26 U.S.C. § 5401 — Qualifying documents
submitted 68 years ago by Pub. L. 85-859 to r/title-26-INTERNAL-REVENUE-CODE · 389 words · no verdicts yet
This section requires every brewer to file a notice and a bond before starting or continuing business. The bond guarantees taxes and legal compliance, with a limited exception for certain taxpayers.
(a) Notice. Before starting or continuing business, every brewer* must file a written notice with the officer the Secretary* designates. The notice must use the form and include the information the Secretary requires by regulation to protect and ensure revenue collection.
(b) Bonds. When filing that notice, a brewer must give the United States a bond in the reasonable amount the Secretary sets by regulation to protect and ensure revenue collection. The bond must promise that the brewer will: (1) pay, or cause payment of, the legally required tax on all beer, including beer removed for transfer to the brewery from the brewer’s other breweries as section 5414 provides; (2) pay, or cause payment of, tax on beer removed tax-free for export* under section 5053(a) if it is not exported* or returned to the brewery; and (3) faithfully comply, without fraud or evasion, with every law governing production and sale of that beer. Every 4 years, or whenever the Secretary requires, the brewer must give a new bond or continuation certificate in the prescribed amount and on those conditions. It replaces earlier bonds or certificates for liabilities arising after approval. If the surety contract continues for at least another 4 years, the brewer may submit instead a certificate, signed under penalty of perjury by the brewer and surety, confirming continuation. That certificate is a bond subject to all laws governing bonds under this section.
(c) Exception. Subsection (b) does not apply to a taxpayer* during a period described in section 5551(d).
Every brewer* shall, before commencing or continuing business, file with the officer designated for that purpose by the Secretary* a notice in writing, in such form and containing such information as the Secretary shall by regulations prescribe as necessary to protect and insure collection of the revenue.
Every brewer, on filing notice as provided by subsection (a) of his intention to commence business, shall execute a bond to the United States in such reasonable penal sum as the Secretary shall by regulation prescribe as necessary to protect and insure collection of the revenue. The bond shall be conditioned (1) that the brewer shall pay, or cause to be paid, as herein provided, the tax required by law on all beer, including all beer removed for transfer to the brewery from other breweries owned by him as provided in section 5414; (2) that he shall pay or cause to be paid the tax on all beer removed free of tax for export* as provided in section 5053(a), which beer is not exported* or returned to the brewery; and (3) that he shall in all respects faithfully comply, without fraud or evasion, with all requirements of law relating to the production and sale of any beer aforesaid. Once in every 4 years, or whenever required so to do by the Secretary, the brewer shall execute a new bond or a continuation certificate, in the penal sum prescribed in pursuance of this section, and conditioned as above provided, which bond or continuation certificate shall be in lieu of any former bond or bonds, or former continuation certificate or certificates, of such brewer in respect to all liabilities accruing after its approval. If the contract of surety between the brewer and the surety on an expiring bond or continuation certificate is continued in force between the parties for a succeeding period of not less than 4 years, the brewer may submit, in lieu of a new bond, a certificate executed, under penalties of perjury, by the brewer and the surety attesting to continuation of the bond, which certificate shall constitute a bond subject to all provisions of law applicable to bonds given pursuant to this section.
Subsection (b) shall not apply to any taxpayer* for any period described in section 5551(d).
Source credit: (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1388; amended Pub. L. 91–673, § 3(a), Jan. 12, 1971, 84 Stat. 2056; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 114–113, div. Q, title III, § 332(b)(2)(C), Dec. 18, 2015, 129 Stat. 3106.)
- 1958Enacted · Pub. L. 85-859 · 72 Stat. 1388
- 1971Amended · Pub. L. 91-673 · 84 Stat. 2056
- 1976Amended · Pub. L. 94-455 · 90 Stat. 1834
- 2015Amended · Pub. L. 114-113 · 129 Stat. 3106
A history note hasn’t been published yet. The record shows enactment by Pub. L. 85-859 on 1958-09-02.
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