Frequently Asked Questions
Who is eligible for the Reimbursement for Destroyed Distilling Property?
The owner must apply within 1 year of destruction and establish that the property was not used in violation of law or that any unlawful use was without their consent or knowledge.
How does the Reimbursement for Destroyed Distilling Property work?
Owners of distilling equipment or materials destroyed by the government during a seizure can claim a reimbursement for the value of the property.
What law authorizes the Reimbursement for Destroyed Distilling Property?
The Reimbursement for Destroyed Distilling Property is authorized under IRC §5609(b) of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §5609
Source: Internal Revenue Code, Title 26, United States Code
§ 5609. Destruction of unregistered stills, distilling apparatus, equipment, and materials(a) GeneralIn the case of seizure elsewhere than on premises qualified under this chapter of any unregistered still, distilling or fermenting equipment or apparatus, or distilling or fermenting material, for any offense involving forfeiture of the same, where it shall be impracticable to remove the same to a place of safe storage from the place where seized, the seizing officer is authorized to destroy the same. In the case of seizure, other than on premises qualified under this chapter or in transit thereto or therefrom, of any distilled spirits on which the tax has not been paid or determined, for any offense involving forfeiture of the same, the seizing officer is authorized to destroy the distilled spirits forthwith. Any destruction under this subsection shall be in the presence of at least one credible witness. The seizing officer shall make such report of said seizure and destruction and take such samples as the Secretary may require.
(b) ClaimsWithin 1 year after destruction made pursuant to subsection (a) the owner of, including any person having an interest in, the property so destroyed may make application to the Secretary for reimbursement of the value of such property. If the claimant establishes to the satisfaction of the Secretary that—(1) such property had not been used in violation of law; or
(2) any unlawful use of such property had been without his consent or knowledge,
the Secretary shall make an allowance to such claimant not exceeding the value of the property destroyed.
(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1403; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
Editorial Notes
Prior ProvisionsA prior section 5609, act Aug. 16, 1954, ch. 736, 68A Stat. 685, related to penalty in connection to return of materials used in the manufacture of distilled spirits, prior to the general revision of this chapter by Pub. L. 85–859. See section 5605 of this title.
Provisions similar to those comprising this section were contained in prior section 5623, act Aug. 16, 1954, ch. 736, 68A Stat. 687, prior to the general revision of this chapter by Pub. L. 85–859.
Amendments1976—Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.