Frequently Asked Questions
Who is eligible for the Remission or Mitigation of Forfeiture?
Available to entities whose alcohol products have been seized or are subject to forfeiture under internal revenue laws, allowing for a reduction in loss through administrative compromise.
How does the Remission or Mitigation of Forfeiture work?
Taxpayers may petition the Secretary to remit or mitigate the forfeiture of distilled spirits, wines, or beer, or compromise civil or criminal cases prior to the commencement of a suit.
What law authorizes the Remission or Mitigation of Forfeiture?
The Remission or Mitigation of Forfeiture is authorized under IRC §5688(a)(5) of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §5688
Source: Internal Revenue Code, Title 26, United States Code
§ 5688. Disposition and release of seized property(a) Forfeiture(1) DeliveryAll distilled spirits, wines, and beer forfeited, summarily or by order of court, under any law of the United States, shall be delivered to the Administrator of General Services to be disposed of as hereinafter provided.
(2) DisposalThe Administrator of General Services shall dispose of all distilled spirits, wines, and beer which have been delivered to him pursuant to paragraph (1)—(A) by delivery to such Government agencies as, in his opinion, have a need for such distilled spirits, wines, or beer for medicinal, scientific, or mechanical purposes, or for any other official purpose for which appropriated funds may be expended by a Government agency; or
(B) by gifts to such eleemosynary institutions as, in his opinion, have a need for such distilled spirits, wines, or beer for medicinal purposes; or
(C) by destruction.
(3) Limitation on disposalExcept as otherwise provided by law, no distilled spirits, wines, or beer which have been seized under any law of the United States may be disposed of in any manner whatsoever except after forfeiture and as provided in this subsection.
(4) RegulationsThe Administrator of General Services is authorized to make all rules and regulations necessary to carry out the provisions of this subsection.
(5) Remission or mitigation of forfeituresNothing in this section shall affect the authority of the Secretary, under the customs or internal revenue laws, to remit or mitigate the forfeiture, or alleged forfeiture, of such distilled spirits, wines, or beer, or the authority of the Secretary, to compromise any civil or criminal case in respect of such distilled spirits, wines, or beer prior to commencement of suit thereon, or the authority of the Secretary to compromise any claim under the customs laws in respect to such distilled spirits, wines, or beer.
(b) Distraint or judicial processExcept as provided in section 5243, all distilled spirits sold by order of court, or under process of distraint, shall be sold subject to tax; and the purchaser shall immediately, and before he takes possession of said spirits, pay the tax thereon, pursuant to the applicable provisions of this chapter and in accordance with regulations to be prescribed by the Secretary.
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