
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC5601]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
      Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
 
             CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER
 
 Subchapter J--Penalties, Seizures, and Forfeitures Relating to Liquors
 
   PART I--PENALTY, SEIZURE, AND FORFEITURE PROVISIONS APPLICABLE TO 
      DISTILLING, RECTIFYING, AND DISTILLED AND RECTIFIED PRODUCTS
 
Sec. 5601. Criminal penalties


(a) Offenses

    Any person who--

                       (1) Unregistered stills

        has in his possession or custody, or under his control, any 
    still or distilling apparatus set up which is not registered, as 
    required by section 5179(a); or

                   (2) Failure to file application

        engages in the business of a distiller or processor without 
    having filed application for and received notice of registration, as 
    required by section 5171(c); or

                 (3) False or fraudulent application

        engages, or intends to engage, in the business of distiller, 
    warehouseman, or processor of distilled spirits, and files a false 
    or fraudulent application under section 5171; or

       (4) Failure or refusal of distiller, warehouseman, or 
                           processor to give bond

        carries on the business of a distiller, warehouseman, or 
    processor without having given bond as required by law; or

                (5) False, forged, or fraudulent bond

        engages, or intends to engage, in the business of distiller, 
    warehouseman, or processor of distilled spirits, and gives any 
    false, forged, or fraudulent bond, under subchapter B; or

                (6) Distilling on prohibited premises

        uses, or possesses with intent to use, any still, boiler, or 
    other utensil for the purpose of producing distilled spirits, or 
    aids or assists therein, or causes or procures the same to be done, 
    in any dwelling house, or in any shed, yard, or inclosure connected 
    with such dwelling house (except as authorized under section 
    5178(a)(1)(C)), or on board any vessel or boat, or on any premises 
    where beer or wine is made or produced, or where liquors of any 
    description are retailed, or on premises where any other business is 
    carried on (except when authorized under section 5178(b)); or

    (7) Unlawful production, removal, or use of material fit for 
                       production of distilled spirits

        except as otherwise provided in this chapter, makes or ferments 
    mash, wort, or wash, fit for distillation or for the production of 
    distilled spirits, in any building or on any premises other than the 
    designated premises of a distilled spirits plant lawfully qualified 
    to produce distilled spirits, or removes, without authorization by 
    the Secretary, any mash, wort, or wash, so made or fermented, from 
    the designated premises of such lawfully qualified plant before 
    being distilled; or

            (8) Unlawful production of distilled spirits

        not being a distiller authorized by law to produce distilled 
    spirits, produces distilled spirits by distillation or any other 
    process from any mash, wort, wash, or other material; or

     (9) Unauthorized use of distilled spirits in manufacturing 
                                  processes

        except as otherwise provided in this chapter, uses distilled 
    spirits in any process of manufacture unless such spirits--
            (A) have been produced in the United States by a distiller 
        authorized by law to produce distilled spirits and withdrawn in 
        compliance with law; or
            (B) have been imported (or otherwise brought into the United 
        States) and withdrawn in compliance with law; or

                      (10) Unlawful processing

        engages in or carries on the business of a processor--
            (A) with intent to defraud the United States of any tax on 
        the distilled spirits processed by him; or
            (B) with intent to aid, abet, or assist any person or 
        persons in defrauding the United States of the tax on any 
        distilled spirits; or

    (11) Unlawful purchase, receipt, or processing of distilled 
                                   spirits

        purchases, receives, or processes any distilled spirits, knowing 
    or having reasonable grounds to believe that any tax due on such 
    spirits has not been paid or determined as required by law; or

      (12) Unlawful removal or concealment of distilled spirits

        removes, other than as authorized by law, any distilled spirits 
    on which the tax has not been paid or determined, from the place of 
    manufacture or storage, or from any instrument of transportation, or 
    conceals spirits so removed; or

                  (13) Creation of fictitious proof

        adds, or causes to be added, any ingredient or substance (other 
    than ingredients or substances authorized by law to be added) to any 
    distilled spirits before the tax is paid thereon, or determined as 
    provided by law, for the purpose of creating fictitious proof; or

             (14) Distilling after notice of suspension

        after the time fixed in the notice given under section 5221(a) 
    to suspend operations as a distiller, carries on the business of a 
    distiller on the premises covered by the notice of suspension, or 
    has mash, wort, or beer on such premises, or on any premises 
    connected therewith, or has in his possession or under his control 
    any mash, wort, or beer, with intent to distill the same on such 
    premises; or

    (15) Unauthorized withdrawal, use, sale, or distribution of 
                       distilled spirits for fuel use

        Withdraws,\1\ uses, sells, or otherwise disposes of distilled 
    spirits produced under section 5181 for other than fuel use;
---------------------------------------------------------------------------
    \1\ So in original. Probably should not be capitalized.

shall be fined not more than $10,000, or imprisoned not more than 5 
years, or both, for each such offense.

(b) Presumptions

    Whenever on trial for violation of subsection (a)(4) the defendant 
is shown to have been at the site or place where, and at the time when, 
the business of a distiller or processor was so engaged in or carried 
on, such presence of the defendant shall be deemed sufficient evidence 
to authorize conviction, unless the defendant explains such presence to 
the satisfaction of the jury (or of the court when tried without jury).

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1398; 
amended Pub. L. 94-455, title XIX, Secs. 1905(a)(22), 1906(b)(13)(A), 
Oct. 4, 1976, 90 Stat. 1820, 1834; Pub. L. 96-39, title VIII, 
Sec. 807(a)(52), July 26, 1979, 93 Stat. 288; Pub. L. 96-223, title II, 
Sec. 232(e)(2)(A), Apr. 2, 1980, 94 Stat. 280.)


                            Prior Provisions

    A prior section 5601, act Aug. 16, 1954, ch. 736, 68A Stat. 683, 
consisted of provisions similar to those comprising subsec. (a)(1) of 
this section, and also related to forfeiture for possession of 
unregistered still or distilling apparatus, prior to the general 
revision of this chapter by Pub. L. 85-859. See section 5615(1) of this 
title.
    Provisions similar to those comprising subsecs. (a)(2) to (8), 
(9)(A), (10) to (14) 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 subd. of subsec. (a):                Prior sections
------------------------------------------------------------------------
(2)............................  5172, 5603.
(3)............................  5603.
(4)............................  5172, 5604, 5606.
(5)............................  5604.
(6)............................  5171, 5607.
(7)............................  5216(a)(1), (4), 5608(a).
(8)............................  5216(a)(1), 5608(a).
(9)............................  5216(a)(1), 5608(a).
(10)...........................  5628, 5629.
(11)...........................  5629.
(12)...........................  5608(a), 5631, 5632, 5643, 5647.
(13)...........................  5634.
(14)...........................  5650.
------------------------------------------------------------------------

    The prior sections, act Aug. 16, 1954, ch. 736, are set out in 68A 
Stat. 627, 640, 641, 684, 685, 689, 690, 692, 693, 695.


                               Amendments

    1980--Subsec. (a)(15). Pub. L. 96-223 added par. (15).
    1979--Subsec. (a)(2). Pub. L. 96-39, Sec. 807(a)(52)(A), struck out 
``distiller or rectifier'' in heading and substituted ``processor'' for 
``rectifier'' and ``section 5171(c)'' for ``section 5171(a)'' in text.
    Subsec. (a)(3). Pub. L. 96-39, Sec. 807(a)(52)(B), substituted 
``warehouseman, or processor'' for ``bonded warehouseman, rectifier, or 
bottler''.
    Subsec. (a)(4). Pub. L. 96-39, Sec. 807(a)(52)(C), substituted 
``warehouseman, or processor'' for ``or rectifier'' in heading and in 
text.
    Subsec. (a)(5). Pub. L. 96-39, Sec. 807(a)(52)(B), substituted 
``warehouseman, or processor'' for ``bonded warehouseman, rectifier, or 
bottler''.
    Subsec. (a)(10). Pub. L. 96-39, Sec. 807(a)(52)(D), substituted 
``processing'' for ``rectifying or bottling'' in par. (10) heading, 
``processor'' for ``rectifier, or a bottler of distilled spirits'' in 
text preceding subpar. (A), and ``processed'' for ``rectified or 
bottled'' in subpar. (A).
    Subsec. (a)(11). Pub. L. 96-39, Sec. 807(a)(52)(E), substituted ``or 
processing'' for ``rectification, or bottling'' in heading and ``or 
processes'' for ``rectifies, or bottles'' in text.
    Subsec. (b). Pub. L. 96-39, Sec. 807(a)(52)(F), substituted 
``processor'' for ``rectifier''.
    1976--Subsec. (a)(7). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck 
out ``or his delegate'' after ``Secretary''.
    Subsec. (b). Pub. L. 94-455, Sec. 1905(a)(22), struck out par. (1) 
relating to presumptions in the matter of unregistered stills, par. (3) 
relating to presumptions in the matter of unlawful production, removal, 
or use of material fit for production of distilled spirits, and par. (4) 
relating to presumptions in the matter of unlawful production of 
distilled spirits, and struck out the number designation ``(2)'' and 
heading for former par. (2), leaving only the text for former par. (2) 
relating to presumptions in the matter of failure or refusal of 
distiller or rectifier to give bond.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-223 effective on first day of 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 1976 Amendment

    Amendment by Pub. L. 94-455 effective on first day of first month 
which begins more than 90 days after Oct. 4, 1976, see section 1905(d) 
of Pub. L. 94-455, set out as a note under section 5005 of this title.


                             Effective Date

    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.


   Prosecution and Punishment of Offenses Committed and Penalties or 
                 Forfeitures Incurred; Savings Provision

    Section 210(c) of title II of Pub. L. 85-859 provided that: ``All 
offenses committed, and all penalties or forfeitures incurred, under any 
provision of law amended 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, 7272, 7301, 7224 to 7326, 7609, 
7652 and 7655 of this title, and enacting notes set out under this 
section and sections 5001, 5006, 5025, 5064, 5175, and 5304 of this 
title], may be prosecuted and punished in the same manner and with the 
same effect as if this title had not been enacted.''

                  Section Referred to in Other Sections

    This section is referred to in sections 5101, 5171, 5177, 5178, 
5179, 5221, 5222, 5505 of this title.
