Written by , Posted in Statutory Law
A person cannot produce spirits for beverage purpose without paying taxes and receiving prior approval of paperwork to operate a distilled spirits plant. Under 26 USC Section 5601, there are criminal penalties for the following: 1) unregistered stills; 2) failure to file application; 3) false or fraudulent application; 4) failure or refusal of distiller, warehouseman, or processor to give bond; 5) false, forged, or fraudulent bond; 6) distilling on prohibited premises; 7) unlawful production, removal, or use of material fit for production of distilled spirits; 8) unlawful production of distilled spirits; 9) unauthorized use of distilled spirits in manufacturing processes; 10) unlawful processing; 11) unlawful purchase, receipt, or processing of distilled spirits; 12) unlawful removal or concealment of distilled spirits; 13) creation of fictitious proof; 14) distilling after notice of suspension; and 15) unauthorized withdrawal, use, sale, or distribution of distilled spirits for fuel use. Additionally under Section 5602, there are federal crimes for tax fraud by a distiller.
This question was answered by attorney Michael Beliz of The Beliz Law Firm
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