Tax-Free Acquisition of Abandoned Spirits for Denaturation

IRC §5243

Distilled spirits abandoned to the U.S. government may be sold to the proprietor of a distilled spirits plant for denaturation or redistillation without the collection of internal revenue tax.

Eligibility

Must be a proprietor of a distilled spirits plant and use the spirits specifically for denaturation or redistillation and denaturation as provided by Secretary regulations.

Frequently Asked Questions

Who is eligible for the Tax-Free Acquisition of Abandoned Spirits for Denaturation?

Must be a proprietor of a distilled spirits plant and use the spirits specifically for denaturation or redistillation and denaturation as provided by Secretary regulations.

How does the Tax-Free Acquisition of Abandoned Spirits for Denaturation work?

Distilled spirits abandoned to the U.S. government may be sold to the proprietor of a distilled spirits plant for denaturation or redistillation without the collection of internal revenue tax.

What law authorizes the Tax-Free Acquisition of Abandoned Spirits for Denaturation?

The Tax-Free Acquisition of Abandoned Spirits for Denaturation is authorized under IRC §5243 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §5243

Source: Internal Revenue Code, Title 26, United States Code

§ 5243. Sale of abandoned spirits for denaturation without collection of tax Notwithstanding any other provision of law, any distilled spirits abandoned to the United States may be sold, in such cases as the Secretary may by regulation provide, to the proprietor of any distilled spirits plant for denaturation, or redistillation and denaturation, without the payment of the internal revenue tax thereon. (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1370; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) Editorial Notes Prior ProvisionsA prior section 5243, acts Aug. 16, 1954, ch. 736, 68A Stat. 645; Sept. 2, 1958, Pub. L. 85–859, § 206(c), 72 Stat. 1431, related to bottling of distilled spirits in bond, prior to the general revision of this chapter by Pub. L. 85–859. See sections 5171, 5172, 5175, 5178(a)(3)(C), (4)(A), 5202(g), 5206(c), 5214(a)(4), and 5233(a) to (c), (e)(1) of this title and section 121 of Title 27, Intoxicating Liquors. Provisions similar to those comprising this section were contained in prior section 5333, act Aug. 16, 1954, ch. 736, 68A Stat. 662, prior to the general revision of this chapter by Pub. L. 85–859. Amendments1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

Legal Sources

US Code (Official) — 26 USC §5243 → Cornell Law Institute — 26 USC §5243 → Search IRS.gov for IRC §5243 → Treasury Regulations (26 CFR) →

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