(c) UNUSED STAMPS; EXCHANGE, REFUND, ETC.-The Commissioner, under regulations prescribed by him and approved by the Secretary, may redeem or make allowance for any unused stamps issued under * * * subsection (b) of this section by exchanging them for other stamps of the same kind or by refunding moneys received therefor: Provided, That stamps may be exchanged or the value thereof refunded only in quantities of the value of $5 or more: And provided further, That no claim for the exchange of strip stamps or refund therefor shall be allowed unless presented within two years after the date on which such stamps were lawfully issued. There are hereby authorized to be appropriated annually, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary to carry out this provision. [For postponements by reason of war, see section 3804.] (d) REGULATIONS FOR ISSUING, AFFIXING, AND CANCELING STAMPS.The Commissioner, with the approval of the Secretary, shall prescribe (a) regulations with respect to the time and manner of applying for, issuing, affixing, and destroying stamps required by this section, the form and denominations of such stamps, proof that applicants are entitled to such stamps, and the method of accounting for receipts from the sale of such stamps, and (b) such other regulations as he shall deem necessary for the enforcement of this section. (e) DESTRUCTION OF STAMPS.-Every person emptying any container stamped under the provisions of this section shall at the time of emptying such container destroy the stamp thereon. (f) FORFEITURE OF SPIRITS.-All distilled spirits found in any container required to bear a stamp by this section, which container is not stamped in compliance with this section and regulations issued thereunder, shall be forfeited to the United States. (g) PENALTIES.-Any person who violates any provision of this section, or who, with intent to defraud, falsely makes, forges, alters, or counterfeits any stamp made or used under this section, or who uses, sells, or has in his possession any such forged, altered, or counterfeited stamp, or any plate or die used or which may be used in the manufacture thereof, or any stamp required to be destroyed by this section, or who makes, uses, sells, or has in his possession any paper in imitation of the paper used in the manufacture of any such stamp, or who reuses any stamp required to be destroyed by this section, or who places any distilled spirits in any bottle which has been filled and stamped under this section without destroying the stamp previously affixed to such bottle, or who affixes any stamp issued under this section to any container of distilled spirits on which any tax due is unpaid, or who makes any false statement in any application for stamps under this section, or who has in his possession any such stamps obtained by him otherwise than as provided in subsection (b), shall on conviction be punished by a fine not exceeding $1,000, or by imprisonment at hard labor not exceeding five years, or by both. Any officer authorized to enforce any provisions of law relating to internal revenue stamps is authorized to enforce the provisions of this section 1 The words "of Internal Revenue" are omitted. 2 The words "of the Treasury" are omitted. and the provisions of section 2909 relating to the bottling of distilled spirits in bond. (h) TRANSFER OF DUTIES. For transfer of duties and powers of the Commissioner and his agents, see section 3170. [For definitions of "distilled spirits" and "person", as used in section 2803, see section 2809 (b) (2) and (e). For stamps for spirits bottled in bond, see section 2903 (b).] SEC. 2804. DETENTION OF CASKS OR PACKAGES ON SUSPICION. (a) POWER OF REVENUE OFFICER.-It shall be lawful for any internal revenue officer to detain any cask or package containing, or supposed to contain, distilled spirits, when he has reason to believe that the tax imposed by law upon the same has not been paid, or that the same is being removed in violation of law; and every such cask or package may be held by him at a safe place until it shall be determined whether the property so detained is liable by law to be proceeded against for forfeiture; but such summary detention shall not continue in any case longer than 48 hours without process of law or intervention of the officer to whom such detention is to be reported. (b) TRANSFER OF DUTIES.— For transfer of powers and duties of Commissioner and his agents, see section 3170. SEC. 2805. DISTILLED SPIRITS SUBJECT TO FORFEITURE, DISTRAINT, OR JUDICIAL PROCESS. (a) FORFEITURE.— (1) DELIVERY TO THE SECRETARY.-All distilled spirits, wine, and malt beverages forfeited, summarily or by order of court, under any law of the United States, shall be delivered to the Secretary to be disposed of as hereinafter provided. (2) DISPOSAL BY THE SECRETARY. The Secretary shall dispose of all distilled spirits, wine, and malt beverages which have been delivered to him pursuant to subsection (a) — (A) By delivery to such Government agencies as, in his opinion, have a need for such distilled spirits, wine, or malt beverages for medicinal, scientific, or mechanical purposes; or (B) By gift to such eleemosynary institutions as, in his opinion, have a need for such distilled spirits, wine, or malt beverages for medicinal purposes; or (C) By destruction. (3) LIMITATION ON DISPOSAL.-No distilled spirits, wine, or malt beverages 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 section. (4) REGULATIONS.-The Secretary is authorized to make all rules and regulations necessary to carry out the provisions of this section. (5) REMISSION OR MITIGATION OF FORFEITURES.-Nothing 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 malt beverages, or the authority of the Commissioner, with the approval of the Secretary, to compromise any civil or criminal case in respect of such distilled spirits, wines, or malt beverages prior to commencement of suit thereon, or the authority of the Secretary to compromise any claim under the customs laws in respect of such distilled spirits, wines, or malt beverages. (b) DISTRAINT OR JUDICIAL PROCESS.-Except as provided in section 3074, 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. If any tax-paid stamps are affixed to any such cask or package, such stamps shall be obliterated and destroyed by the collector or marshal before such sale: Provided, That in all cases wherein it shall appear that any distilled spirits offered for sale on distraint for taxes, where the taxes on such spirits have not been paid, or offered for sale for the benefit of the United States under order of court, will not, by reason of such spirits being below proof, bring a price equal to the tax due and payable thereon, but will bring a price equal to, or greater than, the tax on said spirits, computed only upon the proof gallons contained in the packages, without regard to the greater number of wine gallons contained therein, then, and in such case, upon sale being so made, tax-paid stamps to the amount required to stamp such spirits as if the tax thereon were only on the proof gallons thereof may, under such rules and regulations as the Commissioner shall prescribe, be used by the collector making such sale, or furnished by a collector to a United States marshal, or to any other government officer making such sale for the benefit of the United States, without making payment for said stamps so used or delivered. Any collector using or furnishing stamps in manner aforesaid, on presenting vouchers satisfactory to the Commissioner, shall be allowed credit for the same in settling his stamp account with the department. In such cases, the officer selling the distilled spirits shall affix, or cause to be affixed, to the same the tax-paid stamps so provided, and shall write across the face of such stamps the true number of proof and wine gallons contained in the package, the amount of tax actually paid thereon, and also the words Affixed under provisions of Internal Revenue Code, section 2805 (b).” (c) CROSS REFERENCES. 46 (1) MARKS, BRANDS, AND STAMPS.-For other provisions relating to stamping, marking, and branding distilled spirits sold under distraint or judicial process, see section 3725. (2) TRANSFER OF DUTIES.-For transfer of power and duties of Commissioner and his agents, see section 3170. SEC. 2806. PENALTIES AND FORFEITURES. (a) CREATION OF FICTITIOUS PROOF. (1) PENALTY. Every person who adds or causes to be added any ingredient or substance to any distilled spirits before the tax is paid thereon, for the purpose of creating a fictitious proof, shall be fined not less than $100 nor more than $1,000 for each cask or package so adulterated, and imprisoned not less than three months nor more than two years; and (2) FORFEITURE.-Every such cask or package, with its contents, shall be forfeited to the United States. (b) UNLAWFUL AFFIXING, CANCELING, OR ISSUE OF STAMPS BY OFFICER. (1) PENALTY.-Whenever any revenue officer affixes or cancels, or causes or permits to be affixed or canceled, any stamp relating to distilled spirits provided for by law, in any other manner or in any other place, or issues the same to any other person than as provided by law, or by regulation made in pursuance thereof, or knowingly affixes, or permits to be affixed, any such stamp to any cask or package of spirits of which the whole or any part has been distilled, rectified, compounded, removed, or sold, in violation of law, or which has in any manner escaped payment of tax due thereon, he shall, for every such offense, be fined not less than $500 nor more than $3,000 and be imprisoned for not less than six months nor more than three years. (2) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. (c) FORFEITURE OF TAX-PAID DISTILLED SPIRITS REMAINING ON DISTILLERY PREMISES.-No distilled spirits on which the tax has been paid shall be stored or allowed to remain on any distillery premises, under the penalty of a forfeiture of all spirits so found. (d) FORFEITURE OF DISTILLED SPIRITS IN UNSTAMPED CASKS OR PACKAGES.-All distilled spirits found in any cask or package containing five gallons or more, without having thereon each mark and stamp required therefor by law, shall be forfeited to the United States. (e) EVASION OF TAX, PENALTY.-Whenever any person evades, or attempts to evade, the payment of the tax on any distilled spirits, in any manner whatever, he shall forfeit and pay double the amount of the tax so evaded or attempted to be evaded. (f) TAX FRAUD BY DISTILLER.-Whenever any person engaged in carrying on the business of a distiller defrauds or attempts to defraud the United States of the tax on the spirits distilled by him, or of any part thereof, he (1) FORFEITURE.-Shall forfeit the distillery and distilling apparatus used by him, and all distilled spirits and all raw materials for the production of distilled spirits found in the distillery and on the distillery premises, and— (2) PENALTY. Shall be fined not less than $500 nor more than $5,000, and be imprisoned not less than six months nor more than three years. No discontinuance or nolle prosequi of any prosecution under this subsection shall be allowed without the permission in writing of the Attorney General. (g) OFFENSES NOT SPECIFICALLY COVERED.-If any distiller, rectifier, or wholesale liquor dealer shall knowingly or willfully omit, neglect, or refuse to do or cause to be done any of the things required by law in the carrying on or conducting of his business, or shall do anything by this title prohibited, if there be no specific penalty or punishment imposed by any other section of this title for the neglecting, omitting, or refusing to do, or for the doing or causing to be done the thing required or prohibited, he shall pay a penalty of $1,000; and all distilled spirits or liquors owned by him, or in which he has anv interest as owner, shall be forfeited to the United States. (h) CROSS REFERENCES. For penalties and forfeitures relating to the following offenses, see the sections enumerated below: (1) Removal or transportation under improper brands, section 3173 (a). (2) Possession with intent to sell in fraud of law or to evade tax, section 3320. (3) Removal or concealment with intent to defraud the revenue, section 3321. (4) Forfeiture of packages containing forfeited goods, section 3322. (5) Provisions relating to emptied stamped packages, section 3323. (6) Sales to evade tax, section 3324. (7) False statements to purchasers regarding tax, section 3325. (9) Fraudulent bonds, permits, and entries, section 3793 (a). (14) Failure to file return, section 3612 (d) (1). (15) False or fraudulent return, section 3612 (d) (2). (16) Other offenses, [references given in] section 3793 (c). SEC. 2807. DISPOSAL OF FORFEITED EQUIPMENT AND MATERIAL FOR DISTILLING. All boilers, stills, or other vessels, tools, and implements, used in distilling or rectifying, and forfeited under any of the provisions of this chapter, and all condemned material, together with any engine. or other machinery connected therewith, and all empty barrels, and all grain or other material suitable for distillation, shall, under the direction of the court in which the forfeiture is recovered, be sold at public auction, and the proceeds thereof, after deducting the expenses of sale, shall be disposed of according to law. SEC. 2808. INSTRUMENTS TO PREVENT AND DETECT FRAUD. (a) POWER OF THE COMMISSIONER.-For the prevention and detection of frauds by distillers of spirits, the Commissioner may prescribe for use such hydrometers, saccharometers, weighing and gauging instruments, or other means for ascertaining the quantity, gravity, and producing capacity of any mash, wort, or beer used, or to be used, in the production of distilled spirits, and the strength and quantity of spirits subject to tax, as he may deem necessary; and he may prescribe rules and regulations to secure a uniform and correct system of inspection, weighing, marking, and gauging of spirits. (b) TRANSFER OF DUTIES. For transfer of powers and duties of Commissioner and his agents, see section 3170. [For other provisions relating to marking and gauging spirits, see sections 2813, 2861, 2863, 2878, 2883 (a), and 2884.] |