Except as provided under section 5551(d), no person intending to establish a distilled spirits plant may commence operations at such plant unless such person has furnished bond covering operations at such plant.
Except as provided under section 5551(d), no distilled spirits (other than distilled spirits withdrawn under section 5214 or 7510) may be withdrawn from bonded premises except on payment of tax unless the proprietor of the bonded premises has furnished bond covering such withdrawal.
The bond required by paragraph (1) of subsection (a) shall meet the requirements of paragraph (1), (2), or (3) of this subsection:
The bond covers operations at a single distilled spirits plant.
The bond covers operations at a distilled spirits plant and at an adjacent bonded wine cellar.
The bond covers operations at 2 or more distilled spirits plants (and adjacent bonded wine cellars) which-
The bond required by paragraph (2) of subsection (a) shall cover withdrawals from 1 or more bonded premises the operations at which could be covered by the same operations bond under subsection (b).
Under regulations prescribed by the Secretary, the requirements of paragraphs (1) and (2) of subsection (a) shall be treated as met by a unit bond which covers both operations at, and withdrawals from, 1 or more bonded premises which could be covered by the same operations bond under subsection (b).
Any bond furnished under this section shall be conditioned that the person furnishing the bond-
Any bond furnished under this section shall contain such other terms and conditions as may be required by regulations prescribed by the Secretary.
The penal sum of any bond shall be the amount determined under regulations prescribed by the Secretary.
The Secretary shall by regulations prescribe a minimum amount and a maximum amount for each type of bond which may be furnished under this section.
The total amount of any bond furnished under this section shall be available for the satisfaction of any liability incurred under the terms and conditions of such bond.
For purposes of this section-
In the case of any bond furnished under this section which covers withdrawals but not operations-
No wine cellar shall be treated as being adjacent to a distilled spirits plant unless-
In the case of any adjacent wine cellar, a bond furnished under this section which covers operations at such wine cellar shall be in lieu of any bond which would otherwise be required under section 5354 with respect to such wine cellar (other than supplemental bonds required under the second sentence of section 5354).
26 U.S.C. § 5173
PRIOR PROVISIONSA prior section 5173, act Aug. 16, 1954, ch. 736, 68A Stat. 628, related to "distillery fixtures and equipment", prior to the general revision of this chapter by Pub. L. 85-859. See sections 5178(a)(1)(A), (2)(B)(C), (c)(1) and 5202(b) of this title.Provisions similar to those comprising subsecs. (a), (b), (b)(1), (b)(1)(A) to (C), (b)(3), (c), (c)(1), (d) and (e)(1) 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 subsecs.:||Prior sections|
|(a)||5172, 5176(a), 5231, 5232(a), 5272(a), 5301-5303, 5304(a)(5), 5305, 5311(a)(3).|
|(b)||5176 (a), (d).|
|(c)||5232(a), 5302, 5303, 5306, 5331(a)(3).|
AMENDMENTS2015-Subsec. (a)(1). Pub. L. 114-113, §332(b)(2)(A)(i), substituted "Except as provided under section 5551(d), no person" for "No person".Subsec. (a)(2). Pub. L. 114-113, §332(b)(2)(A)(ii), substituted "Except as provided under section 5551(d), no distilled spirits" for "No distilled spirits".1979- Pub. L. 96-39 among other changes, struck out provisions relating to liens on distillery property and the furnishing of indemnity bonds as methods of securing tax payments and inserted provisions relating to the one plant operations bond, which will cover the operations at a bonded wine cellar which is adjacent to the distilled spirits plant and operated by the same person.1976- Pub. L. 94-455 struck out "or his delegate" after "Secretary" wherever appearing.1971-Subsec. (b)(1). Pub. L. 91-659, §4(b), extended exception clause in parenthetical by making reference to cl. (4) of this subsection.Subsec. (b)(2). Pub. L. 91-659, §4(c), inserted reference to par. (4).Subsec. (b)(4). Pub. L. 91-659, §4(a), added par. (4).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2015 AMENDMENTAmendment by Pub. L. 114-113 applicable to any calendar quarters beginning more than 1 year after Dec. 18, 2015, see section 332(c) of Pub. L. 114-113 set out as a note under section 5061 of this title.
EFFECTIVE DATE OF 1979 AMENDMENTAmendment 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 1971 AMENDMENTAmendment by Pub. L. 91-659 effective on first day of first calendar month which begins more than 90 days after Jan. 8, 1971, see section 6 of Pub. L. 91-659 set out as an Effective Date note under section 5066 of this title.
TRANSITIONAL RULES RELATING TO ALL-IN-BOND METHODPub. L. 96-39, title VIII, §809(c), July 26, 1979, 93 Stat. 292, as amended by Pub. L. 99-514, §2, Oct. 22, 1986, 100 Stat. 2095, provided that: "For purposes of section 5173 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to bonds), each person who intends to continue operation at a premises after December 31, 1979, shall be treated as intending to establish a distilled spirits plant on such premises on January 1, 1980."
- Internal Revenue Code of 1986
- The term "Internal Revenue Code of 1986" means this title, and the term "Internal Revenue Code of 1939" means the Internal Revenue Code enacted February 10, 1939, as amended.
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- The term "corporation" includes associations, joint-stock companies, and insurance companies.
- distilled spirits plant
- The term "distilled spirits plant" means an establishment which is qualified under subchapter B to perform any distilled spirits operation.
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.