SEC. 5125. CROSS REFERENCES. (1) For provisions relating to prohibited purchases by dealers, see section 5117. (2) For provisions relating to presumptions of liability as wholesale dealer in case of sale of 20 wine gallons or more, see section 5691 (b). Subpart F-Nonbeverage Domestic Drawback Claimants Sec. 5131. Eligibility and rate of tax. SEC. 5131. ELIGIBILITY AND RATE OF TAX. (a) ELIGIBILITY FOR DRAWBACK.-Any person using distilled spirits produced in a domestic registered distillery or industrial alcohol plant and withdrawn from bond, or using distilled spirits withdrawn from the bonded premises of a distilled spirits plant, on which the tax has been determined, in the manufacture or production of medicines, medicinal preparations, food products, flavors, or flavoring extracts, which are unfit for beverage purposes, on payment of a special tax per annum, shall be eligible for drawback at the time when such distilled spirits are used in the manufacture of such products as provided for in this subpart. (b) RATE OF TAX.-The special tax imposed by subsection (a) shall be graduated in amount as follows: (1) for total annual use not exceeding 25 proof gallons, $25 a year; (2) for total annual use not exceeding 50 proof gallons, $50 a year; (3) for total annual use of more than 50 proof gallons, $100 a year. SEC. 5132. REGISTRATION AND REGULATION. Every person claiming drawback under this subpart shall register annually with the Secretary or his delegate; keep such books and records as may be necessary to establish the fact that distilled spirits received by him and on which the tax has been determined were used in the manufacture or production of medicines, medicinal preparations, food products, flavors, or flavoring extracts, which were unfit for use for beverage purposes; and be subject to such rules and regulations in relation thereto as the Secretary or his delegate shall prescribe to secure the Treasury against frauds. SEC. 5133. INVESTIGATION OF CLAIMS. For the purpose of ascertaining the correctness of any claim filed under this subpart, the Secretary or his delegate is authorized to examine any books, papers, records, or memoranda bearing upon the matters required to be alleged in the claim, to require the attendance of the person filing the claim or of any officer or employee of such person or the attendance of any other person having knowledge in the premises, to take testimony with reference to any matter covered by the claim, and to administer oaths to any person giving such testimony. 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 or his delegate; 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 or his delegate. The Secretary or his delegate 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 or his delegate. No claim under this subpart shall be allowed unless filed with the Secretary or his delegate within the 3 months next succeeding the quarter in which the distilled spirits covered by the claim were used as provided in this subpart. Subpart G-General Provisions Sec. 5141. Registration. Sec. 5142. Payment of tax. Sec. 5143. Provisions relating to liability for occupational taxes. Sec. 5145. Application of State laws. Sec. 5146. Preservation and inspection of records, and entry of premises for inspection. Sec. 5147. Application of subpart. Sec. 5148. Cross references. SEC. 5141. REGISTRATION. For provisions relating to registration in the case of persons engaged in any trade or business on which a special tax is imposed, see section 7011 (a). SEC. 5142. PAYMENT OF TAX. (a) CONDITION PRECEDENT TO CARRYING ON BUSINESS.-No person shall be engaged in or carry on any trade or business subject to tax under this part (except the tax imposed by section 5131) until he has paid the special tax therefor. (b) COMPUTATION.-All special taxes under this part (except the tax imposed by section 5131) shall be imposed as of on the first day of July in each year, or on commencing any trade or business on which such tax is imposed. In the former case the tax shall be reckoned for 1 year, and in the latter case it shall be reckoned proportionately, from the first day of the month in which the liability to a special tax commenced, to and including the 30th day of June following. (c) How PAID. (1) STAMP.-All special taxes imposed by this part shall be paid by stamps denoting the tax. (2) ASSESSMENT. For authority of the Secretary or his delegate to make assessments where the special taxes have not been duly paid by stamp at the time and in the manner provided by law, see subtitle F. SEC. 5143. PROVISIONS RELATING TO LIABILITY FOR OCCUPATIONAL TAXES. (a) PARTNERS.-Any number of persons doing business in partnership at any one place shall be required to pay but one special tax. (b) DIFFERENT BUSINESSES OF SAME OWNERSHIP AND LOCATION.Whenever more than one of the pursuits or occupations described in this part are carried on in the same place by the same person at the same time, except as otherwise provided in this part, the tax shall be paid for each according to the rates severally prescribed. (c) BUSINESSES IN MORE THAN ONE LOCATION. (1) LIABILITY FOR TAX.-The payment of a special tax imposed by this part shall not exempt from an additional special tax the person carrying on a trade or business in any other place than that stated in the register kept in the office of the official in charge of the internal revenue district. (2) STORAGE. Nothing contained in paragraph (1) shall require a special tax for the storage of liquors at a location other than the place where liquors are sold or offered for sale. (3) DEFINITION OF PLACE.-The term "place" as used in this section means the entire office, plant or area of the business in any one location under the same proprietorship; and passageways, streets, highways, rail crossings, waterways, or partitions dividing the premises, shall not be deemed sufficient separation to require additional special tax, if the various divisions are otherwise contiguous. (d) DEATH OR CHANGE OF LOCATION.-Certain persons, other than the person who has paid the special tax under this part for the carrying on of any business at any place, may secure the right to carry on, without incurring additional special tax, the same business at the same place for the remainder of the taxable period for which the special tax was paid. The persons who may secure such right are: (1) the surviving spouse or child, or executor or administrator or other legal representative, of a deceased taxpayer; (2) a husband or wife succeeding to the business of his or her living spouse; (3) a receiver or trustee in bankruptcy, or an assignee for benefit of creditors; and (4) the partner or partners remaining after death or withdrawal of a member of a partnership. When any person moves to any place other than the place for which special tax was paid for the carrying on of any business, he may secure the right to carry on, without incurring additional special tax, the same business at his new location for the remainder of the taxable period for which the special tax was paid. To secure the right to carry on the business without incurring additional special tax, the successor, or the person relocating his business, must register the succession or relocation with the Secretary or his delegate in accordance with regulations prescribed by the Secretary or his delegate. (e) FEDERAL AGENCIES OR INSTRUMENTALITIES.-Any tax imposed by this part shall apply to any agency or instrumentality of the United States unless such agency or instrumentality is granted by statute a specific exemption from such tax. SEC. 5144. SUPPLY OF STAMPS. The Secretary or his delegate is required to procure appropriate stamps for the payment of all special taxes imposed by this part, including the tax on stills or condensers; and all provisions of law relating to the preparation and issue of stamps shall, so far as applicable, extend to and include such stamps for special taxes; and the Secretary or his delegate shall have authority to make all needful regulations relative thereto. SEC. 5145. APPLICATION OF STATE LAWS. The payment of any tax imposed by this part for carrying on any trade or business shall not be held to exempt any person from any penalty or punishment provided by the laws of any State for carrying on such trade or business within such State, or in any manner to authorize the commencement or continuance of such trade or business contrary to the laws of such State or in places prohibited by municipal law; nor shall the payment of any such tax be held to prohibit any State from placing a duty or tax on the same trade or business, for State or other purposes. SEC. 5146. PRESERVATION AND INSPECTION OF RECORDS, AND ENTRY OF PREMISES FOR INSPECTION. (a) PRESERVATION AND INSPECTION OF RECORDS.-Any records or other documents required to be kept under this part or regulations issued pursuant thereto shall be preserved by the person required to keep such records or documents, as the Secretary or his delegate may by regulations prescribe, and shall be kept available for inspection by any internal revenue officer during business hours. (b) ENTRY OF PREMISES FOR INSPECTION.-The Secretary or his delegate may enter during business hours the premises (including places of storage) of any dealer for the purpose of inspecting or examining any records or other documents required to be kept by such dealer under this chapter or regulations issued pursuant thereto and any distilled spirits, wines, or beer kept or stored by such dealer on such premises. SEC. 5147. APPLICATION OF SUBPART. The provisions of this subpart shall extend to and apply to the special taxes imposed by the other subparts of this part and to the persons on whom such taxes are imposed. SEC. 5148. CROSS REFERENCES. (1) For penalties for willful nonpayment of special taxes, see section 5691. (2) For penalties applicable to this part generally, see subchapter J. (3) For penalties and other general and administrative provisions applicable to this part, see subtitle F. Subchapter B-Qualification Requirements for Sec. 5171. Extablishment. Sec. 5172. Application. Sec. 5173. Qualification bonds. Sec. 5174. Withdrawal bonds. Sec. 5175. Export bonds. Sec. 5176. New or renewed bonds. Sec. 5177. Other provisions relating to bonds. Sec. 5180. Signs. Sec. 5181. Cross references. SEC. 5171. ESTABLISHMENT. (a) GENERAL REQUIREMENTS.-Every person shall, before commencing or continuing the business of a distiller, bonded warehouseman, rectifier, or bottler of distilled spirits, and at such other times as the Secretary or his delegate may be regulations prescribe, make application to the Secretary or his delegate for and receive notice of the registration of his plant. No plant shall be registered under this section until the applicant has complied with the requirements of law and regulations in relation to the qualification of such business (or businesses). (b) PERMITS. (1) REQUIREMENTS.-Every person required to file application for registration under subsection (a) whose distilling, warehousing, or bottling operations (or any part thereof) are not required to be covered by a basic permit under the Federal Alcohol Administration Act (49 Stat. 978, 27 U. S. C. 203, 204) shall, before commencing any such operations, apply for and obtain a permit under this subsection from the Secretary or his delegate to engage in such operations. Section 5271 (b), (c), (d), (e), (f), (g), and (h), and section 5274 are hereby made applicable to applications, to persons filing applications, and to permits required by or issued under this subsection. (2) EXCEPTIONS FOR AGENCY OF A STATE OR POLITICAL SUBDIVISION.-Paragraph (1) shall not apply to any agency of a State or political subdivision thereof or to any officer or employee of any such agency, and no such agency or officer or employee shall be required to obtain a permit thereunder. (3) CONTINUANCE OF BUSINESS.-Every person required by paragraph (1) to obtain a permit (covering operations not required to be covered by a basic permit under the Federal Alcohol Administration Act) who, on June 30, 1959, is qualified to perform such operations under the internal revenue laws, and who complies with the provisions of this chapter (other than this subsection) relating to qualification of such business or businesses, shall be entitled to continue such operations pending reasonable opportunity to make application for permit, and final action thereon. |