
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-476 Section 4002(c)]
[Document affected by Public Law 106-476 Section 4003(a)]
[Document affected by Public Law 106-554 Section 1(a)(7)]
[Document affected by Public Law 106-476 Section 4003(b)]
[CITE: 26USC5761]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
      Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes
 
       CHAPTER 52--TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES
 
                 Subchapter G--Penalties and Forfeitures
 
Sec. 5761. Civil penalties


(a) Omitting things required or doing things forbidden

    Whoever willfully omits, neglects, or refuses to comply with any 
duty imposed upon him by this chapter, or to do, or cause to be done, 
any of the things required by this chapter, or does anything prohibited 
by this chapter, shall in addition to any other penalty provided in this 
title, be liable to a penalty of $1,000, to be recovered, with costs of 
suit, in a civil action, except where a penalty under subsection (b) or 
(c) or under section 6651 or 6653 or part II of subchapter A of chapter 
68 may be collected from such person by assessment.

(b) Failure to pay tax

    Whoever fails to pay any tax imposed by this chapter at the time 
prescribed by law or regulations, shall, in addition to any other 
penalty provided in this title, be liable to a penalty of 5 percent of 
the tax due but unpaid.

(c) Sale of tobacco products and cigarette papers and tubes for export

    Except as provided in subsections (b) and (d) of section 5704--
        (1) every person who sells, relands, or receives within the 
    jurisdiction of the United States any tobacco products or cigarette 
    papers or tubes which have been labeled or shipped for exportation 
    under this chapter,
        (2) every person who sells or receives such relanded tobacco 
    products or cigarette papers or tubes, and
        (3) every person who aids or abets in such selling, relanding, 
    or receiving,

shall, in addition to the tax and any other penalty provided in this 
title, be liable for a penalty equal to the greater of $1,000 or 5 times 
the amount of the tax imposed by this chapter. All tobacco products and 
cigarette papers and tubes relanded within the jurisdiction of the 
United States shall be forfeited to the United States and destroyed. All 
vessels, vehicles, and aircraft used in such relanding or in removing 
such products, papers, and tubes from the place where relanded, shall be 
forfeited to the United States. This subsection and section 5754 shall 
not apply to any person who relands or receives tobacco products in the 
quantity allowed entry free of tax and duty under subchapter IV of 
chapter 98 of the Harmonized Tariff Schedule of the United States. No 
quantity of tobacco products other than the quantity referred to in the 
preceding sentence may be relanded or received as a personal use 
quantity. This subsection and section 5754 shall not apply to any person 
who relands or receives tobacco products in the quantity allowed entry 
free of tax and duty under chapter 98 of the Harmonized Tariff Schedule 
of the United States, and such person may voluntarily relinquish to the 
Secretary at the time of entry any excess of such quantity without 
incurring the penalty under this subsection. No quantity of tobacco 
products other than the quantity referred to in the preceding sentence 
may be relanded or received as a personal use quantity.

(d) Applicability of section 6665

    The penalties imposed by subsections (b) and (c) shall be assessed, 
collected, and paid in the same manner as taxes, as provided in section 
6665(a).

(e) Cross references

            For penalty for failure to make deposits or for 
        overstatement of deposits, see section 6656.

(Aug. 16, 1954, ch. 736, 68A Stat. 717; Pub. L. 85-859, title II, 
Sec. 202, Sept. 2, 1958, 72 Stat. 1425; Pub. L. 97-34, title VII, 
Secs. 722(a)(3), 724(b)(5), Aug. 13, 1981, 95 Stat. 342, 345; Pub. L. 
97-448, title I, Sec. 107(b), Jan. 12, 1983, 96 Stat. 2391; Pub. L. 98-
369, div. A, title VII, Sec. 714(h)(2), July 18, 1984, 98 Stat. 962; 
Pub. L. 101-239, title VII, Sec. 7721(c)(4), (5), Dec. 19, 1989, 103 
Stat. 2399; Pub. L. 105-33, title IX, Sec. 9302(h)(1)(B)-(D), Aug. 5, 
1997, 111 Stat. 673; Pub. L. 106-476, title IV, Secs. 4002(c), 4003(a), 
Nov. 9, 2000, 114 Stat. 2177; Pub. L. 106-554, Sec. 1(a)(7) [title III, 
Sec. 315(a)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A-644.)

                       References in Text

    The Harmonized Tariff Schedule of the United States, referred to in 
subsec. (c), is not set out in the Code. See Publication of Harmonized 
Tariff Schedule note set out under section 1202 of Title 19, Customs 
Duties.


                               Amendments

    2000--Subsec. (c). Pub. L. 106-554 inserted at end ``This subsection 
and section 5754 shall not apply to any person who relands or receives 
tobacco products in the quantity allowed entry free of tax and duty 
under chapter 98 of the Harmonized Tariff Schedule of the United States, 
and such person may voluntarily relinquish to the Secretary at the time 
of entry any excess of such quantity without incurring the penalty under 
this subsection. No quantity of tobacco products other than the quantity 
referred to in the preceding sentence may be relanded or received as a 
personal use quantity.''
    Pub. L. 106-476, Sec. 4003(a), inserted at end ``This subsection and 
section 5754 shall not apply to any person who relands or receives 
tobacco products in the quantity allowed entry free of tax and duty 
under subchapter IV of chapter 98 of the Harmonized Tariff Schedule of 
the United States. No quantity of tobacco products other than the 
quantity referred to in the preceding sentence may be relanded or 
received as a personal use quantity.''
    Pub. L. 106-476, Sec. 4002(c), which directed amendment of the last 
sentence of subsec. (c) by substituting ``the jurisdiction of the United 
States shall be forfeited to the United States and destroyed. All 
vessels, vehicles, and aircraft used in such relanding or in removing 
such products, papers, and tubes from the place where relanded, shall be 
forfeited to the United States.'' for ``the jurisdiction of the United 
States'' and all that followed through the end period, was executed by 
making the substitution for ``the jurisdiction of the United States, and 
all vessels, vehicles, and aircraft used in such relanding or in 
removing such products, papers, and tubes from the place where relanded, 
shall be forfeited to the United States.'' in the second sentence of 
subsec. (c) to reflect the probable intent of Congress and the 
intervening retroactive amendments by Pub. L. 106-476, Sec. 4003(a), and 
Pub. L. 106-554. See above.
    1997--Subsec. (a). Pub. L. 105-33, Sec. 9302(h)(1)(C), substituted 
``subsection (b) or (c)'' for ``subsection (b)''.
    Subsec. (c). Pub. L. 105-33, Sec. 9302(h)(1)(B), added subsec. (c). 
Former subsec. (c) redesignated (d).
    Subsec. (d). Pub. L. 105-33, Sec. 9302(h)(1)(D), substituted ``The 
penalties imposed by subsections (b) and (c)'' for ``The penalty imposed 
by subsection (b)''.
    Pub. L. 105-33, Sec. 9302(h)(1)(B), redesignated subsec. (c) as (d). 
Former subsec. (d) redesignated (e).
    Subsec. (e). Pub. L. 105-33, Sec. 9302(h)(1)(B), redesignated 
subsec. (d) as (e).
    1989--Subsec. (a). Pub. L. 101-239, Sec. 7721(c)(4), inserted ``or 
part II of subchapter A of chapter 68'' after ``or 6653''.
    Subsec. (c). Pub. L. 101-239, Sec. 7721(c)(5), substituted ``6665'' 
for ``6662'' in heading and ``6665(a)'' for ``6662(a)'' in text.
    1984--Subsec. (c). Pub. L. 98-369 substituted ``section 6662'' for 
``section 6660'' in heading and ``section 6662(a)'' for ``section 
6660(a)'' in text.
    1983--Subsec. (c). Pub. L. 97-448 substituted ``section 6660'' for 
``section 6659'' in heading, and substituted ``section 6660(a)'' for 
``section 6659(a)'' in text.
    1981--Subsec. (c). Pub. L. 97-34, Sec. 724(b)(5), added subsec. (c). 
Former subsec. (c), which related to applicability of section 6656 to 
failure to make deposit of taxes imposed under subchapter A on the 
prescribed date and imposition of penalty, was struck out.
    Subsec. (d). Pub. L. 97-34, Secs. 722(a)(3), 724(b)(5), added 
subsec. (d). Former subsec. (d), which related to applicability of 
section 6660 and penalties imposed by subsections (b) and (c) to be 
assessed, collected, and paid in the manner as taxes provided in section 
6660(a), was struck out. See subsec. (c).
    1958--Subsec. (a). Pub. L. 85-859 struck out reference to section 
6652 of this title.
    Subsec. (b). Pub. L. 85-859 substituted provisions relating to 
failure to pay tax for provisions which made persons willfully failing 
to pay a tax liable, in addition to any other penalty provided in this 
title, to a penalty of the amount of the tax evaded, or not paid.
    Subsec. (c). Pub. L. 85-859 substituted provisions relating to 
failure to make deposit of taxes for provisions which authorized a 
penalty of 5 percent of the tax due but unpaid where a person failed to 
pay tax at the time prescribed, and required the penalties to be added 
to the tax and assessed and collected at the same time, in the same 
manner, and as a part of the tax.
    Subsec. (d). Pub. L. 85-859 added subsec. (d). Similar provisions 
were formerly contained in subsec. (c) of this section.


                    Effective Date of 2000 Amendments

    Amendment by Pub. L. 106-554 effective as if included in section 
9302 of the Balanced Budget Act of 1997, Pub. L. 105-33, see section 
1(a)(7) [title III, Sec. 315(b)] of Pub. L. 106-554, set out as a note 
under section 5702 of this title.
    Amendment by section 4002 of Pub. L. 106-476 effective 90 days after 
Nov. 9, 2000, see section 4002(d) of Pub. L. 106-476, set out as a note 
under section 5704 of this title.
    Pub. L. 106-476, title IV, Sec. 4003(b), Nov. 9, 2000, 114 Stat. 
2178, provided that: ``The amendment made by this section [amending this 
section] shall take effect as if included in section 9302 of the 
Balanced Budget Act of 1997 [Pub. L. 105-33].''


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-33 applicable to articles removed, as 
defined in section 5702(j) of this title, after Dec. 31, 1999, with 
transition rule, see section 9302(i) of Pub. L. 105-33, set out as a 
note under section 5701 of this title.


                    Effective Date of 1989 Amendment

    Amendment by Pub. L. 101-239 applicable to returns the due date for 
which (determined without regard to extensions) is after Dec. 31, 1989, 
see section 7721(d) of Pub. L. 101-239, set out as a note under section 
461 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective as if included in the 
provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. 
L. 97-248, to which such amendment relates, see section 715 of Pub. L. 
98-369, set out as a note under section 31 of this title.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 97-448 effective, except as otherwise provided, 
as if it had been included in the provision of the Economic Recovery Tax 
Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 
109 of Pub. L. 97-448, set out as a note under section 1 of this title.


                    Effective Date of 1981 Amendment

    Amendment by section 722(a)(3) of Pub. L. 97-34 applicable to 
returns filed after Dec. 31, 1981, see section 722(a)(4) of Pub. L. 97-
34, set out as a note under section 5684 of this title.
    Amendment by section 724(b)(5) of Pub. L. 97-34 applicable to 
returns filed after Aug. 13, 1981, see section 724(c) of Pub. L. 97-34, 
set out as a note under section 6656 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.

                  Section Referred to in Other Sections

    This section is referred to in section 5754 of this title.
