Internal Revenue Code:Sec. 5134. Drawback

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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 II - OCCUPATIONAL TAX
          Subpart F - Nonbeverage Domestic Drawback Claimants
        

Statute

    Sec. 5134. Drawback
 
    (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.
    (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.
    (c) Allowance of drawback even where certain requirements not met
      (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.
      (2) Penalty
        (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.
        (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)).
      (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).
 

Sources

    (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat.
    1346; amended Pub. L. 90-615, Sec. 2(a), Oct. 21, 1968, 82 Stat.
    1210; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,
    90 Stat. 1834; Pub. L. 98-369, div.  A, title IV, Sec. 452, July
    18, 1984, 98 Stat. 819; Pub. L. 103-465, title I, Sec. 136(b), Dec.
    8, 1994, 108 Stat. 4841; Pub. L. 104-188, title I, Sec.
    1704(t)(12), Aug. 20, 1996, 110 Stat. 1888.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 5134, acts Aug. 16, 1954, ch. 736, 68A Stat. 623;
    Mar. 30, 1955, ch. 18, Sec. 3(b)(2), 69 Stat. 15; Mar. 29, 1956,
    ch. 115, Sec. 3(b)(2), 70 Stat. 67; Mar. 29, 1957, Pub. L. 85-12,
    Sec. 3(b)(2), 71 Stat. 10; June 30, 1958, Pub. L. 85-475, Sec.
    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.
                                 AMENDMENTS
      1996 - Subsec. (c)(3). Pub. L. 104-188 substituted ''section
    6665(a)'' for ''section 6662(a)''.
      1994 - Subsec. (c)(1). Pub. L. 103-465 substituted ''flavoring
    extracts, or perfume'' for ''or flavoring extracts''.
      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 1994 AMENDMENT
      Amendment by 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.
                      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).''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 5010 of this title.