b)(2), 72 Stat. 259, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5121(a) Requirements
I.R.C. § 5121(a)(1) Distilled Spirits — Every wholesale dealer in liquors who sells distilled spirits to other dealers shall keep daily a record of distilled spirits received and disposed of by him, in such form and at such place and containing such information, and shall submit correct summaries of such records to the Secretary at such time and in such form and manner, as the Secretary shall by regulations prescribe. Such dealer shall also submit correct extracts from or copies of such records, at such time and in such form and manner as the Secretary may by regulations prescribe; however, the Secretary may on application by such dealer, in accordance with such regulations, relieve him from this requirement until further notice, whenever the Secretary deems that the submission of such extracts or copies serves no useful purpose in law enforcement or in protection of the revenue.
I.R.C. § 5121(a)(2) Wines And Beer — Every wholesale dealer in liquors and every wholesale dealer in beer shall provide and keep, at such place as the Secretary shall by regulations prescribe, a record in book form of all wines and beer received, showing the quantities thereof and from whom and the dates received, or shall keep all invoices of, and bills for, all wines and beer received.
I.R.C. § 5121(b) Exemption Of States, Political Subdivisions, Etc. — The provision of subsection (a) shall not apply to a State, to a political subdivision of a State, to the District of Columbia, or to liquor stores operated by any of them, if they maintain and make available for inspection by internal revenue officers such records as will enable such officers to trace all distilled spirits, wines, and beer received, and all distilled spirits disposed of by them. Such States, subdivisions, District, or liquor stores shall, upon the request of the Secretary, furnish him such transcripts, summaries and copies of their records with respect to distilled spirits as he shall require.
I.R.C. § 5121(c) Wholesale Dealers — For purposes of this part—
I.R.C. § 5121(c)(1) Wholesale Dealer In Liquors — The Term “wholesale dealer in liquors” means any dealer (other than a wholesale dealer in beer) who sells, or offers for sale, distilled spirits, wines, or beer, to another dealer.
I.R.C. § 5121(c)(2) Wholesale Dealer In Beer — The term “wholesale dealer in beer” means any dealer who sells, or offers for sale, beer, but not distilled spirits or wines, to another dealer.
I.R.C. § 5121(c)(3) Dealer — The term “dealer” means any person who sells, or offers for sale, any distilled spirits, wines, or beer.
I.R.C. § 5121(c)(4) Presumption In Case Of Sale Of 20 Wine Gallons Or More — The sale, or offer for sale, of distilled spirits, wines, or beer, in quantities of 20 wine gallons or more to the same person at the same time, shall be presumptive evidence that the person making such sale, or offer for sale, is engaged in or carrying on the business of a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be. Such presumption may be overcome by evidence satisfactorily showing that such sale, or offer for sale, was made to a person other than a dealer.
I.R.C. § 5121(d) Cross References
I.R.C. § 5121(d)(1) — For provisions requiring proprietors of distilled spirits plants to keep records and submit reports of receipts and dispositions of distilled spirits, see section 5207.
I.R.C. § 5121(d)(2) — For penalty for violation of subsection (a), see section 5603.
I.R.C. § 5121(d)(3) — For provisions relating to the preservation and inspection of records, and entry of premises for inspection, see section 5123.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1342, and amended Pub. L. 94-455, title XIX, 1905(c)(1), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; redesignated by Pub. L. 109-59, title XI, Sec. 11125(b)(5), Aug. 10, 2005, 119 Stat. 1144.)
BACKGROUND NOTES
Repeal Of Subpart E
Section 11125(a)(1)(D) of Pub. L. 109-59 repealed Subpart E, Retail Dealers (other than Sec. 5124 which in effect was redesignated as Sec. 5122) effective July 1, 2008, but does not apply to taxes imposed for periods before such date. Prior to repeal, Sections 5121-5123 and 5125 read as follows:
“Sec. 5121. Imposition and Rate of Tax
“(a) Retail Dealers In Liquors.— Every retail dealer in liquors shall pay a special tax of $250 a year.
“(b) Retail Dealers In Beer.— Every retail dealer in liquors shall pay a special tax of $250 a year.”
“Sec. 5122. Definitions
“(a) Retail Dealers in Liquors.—When used in this chapter, the term “retail dealer in liquors” means any dealer, other than a retail dealer in beer or a limited retail dealer, who sells, or offers for sale, any distilled spirits, wines, or beer, to any person other than a dealer.
“(b) Retail Dealers in Beer.—When used in this chapter, the term “retail dealer in beer” means any dealer, other than a limited retail dealer, who sells, or offers for sale, beer, but not distilled spirits or wines, to any person other than a dealer.
“(c) Limited Retail Dealer.—When used in this chapter, the term “limited retail dealer” means any fraternal, civic, church, labor, charitable, benevolent, or ex-servicemen's organization making sales of distilled spirits, wine or beer on the occasion of any kind of entertainment, dance, picnic, bazaar, or festival held by it, or any person making sales of distilled spirits, wine or beer to the members, guests, or patrons of bona fide fairs, reunions, picnics, carnivals, or other similar outings, if such organization or person is not otherwise engaged in business as a dealer.”
“Sec. 5123. Exemptions
“(a) Wholesale Dealers.—
“(1) Wholesale Dealers In Liquors,—No special tax shall be imposed under section 5121(a) or (b) on any dealer by reason of the selling, or selling, or offering for sale, of distilled spirits, wines, or beer at any location where such dealer is required to pay special tax under section 5111(a).
“(2) Wholesale Dealers In Beer.—No special tax shall be imposed under section 5121(b) on any dealer by reason of the selling, or offering for sale, of beer at any location where such dealer is required to pay special tax under section 5111(b).
“(b) Business Conducted In More Than One Location.–
“(1) Retail Dealers At Large.—Any retail dealer in liquors or retailer dealer in beer whose business is such as to require him to travel from place to place in different States of the United States may, under regulations prescribed by the Secretary, procure a special tax stamp “At Large” covering his activities throughout the United States with the payment of but one special tax as a retail dealer in liquors or as a retail dealer in beer, as the case may be.
“(2) Dealers On Trains, Aircraft, And Boats.—Nothing contained in this chapter shall prevent the issue, under such regulations as the Secretary may prescribe, of special tax stamps to—
“(A) persons carrying on the business of retail dealers in liquors, or retail dealers in beer, on trains, aircraft, boats or other vessels, engaged in the business of carrying passengers; or
“(B) persons carrying on the business of retail dealers in liquors or retail dealers in beer on boats or other vessels operated by them, when such persons operate from a fixed address in a port or harbor and supply exclusively boats or other vessels, or persons thereon, at such port or harbor.
“(3) Liquor Stores Operated By States, Political Subdivisions, Etc.—A State, a political subdivision of a State, or the District of Columbia shall not be required to pay more than one special tax as a retail dealer in liquors under section 5121(a) regardless of the number of locations at which such State, political subdivision, or District carries on business as a retail dealer in liquors.
“(c) Coordination Of Taxes Under Section 5121.—No tax shall be imposed by section 5121(a) with respect to a person's activities at any place during a year if such person has paid the tax imposed by section 5121(b) with respect to such place for such year.
“(d) Cross References.—
“(1) For exemption of proprietors of distilled spirits plants, bonded wine cellars, and breweries from special tax as dealers, see section 5113(a).
“(2) For provisions relating to sales by creditors, fiduciaries, and officers of courts, see section 5113(c)(1).
“(3) For provisions relating to sales by retiring partners or representatives of deceased partners to incoming or remaining partners, see section 5113(c)(2).
“(4) For provisions relating to return of liquors for credit, refund, or exchange, see section 5113(c)(3).
“(5) For provisions relating to sales by retail dealers in liquidation, see section 5113(e).”
“Sec. 5125. Cross References
“(1) For provisions relating to prohibited purchases by dealers, see section 5117.
“(2) For provisions relating to presumptions of liability as wholesale dealer in case of sale of 20 wine gallons or more, see section 5691(b).”
AMENDMENTS
2005—Sec. 5114. Pub. L. 109-59, Sec. 11125(b)(5), redesignated Sec. 5114 as Sec. 5432. Note, however, that it appears that it should have been redesignated as Sec. 5121.
Sec. 5432[5121]. Pub. L. 109-59, Sec. 11125(b)(5), substituted “Recordkeeping by Wholesale Dealers" for “Records”.
Subsec. (c). Pub. L. 109-59, Sec. 11125(b)(5), redesignated subsec. (c) as subsec. (d) and added a subsec. (c).
Subsec. (d). Pub. L. 109-59, Sec. 11125(b)(5), amended subsec. (d), as redesignated, by substituting “section 5123" for “section 5146”.
1976--Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
Subsec. (b). Pub. L. 94-455, Sec. 1905(c)(1), 1906(b)(13)(A), struck out “or Territory” after “a State”, “Territories" after “States,”, and “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendments by section 11125(b)(5) of Pub. L. 109-59 effective July 1, 2008, but does not apply to taxes imposed before such date.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(c)(1) of Pub. L. 94-455 effective on the first day of the 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.
Prior Provisions
A prior section 5114, act Aug. 16, 1954, ch. 736, 68A Stat. 619, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 8

I.R.C. § 5201(a) General — Proprietors of distilled spirits plants shall conduct all operations authorized to be conducted on the premises of such plants under such regulations as the Secretary shall prescribe.
I.R.C. § 5201(b) Distilled Spirits For Industrial Uses — The regulations of the Secretary under this chapter respecting the production, warehousing, denaturing, distribution, sale, export, and use of distilled spirits for industrial purposes shall be such as he deems necessary, advisable, or proper to secure the revenue, to prevent diversion to illegal uses, and to place the distilled spirits industry and other industries using such distilled spirits as a chemical raw material or for other lawful industrial purposes on the highest possible plane of scientific and commercial efficiency and development consistent with the provisions of this chapter. Where nonpotable chemical mixtures containing distilled spirits are produced for transfer to the bonded premises of a distilled spirits plant for completion of processing, the Secretary may waive any provision of this chapter with respect to the production of such mixtures, and the processing of such mixtures on the bonded premises shall be deemed to be production of distilled spirits for purposes of this chapter.
I.R.C. § 5201(c) Hours Of Operations — The Secretary may prescribe regulations relating to hours for distillery operations and to hours for removal of distilled spirits from distilled spirits plants; however, such regulations shall not be more restrictive, as to any operation or function, that the provisions of internal revenue law and regulations relating to such operation or function in effect on the day preceding the effective date of this section.
I.R.C. § 5201(d) Identification Of Distilled Spirits — The Secretary may provide by regulations for the addition of tracer elements to distilled spirits to facilitate the enforcement of this chapter. Tracer elements to be added to distilled spirits at any distilled spirits plant under provisions of this subsection shall be of such character and in such quantity as the Secretary may authorize or require, and such as will not impair the quality of the distilled spirits for their intended use.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1357, and amended by Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, 807(a)(21), July 26, 1979, 93 Stat. 283.)
BACKGROUND NOTES
AMENDMENTS
1979--Subsec. (a). Pub. L. 96-39 substituted “all operations authorized to be conducted” for “their operations relating to the production, storage, denaturing, rectification and bottling of distilled spirits, and all other operations authorized to be conducted”.
1976--Subsecs. (a) to (d). Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE
Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85-859, set out as a note under section 5001 of this title.
PRIOR PROVISIONS
Provisions similar to those comprising subsecs. (a) to (c) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85-859, as follows:


Present subsecs.: Prior sections:
(a) ................ 5193(a), 5194(g), 5241(a), 5281, 5282(a), 5302, 5305-5307, 5319(6).
(b) ................ 5305.
The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 633, 636, 640, 644, 651, 654, 657, 661.

I.R.C. § 5203(a) Keeping Premises Accessible — Every proprietor of a distilled spirits plant shall furnish the Secretary such keys as may be required for internal revenue officers to gain access to the premises and any structures thereon, and such premises shall always be kept accessible to any officer having such keys.
I.R.C. § 5203(b) Right Of Entry And Examination — It shall be lawful for any internal revenue officer at all times, as well by night as by day, to enter any distilled spirits plant, or any other premises where distilled spirits operations are carried on, or structure or place used in connection therewith for storage or other purposes; to make examination of the materials, equipment, and facilities thereon; and make such gauges and inventories as he deems necessary. Whenever any officer, having demanded admittance, and having declared his name and office, is not admitted into such premises by the proprietor or other person having charge thereof, it shall be lawful for such officer, at all times, as well by night as by day, to use such force as is necessary for him to gain entry to such premises.
I.R.C. § 5203(c) Furnishing Facilities And Assistance — On the demand of any internal revenue officer or agent, every proprietor of a distilled spirits plant shall furnish the necessary facilities and assistance to enable the officer or agent to gauge the spirits in any container or to examine any apparatus, equipment, containers, or materials on such premises. Such proprietor shall also, on demand of such officer or agent, open all doors, and open for examination all boxes, packages, and all casks, barrels, and other vessels on such premises.
I.R.C. § 5203(d) Authority To Break Up Grounds Or Walls — It shall be lawful for any internal revenue officer, and any person acting in his aid, to break up the ground on any part of a distilled spirits plant or any other premises where distilled spirits operations are carried on, or any ground adjoining or near to such plant or premises, or any wall or partition thereof, or belonging thereto, or other place, to search for any pipe, cock, private conveyance, or utensil; and, upon finding any such pipe or conveyance leading therefrom or thereto, to break up any ground, house, wall, or other place through or into which such pipe or other conveyance leads, and to break or cut away such pipe or other conveyance, and turn any cock, or to examine whether such pipe or other conveyance conveys or conceals any distilled spirits, mash, wort, or beer, or other liquor, from the sight or view of the officer, so as to prevent or hinder him from taking a true account thereof.
I.R.C. § 5203(e) Penalty — For penalty for violation of this section, see section 5687.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1357, and amended by Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, 807(a)(22), July 26, 1979, 93 Stat. 283.)
BACKGROUND NOTES
AMENDMENTS
1979--Subsec. (b). Pub. L. 96-39, 807(a)(22)(A), substituted “where distilled spirits operations are carried on” for “where distilled spirits are produced or rectified”.
Subsec. (c). Pub. L. 96-39, 807(a)(22)(B), substituted “on such premises" for “not under the control of the internal revenue officer in charge”.
Subsec. (d). Pub. L. 96-39, 807(a)(22)(C), substituted “where distilled spirits operations are carried on” for “where distilled spirits are produced or rectified”.
1976--Subsec. (a). Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 1979 AMENDMENTS
Amendments by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
PRIOR PROVISIONS
Provisions similar to those comprising this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85-859, as follows:


Present subsecs.: Prior sections
(a) .................. 5196(a).
(b) .................. 5196(b), (e).
(c) .................. 5196(c), (e), 5283, 5615.
(d) .................. 5196(d), 5283.
(e) .................. 5615, 5687.
The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 636, 652, 686, 700.

I.R.C. § 5207(a) Records Of Distilled Spirits Plant Proprietors — Every distilled spirits plant proprietor shall keep records in such form and manner as the Secretary shall by regulations prescribe of:
I.R.C. § 5207(a)(1) — The following production activities—
I.R.C. § 5207(a)(1)(A) — the receipt of materials intended for use in the production of distilled spirits, and the use thereof,
I.R.C. § 5207(a)(1)(B) — the receipt and use of distilled spirits received for redistillation, and
I.R.C. § 5207(a)(1)(C) — the kind and quantity of distilled spirits produced.
I.R.C. § 5207(a)(2) — The following storage activities—
I.R.C. § 5207(a)(2)(A) — the kind and quantity of distilled spirits, wines, and alcoholic ingredients entered into storage,
I.R.C. § 5207(a)(2)(B) — the kind and quantity of distilled spirits, wines, and alcoholic ingredients removed, and the purpose for which removed, and
I.R.C. § 5207(a)(2)(C) — the kind and quantity of distilled spirits returned to storage.
I.R.C. § 5207(a)(3) — The following denaturation activities—
I.R.C. § 5207(a)(3)(A) — the kind and quantity of denaturants received and used or otherwise disposed of,
I.R.C. § 5207(a)(3)(B) — the kind and quantity of distilled spirits denatured, and
I.R.C. § 5207(a)(3)(C) — the kind and quantity of denatured distilled spirits removed.
I.R.C. § 5207(a)(4) — The following processing activities—
I.R.C. § 5207(a)(4)(A) — all distilled spirits, wines, and alcoholic ingredients received or transferred,
I.R.C. § 5207(a)(4)(B) — the kind and quantity of distilled spirits packaged or bottled, and
I.R.C. § 5207(a)(4)(C) — the kind and quantity of distilled spirits removed from his premises.
I.R.C. § 5207(a)(5) — Such additional information with respect to activities described in paragraphs (1), (2), (3), and (4), and with respect to other activities, as may by regulations be required.
I.R.C. § 5207(b) Reports — Every person required to keep records under subsection (a) shall render such reports covering his operations, at such times and in such form and manner and containing such information, as the Secretary shall by regulations prescribe.
I.R.C. § 5207(c) Preservation And Inspection — The records required by subsection (a) and a copy of each report required by subsection (b) shall be available for inspection by any internal revenue officer during business hours, and shall be preserved by the person required to keep such records and reports for such period as the Secretary shall by regulations prescribe.
I.R.C. § 5207(d) Penalty — For penalty and forfeiture for refusal or neglect to keep records required under this section, or for false entries therein, see sections 5603 and 5615(5).
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1361, and amended by Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 95-176, 2(e), Nov. 14, 1977, 91 Stat. 1364; Pub. L. 96-39, title VIII, 807(a)(25), July 26, 1979, 93 Stat. 283; Pub. L. 98-369, div. A, title IV, 454(c)(6), July 18, 1984, 98 Stat. 821 ;Pub. L. 105-34, title XIV, Sec. 1413(a), Aug. 5, 1997, 111 Stat 788.)
BACKGROUND NOTES
AMENDMENTS
1997-Subsec. (c). Pub. L. 105-34, Sec. 1413(a), amended subsec. (c) struck “shall be kept on the premises where the operations covered by the record are carried on and”.
1984--Subsec. (a)(4)(D). Pub. L. 98-369, 454(c)(6), struck out subpar. (D) which required every distilled spirits plant proprietor to keep records in such form and manner as prescribed by the Secretary of the receipt, use, and balance on hand of all stamps required by law or regulations to be used by the proprietor.
1979--Subsec. (a). Pub. L. 96-39 struck out provisions relating to the bottling of distilled spirits in bond and relating to the kind and quantity of distilled spirits returned to bonded premises and inserted provisions relating to the kind and quantity of distilled spirits returned to storage and relating to receipt, use, and balance on hand of all stamps required by law or regulations to be used by the Secretary.
Subsec. (b). Pub. L. 96-39 redesignated subsec. (c) as (b) and struck out “or (b)” after “subsection (a)”. Former subsec. (b), relating to records of rectifiers and bottlers, was struck out.
Subsec. (c). Pub. L. 96-39 redesignated subsec. (d) as (c), struck out “and (b),” after “subsection (a)”, and substituted “subsection (b)” for “subsection (c)”. Former subsec. (c) redesignated (b).
Subsecs. (d), (e). Pub. L. 96-39 redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).
1977--Subsec. (a)(10), (11). Pub. L. 95-176, 2(e)(2), (3), added par. (10) and redesignated former par. (10) as (11).
1976--Subsecs. (a) to (d). Pub. L. 94--455 struck out “or his delegate” after “Secretary” wherever appearing.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 1413(a) of Pub. L. 105-34 effective on the 1st day of the 1st calendar quarter that begins at least 180 days after the date of the enactment of this Act [Enacted: Aug. 5, 1997].
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 1, 1985, see section 456(b) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1979 AMENDMENTS
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
PRIOR PROVISIONS
Provisions similar to those comprising this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85-859, as follows:


Present subsecs.: Prior sections:
(a) ................... 5197(a)(1)(A), (a)(2), 5305, 5331(a)(3).
(b) ................... 5285, 5555(a).
(c) ................... 5197(b), 5285, 5305, 5331(a)(3), 5555(a).
(d) ................... 5197(a)(1)(B), 5285, 5305, 5331(a)(3), 5555(a).
(e) ................... 5197(c)(2), 5285.
The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 637, 638, 652, 657, 662, 681.
Prior Provisions
A prior part II, Operation, consisted of sections 5241 to 5252, prior to the general revision of this chapter by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1313.

Bulk distilled spirits on which the internal revenue tax has not been paid or determined as authorized by law may, under such regulations as the Secretary shall prescribe, be transferred in bond between bonded premises in any approved container. For the purposes of this chapter, the removal of bulk distilled spirits for transfer in bond between bonded premises shall not be construed to be a withdrawal from bonded premises. The provisions of this section restricting transfers to bulk distilled spirits shall not apply to alcohol bottled under the provisions of section 5235 which is to be withdrawn for industrial purposes. In the case of distilled spirits transferred in bond after December 31, 2017, between bonded premises belonging to the same person or members of the same controlled group (within the meaning of section 5001(c)(2)) this section shall be applied without regard to whether distilled spirits are bulk distilled spirits. In the case of distilled spirits transferred in bond from the person who distilled or processed such distilled spirits (hereinafter referred to as ‘transferor’) to another person for bottling or storage of such distilled spirits, and returned to the transferor for removal, this section shall be applied without regard to whether distilled spirits are bulk distilled spirits, but only if the transferor retains title during the entire period between such distillation, or processing, and removal.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1362, and amended by Pub. L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96-39, title VIII, 805(b)(2), July 26, 1979, 93 Stat. 276; Pub. L. 96-598, 6(d), Dec. 24, 1980, 94 Stat. 3490; Pub. L. 115-97, title I, Sec. 13808(a), Dec. 22, 2017; Pub. L. 116-94, title I, Sec. 144(h)(1), Dec. 20, 2019; Pub. L. 116-260, Div. EE, title I, Sec. 106(h), Dec. 27, 2020, 134 Stat. 1182.)
BACKGROUND NOTES
AMENDMENTS
2020 - Sec. 5212. Pub. L. 116-260, Div. EE, Sec. 106(h)(1), substituted “between bonded premises belonging to the same person or members of the same controlled group (within the meaning of section 5001(c)(2))” for “and before January 1, 2021,”.
Sec. 5212. Pub. L. 116-260, Div. EE, Sec. 106(h)(2), added a new sentence at the end.
2019 - Sec. 5212. Pub. L. 116-94, Sec. 144(h)(1), amended this section by substituting “January 1, 2021” for “January 1, 2020”.
2017—Pub. L. 115-97, Sec. 13808(a), added the sentence at the end.
1980--Pub. L. 96-598 inserted provision that restriction on transfers to bulk distilled spirits not apply to alcohol bottled under section 5235 of this title which is to be withdrawn for industrial purposes.
1979--Pub. L. 96-39 substituted “Bulk distilled spirits” for “Distilled spirits” and “bulk distilled spirits” for “distilled spirits”.
1976--Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 2020 AMENDMENTS
Amendments by Pub. L. 116-260, Div. EE, Sec. 106(h), effective for distilled spirits transferred in bond after December 31, 2020.
EFFECTIVE DATE OF 2019 AMENDMENT
Amendment by Pub. L. 116-94, Sec. 144(h)(1), effective for distilled spirits transferred in bond after December 31, 2019.
EFFECTIVE DATE OF 2017 AMENDMENT
Amendment by Pub. L. 115-97, Sec. 13808(a), effective for distilled spirits transferred in bond after December 31, 2017.
Sec. 41111 of Pub. L. 115-123 provided that:
“SEC. 41111. RULE OF CONSTRUCTION FOR CRAFT BEVERAGE MODERNIZATION AND TAX REFORM
“(a) IN GENERAL.—Subpart A of part IX of subtitle C of title I of Public Law 115–97 is amended by adding at the end the following new section:
‘SEC. 13809. RULE OF CONSTRUCTION.—Nothing in this subpart, the amendments made by this subpart, or any regulation promulgated under this subpart or the amendments made by this subpart, shall be construed to preempt, supersede, or otherwise limit or restrict any State, local, or tribal law that prohibits or regulates the production or sale of distilled spirits, wine, or malt beverages.’.
“(b) EFFECTIVE DATE.—The amendment made by this section shall take effect as if included in Public Law 115–97.”
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
PRIOR PROVISIONS
A prior section 5212, act Aug. 16, 1954, ch. 736, 68A Stat. 639, related to the prevention and detection of fraud and contained a cross reference to provisions for gauging and marking of spirits, prior to the general revision of this chapter by Pub. L. 85-859. See section 5204(b) of this title.
Provisions similar to those comprising this section were contained in prior sections 5194(a), (e) to (g), 5217(a), 5246, 5308, act Aug. 16, 1954, ch. 736, 68A Stat. 634 to 636, 641, 647, 657, prior to the general revision of this chapter by Pub. L. 85-859.

I.R.C. § 5214(a) Purposes — Distilled spirits on which the internal revenue tax has not been paid or determined may, subject to such regulations as the Secretary shall prescribe, be withdrawn from the bonded premises of any distilled spirits plant in approved containers—
I.R.C. § 5214(a)(1) — free of tax after denaturation of such spirits in the manner prescribed by law for—
I.R.C. § 5214(a)(1)(A) — exportation;
I.R.C. § 5214(a)(1)(B) — use in the manufacture of ether, chloroform, or other definite chemical substance where such distilled spirits are changed into some other chemical substance and do not appear in the finished product; or
I.R.C. § 5214(a)(1)(C) — any other use in the arts and industries (except for uses prohibited by section 5273(b) or (d)) and for fuel, light, and power; or
I.R.C. § 5214(a)(2) — free of tax by, and for the use of, the United States or any governmental agency thereof, any State, any political subdivision of a State, or the District of Columbia, for nonbeverage purposes; or
I.R.C. § 5214(a)(3) — free of tax for nonbeverage purposes and not for resale or use in the manufacture of any product for sale—
I.R.C. § 5214(a)(3)(A) — for the use of any educational organization described in section 170(b)(1)(A)(ii) which is exempt from income tax under section 501(a), or for the use of any scientific university or college of learning;
I.R.C. § 5214(a)(3)(B) — for any laboratory for use exclusively in scientific research;
I.R.C. § 5214(a)(3)(C) — for use at any hospital, blood bank, or sanitarium), (including use in making any analysis or test at such hospital, blood bank, or sanitarium), or at any pathological laboratory exclusively engaged in making analyses, or tests, for hospitals or sanitariums; or
I.R.C. § 5214(a)(3)(D) — for the use of any clinic operated for charity and not for profit (including use in the compounding of bona fide medicines for treatment outside of such clinics of patients thereof); or
I.R.C. § 5214(a)(4) — without payment of tax for exportation, after making such application and entries, filing such bonds as are required by section 5175, and complying with such other requirements as may by regulations be prescribed; or
I.R.C. § 5214(a)(5) — without payment of tax for use in wine production, as authorized by section 5373; or
I.R.C. § 5214(a)(6) — without payment of tax for transfer to manufacturing bonded warehouses for manufacturing in such warehouses for export, as authorized by law; or
I.R.C. § 5214(a)(7) — without payment of tax for use of certain vessels and aircraft, as authorized by law; or
I.R.C. § 5214(a)(8) — without payment of tax for transfer to foreign-trade zones, as authorized by law; or
I.R.C. § 5214(a)(9) — without payment of tax, for transfer (for the purpose of storage pending exportation) to any customs bonded warehouse from which distilled spirits may be exported, and distilled spirits transferred to a customs bonded warehouse under this paragraph shall be entered, stored, and accounted for under such regulations and bonds as the Secretary may prescribe; or
I.R.C. § 5214(a)(10) — without payment of tax by a proprietor of bonded premises for use in research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials, or equipment, relating to distilled spirits or distilled spirits operations, under such limitations and conditions as to quantities, use, and accountability as the Secretary may by regulations require for the protection of the revenue; or
I.R.C. § 5214(a)(11) — free of tax when contained in an article (within the meaning of section 5002(a)(14)); or
I.R.C. § 5214(a)(12) — free of tax in the case of distilled spirits produced under section 5181; or
I.R.C. § 5214(a)(13) — without payment of tax for use on bonded wine cellar premises in the production of wine or wine products which will be rendered unfit for beverage use and removed pursuant to section 5362(d); or
I.R.C. § 5214(a)(14) — with respect to distilled spirits removed after December 31, 2019, and before January 1, 2021, free of tax for use in or contained in hand sanitizer produced and distributed in a manner consistent with any guidance issued by the Food and Drug Administration that is related to the outbreak of virus SARS-CoV-2 or coronavirus disease 2019 (COVID-19).
I.R.C. § 5214(b) Cross References
I.R.C. § 5214(b)(1) — For provisions relating to denaturation, see sections 5241 and 5242.
I.R.C. § 5214(b)(2) — For provisions requiring permit for users of distilled spirits withdrawn free of tax and for users of specially denatured distilled spirits, see section 5271.
I.R.C. § 5214(b)(3) — For provisions relating to withdrawal of distilled spirits without payment of tax for use of certain vessels and aircraft, as authorized by law, see 19 U.S.C. 1309.
I.R.C. § 5214(b)(4) — For provisions relating to withdrawal of distilled spirits without payment of tax for manufacture in manufacturing bonded warehouse, see 19 U.S.C. 1311.
I.R.C. § 5214(b)(5) — For provisions relating to foreign-trade zones, see 19 U.S.C. 81c.
I.R.C. § 5214(b)(6) — For provisions authorizing regulations for withdrawal of distilled spirits free of tax for use of the United States, see section 7510.
I.R.C. § 5214(b)(7) — For provisions authorizing removal of distillates to bonded wine cellars for use in the production of distilling material, see section 5373(c).
I.R.C. § 5214(b)(8) — For provisions relating to distilled spirits for use of foreign embassies, legations, etc., see section 5066.
(Added by Pub. L. 85-859, title II, 201, Sept. 2, 1958, 72 Stat. 1362, and amended by Pub. L. 91-172, title I, 101(j)(29), Dec. 30, 1969, 83 Stat. 529; Pub. L. 94-455, title XIX, 1905(c)(2), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1823, 1834; Pub. L. 95-176, 3(a), (d), 4(a), Nov. 14, 1977, 91 Stat. 1365; Pub. L. 96-39, title VIII, 807(a)(28), July 26, 1979, 93 Stat. 285; Pub. L. 96-223, title II, 232(e)(2)(B), Apr. 2, 1980, 94 Stat. 280; Pub. L. 98-369, div. A, title IV, 455(a), July 18, 1984, 98 Stat. 823; Pub. L. 116-136, Div. A, title II, Sec. 2308(a)(1), Mar. 27, 2020.)
BACKGROUND NOTES
AMENDMENTS
2020--Subsec. (a)(14). Pub. L. 116-136, sec. 2308(a)(1), added par. (14).
1984--Subsec. (a)(13). Pub. L. 98-369 added par. (13).
1980--Subsec. (a)(12). Pub. L. 96-223 added par. (12).
1979--Subsec. (a)(6). Pub. L. 96-39, 807(a)(28)(A), inserted “for manufacturing in such warehouses for export” after “bonded warehouses" and substituted “by law” for “by section 5522(a)”.
Subsec. (a)(9). Pub. L. 96-39, 807(a)(28)(B), struck out “in the case of distilled spirits bottled in bond for export under section 5233 or distilled spirits returned to bonded premises under section 5215(b)," after “payment of tax,”.
Subsec. (a)(10). Pub. L. 96-39, 807(a)(28)(C), (D), substituted “distilled spirits operations” for “distillery operations”.
Subsec. (a)(11). Pub. L. 96-39, 807(a)(28)(D), added par. (11).
Subsec. (b)(4) to (8). Pub. L. 96-39, 807(a)(28)(E), added par. (4) and redesignated former pars. (4) to (7) as (5) to (8), respectively.
1977--Subsec. (a)(9). Pub. L. 95-176, 3(a), substituted provisions for withdrawal of distilled spirits from bonded premises without payment of tax where the distilled spirits are bottled in bond for export or are returned to bonded premises for transfer (for the purpose of storage pending exportation) to any customs bonded warehouse for exportation and requiring the transferred distilled spirits to be entered, stored, and accounted for, for prior provision for tax free withdrawals for use as samples in making tests or laboratory analyses.
Subsec. (a)(10). Pub. L. 95-176, 4(a), added par. (10).
Subsec. (b)(7). Pub. L. 95-176, 3(d), added par. (7).
1976--Subsec. (a). Pub. L. 94-455 struck out “or his delegate” after “Secretary” in introductory provisions and struck out “or Territory” after “State” in par. (2).
1969--Subsec. (a)(3)(A). Pub. L. 91-172 substituted “section 170(b)(1)(A)(ii)” for “section 503(b)(2)”.
EFFECTIVE DATE OF 2020 AMENDMENT
Amendment by Pub. L. 116-136, sec. 2308(a)(1), effective for distilled spirits removed after December 31, 2019.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 effective July 18, 1984, see section 456(c) of Pub. L. 98-369, set out as an Effective Date note under section 5101 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-223 effective on the first day of the first calendar month beginning more than 60 days after Apr. 2, 1980, see section 232(h)(3) of Pub. L. 96-223, set out as an Effective Date note under section 5181 of this title.
EFFECTIVE DATE OF 1979 AMENDMENT
Amendment by Pub. L. 96-39 effective Jan. 1, 1980, see section 810 of Pub. L. 96-39, set out as a note under section 5001 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-176 effective on the first day of the first calendar month beginning more than 90 days after Nov. 14, 1977, see section 7 of Pub. L. 95-176, set out as a note under section 5003 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(c)(2) of Pub. L. 94-455 effective on the first day of the 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 1969 AMENDMENT
Amendment by Pub. L. 91-172 effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as an Effective Date note under section 4940 of this title.
PRIOR PROVISIONS
A prior section 5214, act Aug. 16, 1954, ch. 736, 68A Stat. 639, related to regulation of traffic in containers of distilled spirits, prior to the general revision of this chapter by Pub. L. 85-859. See section 5301(a), (c), (d) of this title.
Provisions similar to those comprising subsecs. (a), (1) to (4), (9), (b)(3) to (5) of this section were contained in prior sections of act Aug. 16, 1954, prior to the general revision of this chapter by Pub. L. 85-859, as follows:


Present subsecs.: Prior sections
(a) ................... 5243(e), 5247, 5310(a)-(c), 5331 (a)(1), (b), 5373(b)(4), 5522(a).
(a)(1) ................ 5310(a), 5331(a)(1), (b).
(a)(2), (3) ........... 5310(b), (c).
(a)(4) ................ 5243(e), 5247.
(a)(9) ................ 5373(b)(4).
(b)(3) ................ 5248(2).
(b)(4) ................ 5248(4).
(b)(5) ................ 5248(3).
The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A Stat. 646-648, 658, 661, 662, 667. :zzz

Re: Dear Filipino's and Filipina's
Postby sophocles » Mon Apr 12, 2021 11:40 pm



When used in this chapter—
I.R.C. § 5702(a) Cigar — “Cigar” means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsection (b)(2)).
I.R.C. § 5702(b) Cigarette — “Cigarette” means—
I.R.C. § 5702(b)(1) — any roll of tobacco wrapped in paper or in any substance not containing tobacco, and
I.R.C. § 5702(b)(2) — any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1).
I.R.C. § 5702(c) Tobacco Products — “Tobacco products” means cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco.
I.R.C. § 5702(d) Manufacturer Of Tobacco Products — “Manufacturer of tobacco products” means any person who manufactures cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco, except that such term shall not include—
I.R.C. § 5702(d)(1) — a person who produces cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own tobacco solely for the person's own personal consumption or use, and
I.R.C. § 5702(d)(2) — a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse.
Such term shall include any person who for commercial purposes makes available for consumer use (including such consumer's personal consumption or use under paragraph (1)) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal as defined by subsection (j) with respect to any tobacco products manufactured by such machine. A person who sells a machine directly to a consumer at retail for a consumer's personal home use is not making a machine available for commercial purposes if such machine is not used at a retail premises and is designed to produce tobacco products only in personal use quantities.
I.R.C. § 5702(e) Cigarette Paper — “Cigarette paper” means paper, or any other material except tobacco, prepared for use as a cigarette wrapper.
I.R.C. § 5702(f) Cigarette Tube — “Cigarette tube” means cigarette paper made into a hollow cylinder for use in making cigarettes.
I.R.C. § 5702(g) Manufacturer Of Cigarette Papers And Tubes — “Manufacturer of cigarette papers and tubes” means any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for his own personal use or consumption.
I.R.C. § 5702(h) Export Warehouse — “Export warehouse” means a bonded internal revenue warehouse for the storage of tobacco products or cigarette papers or tubes or any processed tobacco, upon which the internal revenue tax has not been paid, for subsequent shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States.
I.R.C. § 5702(i) Export Warehouse Proprietor — “Export warehouse proprietor” means any person who operates an export warehouse.
I.R.C. § 5702(j) Removal Or Remove — “Removal” or “remove” means the removal of tobacco products or cigarette papers or tubes, or any processed tobacco, from the factory or from internal revenue bond under section 5704, as the Secretary shall by regulation prescribe, or release from customs custody, and shall also include the smuggling or other unlawful importation of such articles into the United States.
I.R.C. § 5702(k) Importer — “Importer” means any person in the United States to whom nontaxpaid tobacco products or cigarette papers or tubes, or any processed tobacco, manufactured in a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States are shipped or consigned; any person who removes cigars or cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse; and any person who smuggles or otherwise unlawfully brings tobacco products or cigarette papers or tubes, or any processed tobacco, into the United States.
I.R.C. § 5702(l) Determination Of Price On Cigars — In determining price for purposes of section 5701(a)(2)—
I.R.C. § 5702(l)(1) — there shall be included any charge incident to placing the article in condition ready for use,
I.R.C. § 5702(l)(2) — there shall be excluded—
I.R.C. § 5702(l)(2)(A) — the amount of the tax imposed by this chapter or section 7652, and
I.R.C. § 5702(l)(2)(B) — if stated as a separate charge, the amount of any retail sales tax imposed by any State or political subdivision thereof or the District of Columbia, whether the liability for such tax is imposed on the vendor or vendee, and
I.R.C. § 5702(l)(3) — rules similar to the rules of section 4216(b) shall apply.
I.R.C. § 5702(m) Definitions Relating To Smokeless Tobacco
I.R.C. § 5702(m)(1) Smokeless Tobacco — The term “smokeless tobacco” means any snuff or chewing tobacco.
I.R.C. § 5702(m)(2) Snuff — The term “snuff” means any finely cut, ground, or powdered tobacco that is not intended to be smoked.
I.R.C. § 5702(m)(3) Chewing Tobacco — The term “chewing tobacco” means any leaf tobacco that is not intended to be smoked.
I.R.C. § 5702(n) Pipe Tobacco — The term “pipe tobacco” means any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe.
I.R.C. § 5702(o) Roll-Your-Own Tobacco — The term “roll-your-own tobacco” means any tobacco which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes or cigars, or for use as wrappers thereof.
I.R.C. § 5702(p) Manufacturer Of Processed Tobacco
I.R.C. § 5702(p)(1) In General — The term “manufacturer of processed tobacco” means any person who processes any tobacco other than tobacco products.
I.R.C. § 5702(p)(2) Processed Tobacco — The processing of tobacco shall not include the farming or growing of tobacco or the handling of tobacco solely for sale, shipment, or delivery to a manufacturer of tobacco products or processed tobacco.
(Aug. 16, 1954, ch. 736, 68A Stat. 706; Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 202, 72 Stat. 1415; June 21, 1965, Pub. L. 89-44, title V, Sec. 502(b)(3), title VIII, Sec. 808(a), 79 Stat. 151, 164; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), title XXI, Sec. 2128(b), 90 Stat. 1834, 1921; Apr. 7, 1986, Pub. L. 99-272, title XIII, Sec. 13202(b)(2)-(4), 100 Stat. 312; Nov. 10, 1988, Pub. L. 100-647, title V, Sec. 5061(b)-(c)(2), 102 Stat. 3679; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11202(g), 104 Stat. 1388-419; Dec. 21, 2000, Pub. L. 106-554, Sec. 315, 114 Stat. 2763; Feb. 4, 2009, Pub. L. 111-3, title VII, Sec. 702(a), (d), 123 Stat. 8; Pub. L. 112-141, Sec. 100122(a), July 6, 2012, 126 Stat. 405.)
BACKGROUND NOTES
AMENDMENTS
2012 - Subsec. (d). Pub. L. 112-141, Sec. 100122(a), amended subsec. (d) by adding the flush sentence at the end.
2009 - Subsec. (h). Pub. L. 111-3, Sec. 702(a)(5)(A), amended subsec. (h) by substituting “tobacco products or cigarette papers or tubes or any processed tobacco” for “tobacco products and cigarette papers and tubes”.
Subsec. (j). Pub. L. 111-3, Sec. 702(a)(5)(B), amended subsec. (j) by inserting “, or any processed tobacco,” after “tobacco products or cigarette papers or tubes”.
Subsec. (k). Pub. L. 111-3, Sec. 702(a)(5)(B), amended subsec. (k) by inserting “, or any processed tobacco,” after “tobacco products or cigarette papers or tubes”.
Subsec. (o). Pub. L. 111-3, Sec. 702(d)(1), amended subsec. (o) by inserting “or cigars, or for use as wrappers thereof” before the period at the end.
Subsec. (p). Pub. L. 111-3, Sec. 702(a)(4), added subsec. (p).
2000 - Subsec. (f). Pub. L. 106-554, Sec. 315(a)(2), struck subsec. (f). Before being struck, it read as follows:
(f). Cigarette papers.
“‘Cigarette papers’ means taxable books or sets of cigarette papers.”
Subsec. (g)-(p). Pub. L. 106-554, Sec. 315(a)(2), redesignated subsecs. (g)-(p) as subsecs. (f)-(o), respectively.
Subsec. (h). Pub. L. 106-554, Sec. 315(a)(2)(A) amended subsec. (h), before its redesignation. Before it was amended, it read as follows:
“(h) Manufacturer of cigarette papers and tubes
“Manufacturer of cigarette papers and tubes” means any person who makes up cigarette paper into books or sets containing more than 25 papers each, or into tubes, except for his own personal use or consumption.”
1997 - Subsec. (c). Pub. L. 105-33, Sec. 9302(g)(3)(A) substituted ‘pipe tobacco, and roll-your-own tobacco’ for ‘and pipe tobacco’.
Subsec. (d). Pub. L. 105-33, Sec. 9302(g)(3)(B)(i) substituted ‘pipe tobacco, or roll your own tobacco’ for ‘or pipe tobacco’.
Subsec. (d)(1). Pub. L. 105-33, Sec. 9302(g)(3)(B)(ii) amended paragraph (1). Prior to amendment it read as follows:
‘(1) a person who produces cigars, cigarettes, smokeless tobacco, or pipe tobacco solely for his own personal consumption or use; or’
Subsec. (k). Pub. L. 105-33, Sec. 9302(h)(4) inserted ‘under section 5704’ after ‘internal revenue bond’.
Subsec. (p). Pub. L. 105-33, Sec. 9302(g)(2) added new subsec. (p).
1990 - Subsec. (m). Pub. L. 101-508 substituted heading for one which read: ‘Wholesale price’ and amended text generally. Prior to amendment, text read as follows: ‘ ‘Wholesale price’ means the manufacturer's, or importer's, suggested delivered price at which the cigars are to be sold to retailers, inclusive of the tax imposed by this chapter or section 7652, but exclusive of any State or local taxes imposed on cigars as a commodity, and before any trade, cash, or other discounts, or any promotion, advertising, display, or similar allowances. Where the manufacturer's or importer's suggested delivered price to retailers is not adequately supported by bona fide arm's length sales, or where the manufacturer or importer has no suggested delivered price to retailers, the wholesale price shall be the price for which cigars of comparable retail price are sold to retailers in the ordinary course of trade as determined by the Secretary.'
1988 - Subsec. (c). Pub. L. 100-647, Sec. 5061(c)(1), inserted reference to pipe tobacco.
Subsec. (d). Pub. L. 100-647, Sec. 5061(c)(2), inserted reference to pipe tobacco in introductory provisions and in par. (1).
Subsec. (o). Pub. L. 100-647, Sec. 5061(b), added subsec. (o).
1986 - Subsec. (c). Pub. L. 99-272, Sec. 13202(b)(2), inserted reference to smokeless tobacco.
Subsec. (d). Pub. L. 99-272, Sec. 13202(b)(3), inserted references to smokeless tobacco.
Subsec. (n). Pub. L. 99-272, Sec. 13202(b)(4), added subsec. (n).
1976 - Subsec. (k). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ‘or his delegate’ after ‘Secretary’.
Subsec. (m). Pub. L. 94-455, Sec. 2128(b), added subsec. (m).
1965 - Subsec. (a). Pub. L. 89-44, Sec. 502(b)(3)(A), 808(a), redesignated subsec. (b) as (a), repealed former subsec. (a) which related to manufactured tobacco and, in subsec. (a) as so redesignated, allowed the use of any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsec. (b)(2) as a wrapper in addition to the leaf tobacco previously allowed.
Subsec. (b). Pub. L. 89-44, Sec. 502(b)(3)(A), 808(a), redesignated subsec. (c) as (b) and permitted the use, as a wrapper for cigarettes in addition to paper and substances other than tobacco as previously allowed, any substance containing tobacco, which, because of the finished product's appearance, tobacco type, labeling, and packaging, is likely to be offered to or purchased by consumers as cigarettes. Former subsec. (b) redesignated (a).
Subsec. (c). Pub. L. 89-44, Sec. 502(b)(3)(A), (B), redesignated subsec. (d) as (c) and struck out reference to manufactured tobacco. Former subsec. (c) redesignated (b).
Subsec. (d). Pub. L. 89-44, Sec. 502(b)(3)(A), (C), redesignated subsec. (e) as (d), and simplified the definition of manufacturer of tobacco products to include only persons who manufacture cigars or cigarettes and reduced the area of excluded activities so as to exclude only persons producing cigars and cigarettes solely for their own personal use and proprietors of customs bonded manufacturing warehouses with respect to the operation of such warehouses. Former subsec. (d) redesignated (c).
Subsecs. (e) to (k). Pub. L. 89-44, Sec. 502(b)(3)(A) redesignated subsecs. (f) to (k) and (n) as (e) to (j) and (k), respectively. Former subsec. (e) redesignated (d).
Subsec. (l). Pub. L. 89-44, Sec. 502(b)(3)(A), redesignated subsec. (o) as (l) and repealed former subsec. (l) which related to tobacco materials.
Subsec. (m). Pub. L. 89-44, Sec. 502(b)(3)(A), repealed subsec. (m) which related to tobacco dealers.
Subsecs. (n), (o). Pub. L. 89-44, Sec. 502(b)(3)(A), redesignated subsec. (n) and (o) as (k) and (l), respectively.
1958 - Subsec. (a). Pub. L. 85-859 inserted the term ‘for removal, or merely removed’.
Subsecs. (b) to (d). Pub. L. 85-859 redesignated subsecs. (c), (d), and (f) as (b), (c), and (d), respectively. Former subsecs. (b), (c), and (d) redesignated (e), (b), and (c), respectively.
Subsec. (e). Pub. L. 85-859 consolidated the definitions ‘manufacturer of tobacco’ and ‘manufacturer of cigars and cigarettes’, inserted the phrase ‘for removal, or merely removes’, excluded from the definition a proprietor of a customs bonded manufacturing warehouse with respect to the operation of the warehouse, and required bona fide associations of farmers or growers to maintain records of leaf tobacco.
Subsec. (f). Pub. L. 85-859 redesignated subsec. (g) as (f) and former subsec. (f) as (d).
Subsec. (g). Pub. L. 85-859 added subsec. (g) and redesignated former subsec. (g) as (f).
Subsec. (i). Pub. L. 85-859 substituted ‘into books or sets containing more than 25 papers each, or into tubes’ for ‘into packages, books, sets, or tubes’.
Subsec. (j). Pub. L. 85-859 substituted provisions defining ‘export warehouse’ for provisions which defined ‘article’ as manufactured tobacco, cigars, cigarettes, and cigarette papers and tubes.
Subsec. (k). Pub. L. 85-859 added subsec. (k) and redesignated former subsec. (k) as (l).
Subsec. (l). Pub. L. 85-859 redesignated former subsec. (k) as (l) and substituted ‘other than manufactured tobacco, cigars, and cigarettes’ for ‘in process, leaf tobacco, and tobacco scraps, cuttings, clippings, siftings, dust, stems, and waste’. Former subsec. (l) redesignated (m).
Subsec. (m). Pub. L. 85-859 redesignated former subsec. (l) as (m) and included within the definition persons who receive tobacco materials, other than stems and waste, for use in the production of fertilizer, insecticide, or nicotine, required associations of farmers or growers of tobacco to maintain records of all leaf tobacco acquired or received and sold or otherwise disposed of, and excluded from the definition persons who buy leaf tobacco without taking physical possession of the tobacco and qualified manufacturers of tobacco products. Former subsec. (m) redesignated (n).
Subsec. (n). Pub. L. 85-859 redesignated former subsec. (m) as (n) and substituted ‘tobacco products or cigarette papers or tubes’ for ‘articles’. Former subsec. (n) redesignated (o).
Subsec. (o). Pub. L. 85-859 redesignated former subsec. (n) as (o) and substituted ‘tobacco products or cigarette papers or tubes’ for ‘articles’ in two places, and inserted provisions to include within the definition persons who remove cigars or cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse.
EFFECTIVE DATE OF 2012 AMENDMENT
Amendment by Sec. 100122(a) of Pub. L. 112-141 effective for articles removed after the date of the enactment of this Act [Enacted: July 6, 2012].
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by Sec. 702(a) of Pub. L. 111-3 effective April 1, 2009.
Amendment by Sec. 702(d) of Pub. L. 111-3 effective for articles removed (as defined in section 5702(j) of the Internal Revenue Codeof 1986) after March 31, 2009.
Sec. 702(g) provided the following transitional rule:
“(g) Transitional Rule.— Any person who—
“(1) on April 1, 2009 is engaged in business as a manufacturer of processed tobacco or as an importer of processed tobacco, and
“(2) before the end of the 90-day period beginning on such date, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.”
EFFECTIVE DATE OF 2000 AMENDMENTS
Section 315(b) of Pub. L. 106-554 provided that: “The amendments made by this section shall take effect as if included in section 9302 of the Balanced Budget Act of 1997.
EFFECTIVE DATE OF 1997 AMENDMENTS
Section 9302(i) of Pub. L. 105-33 provided that:
“(1) IN GENERAL--The amendments made by this section shall apply to articles removed (as defined in section 5702(k) of the Internal Revenue Code of 1986, as amended by this section) after December 31, 1999.
“(2) TRANSITIONAL RULE--Any person who---
“(A) on the date of the enactment of this Act is engaged in business as a manufacturer of roll-your-own tobacco or as an importer of tobacco products or cigarette papers and tubes, and
“(B) before January 1, 2000, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.”
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 applicable with respect to articles removed after Dec. 31, 1990, see section 11202(h) of Pub. L. 101-508, set out as a note under section 5701 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 applicable to pipe tobacco removed, within the meaning of subsec. (k) of this section, after Dec. 31, 1988, with transition rule, see section 5061(d) of Pub. L. 100-647, set out as a note under section 5701 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-272 applicable to smokeless tobacco removed after June 30, 1986, see section 13202(c) of Pub. L. 99-272, set out as a note under section 5701 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 2128(b) of Pub. L. 94-455 effective on first month which begins more than 90 days after Oct. 4, 1976, see section 2128(e) of Pub. L. 94-455, set out as a note under section 5701 of this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment by section 502(b)(3) of 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.
Section 808(d)(1) of Pub. L. 89-44 provided that: ‘The amendments made by subsections (a) and (b)(3) (amending this section and section 7652 of this title) shall take effect on July 1, 1965.’
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-859 effective 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.
COORDINATION WITH TOBACCO INDUSTRY SETTLEMENT
Section 9302(k) of Pub. L. 105-33, as added by Sec. 1604(f)(3) of Pub. L. 105-34, provided that:
“The increase in excise taxes collected as a result of the amendments made by subsections (a), (e), and (g) of this section shall be credited against the total payments made by parties pursuant to Federal legislation implementing the tobacco industry settlement agreement of June 20, 1997.”

I.R.C. § 5701(a) Cigars — On cigars, manufactured in or imported into the United States, there shall be imposed the following taxes:
I.R.C. § 5701(a)(1) Small Cigars — On cigars, weighing not more than 3 pounds per thousand, $50.33 per thousand;
I.R.C. § 5701(a)(2) Large Cigars — On cigars weighing more than 3 pounds per thousand, a tax equal to 52.75 percent of the price for which sold but not more than 40.26 cents per cigar.
Cigars not exempt from tax under this chapter which are removed but not intended for sale shall be taxed at the same rate as similar cigars removed for sale.
I.R.C. § 5701(b) Cigarettes — On cigarettes, manufactured in or imported into the United States, there shall be imposed the following taxes:
I.R.C. § 5701(b)(1) Small Cigarettes — On cigarettes, weighing not more than 3 pounds per thousand, $50.33 per thousand;
I.R.C. § 5701(b)(2) Large Cigarettes — On cigarettes, weighing more than 3 pounds per thousand, $105.69 per thousand; except that, if more than 6 1/2 inches in length, they shall be taxable at the rate prescribed for cigarettes weighing not more than 3 pounds per thousand, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette.
I.R.C. § 5701(c) Cigarette Papers — On cigarette papers, manufactured in or imported into the United States, there shall be imposed a tax of 3.15 cents for each 50 papers or fractional part thereof; except that, if cigarette papers measure more than 6 1/2 inches in length, they shall be taxable at the rate prescribed, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette paper.
I.R.C. § 5701(d) Cigarette Tubes — On cigarette tubes, manufactured in or imported into the United States, there shall be imposed a tax of 6.30 cents for each 50 tubes or fractional part thereof, except that if cigarette tubes measure more than 6 1/2 inches in length, they shall be taxable at the rate prescribed, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette tube.
I.R.C. § 5701(e) Smokeless Tobacco — On smokeless tobacco, manufactured in or imported into the United States, there shall be imposed the following taxes:
I.R.C. § 5701(e)(1) Snuff — On snuff, $1.51 per pound and a proportionate tax at the like rate on all fractional parts of a pound.
I.R.C. § 5701(e)(2) Chewing Tobacco — On chewing tobacco, 50.33 cents per pound and a proportionate tax at the like rate on all fractional parts of a pound.
I.R.C. § 5701(f) Pipe Tobacco — On pipe tobacco, manufactured in or imported into the United States, there shall be imposed a tax of $2.8311 cents per pound (and a proportionate tax at the like rate on all fractional parts of a pound).
I.R.C. § 5701(g) Roll-Your-Own Tobacco — On roll-your-own tobacco, manufactured in or imported into the United States, there shall be imposed a tax of $24.78 per pound (and a proportionate tax at the like rate on all fractional parts of a pound).
I.R.C. § 5701(h) Imported Tobacco Products And Cigarette Papers And Tubes — The taxes imposed by this section on tobacco products and cigarette papers and tubes imported into the United States shall be in addition to any import duties imposed on such articles, unless such import duties are imposed in lieu of internal revenue tax.
(Aug. 16, 1954, ch. 736, 68A Stat. 705; Mar. 30, 1955, ch. 18, Sec. 3(a)(9), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(9), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85-12, Sec. 3(a)(7), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec. 3(a)(7), 72 Stat. 259; Sept. 2, 1958, Pub. L. 85-859, title II, Sec. 202, 72 Stat. 1414; June 30, 1959, Pub. L. 86-75, Sec. 3(a)(7), 73 Stat. 157; June 30, 1960, Pub. L. 86-564, title II, Sec. 202(a)(9), 74 Stat. 290; Sept. 14, 1960, Pub. L. 86-779, Sec. 1, 74 Stat. 998; June 30, 1961, Pub. L. 87-72, Sec. 3(a)(9), 75 Stat. 193; June 28, 1962, Pub. L. 87-508, Sec. 3(a)(8), 76 Stat. 114; June 29, 1963, Pub. L. 88-52, Sec. 3(a)(9), 77 Stat. 72; June 30, 1964, Pub. L. 88-348, Sec. 2(a)(9), 78 Stat. 237; June 21, 1965, Pub. L. 89-44, title V, Sec. 501(f), 502(a), 79 Stat. 150; Jan. 2, 1968, Pub. L. 90-240, Sec. 4(a), 81 Stat. 776; Oct. 4, 1976, Pub. L. 94-455, title XIX, Sec. 1905(a)(24), title XXI, Sec. 2128(a), 90 Stat. 1821, 1921; Sept. 3, 1982, Pub. L. 97-248, title II, Sec. 283(a), 96 Stat. 568; Apr. 7, 1986, Pub. L. 99-272, title XIII, Sec. 13202(a), 100 Stat. 311; Nov. 10, 1988, Pub. L. 100-647, title V, Sec. 5061(a), 102 Stat. 3679; Nov. 5, 1990, Pub. L. 101-508, title XI, Sec. 11202(a)-(f), 104 Stat. 1388-419; Pub. L. 111-3, title VII, Sec. 701, 123 Stat. 8; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(250), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
Amendment
Pub. L. 105-33, Sec. 9302(g)(3)(C), amended the chapter heading for chapter 52. Prior to amendment it read “Cigars, Cigarettes, Smokeless Tobacco, Pipe Tobacco, and Cigarette Papers and Tubes”.
AMENDMENTS
2018--Subsec. (e). Pub. L. 115-141, Div. U, Sec. 401(a)(250), amended subsec. (e) by substituting “manufactured” for “manufacturered”.
2009 - Subsec. (a)(1). Pub. L. 111-3, Sec. 701(a)(1), amended par. (1) by substituting “$50.33 per thousand” for “$1.828 cents per thousand ($1.594 cents per thousand on cigars removed during 2000 or 2001)”.
Subsec. (a)(2). Pub. L. 111-3, Sec. 701(a)(2), amended par. (2) by substituting “52.75 percent” for “20.719 percent (18.063 percent on cigars removed during 2000 or 2001)”.
Subsec. (a)(2). Pub. L. 111-3, Sec. 701(a)(3), amended par. (2) by substituting “40.26 cents per cigar” for “$48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001)”.
Subsec. (b)(1). Pub. 111-3, Sec. 701(b)(1), amended par. (1) by substituting “$50.33 per thousand” for “$19.50 per thousand ($17 per thousand on cigarettes removed during 2000 or 2001)”.
Subsec. (b)(2). Pub. L. 111-3, Sec. 701(b)(2), amended par. (2) by substituting “$105.69 per thousand” for “$40.95 per thousand ($35.70 per thousand on cigarettes removed during 2000 or 2001)”.
Subsec. (c). Pub. L. 111-3, Sec. 701(c), amended subsec. (c) by substituting “3.15 cents” for “1.22 cents (1.06 cents on cigarette papers removed during 2000 or 2001)”.
Subsec. (d). Pub. L. 111-3, Sec. 701(d), amended subsec. (d) by substituting “6.30 cents” for “2.44 cents (2.13 cents on cigarette tubes removed during 2000 or 2001)”.
Subsec. (e)(1). Pub. L. 111-3, Sec. 701(e)(1), amended par. (1) by substituting “$1.51” for “58.5 cents (51 cents on snuff removed during 2000 or 2001)”.
Subsec. (e)(2). Pub. L. 111-3, Sec. 701(e)(2), amended par. (2) by substituting “50.33 cents” for “19.5 cents (17 cents on chewing tobacco removed during 2000 or 2001)”.
Subsec. (f). Pub. L. 111-3, Sec. 701(f), amended subsec. (f) by substituting “$2.8311 cents” for “$1.0969 cents (95.67 cents on pipe tobacco removed during 2000 or 2001)”.
Subsec. (g). Pub. L. 111-3, Sec. 701(g), amended subsec. (g) by substituting “$24.78” for “$1.0969 cents (95.67 cents on roll-your-own tobacco removed during 2000 or 2001)”.
1997 - Subsec. (a)(1). Pub. L. 105-33, Sec. 9302(b)(1) substituted ‘$1.828 cents per thousand ($1.594 cents per thousand on cigars removed during 2000 or 2001)’for ‘$1.125 cents per thousand (93.75 cents per thousand on cigars removed during 1991 or 1992)’.
Subsec. (a)(2). Pub. L. 105-33, Sec. 9302(b)(2) substituted ‘equal to 20.719 percent (18.063 percent on cigars removed during 2000 or 2001) of the price for which sold but not more than $48.75 per thousand ($42.50 per thousand on cigars removed during 2000 or 2001).’ for ‘equal to
‘(A) 10.625 percent of the price for which sold by not more than $25 per thousand on cigars removed during 1991 or 1992, and
‘(B) 12.75 percent of the price for which sold but not more than $30 per thousand on cigars removed after 1992.
‘Cigars not exempt from tax under this chapter which are removed but not intended for sale shall be taxed at the same rate as similar cigars removed for sale.’
Subsec. (b)(1). Pub. L. 105-33, Sec. 9302(a)(1) substituted ‘$19.50 per thousand ($17 per thousand on cigarettes removed during 2000 or 2001)’ for ‘$12 per thousand ($10 per thousand on cigarettes removed during 1991 or 1992)’.
Subsec. (b)(2). Pub. L. 105-33, Sec. 9302(a)(2) substituted ‘$40.95 per thousand ($35.70 per thousand on cigarettes removed during 2000 or 2001)’ for ‘$25.20 per thousand ($21 per thousand on cigarettes removed during 1991 or 1992)’.
Subsec. (c). Pub. L. 105-33, Sec. 9302(c) substituted ‘1.22 cents (1.06 cents on cigarette papers removed during 2000 or 2001)’ for ‘0.75 cent (0.625 cent on cigarette papers removed during 1991 or 1992)’.
Subsec. (c). Pub. L. 105-33, Sec. 9302(h)(3) substituted ‘On cigarette papers,’ for ‘On each book or set of cigarette papers containing more than 25 papers,’.
Subsec. (d). Pub. L. 105-33, Sec. 9302(d) substituted ‘2.44 cents (2.13 cents on cigarette tubes removed during 2000 or 2001)’ for ‘1.5 cent (1.25 cents on cigarette tubes removed during 1991 or 1992)’.
Subsec. (e)(1). Pub. L. 105-33, Sec. 9302(e)(1) substituted ‘58.5 cents (51 cents on snuff removed during 2000 or 2001)’ for ‘36 cents (30 cents on snuff removed during 1991 or 1992)’.
Subsec. (e)(2). Pub. L. 105-33, Sec. 9302(e)(2) substituted ‘19.5 cents (17 cents on chewing tobacco removed during 2000 or 2001)’ for ‘12 cents (10 cents on chewing tobacco removed during 1991 or 1992)’.
Subsec. (f). Pub. L. 105-33, Sec. 9302(f) substituted ‘$1.0969 cents (95.67 cents on pipe tobacco removed during 2000 or 2001)’ for ‘67.5 cents (56.25 cents on pipe tobacco removed during 1991 or 1992)’.
Subsecs. (g), (h). Pub. L. 105-33, Sec. 9302(g)(1) redesignated subsec. (g) as subsec. (h) and inserted a new subsec. (g).
1990 - Subsec. (a)(1). Pub. L. 101-508, Sec. 11202(a)(1), substituted ‘$1.125 cents per thousand (93.75 cents per thousand on cigars removed during 1991 or 1992)’ for ‘75 cents per thousand’.
Subsec. (a)(2). Pub. L. 101-508, Sec. 11202(a)(2), substituted ‘equal to - ‘ and subpars. (A) and (B) for ‘equal to 8 1/2 percent of the wholesale price, but not more than $20 per thousand.’
Subsec. (b)(1). Pub. L. 101-508, Sec. 11202(b)(1), substituted ‘$12 per thousand ($10 per thousand on cigarettes removed during 1991 or 1992)’ for ‘$8 per thousand’.
Subsec. (b)(2). Pub. L. 101-508, Sec. 11202(b)(2), substituted ‘$25.20 per thousand ($21 per thousand on cigarettes removed during 1991 or 1992)’ for ‘$16.80 per thousand’.
Subsec. (c). Pub. L. 101-508, Sec. 11202(c), substituted ‘0.75 cent (0.625 cent on cigarette papers removed during 1991 or 1992)’ for ‘ 1/2 cent’.
Subsec. (d). Pub. L. 101-508, Sec. 11202(d), substituted ‘1.5 cents (1.25 cents on cigarette tubes removed during 1991 or 1992)’ for ‘1 cent’.
Subsec. (e)(1). Pub. L. 101-508, Sec. 11202(e)(1), substituted ‘36 cents (30 cents on snuff removed during 1991 or 1992)’ for ‘24 cents’.
Subsec. (e)(2). Pub. L. 101-508, Sec. 11202(e)(2), substituted ‘12 cents (10 cents on chewing tobacco removed during 1991 or 1992)’ for ‘8 cents’.
Subsec. (f). Pub. L. 101-508, Sec. 11202(f), substituted ‘67.5 cents (56.25 cents on pipe tobacco removed during 1991 or 1992)’ for ‘45 cents’.
1988 - Subsecs. (f), (g). Pub. L. 100-647 added subsec. (f) and redesignated former subsec. (f) as (g).
1986 - Subsecs. (e), (f). Pub. L. 99-272 added subsec. (e) and redesignated former subsec. (e) as (f).
1982 - Subsec. (b)(1). Pub. L. 97-248, Sec. 283(a)(1), substituted ‘$8’ for ‘$4’.
Subsec. (b)(2). Pub. L. 97-248, Sec. 283(a)(2), substituted ‘$16.80’ for ‘$8.40’.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 2128(a), substituted provisions setting a tax of 8 1/2 percent of the wholesale price, but not more than $20 per thousand, on cigars weighing more than 3 pounds per thousand for provisions setting the tax according to a graduated table running from $2.50 per thousand for large cigars if removed to retail at not more than 2 1/2 cents each to $20 per thousand if removed to retail at more than 20 cents each, and struck out provisions that, in determining the retail price, for tax purposes, regard be had to the ordinary retail price of a single cigar in its principal market, exclusive of any State or local taxes imposed on cigars as a commodity, and that, for purposes of that determination, the amount of State or local tax excluded from the retail price be the actual tax imposed, except that, if the combined taxes resulted in a numerical figure ending in a fraction of a cent, the amount so excluded would be rounded to the next highest full cent unless such rounding would result in a tax lower than the tax which would be imposed in the absence of State or local tax.
Subsec. (e). Pub. L. 94-455, Sec. 1905(a)(24), inserted ‘, unless such import duties are imposed in lieu of internal revenue tax’ after ‘such articles’.
1968 - Subsec. (a). Pub. L. 90-240 provided that the amount of State and local tax excluded from the retail price be the actual tax imposed, except that, if the combined taxes result in a numerical figure ending in a fraction of a cent, the amount so excluded be rounded to the next highest full cent unless such rounding would result in a tax lower than the tax which would be imposed in the absence of State and local taxes.
1965 - Pub. L. 89-44, Sec. 502(a), struck out subsec. (a) relating to tobacco and redesignated subsecs. (b) to (f) as subsecs. (a) to (e), respectively.
Subsec. (b)(1). Pub. L. 89-44, Sec. 501(f), removed the July 1, 1965, time limit for the $4 per thousand rate as well as the provision for imposition of a $3.50 rate on and after July 1, 1965.
1964 - Subsec. (c)(1). Pub. L. 88-348 substituted ‘July 1, 1965’ for ‘July 1, 1964’ in two places.
1963 - Subsec. (c)(1). Pub. L. 88-52 substituted ‘July 1, 1964’ for ‘July 1, 1963’ in two places.
1962 - Subsec. (c)(1). Pub. L. 87-508 substituted ‘July 1, 1963’ for ‘July 1, 1962’ in two places.
1961 - Subsec. (c)(1). Pub. L. 87-72 substituted ‘July 1, 1962’ for ‘July 1, 1961’ in two places.
1960 - Subsec. (b). Pub. L. 86-779 substituted ‘imposed on cigars as a commodity’ for ‘imposed on the retail sales of cigars’.
Subsec. (c)(1). Pub. L. 86-564 substituted ‘July 1, 1961’ for ‘July 1, 1960’ in two places.
1959 - Subsec. (c)(1). Pub. L. 86-75 substituted ‘July 1, 1960’ for ‘July 1, 1959’ in two places.
1958 - Subsec. (b). Pub. L. 85-859 provided that in determining the retail price, for tax purposes, regard shall be had to the ordinary retail price of a single cigar in its principal market, exclusive of any State or local taxes imposed on the retail sale of cigars, and required cigars not exempt from tax under this chapter which are removed but not intended for sale to be taxed at the same rate as similar cigars removed for sale.
Subsec. (c)(1). Pub. L. 85-475 substituted ‘July 1, 1959’ for ‘July 1, 1958’ in two places.
Subsec. (d). Pub. L. 85-859 substituted ‘On each book or set of cigarette papers containing more than 25 papers, manufactured in or imported into the United States, there shall be imposed’ for ‘On cigarette papers, manufactured in or imported into the United States, there shall be imposed, on each package, book, or set containing more than 25 papers’.
Subsec. (f). Pub. L. 85-859 substituted ‘imposed by this section on tobacco products and cigarette papers and tubes imported into the United States’ for ‘imposed on articles by this section’.
1957 - Subsec. (c)(1). Pub. L. 85-12 substituted ‘July 1, 1958’ for ‘April 1, 1957’ in two places.
1956 - Subsec. (c)(1). Act Mar. 29, 1956, substituted ‘April 1, 1957’ for ‘April 1, 1956’ in two places.
1955 - Subsec. (c)(1). Act Mar. 30, 1955, substituted ‘April 1, 1956’ for ‘April 1, 1955’ in two places.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. No. 115-141, Div. U, Sec. 401(a)(250), effective on the date of the enactment of this Act [Enacted: Mar. 23, 2018].
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by Sec. 701 of Pub. L. 111-3 effective for articles removed (as defined in section 5702(j) of the Internal Revenue Codeof 1986) after March 1, 2009.
EFFECTIVE DATE OF 1997 AMENDMENTS
Section 9302(i) of Pub. L. 105-33 provided that:
“(1) IN GENERAL--The amendments made by this section shall apply to articles removed (as defined in section 5702(k) of the Internal Revenue Code of 1986, as amended by this section) after December 31, 1999.
“(2) TRANSITIONAL RULE--Any person who---
“(A) on the date of the enactment of this Act is engaged in business as a manufacturer of roll-your-own tobacco or as an importer of tobacco products or cigarette papers and tubes, and
“(B) before January 1, 2000, submits an application under subchapter B of chapter 52 of such Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of such chapter 52 shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit under such chapter 52 to engage in such business.”
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11202(h) of Pub. L. 101-508 provided that: ‘The amendments made by this section (amending this section and section 5702 of this title) shall apply with respect to articles removed after December 31, 1990.’
EFFECTIVE DATE OF 1988 AMENDMENT
Section 5061(d) of Pub. L. 100-647 provided that:
‘(1) In general. - The amendments made by this section (amending this section and section 5702 of this title) shall apply to pipe tobacco removed (within the meaning of section 5702(k) of the 1986 Code) after December 31, 1988.
‘(2) Transitional rule. - Any person who -
‘(A) on the date of the enactment of this Act (Nov. 10, 1988), is engaged in business as a manufacturer of pipe tobacco, and
‘(B) before January 1, 1989, submits an application under subchapter B of chapter 52 of the 1986 Code to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of chapter 52 of the 1986 Code shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit to manufacture pipe tobacco under such chapter 52.’
EFFECTIVE DATE OF 1986 AMENDMENT
Section 13202(c) of Pub. L. 99-272, as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(1) In general. - The amendments made by this section (amending this section and section 5702 of this title) shall apply to smokeless tobacco removed after June 30, 1986.
‘(2) Transitional rule. - Any person who -
‘(A) on the date of the enactment of this Act (Apr. 7, 1986), is engaged in business as a manufacturer of smokeless tobacco, and
‘(B) before July 1, 1986, submits an application under subchapter B of chapter 52 of the Internal Revenue Code of 1986 (formerly I.R.C. 1954) to engage in such business, may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of chapter 52 of such Code shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit to manufacture smokeless tobacco under such chapter 52.'
EFFECTIVE DATE OF 1982 AMENDMENT
Section 283(c) of Pub. L. 97-248, as amended by Pub. L. 99-107, Sec. 2, Sept. 30, 1985, 99 Stat. 479; Pub. L. 99-155, Sec. 2(a), Nov. 14, 1985, 99 Stat. 814; Pub. L. 99-181, Sec. 1, Dec. 13, 1985, 99 Stat. 1172; Pub. L. 99-189, Sec. 1, Dec. 18, 1985, 99 Stat. 1184; Pub. L. 99-201, Sec. 1, Dec. 23, 1985, 99 Stat. 1665; Pub. L. 99-272, title XIII, Sec. 13201(a), Apr. 7, 1986, 100 Stat. 311, provided that: ‘The amendment made by subsection (a) (amending this section) shall apply with respect to cigarettes removed after December 31, 1982.’
(Pub. L. 99-272, title XIII, Sec. 13201(b), Apr. 7, 1986, 100 Stat. 311, provided that: ‘For purposes of all Federal and State laws, the amendment made by subsection (a) (amending section 283(c) of Pub. L. 97-248, set out above) shall be treated as having taken effect on March 14, 1986.')
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by section 1905(a)(24) of 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.
Section 2128(e) of Pub. L. 94-455 provided that: ‘The amendments made by this section (amending this section and sections 5702 and 5741 of this title) shall take effect on the first month which begins more than 90 days after the date of the enactment of this Act (Oct. 4, 1976).’
EFFECTIVE DATE OF 1968 AMENDMENT
Section 4(b) of Pub. L. 90-240 provided that: ‘The amendment made by subsection (a) (amending this section) shall apply to the removal of cigars on or after the first day of the first calendar quarter which begins more than 30 days after the date of the enactment of this Act (Jan. 2, 1968).’
EFFECTIVE DATE OF 1965 AMENDMENT
Section 701(d) of Pub. L. 89-44 provided that: ‘The amendments made by section 501 (repealing sections 5063 and 5707 and 5701 note and amending this section and sections 5001, 5022, 5041, and 5051 of this title) shall apply on and after July 1, 1965. The amendments made by section 502 (striking out subchapter D of chapter 52 of this title and redesignating subchapters E, F, and G as subchapters D, E, and F respectively, and amending this section and sections 5702, 5704, 5711, 5741, 5753, 5762, and 5763 of this title) shall apply on and after January 1, 1966.’
EFFECTIVE DATE OF 1960 AMENDMENT
Section 2 of Pub. L. 86-779 provided that: ‘The amendment made by the first section of this Act (amending this section) shall apply with respect to cigars removed on or after the ninth day of the first month which begins after the date of the enactment of this Act (Sept. 14, 1960).’
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-859 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.
FLOOR STOCKS TAXES
Section 701(h) of Pub. L. 111-3 provided that:
(h) Floor Stocks Taxes.—
“(1) IMPOSITION OF TAX.— On tobacco products (other than cigars described in section 5701(a)(2) of the Internal Revenue Code of 1986) and cigarette papers and tubes manufactured in or imported into the United States which are removed before April 1, 2009, and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of—
“(A) the tax which would be imposed under section 5701 of such Code on the article if the article had been removed on such date, over
“(B) the prior tax (if any) imposed under section 5701 of such Code on such article.
“(2) CREDIT AGAINST TAX.— Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed the amount of taxes imposed by paragraph (1) on April 1, 2009, for which such person is liable.
“ (3) LIABILITY FOR TAX AND METHOD OF PAYMENT.—
“(A) LIABILITY FOR TAX.— A person holding tobacco products, cigarette papers, or cigarette tubes on April 1, 2009, to which any tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) METHOD OF PAYMENT.— The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
“ (C) TIME FOR PAYMENT.— The tax imposed by paragraph (1) shall be paid on or before August 1, 2009.
“(4) ARTICLES IN FOREIGN TRADE ZONES.— Notwithstanding the Act of June 18, 1934 (commonly known as the Foreign Trade Zone Act, 48 Stat. 998, 19 U.S.C. 81a et seq.) or any other provision of law, any article which is located in a foreign trade zone on April 1, 2009, shall be subject to the tax imposed by paragraph (1) if—
“(A) internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act, or
“(B) such article is held on such date under the supervision of an officer of the United States Customs and Border Protection of the Department of Homeland Security pursuant to the 2d proviso of such section 3(a).
“(5) DEFINITIONS.— For purposes of this subsection—
“(A) IN GENERAL.— Any term used in this subsection which is also used in section 5702 of the Internal Revenue Code of 1986 shall have the same meaning as such term has in such section.
“(B) SECRETARY.— The term ‘Secretary’ means the Secretary of the Treasury or the Secretary's delegate.
“(6) CONTROLLED GROUPS.— Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this subsection.
“(7) OTHER LAWS APPLICABLE.— All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701. The Secretary may treat any person who bore the ultimate burden of the tax imposed by paragraph (1) as the person to whom a credit or refund under such provisions may be allowed or made.”
FLOOR STOCKS TAXES
Section 9302(j) of Pub. L. 105-33, as amended by Sec. 315(a)(1) of Pub. L. 106-554, provided that:
“(1) IMPOSITION OF TAX--On cigarettes manufactured in or imported into the United States which are removed before any tax increase date, and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of---
“(A) the tax which would be imposed under section 5701 of the Internal Revenue Code of 1986 on the article if the article had been removed on such date, over
“(B) the prior tax (if any) imposed under section 5701 of such Code on such article.
“(2) AUTHORITY TO EXEMPT CIGARETTES HELD IN VENDING MACHINES-- To the extent provided in regulations prescribed by the Secretary, no tax shall be imposed by paragraph (1) on cigarettes held for retail sale on any tax increase date, by any person in any vending machine. If the Secretary provides such a benefit with respect to any person, the Secretary may reduce the $500 amount in paragraph (3) with respect to such person.
“(3) CREDIT AGAINST TAX--Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $500. Such credit shall not exceed the amount of taxes imposed by paragraph (1) on any tax increase date, for which such person is liable.
“(4) LIABILITY FOR TAX AND METHOD OF PAYMENT--
“(A) LIABILITY FOR TAX--A person holding cigarettes on any tax increase date, to which any tax imposed by paragraph (1) applies shall be liable for such tax.
“(B) METHOD OF PAYMENT--The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
“(C) TIME FOR PAYMENT--The tax imposed by paragraph (1) shall be paid on or before April 1 following any tax increase date.
“(5) ARTICLES IN FOREIGN TRADE ZONES--Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) and any other provision of law, any article which is located in a foreign trade zone on any tax increase date, shall be subject to the tax imposed by paragraph (1) if---
“(A) internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act, or
“(B) such article is held on such date under the supervision of a customs officer pursuant to the 2d proviso of such section 3(a).
“(6) DEFINITIONS--For purposes of this subsection---
“(A) IN GENERAL--Terms used in this subsection which are also used in section 5702 of the Internal Revenue Codeof 1986 shall have the respective meanings such terms have in such section, as amended by this Act.
“(B) TAX INCREASE DATE--The term ‘tax increase date’ means January 1, 2000, and January 1, 2002.
“(C) SECRETARY--The term ‘Secretary’ means the Secretary of the Treasury or the Secretary's delegate.
“(7) CONTROLLED GROUPS--Rules similar to the rules of section 5061(e)(3) of such Code shall apply for purposes of this subsection.
“(8) OTHER LAWS APPLICABLE--All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701. The Secretary may treat any person who bore the ultimate burden of the tax imposed by paragraph (1) as the person to whom a credit or refund under such provisions may be allowed or made.”
COORDINATION WITH TOBACCO INDUSTRY SETTLEMENT
Section 9302(k) of Pub. L. 105-33, as added by Sec. 1604(f)(3) of Pub. L. 105-34, and repealed by Section 519 of Pub. L. 105-78 [effective Nov. 13, 1997], provided that:
“The increase in excise taxes collected as a result of the amendments made by subsections (a), (e), and (g) of this section shall be credited against the total payments made by parties pursuant to Federal legislation implementing the tobacco industry settlement agreement of June 20, 1997.”
FLOOR STOCKS
Section 11202(i) of Pub. L. 101-508 provided that:
‘(1) Imposition of tax. - On cigarettes manufactured in or imported into the United States which are removed before any tax-increase date and held on such date for sale by any person, there shall be imposed the following taxes:
‘(A) Small cigarettes. - On cigarettes, weighing not more than 3 pounds per thousand, $2 per thousand.
‘(B) Large cigarettes. - On cigarettes weighing more than 3 pounds per thousand, $4.20 per thousand; except that, if more than 6 1/2 inches in length, they shall be taxable at the rate prescribed for cigarettes weighing not more than 3 pounds per thousand, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette.
‘(2) Exception for certain amounts of cigarettes. -
‘(A) In general. - No tax shall be imposed by paragraph (1) on cigarettes held on any tax-increase date by any person if -
‘(i) the aggregate number of cigarettes held by such person on such date does not exceed 30,000, and
‘(ii) such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this subparagraph.
For purposes of this subparagraph, in the case of cigarettes measuring more than 6 1/2 inches in length, each 2 3/4 inches (or fraction thereof) of the length of each shall be counted as one cigarette.
‘(B) Authority to exempt cigarettes held in vending machines. - To the extent provided in regulations prescribed by the Secretary, no tax shall be imposed by paragraph (1) on cigarettes held for retail sale on any tax-increase date by any person in any vending machine. If the Secretary provides such a benefit with respect to any person, the Secretary may reduce the 30,000 amount in subparagraph (A) and the $60 amount in paragraph (3) with respect to such person.
‘(3) Credit against tax. - Each person shall be allowed as a credit against the taxes imposed by paragraph (1) an amount equal to $60. Such credit shall not exceed the amount of taxes imposed by paragraph (1) for which such person is liable.
‘(4) Liability for tax and method of payment. -
‘(A) Liability for tax. - A person holding cigarettes on any tax-increase date to which any tax imposed by paragraph (1) applies shall be liable for such tax.
‘(B) Method of payment. - The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations.
‘(C) Time for payment. - The tax imposed by paragraph (1) shall be paid on or before the 1st June 30 following the tax-increase date.
‘(5) Definitions. - For purposes of this subsection -
‘(A) Tax-increase date. - The term ‘tax-increase date’ means January 1, 1991, and January 1, 1993.
‘(B) Other definitions. - Terms used in this subsection which are also used in section 5702 of the Internal Revenue Code of 1986 shall have the respective meanings such terms have in such section.
‘(C) Secretary. - The term ‘Secretary’ means the Secretary of the Treasury or his delegate.
‘(6) Controlled groups. - Rules similar to the rules of section 11201(e)(6) (Pub. L. 101-508, set out in a note under section 5001 of this title) shall apply for purposes of this subsection.
‘(7) Other laws applicable. - All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply to the floor stocks taxes imposed by paragraph (1), to the same extent as if such taxes were imposed by such section 5701.’
Section 5061(e) of Pub. L. 100-647 provided that:
‘(1) Imposition of tax. - On pipe tobacco manufactured in or imported into the United States which is removed before January 1, 1989, and held on such date for sale by any person, there is hereby imposed a tax of 45 cents per pound (and a proportionate tax at the like rate on all fractional parts of a pound).
‘(2) Liability for tax and method of payment. -
‘(A) Liability for tax. - A person holding pipe tobacco on January 1, 1989, to which the tax imposed by paragraph (1) applies shall be liable for such tax.
‘(B) Method of payment. - The tax imposed by paragraph (1) shall be treated as a tax imposed by section 5701 of the 1986 Code and shall be due and payable on February 14, 1989, in the same manner as the tax imposed by such section is payable with respect to pipe tobacco removed on or after January 1, 1989.
‘(C) Treatment of pipe tobacco in foreign trade zones. - Notwithstanding the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a) or any other provision of law, pipe tobacco which is located in a foreign trade zone on January 1, 1989, shall be subject to the tax imposed by paragraph (1) and shall be treated for purposes of this subsection as held on such date for sale if -
‘(i) internal revenue taxes have been determined, or customs duties liquidated, with respect to such pipe tobacco before such date pursuant to a request made under the first proviso of section 3(a) of such Act (19 U.S.C. 81c(a)), or
‘(ii) such pipe tobacco is held on such date under the supervision of a customs officer pursuant to the second proviso of such section 3(a).
‘Under regulations prescribed by the Secretary of the Treasury or his delegate, provisions similar to sections 5706 and 5708 of the 1986 Code shall apply to pipe tobacco with respect to which tax is imposed by paragraph (1) by reason of this subparagraph.
‘(3) Pipe tobacco. - For purposes of this subsection, the term ‘pipe tobacco’ shall have the meaning given to such term by subsection (o) of section 5702 of the 1986 Code.
‘(4) Exception where liability does not exceed $1,000. - No tax shall be imposed by paragraph (1) on any person if the tax which would but for this paragraph be imposed on such person does not exceed $1,000. For purposes of the preceding sentence, all persons who are treated as a single taxpayer under section 5061(e)(3) of the 1986 Code shall be treated as 1 person.’
Section 283(b) of Pub. L. 97-248, as amended by Pub. L. 97-448, title III, Sec. 306(a)(14), Jan. 12, 1983, 96 Stat. 2405; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
‘(1) Imposition of tax. - On cigarettes manufactured in or imported into the United States which are removed before January 1, 1983, and held on such date for sale by any person, there shall be imposed the following taxes:
‘(A) Small cigarettes. - On cigarettes, weighing not more than 3 pounds per thousand, $4 per thousand;
‘(B) Large cigarettes. - On cigarettes, weighing more than 3 pounds per thousand, $8.40 per thousand; except that, if more than 6 1/2 inches in length, they shall be taxable at the rate prescribed for cigarettes weighing not more than 3 pounds per thousand, counting each 2 3/4 inches, or fraction thereof, of the length of each as one cigarette.
‘(2) Liability for tax and method of payment. -
‘(A) Liability for tax. - A person holding cigarettes on January 1, 1983, to which any tax imposed by paragraph (1) applies shall be liable for such tax.
‘(B) Method of payment. - The tax imposed by paragraph (1) shall be treated as a tax imposed under section 5701 and shall be due and payable on February 17, 1983 in the same manner as the tax imposed under such section is payable with respect to cigarettes removed on January 1, 1983.
‘(3) Cigarette. - For purposes of this subsection, the term ‘cigarette’ shall have the meaning given to such term by subsection (b) of section 5702 of the Internal Revenue Code of 1986 (formerly I.R.C. 1954).
‘(4) Exception for retailers. - The taxes imposed by paragraph (1) shall not apply to cigarettes in retail stocks held on January 1, 1983, at the place where intended to be sold at retail.’

I.R.C. § 5703(a) Liability For Tax
I.R.C. § 5703(a)(1) Original Liability — The manufacturer or importer of tobacco products and cigarette papers and tubes shall be liable for the taxes imposed thereon by section 5701.
I.R.C. § 5703(a)(2) Transfer Of Liability — When tobacco products and cigarette papers and tubes are transferred, without payment of tax, pursuant to section 5704, the liability for tax shall be transferred in accordance with the provisions of this paragraph. When tobacco products and cigarette papers and tubes are transferred between the bonded premises of manufacturers and export warehouse proprietors, the transferee shall become liable for the tax upon receipt by him of such articles, and the transferor shall thereupon be relieved of his liability for such tax. When tobacco products and cigarette papers and tubes are released in bond from customs custody for transfer to the bonded premises of a manufacturer of tobacco products or cigarette papers and tubes, the transferee shall become liable for the tax on such articles upon release from customs custody, and the importer shall thereupon be relieved of his liability for such tax. All provisions of this chapter applicable to tobacco products and cigarette papers and tubes in bond shall be applicable to such articles returned to bond upon withdrawal from the market or returned to bond after previous removal for a tax-exempt purpose.
I.R.C. § 5703(b) Method Of Payment Of Tax
I.R.C. § 5703(b)(1) In General — The taxes imposed by section 5701 shall be determined at the time of removal of the tobacco products and cigarette papers and tubes. Such taxes shall be paid on the basis of return. The Secretary shall, by regulations, prescribe the period or the event for which such return shall be made and the information to be furnished on such return. Any postponement under this subsection of the payment of taxes determined at the time of removal shall be conditioned upon the filing of such additional bonds, and upon compliance with such requirements, as the Secretary may prescribe for the protection of the revenue. The Secretary may, by regulations, require payment of tax on the basis of a return prior to removal of the tobacco products and cigarette papers and tubes where a person defaults in the postponed payment of tax on the basis of a return under this subsection or regulations prescribed thereunder. All administrative and penalty provisions of this title, insofar as applicable, shall apply to any tax imposed by section 5701.
I.R.C. § 5703(b)(2) Time For Payment Of Taxes
I.R.C. § 5703(b)(2)(A) In General — Except as otherwise provided in this paragraph, in the case of taxes on tobacco products and cigarette papers and tubes removed during any semimonthly period under bond for deferred payment of tax, the last day for payment of such taxes shall be the 14th day after the last day of such semimonthly period.
I.R.C. § 5703(b)(2)(B) Imported Articles — In the case of tobacco products and cigarette papers and tubes which are imported into the United States—
I.R.C. § 5703(b)(2)(B)(i) In General — The last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is entered into the customs territory of the United States.
I.R.C. § 5703(b)(2)(B)(ii) Special Rule For Entry For Warehousing — Except as provided in clause (iv), in the case of an entry for warehousing, the last day for payment of tax shall not be later than the 14th day after the last day of the semimonthly period during which the article is removed from the 1st such warehouse.
I.R.C. § 5703(b)(2)(B)(iii) Foreign Trade Zones — Except as provided in clause (iv) and in regulations prescribed by the Secretary, articles brought into a foreign trade zone shall, notwithstanding any other provision of law, be treated for purposes of this subsection as if such zone were a single customs warehouse.
I.R.C. § 5703(b)(2)(B)(iv) Exception For Articles Destined For Export — Clauses (ii) and (iii) shall not apply to any article which is shown to the satisfaction of the Secretary to be destined for export.
I.R.C. § 5703(b)(2)(C) Tobacco Products And Cigarette Papers And Tubes Brought Into The United States From Puerto Rico — In the case of tobacco products and cigarette papers and tubes which are brought into the United States from Puerto Rico, the last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is brought into the United States.
I.R.C. § 5703(b)(2)(D) Special Rule For Tax Due In September
I.R.C. § 5703(b)(2)(D)(i) In General — Notwithstanding the preceding provisions of this paragraph, the taxes on tobacco products and cigarette papers and tubes for the period beginning on September 16 and ending on September 26 shall be paid not later than September 29.
I.R.C. § 5703(b)(2)(D)(ii) Safe Harbor — The requirement of clause (i) shall be treated as met if the amount paid not later than September 29 is not less than 11/15 of the taxes on tobacco products and cigarette papers and tubes for the period beginning on September 1 and ending on September 15.
I.R.C. § 5703(b)(2)(D)(iii) Taxpayers Not Required To Use Electronic Funds Transfer — In the case of payments not required to be made by electronic funds transfer, clauses (i) and (ii) shall be applied by substituting “September 25” for “September 26”, “September 28” for “September 29”, and “2/3” for “11/15”.
I.R.C. § 5703(b)(2)(E) Special Rule Where Due Date Falls On Saturday, Sunday, Or Holiday — Notwithstanding section 7503, if, but for this subparagraph, the due date under this paragraph would fall on a Saturday, Sunday, or a legal holiday (as defined in section 7503), such due date shall be the immediately preceding day which is not a Saturday, Sunday, or such a holiday (or the immediately following day where the due date described in subparagraph (D) falls on a Sunday).
I.R.C. § 5703(b)(2)(F) Special Rule For Unlawfully Manufactured Tobacco Products — In the case of any tobacco products, cigarette paper, or cigarette tubes manufactured in the United States at any place other than the premises of a manufacturer of tobacco products, cigarette paper, or cigarette tubes that has filed the bond and obtained the permit required under this chapter, tax shall be due and payable immediately upon manufacture.
I.R.C. § 5703(b)(3) Payment By Electronic Fund Transfer — Any person who in any 12-month period, ending December 31, was liable for a gross amount equal to or exceeding $5,000,000 in taxes imposed on tobacco products and cigarette papers and tubes by section 5701 (or 7652) shall pay such taxes during the succeeding calendar year by electronic fund transfer (as defined in section 5061(e)(2)) to a Federal Reserve Bank. Rules similar to the rules of section 5061(e)(3) shall apply to the $5,000,000 amount specified in the preceding sentence.
I.R.C. § 5703(c) Use Of Government Depositaries — The Secretary may authorize Federal Reserve banks, and incorporated banks or trust companies which are depositaries or financial agents of the United States, to receive any tax imposed by this chapter, in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the manner, time, and condition under which the receipt of such tax by such banks and trust companies is to be treated as payment for tax purposes.
I.R.C. § 5703(d) Assessment — Whenever any tax required to be paid by this chapter is not paid in full at the time required for such payment, it shall be the duty of the Secretary, subject to the limitations prescribed in section 6501, on proof satisfactory to him, to determine the amount of tax which has been omitted to be paid, and to make an assessment therefor against the person liable for the tax. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. Except in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error, no such assessment shall be made until and after the person liable for the tax has been afforded reasonable notice and opportunity to show cause, in writing, against such assessment.
(Aug. 16, 1954, ch. 736, 68A Stat. 707; Sept. 2, 1958, Pub. L. 85-859, title II, 202, 72 Stat. 1417; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1905(a)(25), 1906(b)(13)(A), 90 Stat. 1821, 1834; Jan. 12, 1983, Pub. L. 97-448, title III, 308(a), 96 Stat. 2407; July 18, 1984, Pub. L. 98-369, div. A, title I, 27(c)(2), 98 Stat. 509; Oct. 21, 1986, Pub. L. 99-509, title VIII, 8011(a)(1), 100 Stat. 1951; Oct. 22, 1986, Pub. L. 99-514, title XVIII, 1801(c)(2), 100 Stat. 2786; Nov. 10, 1988, Pub. L. 100-647, title II, 2003(b)(1)(C), (D), 102 Stat. 3598; Dec. 8, 1994, Pub. L. 103-465, title VII, Sec. 712(c)(2), (c)(1); Feb. 4, 2009, Pub. L. 111-3, title VII, Sec. 702(e)(1), 123 Stat. 8.)
BACKGROUND NOTES
AMENDMENTS
2009 - Subsec. (b)(2)(F). Pub. L. 111-3, Sec. 702(e)(1), amended par. (2) by adding subpar. (F).
1994--Subsec. (b)(2)(E). Pub. L. 103-465, Sec. 712(c)(2), modified (E) by replacing ‘14th day’ with ‘due date’ in the heading and by inserting the parenthetical at the end, effective January 1, 1995.
Subsec. (b)(2)(D). Pub. L. 103-465, Sec. 712(c)(1) redesignated (b)(2)(D) as (E), and added new (D) to read as above, effective January 1, 1995.
1988--Subsec. (b)(2)(B)(i), (ii), (C). Pub. L. 100-647 substituted “the 14th day after the last day of the semimonthly period during which” for “the 14th day after the date on which”.
1986--Subsec. (b)(2). Pub. L. 99-509 amended par. (2) generally. Prior to amendment par. (2), time for making of return and payment of taxes, read as follows: “In the case of tobacco products and cigarette papers and tubes removed after December 31, 1982, under bond for deferred payment of tax, the last day for filing a return and paying any tax due for each return period shall be the last day of the first succeeding return period plus 10 days.”
Subsec. (b)(3). Pub. L. 99-514 inserted last sentence.
1984--Subsec. (b)(3). Pub. L. 98-369 added par. (3).
1983--Subsec. (b). Pub. L. 97-448 designated existing provisions as par. (1), struck out provisions that the Secretary prescribe the time for making a return and the time for the payment of taxes and that the Secretary prescribe by regulations the conditions for the filing of additional bonds, and added par. (2).
1976--Subsec. (a). Pub. L. 94-455, 1905(a)(25)(A), directed that all provisions of chapter 52 applicable to tobacco products and cigarette papers and tubes in bond be applicable to such articles returned to bond upon withdrawal from the market or returned to bond after previous removal for a tax-exempt purpose.
Subsec. (b). Pub. L. 94-455, 1905(a)(25)(B), 1906(b)(13)(A), struck out provisions which had