# Pub. L. 85-859: changes to the Internal Revenue Code 1958-09-02, 72 Stat. 1286. Source: . ## Legislative history - Bill: [H.R. 7125](https://www.congress.gov/bill/85th-congress/house-bill/7125) ## § 4041: Imposition of tax - § 4041(e): Pub. L. 85–859 added subsec. (e). ## § 4216: Definition of price - § 4216(b): Pub. L. 85–859, § 115, inserted provisions in par. (1) requiring, in the case of an article sold at retail, the computation to be on either the price for which the article is sold, or the highest price for which the articles are sold to wholesale distributors, in the ordinary course of trade, by manufacturers or producers thereof, whichever is lower, and added pars. (2) and (3). - § 4216(c): Pub. L. 85–859, § 117(b), substituted “section 4217(b)” for “subsection (d)”. - § 4216(d): Pub. L. 85–859, § 117(b), repealed subsec. (d) which related to tax on leases of certain trailers. - § 4216(e): Pub. L. 85–859, § 116, added subsec. (e). ## § 4217: Leases - § 4217: Pub. L. 85–859 substituted “Leases” for “Lease considered as sale” in section catchline. - § 4217(a): Pub. L. 85–859 redesignated existing provisions as subsec. (a) and struck out provisions which made subsection inapplicable to the lease of an article upon which the tax has been paid in the manner provided in section 4216(d)(1) or the total tax has been paid in the manner provided in section 4216(d)(2) of this title. - § 4217(b), § 4217(c), § 4217(d): Pub. L. 85–859 added subsecs. (b) to (d). ## § 4218: Use by manufacturer or importer considered sale - § 4218: Pub. L. 85–859 amended section generally, striking out provisions which related to refrigerator components and to sales free of tax by virtue of section 4220 or 4224 of this title, and substituting provisions making manufacturers, producers and importers of parts or accessories taxable under section 4061(b), radio or television components taxable under section 4141, or camera lenses taxable under section 4171 liable for the tax if they use the parts or accessories otherwise than as material in the manufacture or production of, or as component parts of, any other article to be manufactured or produced by them, for provisions which made section inapplicable with respect to such parts if they were used by them as material in the manufacture or production of, or as a component part of, any article. ## § 4221: Certain tax-free sales - Enacted 26 U.S.C. § 4221. ## § 4222: Registration - Enacted 26 U.S.C. § 4222. ## § 4223: Special rules relating to further manufacture - Enacted 26 U.S.C. § 4223. ## § 4225: Exemption of articles manufactured or produced by Indians - Enacted 26 U.S.C. § 4225. ## § 4251: Imposition of tax - § 4251: Pub. L. 85–859 redesignated “local telephone service” as “general telephone service”, “long distance telephone service” as “toll telephone service” and “leased wire, teletypewriter or talking circuit special service” as “teletypewriter exchange service” and “wire mileage service”. ## § 4252: Definitions - § 4252(a): Pub. L. 85–859 substituted definition of “general telephone service” for provisions which defined “local telephone service” as any telephone service not taxable as long distance telephone service; leased wire; teletypewriter or talking circuit special service; or wire and equipment service, and provided that amounts paid for the installation of instruments, wires, poles, switchboards, apparatus, and equipment shall not be considered amounts paid for service, and that amounts paid for services and facilities which are exempted from other communication taxes by section 4253(b) should not be deemed to be within the definition of local telephone service. - § 4252(b): Pub. L. 85–859 substituted “toll telephone service” for “long distance telephone service” and struck out provisions which defined “long distance telephone service” as a telephone or radio telephone message or conversation for which the toll charge is more than 24 cents. - § 4252(c): Pub. L. 85–859 substituted “For purposes of this subchapter, the term ‘telegraph service’ means a telegram” for “As used in section 4251 the term ‘telegraph service’ means a telegraph”. - § 4252(d): Pub. L. 85–859 substituted provisions defining “teletypewriter exchange service” for provisions which defined “leased wire, teletypewriter or talking circuit special service”. - § 4252: Pub. L. 85–859 substituted provisions defining “wire mileage service” for provisions which defined “wire and equipment service”, which were covered by subsec. (f) of this section. - § 4252: Pub. L. 85–859 added subsec. (f). Similar provisions were formerly contained in subsec. (e) of this section. ## § 4253: Exemptions - § 4253(a): Pub. L. 85–859 substituted “general telephone service, or with respect to toll telephone service or telegraph service if the charge for such toll telephone service or telegraph service is less than 25 cents” for “local telephone service”. - § 4253(b): Pub. L. 85–859 substituted “general telephone service, on any payment received from any person for services used” for “local telephone service, upon any payment received from any person for services or facilities utilized”. - § 4253(c): Pub. L. 85–859 substituted “on any payment received for services furnished to an international organization, or to the American National Red Cross” for “upon any payment received for services or facilities furnished to an international organization, or any organization created by act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864”. - § 4253(d): Pub. L. 85–859 substituted “on any payment received for any toll telephone service” for “with respect to long distance telephone service upon any payment received for any telephone or radio telephone message”. - § 4253(e): Pub. L. 85–859 substituted “toll telephone service, telegraph service, or teletypewriter exchange service” for “long distance telephone service or telegraph service” and “in furnishing such service” for “in the transmission of such dispatch, message or conversation”. - § 4253(f): Pub. L. 85–859 substituted “any wire mileage service or wire and equipment service as is used in the conduct” for “the service described in sections 4252(d) and (e) as is utilized in the conduct”. - § 4253(g), § 4253(h), § 4253(i): Pub. L. 85–859 added subsecs. (g) to (i). ## § 4254: Computation of tax - § 4254(a): Pub. L. 85–859 provided that if the person who renders the bill groups individual items for purposes of rendering the bill and computing the tax, then the amount on which the tax with respect to each group shall be based shall be the sum of all items within that group, and the tax on remaining items not included in any such group shall be based on the charge of each item separately. - § 4254(b): Pub. L. 85–859 substituted “toll telephone service” for “long distance telephone service”. ## § 4291: Cases where persons receiving payment must collect tax - § 4291: Pub. L. 85–859 substituted “Except as otherwise provided in sections 3241 and 4262(a)” for “Except as provided in section 4264(a)”. ## § 4371: Imposition of tax - § 4371: Pub. L. 85–859 substituted “is hereby imposed, on each policy of insurance, indemnity bond, annuity contract, or policy of reinsurance issued by any foreign insurer or reinsurer, a tax” for “shall be imposed a tax on each policy of insurance, indemnity bond, annuity contract, or policy of reinsurance issued by any foreign insurer or reinsurer”. ## § 4372: Definitions - § 4372(d)(2): Pub. L. 85–859 substituted “against, or with respect to, hazards, risks, losses, or liabilities” for “with respect to hazards, risks, or liabilities”. ## § 4373: Exemptions - § 4373: Pub. L. 85–859 reenacted section without change. ## § 4374: Liability for tax - § 4374: Pub. L. 85–859 reenacted section without change. ## § 4401: Imposition of tax - § 4401(c): Pub. L. 85–859 made all persons required to register under section 4412 of this title who receive wagers for or on behalf of another person without having registered under section 4412 of this title the name and place of residence of such other person liable for the tax on all such wagers received by them. ## § 4402: Exemptions - § 4402(2): Pub. L. 85–859 inserted provisions exempting from the tax amounts paid to operate a device described in section 4462(a)(2)(B), if an occupational tax is imposed with respect to such device by section 4461 of this title. ## § 5001: Imposition, rate, and attachment of tax - Enacted 26 U.S.C. § 5001. ## § 5002: Definitions - Enacted 26 U.S.C. § 5002. ## § 5003: Cross references to exemptions, etc. - Enacted 26 U.S.C. § 5003. ## § 5004: Lien for tax - Enacted 26 U.S.C. § 5004. ## § 5005: Persons liable for tax - Enacted 26 U.S.C. § 5005. ## § 5006: Determination of tax - Enacted 26 U.S.C. § 5006. ## § 5007: Collection of tax on distilled spirits - Enacted 26 U.S.C. § 5007. ## § 5008: Abatement, remission, refund, and allowance for loss or destruction of distilled spirits - Enacted 26 U.S.C. § 5008. ## § 5041: Imposition and rate of tax - Enacted 26 U.S.C. § 5041. ## § 5042: Exemption from tax - Enacted 26 U.S.C. § 5042. ## § 5043: Collection of taxes on wines - Enacted 26 U.S.C. § 5043. ## § 5044: Refund of tax on wine - Enacted 26 U.S.C. § 5044. ## § 5045: Cross references - Enacted 26 U.S.C. § 5045. ## § 5051: Imposition and rate of tax - Enacted 26 U.S.C. § 5051. ## § 5052: Definitions - Enacted 26 U.S.C. § 5052. ## § 5053: Exemptions - Enacted 26 U.S.C. § 5053. ## § 5054: Determination and collection of tax on beer - Enacted 26 U.S.C. § 5054. ## § 5055: Drawback of tax - Enacted 26 U.S.C. § 5055. ## § 5056: Refund and credit of tax, or relief from lia­bility - Enacted 26 U.S.C. § 5056. ## § 5061: Method of collecting tax - Enacted 26 U.S.C. § 5061. ## § 5062: Refund and drawback in case of exportation - Enacted 26 U.S.C. § 5062. ## § 5064: Losses resulting from disaster, vandalism, or malicious mischief - Enacted 26 U.S.C. § 5064. ## § 5065: Territorial extent of law - Enacted 26 U.S.C. § 5065. ## § 5068: Cross reference - Enacted 26 U.S.C. § 5068. ## § 5111: Eligibility - Enacted 26 U.S.C. § 5111. ## § 5112: Registration and regulation - Enacted 26 U.S.C. § 5112. ## § 5113: Investigation of claims - Enacted 26 U.S.C. § 5113. ## § 5114: Drawback - Enacted 26 U.S.C. § 5114. ## § 5121: Recordkeeping by wholesale dealers - Enacted 26 U.S.C. § 5121. ## § 5122: Recordkeeping by retail dealers - Enacted 26 U.S.C. § 5122. ## § 5123: Preservation and inspection of records, and entry of premises for inspection - Enacted 26 U.S.C. § 5123. ## § 5131: Packaging distilled spirits for industrial uses - Enacted 26 U.S.C. § 5131. ## § 5171: Establishment - Enacted 26 U.S.C. § 5171. ## § 5172: Application - Enacted 26 U.S.C. § 5172. ## § 5173: Bonds - Enacted 26 U.S.C. § 5173. ## § 5175: Export bonds - Enacted 26 U.S.C. § 5175. ## § 5176: New or renewed bonds - Enacted 26 U.S.C. § 5176. ## § 5177: Other provisions relating to bonds - Enacted 26 U.S.C. § 5177. ## § 5178: Premises of distilled spirits plants - Enacted 26 U.S.C. § 5178. ## § 5179: Registration of stills - Enacted 26 U.S.C. § 5179. ## § 5180: Signs - Enacted 26 U.S.C. § 5180. ## § 5182: Cross references - Enacted 26 U.S.C. § 5182. ## § 5201: Regulation of operations - Enacted 26 U.S.C. § 5201. ## § 5202: Supervision of operations - Enacted 26 U.S.C. § 5202. ## § 5203: Entry and examination of premises - Enacted 26 U.S.C. § 5203. ## § 5204: Gauging - Enacted 26 U.S.C. § 5204. ## § 5206: Containers - Enacted 26 U.S.C. § 5206. ## § 5207: Records and reports - Enacted 26 U.S.C. § 5207. ## § 5211: Production and entry of distilled spirits - Enacted 26 U.S.C. § 5211. ## § 5212: Transfer of distilled spirits between bonded premises - Enacted 26 U.S.C. § 5212. ## § 5213: Withdrawal of distilled spirits from bonded premises on determination of tax - Enacted 26 U.S.C. § 5213. ## § 5214: Withdrawal of distilled spirits from bonded premises free of tax or without payment of tax - Enacted 26 U.S.C. § 5214. ## § 5215: Return of tax determined distilled spirits to bonded premises - Enacted 26 U.S.C. § 5215. ## § 5216: Regulation of operations - Enacted 26 U.S.C. § 5216. ## § 5221: Commencement, suspension, and resumption of operations - Enacted 26 U.S.C. § 5221. ## § 5222: Production, receipt, removal, and use of distilling materials - Enacted 26 U.S.C. § 5222. ## § 5223: Redistillation of spirits, articles, and residues - Enacted 26 U.S.C. § 5223. ## § 5231: Entry for deposit - Enacted 26 U.S.C. § 5231. ## § 5232: Imported distilled spirits - Enacted 26 U.S.C. § 5232. ## § 5235: Bottling of alcohol for industrial purposes - Enacted 26 U.S.C. § 5235. ## § 5236: Discontinuance of storage facilities and transfer of distilled spirits - Enacted 26 U.S.C. § 5236. ## § 5241: Authority to denature - Enacted 26 U.S.C. § 5241. ## § 5242: Denaturing materials - Enacted 26 U.S.C. § 5242. ## § 5243: Sale of abandoned spirits for denaturation without collection of tax - Enacted 26 U.S.C. § 5243. ## § 5244: Cross references - Enacted 26 U.S.C. § 5244. ## § 5271: Permits - Enacted 26 U.S.C. § 5271. ## § 5272: Bonds - Enacted 26 U.S.C. § 5272. ## § 5273: Sale, use, and recovery of denatured distilled spirits - Enacted 26 U.S.C. § 5273. ## § 5274: Applicability of other laws - Enacted 26 U.S.C. § 5274. ## § 5275: Records and reports - Enacted 26 U.S.C. § 5275. ## § 5291: General - Enacted 26 U.S.C. § 5291. ## § 5301: General - Enacted 26 U.S.C. § 5301. ## § 5311: Detention of containers - Enacted 26 U.S.C. § 5311. ## § 5312: Production and use of distilled spirits for experimental research - Enacted 26 U.S.C. § 5312. ## § 5313: Withdrawal of distilled spirits from customs custody free of tax for use of the United States - Enacted 26 U.S.C. § 5313. ## § 5314: Special applicability of certain provisions - Enacted 26 U.S.C. § 5314. ## § 5351: Bonded wine cellar - Enacted 26 U.S.C. § 5351. ## § 5352: Taxpaid wine bottling house - Enacted 26 U.S.C. § 5352. ## § 5353: Bonded wine warehouse - Enacted 26 U.S.C. § 5353. ## § 5354: Bond - Enacted 26 U.S.C. § 5354. ## § 5355: General provisions relating to bonds - Enacted 26 U.S.C. § 5355. ## § 5356: Application - Enacted 26 U.S.C. § 5356. ## § 5357: Premises - Enacted 26 U.S.C. § 5357. ## § 5361: Bonded wine cellar operations - Enacted 26 U.S.C. § 5361. ## § 5362: Removals of wine from bonded wine cellars - Enacted 26 U.S.C. § 5362. ## § 5363: Taxpaid wine bottling house operations - Enacted 26 U.S.C. § 5363. ## § 5365: Segregation of operations - Enacted 26 U.S.C. § 5365. ## § 5366: Supervision - Enacted 26 U.S.C. § 5366. ## § 5367: Records - Enacted 26 U.S.C. § 5367. ## § 5368: Gauging and marking - Enacted 26 U.S.C. § 5368. ## § 5369: Inventories - Enacted 26 U.S.C. § 5369. ## § 5370: Losses - Enacted 26 U.S.C. § 5370. ## § 5371: Insurance coverage, etc. - Enacted 26 U.S.C. § 5371. ## § 5372: Sampling - Enacted 26 U.S.C. § 5372. ## § 5373: Wine spirits - Enacted 26 U.S.C. § 5373. ## § 5381: Natural wine - Enacted 26 U.S.C. § 5381. ## § 5382: Cellar treatment of natural wine - Enacted 26 U.S.C. § 5382. ## § 5383: Amelioration and sweetening limitations for natural grape wines - Enacted 26 U.S.C. § 5383. ## § 5384: Amelioration and sweetening limitations for natural fruit and berry wines - Enacted 26 U.S.C. § 5384. ## § 5385: Specially sweetened natural wines - Enacted 26 U.S.C. § 5385. ## § 5386: Special natural wines - Enacted 26 U.S.C. § 5386. ## § 5387: Agricultural wines - Enacted 26 U.S.C. § 5387. ## § 5388: Designation of wines - Enacted 26 U.S.C. § 5388. ## § 5391: Exemption from distilled spirits taxes - Enacted 26 U.S.C. § 5391. ## § 5392: Definitions - Enacted 26 U.S.C. § 5392. ## § 5401: Qualifying documents - Enacted 26 U.S.C. § 5401. ## § 5402: Definitions - Enacted 26 U.S.C. § 5402. ## § 5403: Cross references - Enacted 26 U.S.C. § 5403. ## § 5411: Use of brewery - Enacted 26 U.S.C. § 5411. ## § 5412: Removal of beer in containers or by pipeline - Enacted 26 U.S.C. § 5412. ## § 5413: Brewers procuring beer from other brewers - Enacted 26 U.S.C. § 5413. ## § 5414: Transfer of beer between bonded facilities - Enacted 26 U.S.C. § 5414. ## § 5415: Records and returns - Enacted 26 U.S.C. § 5415. ## § 5416: Definitions of package and packaging - Enacted 26 U.S.C. § 5416. ## § 5501: Establishment - Enacted 26 U.S.C. § 5501. ## § 5502: Qualification - Enacted 26 U.S.C. § 5502. ## § 5503: Construction and equipment - Enacted 26 U.S.C. § 5503. ## § 5504: Operation - Enacted 26 U.S.C. § 5504. ## § 5505: Applicability of provisions of this chapter - Enacted 26 U.S.C. § 5505. ## § 5511: Establishment and operation - Enacted 26 U.S.C. § 5511. ## § 5512: Control of products after manufacture - Enacted 26 U.S.C. § 5512. ## § 5551: General provisions relating to bonds - Enacted 26 U.S.C. § 5551. ## § 5552: Installation of meters, tanks, and other apparatus - Enacted 26 U.S.C. § 5552. ## § 5553: Supervision of premises and operations - Enacted 26 U.S.C. § 5553. ## § 5554: Pilot operations - Enacted 26 U.S.C. § 5554. ## § 5555: Records, statements, and returns - Enacted 26 U.S.C. § 5555. ## § 5556: Regulations - Enacted 26 U.S.C. § 5556. ## § 5557: Officers and agents authorized to investigate, issue search warrants, and prosecute for violations - Enacted 26 U.S.C. § 5557. ## § 5558: Authority of enforcement officers - Enacted 26 U.S.C. § 5558. ## § 5559: Determinations - Enacted 26 U.S.C. § 5559. ## § 5560: Other provisions applicable - Enacted 26 U.S.C. § 5560. ## § 5561: Exemptions to meet the requirements of the national defense - Enacted 26 U.S.C. § 5561. ## § 5562: Exemptions from certain requirements in cases of disaster - Enacted 26 U.S.C. § 5562. ## § 5601: Criminal penalties - Enacted 26 U.S.C. § 5601. ## § 5602: Penalty for tax fraud by distiller - Enacted 26 U.S.C. § 5602. ## § 5603: Penalty relating to records, returns, and reports - Enacted 26 U.S.C. § 5603. ## § 5604: Penalties relating to marks, brands, and containers - Enacted 26 U.S.C. § 5604. ## § 5605: Penalty relating to return of materials used in the manufacture of distilled spirits, or from which distilled spirits may be recovered - Enacted 26 U.S.C. § 5605. ## § 5606: Penalty relating to containers of distilled spirits - Enacted 26 U.S.C. § 5606. ## § 5607: Penalty and forfeiture for unlawful use, recovery, or concealment of denatured distilled spirits, or articles - Enacted 26 U.S.C. § 5607. ## § 5608: Penalty and forfeiture for fraudulent claims for export drawback or unlawful relanding - Enacted 26 U.S.C. § 5608. ## § 5609: Destruction of unregistered stills, distilling apparatus, equipment, and materials - Enacted 26 U.S.C. § 5609. ## § 5610: Disposal of forfeited equipment and material for distilling - Enacted 26 U.S.C. § 5610. ## § 5611: Release of distillery before judgment - Enacted 26 U.S.C. § 5611. ## § 5612: Forfeiture of taxpaid distilled spirits remaining on bonded premises - Enacted 26 U.S.C. § 5612. ## § 5613: Forfeiture of distilled spirits not closed, marked, or branded as required by law - Enacted 26 U.S.C. § 5613. ## § 5614: Burden of proof in cases of seizure of spirits - Enacted 26 U.S.C. § 5614. ## § 5615: Property subject to forfeiture - Enacted 26 U.S.C. § 5615. ## § 5661: Penalty and forfeiture for violation of laws and regulations relating to wine - Enacted 26 U.S.C. § 5661. ## § 5662: Penalty for alteration of wine labels - Enacted 26 U.S.C. § 5662. ## § 5663: Cross reference - Enacted 26 U.S.C. § 5663. ## § 5671: Penalty and forfeiture for evasion of beer tax and fraudulent noncompliance with requirements - Enacted 26 U.S.C. § 5671. ## § 5672: Penalty for failure of brewer to comply with requirements and to keep records and file returns - Enacted 26 U.S.C. § 5672. ## § 5673: Forfeiture for flagrant and willful removal of beer without taxpayment - Enacted 26 U.S.C. § 5673. ## § 5674: Penalty for unlawful production or removal of beer - Enacted 26 U.S.C. § 5674. ## § 5675: Penalty for intentional removal or defacement of brewer’s marks and brands - Enacted 26 U.S.C. § 5675. ## § 5681: Penalty relating to signs - Enacted 26 U.S.C. § 5681. ## § 5682: Penalty for breaking locks or gaining access - Enacted 26 U.S.C. § 5682. ## § 5683: Penalty and forfeiture for removal of liquors under improper brands - Enacted 26 U.S.C. § 5683. ## § 5684: Penalties relating to the payment and collection of liquor taxes - Enacted 26 U.S.C. § 5684. ## § 5685: Penalty and forfeiture relating to possession of devices for emitting gas, smoke, etc., explosives and firearms, when violating liquor laws - Enacted 26 U.S.C. § 5685. ## § 5686: Penalty for having, possessing, or using liquor or property intended to be used in violating provisions of this chapter - Enacted 26 U.S.C. § 5686. ## § 5687: Penalty for offenses not specifically covered - Enacted 26 U.S.C. § 5687. ## § 5688: Disposition and release of seized property - Enacted 26 U.S.C. § 5688. ## § 5690: Definition of the term “person” - Enacted 26 U.S.C. § 5690. ## § 5701: Rate of tax - § 5701(b): Pub. L. 85–859 provided that in determining the retail price, for tax purposes, regard shall be had to the ordinary retail price of a single cigar in its principal market, exclusive of any State or local taxes imposed on the retail sale of cigars, and required cigars not exempt from tax under this chapter which are removed but not intended for sale to be taxed at the same rate as similar cigars removed for sale. - § 5701(d): Pub. L. 85–859 substituted “On each book or set of cigarette papers containing more than 25 papers, manufactured in or imported into the United States, there shall be imposed” for “On cigarette papers, manufactured in or imported into the United States, there shall be imposed, on each package, book, or set containing more than 25 papers”. - § 5701(f): Pub. L. 85–859 substituted “imposed by this section on tobacco products and cigarette papers and tubes imported into the United States” for “imposed on articles by this section”. ## § 5702: Definitions - § 5702(a): Pub. L. 85–859 inserted the term “for removal, or merely removed”. - § 5702(b), § 5702(c), § 5702(d): Pub. L. 85–859 redesignated subsecs. (c), (d), and (f) as (b), (c), and (d), respectively. Former subsecs. (b), (c), and (d) redesignated (e), (b), and (c), respectively. - § 5702(e): Pub. L. 85–859 consolidated the definitions “manufacturer of tobacco” and “manufacturer of cigars and cigarettes”, inserted the phrase “for removal, or merely removes”, excluded from the definition a proprietor of a customs bonded manufacturing warehouse with respect to the operation of the warehouse, and required bona fide associations of farmers or growers to maintain records of leaf tobacco. - § 5702(f): Pub. L. 85–859 redesignated subsec. (g) as (f) and former subsec. (f) as (d). - § 5702(g): Pub. L. 85–859 added subsec. (g) and redesignated former subsec. (g) as (f). - § 5702(i): Pub. L. 85–859 substituted “into books or sets containing more than 25 papers each, or into tubes” for “into packages, books, sets, or tubes”. - § 5702(j): Pub. L. 85–859 substituted provisions defining “export warehouse” for provisions which defined “article” as manufactured tobacco, cigars, cigarettes, and cigarette papers and tubes. - § 5702(k): Pub. L. 85–859 added subsec. (k) and redesignated former subsec. (k) as (l). - § 5702(l): Pub. L. 85–859 redesignated former subsec. (k) as (l) and substituted “other than manufactured tobacco, cigars, and cigarettes” for “in process, leaf tobacco, and tobacco scraps, cuttings, clippings, siftings, dust, stems, and waste”. Former subsec. (l) redesignated (m). - § 5702(m): Pub. L. 85–859 redesignated former subsec. (l) as (m) and included within the definition persons who receive tobacco materials, other than stems and waste, for use in the production of fertilizer, insecticide, or nicotine, required associations of farmers or growers of tobacco to maintain records of all leaf tobacco acquired or received and sold or otherwise disposed of, and excluded from the definition persons who buy leaf tobacco without taking physical possession of the tobacco and qualified manufacturers of tobacco products. Former subsec. (m) redesignated (n). - § 5702(n): Pub. L. 85–859 redesignated former subsec. (m) as (n) and substituted “tobacco products or cigarette papers or tubes” for “articles”. Former subsec. (n) redesignated (o). - § 5702(o): Pub. L. 85–859 redesignated former subsec. (n) as (o) and substituted “tobacco products or cigarette papers or tubes” for “articles” in two places, and inserted provisions to include within the definition persons who remove cigars or cigarettes for sale or consumption in the United States from a customs bonded manufacturing warehouse. ## § 5703: Liability for tax and method of payment - § 5703(a)(1): Pub. L. 85–859 designated part of first sentence of subsec. (a) as par. (1) thereof and redesignated the remainder of subsec. (a) as (b). - § 5703(a)(2): Pub. L. 85–859 added par. (2). - § 5703(b): Pub. L. 85–859 designated former subsec. (a), with exception of part of the first sentence, as subsec. (b) and substituted “tobacco products and cigarette papers and tubes” for “articles”, and inserted provisions relating to postponements, and to payment of the tax on the basis of a return prior to removal of the tobacco products and cigarette papers and tubes where a person defaults in the postponed payment of the tax. Former subsec. (b) redesignated (c). - § 5703(c): Pub. L. 85–859 designated former subsec. (b) as (c) and substituted “If the Secretary or his delegate shall by regulation provide for the payment of tax by return and require the use of” for “If the Secretary or his delegate shall, by regulation, require the use”, and “tobacco products” for “articles”. Former subsec. (c) redesignated (d). - § 5703(d): Pub. L. 85–859 redesignated former subsec. (c) as (d). Former subsec. (d) redesignated (e). - § 5703: Pub. L. 85–859 designated former subsec. (d) as (e) and permitted assessments in cases where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error. ## § 5704: Exemption from tax - § 5704(b): Pub. L. 85–859 included transfers by export warehouse proprietors, and substituted “tobacco products and cigarette papers and tubes” for “articles”, before “without payment of tax”. - § 5704(c): Pub. L. 85–859 authorized shipments without payment of tax of tobacco stems and waste only, to any person for use by him as fertilizer or insecticide or in the production of fertilizer, insecticide, or nicotine. - § 5704(d): Pub. L. 85–859 substituted “tobacco products, cigarette papers and tubes” for “articles” wherever appearing, and struck out provisions which related to delivery to bonded premises of manufacturers and dealers. ## § 5705: Credit, refund, or allowance of tax - § 5705(a): Pub. L. 85–859 authorized refunds to export warehouse proprietors, provided for refunds to be made without interest, and eliminated provisions which authorized refunds where the tax has been paid in error. - § 5705(b): Pub. L. 85–859 permitted relief where a tax has not yet been paid on tobacco products and cigarette papers and tubes proved to have been withdrawn from the market. - § 5705(c): Pub. L. 85–859 substituted “under this section shall be filed within 6 months after the date of the withdrawal from the market, loss, or destruction of the articles to which the claim relates” for “imposed by this chapter shall be filed within 3 years of the date of payment of tax”. ## § 5706: Drawback of tax - § 5706: Pub. L. 85–859 substituted “tobacco products and cigarette papers and tubes” for “articles”. ## § 5708: Losses caused by disaster - Enacted 26 U.S.C. § 5708. ## § 5711: Bond - § 5711(a): Pub. L. 85–859 included export warehouse proprietors, and substituted “manufacturer of tobacco products or cigarette papers and tubes” for “manufacturer of articles”. ## § 5712: Application for permit - § 5712: Pub. L. 85–859 included export warehouse proprietors, and excluded dealers in tobacco materials. ## § 5713: Permit - § 5713(a): Pub. L. 85–859 substituted “manufacturer of tobacco products” for “manufacturer of articles”, included export warehouse proprietors, and struck out provisions which related to dealers in tobacco materials. - § 5713(b), § 5713: Pub. L. 85–859 redesignated subsec. (c) as (b) and struck out former subsec. (b) that required permits to be posted. ## § 5721: Inventories - § 5721: Pub. L. 85–859 substituted “manufacturer of tobacco products or cigarette papers and tubes” for “manufacturer of articles” and “internal revenue officer” for “revenue officer”, and inserted provisions to include export warehouse proprietors. ## § 5722: Reports - § 5722: Pub. L. 85–859 substituted “manufacturer of tobacco products or cigarette papers and tubes, and every export warehouse proprietor” for “manufacturer of articles”. ## § 5723: Packages, marks, labels, and notices - § 5723(a): Pub. L. 85–859 substituted “Packages” for “Packages, labels, notices, and stamps” in heading, and substituted “All tobacco products and cigarette papers and tubes shall, before removal, be put up in such packages as” for “All articles shall, before removal, be put up in packages having such labels, notices, and stamps as” in text. - § 5723(b): Pub. L. 85–859 added subsec. (b) and redesignated former subsec. (b) as (c). - § 5723(c): Pub. L. 85–859 redesignated former subsec. (b) as (c) and substituted “tobacco products or cigarette papers or tubes” for “articles”. Former subsec. (c) redesignated (d). - § 5723(d): Pub. L. 85–859 redesignated former subsec. (c) as (d) and substituted “tobacco products or cigarette papers or tubes” for “articles”. Former subsec. (d) redesignated (e). - § 5723(e): Pub. L. 85–859 redesignated former subsec. (d) as (e), and permitted exemption of tobacco products and cigarette papers and tubes transferred to the bonded premises of another manufacturer or export warehouse proprietor or released in bond from customs custody for delivery to a manufacturer of tobacco products or cigarette papers and tubes, and eliminated provisions which authorized exemption of articles removed for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, and so shipped. ## § 5732: Payment of tax - Enacted 26 U.S.C. § 5732. ## § 5733: Provisions relating to liability for occupational taxes - Enacted 26 U.S.C. § 5733. ## § 5734: Application of State laws - Enacted 26 U.S.C. § 5734. ## § 5741: Records to be maintained - § 5741: Pub. L. 85–859 substituted “tobacco products or cigarette papers and tubes, every warehouse proprietor, and every dealer” for “articles and dealer”, and “such manner” for “such form”. ## § 5751: Purchase, receipt, possession, or sale of tobacco products and cigarette papers and tubes, after removal - § 5751: Pub. L. 85–859 substituted “tobacco products and cigarette papers and tubes, after removal” for “articles, after removal, not exempt from tax” in section catchline. - § 5751(b): Pub. L. 85–859 substituted “tobacco products or cigarette papers or tubes in violation of subsection (a)(1) or (a)(2) shall be liable for a tax equal to the tax on such articles” or “articles in violation of subsection (a) of this section, shall incur liability to the tax thereon in addition to the penalties prescribed elsewhere in this title”. ## § 5752: Restrictions relating to marks, labels, notices, and packages - § 5752: Pub. L. 85–859 included marks and notices in the catchline, limited the penalties to cases where there is intent to defraud the United States, and prohibited the destruction, obliteration, or detachment of any mark, label, notice or stamp before a package of tobacco products or cigarette papers or tubes is emptied. ## § 5753: Disposal of forfeited, condemned, and abandoned tobacco products, and cigarette papers and tubes - § 5753: Pub. L. 85–859 substituted “tobacco products, cigarette papers and tubes” for “articles” wherever appearing. ## § 5761: Civil penalties - § 5761(a): Pub. L. 85–859 struck out reference to section 6652 of this title. - § 5761(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. - § 5761(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. - § 5761(d): Pub. L. 85–859 added subsec. (d). Similar provisions were formerly contained in subsec. (c) of this section. ## § 5762: Criminal penalties - § 5762(a): Pub. L. 85–859 included export warehouse proprietors in par. (1), struck out provisions in pars. (6) and (9) to (11) which related to labels and notices, and added pars. (7) and (8). ## § 5763: Forfeitures - § 5763(a): Pub. L. 85–859 substituted “tobacco products and cigarette papers and tubes” for “articles” wherever appearing and inserted provisions making par. (2) inapplicable to tobacco products or cigarette papers for tubes delivered directly to consumers from proper packages. - § 5763(b), § 5763(c): Pub. L. 85–859 included property of export warehouse proprietors. - § 5763(d): Pub. L. 85–859 included property intended for use, or used, in violating regulations under this chapter. ## § 6011: General requirement of return, statement, or list - § 6011(c), § 6011(d): Pub. L. 85–859 added subsec. (c) and redesignated former subsec. (c) as (d). ## § 6071: Time for filing returns and other documents - § 6071(b): Pub. L. 85–859 inserted reference to section 5142 of this title. ## § 6207: Cross references - § 6207(4): Pub. L. 85–859, § 204(2), substituted “with respect to taxes required to be paid by chapter 52, see section 5703” for “in case of sale or removal of tobacco, snuff, cigars, and cigarettes without the use of the proper stamps, see section 5703(d)”. - § 6207(6), § 6207: Pub. L. 85–859, § 204(3), redesignated pars. (8) and (9) as (6) and (7), respectively, and struck out former pars. (6) and (7) which contained cross references relating to assessments in case of certain spirits subject to excessive leakage and to assessment of deficiencies in production of distilled spirits. ## § 6412: Floor stocks refunds - § 6412: Pub. L. 85–859 required filing of claims for refund on or before Sept. 30, 1961. ## § 6415: Credits or refunds to persons who collected certain taxes - § 6415(a): Pub. L. 85–859 provided that in the case of any payment outside the United States in respect of which tax is imposed under par. (1), (2), or (3) of section 4231 of this title, the person who paid for the admission or for the use of the box or seat shall be considered the person from whom the tax was collected. ## § 6416: Certain taxes on sales and services - § 6416(b)(1): Pub. L. 85–859, § 163(a), made price readjustment provisions inapplicable in the case of an article in respect of which tax was computed under section 4223(b)(2), but if the price for which such article was sold is readjusted by reason of the return or repossession of the article, the part of the tax proportionate to the part of such price repaid or credited to the purchaser shall be deemed to be an overpayment. - § 6416(b)(4), § 6416(b)(5): Pub. L. 85–859, § 163(a), added pars. (4) and (5). - § 6416(c): Pub. L. 85–859, § 163(a), authorized a credit with respect to tires, inner tubes, or automobile radio or television receiving sets which are sold on or in connection with, or with the sale of, another article taxable under chapter 32, and permitted the credit only in respect of the first sale on or in connection with, or with the sale of, another article on the sale of which tax is imposed under chapter 32. - § 6416: Pub. L. 85–859, § 163(c), added subsecs. (g) to (i). ## § 6420: Gasoline used on farms - § 6420(c)(3)(A): Pub. L. 85–859 substituted “section 6416(b)(2)(G)(ii)” for “section 6416(b)(2)(C)(ii)” in two places in cl. (A). ## § 6421: Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes - § 6421(c): Pub. L. 85–859, § 164(a), permitted, in cases where $1,000 or more is payable to any person with respect to gasoline used during a calendar quarter, the filing of a claim on or before the last day of the first calendar quarter following the calendar quarter for which the claim is filed. - § 6421(i)(2), § 6421(i)(3): Pub. L. 85–859, § 163(d)(3), substituted “section 6416(b)(2)(I) and (J)” for “section 6416(b)(2) (J) and (K)” in cl. (2), and “section 6416(b)(2)(H)” for “section 6416(b)(2)(L)” in cl. (3). ## § 6422: Cross references - § 6422: Pub. L. 85–859 substituted “subtitle E” for “sections 5011, 5044, 5057, 5063, 5705, and 5707” in par. (14). ## § 6501: Limitations on assessment and collection - § 6501(a): Pub. L. 85–859 substituted “at any time after such tax became due and before the expiration of 3 years after the date on which any part of such tax was paid” for “within 3 years after such tax became due”. ## § 6805: Redemption of stamps - § 6805(a): Pub. L. 85–859, § 165(b), struck out provisions which authorized the Secretary to make allowances for or redeem stamps which through mistake may have been improperly or unnecessarily used, or where the rates or duties represented thereby have been excessive in amount, paid in error, or in any manner wrongfully collected. - § 6805(c): Pub. L. 85–859, § 165(c), inserted “under this section” after “shall be allowed”. ## § 7214: Offenses by officers and employees of the United States - § 7214(c): Pub. L. 85–859 struck out a cross reference that related to penalty imposed for unlawfully removing or permitting to be removed distilled spirits from a bonded warehouse. ## § 7272: Penalty for failure to register or reregister - § 7272(a): Pub. L. 85–859, § 204(6), excluded persons required to register under subtitle E and persons engaging in a trade or business on which a special tax is imposed by such subtitle. - § 7272(b): Pub. L. 85–859, § 204(7), struck out references to sections 5802 and 5841 of this title. ## § 7301: Property subject to tax - § 7301(e): Pub. L. 85–859 included property used to transport or for the deposit or concealment of property which is intended to be used in the making or packaging of property described in subsec. (a). ## § 7324: Special disposition of perishable goods - § 7324(3): Pub. L. 85–859 included property seized under section 7302 of this title. ## § 7325: Personal property valued at $100,000 or less - § 7325: Pub. L. 85–859 substituted “$2,500” for “$1,000” in section catchline, opening par., and par. (2), and inserted “, unless otherwise provided by law,” before “sell the articles” in par. (4). ## § 7608: Authority of internal revenue enforcement officers - Enacted 26 U.S.C. § 7608. ## § 7613: Cross references - § 7613(a): Pub. L. 85–859, § 204(15), added par. (6). - § 7613(b)(2): Pub. L. 85–859, § 204(15), substituted “with respect to subtitle E, see section 5557” for “in connection with industrial alcohol, etc., see sections 5314 and 7302”. - § 7613(b)(3): Pub. L. 85–859, § 204(15), added par. (3). ## § 7652: Shipments to the United States - § 7652(a)(1): Pub. L. 85–859, § 204(17), substituted “section 5314” for “section 5318”. - § 7652(b)(1): Pub. L. 85–859, § 204(18), substituted “section 5314” for “section 5318”. ## § 7655: Cross references - § 7655(a): Pub. L. 85–859 redesignated par. (6) as (5) and struck out former par. (5) which contained a cross reference to chapter 51 of this title.