Page:United States Statutes at Large Volume 72 Part 1.djvu/1360

 1318

Infra.

PUBLIC LAW 85-859-SEPT. 2, 1958

[72 S T A T.

"(3) EXTINGUISHMENT OF LIEN.—Any lien under paragraph (1), or any similar lien imposed on the property described in paragraph (1) under prior provisions of internal revenue law, shall be held to be extinguished— " (A) if the property is no longer used for distilling and there is no outstanding liability against any person referred to in section 5005(a) or (b) for taxes or penalties imposed by law on the distilled spirits produced thereon, and no litigation is pending in respect of any such tax or penalty; or " (B) if an indemnity bond given under the provisions of section 5173(b)(1)(C), further conditioned to stand in lieu of such lien or liens and to indemnify the United States for the payment of all taxes and penalties which otherwise could be asserted against such property by reason of such lien or liens, is accepted and approved by the Secretary or his delegate. Such bond shall not be accepted or approved if there is any pending litigation or outstanding assessment with respect to such taxes or penalties, or if the Secretary or his delegate has knowledge of any circumstances indicating that such bond is tendered with intent to evade payment or defeat collection of any tax or penalty. " (4) CERTIFICATE OF DISCHARGE.—Any person claiming any

interest in the property subject to lien under paragraph (1) may apply to the Secretary or his delegate for a duly acknowledged certificate to the effect that such lien is discharged and, if the Secretary or his delegate determines that such lien is extinguished, the Secretary or his delegate shall issue such certificate, and any such certificate may be recorded. " (c) CROSS REFERENCE.— "For provisions relating to extinguishing of lien in case of redistillation, see section 5223(d). "SEC. 5005. PERSONS LIABLE FOR TAX.

" (a) GENERAL.—The distiller or importer of distilled spirits shall be liable for the taxes imposed thereon by section 5001(a)(1). " (b) DOMESTIC DISTILLED SPIRITS.— " (1) LIABILITY OF PERSONS INTERESTED I N DISTILLING.—Every

proprietor or possessor of, and every person in any manner interested in the use of, any still, distilling apparatus, or distillery, shall be jointly and severally liable for the taxes imposed by law on the distilled spirits produced therefrom. "(2) EXCEPTION.—A person owning or having the right of control of not more than 10 percent of any class of stock of a corporate proprietor of a distilled spirits plant shall not be deemed to be a person liable for the tax for which such proprietor is liable under the provisions of paragraph (1). This exception shall not apply to an officer or director of such corporate proprietor. " (c) PROPRIETORS OF DISTILLED SPIRITS PLANTS.— "(1) BONDED STORAGE.—Every person operating bonded prem-

ises of a distilled spirits plant shall be liable for the internal revenue tax on all distilled spirits while the distilled spirits are stored on such premises, and on all distilled spirits which are in transit to such premises (from the time of removal from the transferor's bonded premises) pursuant to application made by him. Such liability for the tax on distilled spirits shall continue until the distilled spirits are transferred or withdrawn from bonded premises as authorized by law, or until such liability for tax is relieved by reason of the provisions of section 5008(a).

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