26 U.S.C. § 5064 — Losses resulting from disaster, vandalism, or malicious mischief

(a) Payments. The Secretary^* must pay, without interest, an amount equal to the internal revenue taxes paid or determined and the customs duties paid on previously withdrawn distilled spirits^*, wines, and beer if a duly authorized official says they were lost, made unsalable, or condemned because of either: (1) a fire, flood, casualty, or other disaster; or (2) breakage, destruction, or other damage caused by vandalism or malicious mischief. Theft does not count. The disaster or damage must have happened in the United States, and the spirits^*, wines, or beer must have been held and intended for sale when the disaster or damage happened. The Secretary must make the payment to the person who held them for sale at that time. (b) Claims. (1) Time for filing and proof. A claim is allowed only if (A) the claimant files it within 6 months after the date the spirits, wines, or beer were lost, made unsalable, or condemned by a duly authorized official; and (B) the claimant gives the Secretary satisfactory proof that (i) the claimant was not paid through a valid insurance claim or otherwise for the tax, or the tax and duty, on the items covered by the claim; and (ii) the claimant is entitled to payment under this section. (2) Minimum claim. Except as provided in paragraph (3)(A), the Secretary may not allow a claim of less than $250 for any one disaster or other damage. (3) Special rule for major disasters. If the President determines under the Robert T. Stafford Disaster Relief and Emergency Assistance Act that a “major disaster” (a term this section does not define; the Act defines it) happened in any part of the United States, and the disaster described in subsection (a)(1) happens in that part because of that major disaster, then (A) the $250 minimum in paragraph (2) does not apply; and (B) the 6-month filing period in paragraph (1)(A) cannot end before 6 months after the date of the President’s determination. (4) Regulations. Claims must be filed under regulations prescribed by the Secretary. (c) Destruction of distilled spirits, wines, or beer. After the Secretary pays the tax, or tax and duty, on spirits, wines, or beer that a duly authorized official condemned or that were made unsalable, those items must be destroyed under the Secretary’s supervision, unless they were already destroyed under supervision satisfactory to the Secretary. (d) Products of Puerto Rico. This section does not apply to distilled spirits, wines, or beer made in Puerto Rico, brought into the United States, and then lost, made unsalable, or condemned. (e) Other laws that apply. All laws, including penalties, that apply to internal revenue taxes on distilled spirits, wines, and beer also apply, when relevant and not inconsistent with this section, to the payments under this section. They apply to the same extent as if those payments were refunds of those taxes.