An Act to amend section 5064 of the Internal Revenue Code of 1954 to provide for refund of tax on distilled spirits, wines, rectified products, and beer lost or rendered unmarketable due to fire, flood, casualty, or other disaster, or to breakage, destruction, or other damage (excluding theft) resulting from vandalism or malicious mischief while held for sale.
PL 95-423 (H.R.1920), enacted 10/06/1978

PUBLIC LAW 95-423—OCT. 6, 1978 
92 STAT. 935 
Public Law 95-423 
95th Congress 
An Act 
Taxes. 
Alcoholic 
beverages, excise 
tax refund. 
To amend section 5064 of the Internal Revenue Code of 1954 to provide for refund 
Oct. 6, 1978 
of tax on distilled spirits, wines, rectified products, and beer lost or rendered 
[H.R. 1920] 
unmarketable due to fire, flood, casualty, or other disaster, or to breakage, 
destruction, or other damage (excluding theft) resulting from vandalism or 
malicious mischief while held for sale. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress 
assembled, 
SECTION 1. REFUND OF TAX ON ALCOHOLIC BEVERAGE LOSSES 
RESULTING FROM DISASTER, VANDALISM, OR MALI-
CIOUS MISCHIEF. 
(a) I N GENERAL.—So much of section 5064 of the Internal Revenue 
Code of 1954 (relating to losses caused by disaster) as precedes sub- 26 USC 5064, 
section (c) is amended to read as follows: 
"SEC. 5064. LOSSES RESULTING FROM DISASTER, VANDALISM, OR 
MALICIOUS MISCHIEF. 
"(a) PAYMENTS.—The Secretary, under such regulations as he may Regulations, 
prescribe, shall pay (without interest) an amount equal to the amount 
of the internal revenue taxes paid or determined and customs duties 
paid on distilled spirits, wines, rectified products, and beer previously 
withdrawn, which were lost, rendered unmarketable, or condemned by 
a duly authorized official by reason of— 
" (1) fire, flood, casualty, or other disaster, or 
"(2) breakage, destruction, or other damage (but not including 
theft) resulting from vandalism or malicious mischief, 
if such disaster or damage occurred in the United States and if such 
distilled spirits, wines, rectified products, or beer were held and 
intended for sale at the time of such disaster or other damage. The 
payments provided for in this section shall be made to the person 
holding such distilled spirits, wines, rectified products, or beer for sale 
at the time of such disaster or other damage. 
"(b) 
CLAIMS.— 
"(1) PERIOD FOR MAKING CLAIM; PROOF.—No claim shall be 
allowed under this section unless— 
" ( A ) filed within 6 months after the date on which such 
distilled spirits, wines, rectified products, or beer were lost, 
rendered unmarketable, or condemned by a duly authorized 
official, and 
"(B) the claimant furnishes proof satisfactory to the Secre-
tary that the claimant— 
"(i) was not indemnified by any valid claim of insur-
ance or otherwise in respect of the tax, or tax and duty, 
on the distilled spirits, wines, rectified products, or beer 
covered by the claim; and 
"(ii) is entitled to payment under this section. 
"(2) M I N I M U M CLAIM.—Except as provided in paragraph (3) 
(A), no claim of less than $250 shall be allowed under this section 
with respect to any disaster or other damage (as the case may be). 
92 STAT. 936 
PUBLIC LAW 95-423—OCT. 6, 1978 
"(3) SPECIAL RULES FOR MAJOR DISASTERS.—If the President has 
42 use 5121 
determined under the Disaster Kelief Act of 1974 that a 'major 
note. 
disaster' (as defined in such Act) has occurred in any part of the 
United States, and if the disaster referred to in subsection (a)(1) 
occurs in such part of the United States by reason of such major 
disaster, then— 
" (A) paragraph (2) shall not apply, and 
~~ 
, 
" ( B ) the filing period set forth in paragraph (1) (A) shall 
not expire before the day which is 6 months after the date 
on which the President makes the determination that such 
t V
. - 
major disaster has occurred. 
.,;j 
"(4) REGULATIONS.—Claims under this section shall be filed 
, . 
»
A 
under such regulations as the Secretary shall prescribe.". 
;r < ? 
(b) CLERICAL AMENDMENT.—The table of sections for subpart E 
of part I of subchapter A of chapter 51 of such Code is amended by 
striking out the item relating to section 5064 and inserting in lieu 
thereof the following: 
"Sec. 5064. Losses resulting from disaster, vandalism, or mali-
cious mischief.". 
26 use 5064 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
note. 
apply to disasters (or other damage) occurring on or after the first day 
of the first calendar month which begins more than 90 days after the 
date of the enactment of this Act. 
Approved October 6, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-1038 (Comm. on Ways and Means). 
SENATE REPORT No. 95-1112 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
May 8, considered and passed House. 
Aug. 25, considered and passed Senate, amended. 
Sept. 19, House concurred in Senate amendment with amendments. 
Sept. 25, Senate concurred in House amendments.