§ 5008. Abatement, remission, refund, and allowance for loss or destruction of distilled spirits
(a)
Distilled spirits lost or destroyed in bond
(1)
Extent of loss allowance
No tax shall be collected in respect of distilled spirits lost or destroyed while in bond, except that such tax shall be collected—
(A)
Theft
In the case of loss by theft, unless the Secretary finds that the theft occurred without connivance, collusion, fraud, or negligence on the part of the proprietor of the distilled spirits plant, owner, consignor, consignee, bailee, or carrier, or the employees or agents of any of them;
(2)
Proof of loss
In any case in which distilled spirits are lost or destroyed, whether by theft or otherwise, the Secretary may require the proprietor of the distilled spirits plant or other person liable for the tax to file a claim for relief from the tax and submit proof as to the cause of such loss. In every case where it appears that the loss was by theft, the burden shall be upon the proprietor of the distilled spirits plant or other person responsible for the distilled spirits tax to establish to the satisfaction of the Secretary that such loss did not occur as the result of connivance, collusion, fraud, or negligence on the part of the proprietor of the distilled spirits plant, owner, consignor, consignee, bailee, or carrier, or the employees or agents of any of them.
(3)
Refund of tax
In any case where the tax would not be collectible by virtue of paragraph (1), but such tax has been paid, the Secretary shall refund such tax.
(4)
Limitations
Except as provided in paragraph (5), no tax shall be abated, remitted, credited, or refunded under this subsection where the loss occurred after the tax was determined (as provided in section
5006
(a)). The abatement, remission, credit, or refund of taxes provided for by paragraphs (1) and (3) in the case of loss of distilled spirits by theft shall only be allowed to the extent that the claimant is not indemnified against or recompensed in respect of the tax for such loss.
(b)
Voluntary destruction
The proprietor of the distilled spirits plant or other persons liable for the tax imposed by this chapter or by section
7652 with respect to any distilled spirits in bond may voluntarily destroy such spirits, but only if such destruction is under such supervision and under such regulations as the Secretary may prescribe.
(c)
Distilled spirits returned to bonded premises
(1)
In general
Whenever any distilled spirits on which tax has been determined or paid are returned to the bonded premises of a distilled spirits plant under section
5215
(a), the Secretary shall abate or (without interest) credit or refund the tax imposed under section
5001
(a)(1) (or the tax equal to such tax imposed under section
7652) on the spirits so returned.
(2)
Claim must be filed within 6 months of return of spirits
No allowance under paragraph (1) may be made unless claim therefor is filed within 6 months of the date of the return of the spirits. Such claim may be filed only by the proprietor of the distilled spirits plant to which the spirits were returned, and shall be filed in such form as the Secretary may by regulations prescribe.
(d)
Distilled spirits withdrawn without payment of tax
The provisions of subsection (a) shall be applicable to loss of distilled spirits occurring during transportation from bonded premises of a distilled spirits plant to—
(e)
Other laws applicable
All provisions of law, including penalties, applicable in respect of the internal revenue tax on distilled spirits, shall, insofar as applicable and not inconsistent with subsection (c), be applicable to the credits or refunds provided for under such subsection to the same extent as if such credits or refunds constituted credits or refunds of such tax.