Internal Revenue Code:Sec. 5061. Method of collecting tax
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle E - Alcohol, Tobacco, and Certain Other Excise Taxes
CHAPTER 51 - DISTILLED SPIRITS, WINES, AND BEER
Subchapter A - Gallonage and Occupational Taxes
PART I - GALLONAGE TAXES
Subpart E - General Provisions
Statute
Sec. 5061. Method of collecting tax
(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.
(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 -
(1) section 5001(a)(4), (5), or (6),
(2) section 5006(c) or (d),
(3) section 5041(f),
(4) section 5043(a)(3),
(5) section 5054(a)(3) or (4), or
(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.
(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.
(d) Time for collecting tax on distilled spirits, wines, and beer
(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(other than subsection (b) of this section) which are withdrawn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.
(2) Imported articles
In the case of distilled spirits, wines, and beer which are
imported into the United States (other than in bulk containers) -
(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.
(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.
(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.
(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.
(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.
(4) TAXPAYERS LIABLE FOR TAXES OF NOT MORE THAN $50,000-
(A) IN GENERAL- 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) under bond for deferred payment 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.
(B) NO APPLICATION AFTER LIMIT EXCEEDED- Subparagraph (A) 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.
(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.
(5) Special rule for tax due in September
(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.
(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.
(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''.
(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).
(e) Payment by electronic fund transfer
(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.
(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.
(3) Controlled groups
(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.
(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.
Sources
(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
1335; 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; Pub. L.
103-465, title I, Sec. 136(c)(5), title VII, Sec. 712(b), Dec. 8,
1994, 108 Stat. 4842, 5000; Pub. L. 104-188, title I, Sec.
1702(b)(6), Aug. 20, 1996, 110 Stat. 1869.)
Miscellaneous
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.
AMENDMENTS
2005 - Public Law 109-059 of 2005 amends Subsection (d) of
section 5061 (relating to time for collecting tax on distilled
spirits, wines, and beer) by redesignating paragraphs (4)
and (5) as paragraphs (5) and (6), respectively, and by inserting
after paragraph (3) the following new paragraph:
"(4) TAXPAYERS LIABLE FOR TAXES OF NOT MORE THAN $50,000- "
Effective Date- The amendments made by this section shall apply
with respect to quarterly periods beginning on and after
January 1, 2006.
1996 - Subsec. (b)(3). Pub. L. 104-188 substituted ''section
5041(f),'' for ''section 5041(e),''.
1994 - Subsec. (b)(1). Pub. L. 103-465, Sec. 136(c)(5), amended
par. (1) generally. Prior to amendment, par. (1) read as follows:
''section 5001(a)(5), (6), or (7),''.
Subsec. (d)(4). Pub. L. 103-465, Sec. 712(b)(1), added par. (4).
Former par. (4) redesignated (5).
Subsec. (d)(5). Pub. L. 103-465, Sec. 712(b), redesignated par.
(4) as (5), substituted ''due date'' for ''14th day'' in heading,
and inserted ''(or the immediately following day where the due date
described in paragraph (4) falls on a Sunday)'' before period at
end.
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 1996 AMENDMENT
Amendment by Pub. L. 104-188 effective, except as otherwise
expressly provided, as if included in the provision of the Revenue
Reconciliation Act of 1990, Pub. L. 101-508, title XI, to which
such amendment relates, see section 1702(i) of Pub. L. 104-188, set
out as a note under section 38 of this title.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by section 136(c)(5) of Pub. L. 103-465 effective Jan.
1, 1995, see section 136(d) of Pub. L. 103-465, set out as a note
under section 5001 of this title.
Section 712(e) of Pub. L. 103-465 provided that: ''The amendments
made by this section (amending this section and sections 5703 and
6302 of this title) shall take effect on January 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 Code of
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.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4052, 5026, 5043, 5054,
5081, 5703, 5731, 5801, 6302 of this title.
