26 USC § 5732 - Payment of tax

---
identifier: "/us/usc/t26/s5732"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 5732 - Payment of tax"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "5732"
section_name: "Payment of tax"
chapter_number: 52
chapter_name: "TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES"
subchapter_number: "D"
subchapter_name: "Occupational Tax"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1346, § 5142; amended Pub. L. 94–455, title XIX, § 1905(a)(12), Oct. 4, 1976, 90 Stat. 1820; renumbered § 5732 and amended Pub. L. 109–59, title XI, § 11125(b)(20)(A), (B), Aug. 10, 2005, 119 Stat. 1956; Pub. L. 110–172, § 11(a)(32), Dec. 29, 2007, 121 Stat. 2487.)"
---


# § 5732. Payment of tax

**(a)** **Condition precedent to carrying on business** No person shall be engaged in or carry on any trade or business subject to tax under this subchapter until he has paid the special tax therefor.

**(b)** **Computation** All special taxes under this subchapter shall be imposed as of on the first day of July in each year, or on commencing any trade or business on which such tax is imposed. In the former case the tax shall be reckoned for 1 year, and in the latter case it shall be reckoned proportionately, from the first day of the month in which the liability to a special tax commenced, to and including the 30th day of June following.

**(c)** **How paid**

**(1)** **Payment by return** The special taxes imposed by this subchapter shall be paid on the basis of a return under such regulations as the Secretary shall prescribe.

**(2)** **Stamp denoting payment of tax** After receiving a properly executed return and remittance of any special tax imposed by this subchapter, the Secretary shall issue to the taxpayer an appropriate stamp as a receipt denoting payment of the tax. This paragraph shall not apply in the case of a return covering liability for a past period.

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**Source Credit**: (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1346, § 5142; amended Pub. L. 94–455, title XIX, § 1905(a)(12), Oct. 4, 1976, 90 Stat. 1820; renumbered § 5732 and amended Pub. L. 109–59, title XI, § 11125(b)(20)(A), (B), Aug. 10, 2005, 119 Stat. 1956; Pub. L. 110–172, § 11(a)(32), Dec. 29, 2007, 121 Stat. 2487.)

## Editorial Notes

### Prior Provisions

A prior section 5732, acts , ; , , , required that a dealer in tobacco materials make a statement of shipments and deliveries or give an inventory upon demand, prior to repeal by , title VII, § 701(d), , , 157, applicable on and after .

### Amendments

2007—Subsec. (c)(2). , which directed amendment of , as redesignated by , by substituting “this subchapter” for “this subpart” in subsec. (c)(2) effective , was executed to this section to reflect the probable intent of Congress even though the redesignation of  as this section was not effective until . See 2005 Amendment and Effective Date of 2005 Amendment notes below.

2005—, renumbered  as this section and transferred section to this subchapter.

Subsecs. (a), (b). , struck out “(except the tax imposed by section 5131)” before “until he has paid” in subsec. (a) and before “shall be imposed” in subsec. (b).

, substituted “this subchapter” for “this part”.

Subsec. (c)(1). , substituted “this subchapter” for “this part”.

1976—Subsec. (c).  substituted provisions under which the special taxes would be paid on the basis of a return for provisions under which the special taxes were paid by stamps denoting the tax.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2005 Amendment

Amendment by  effective , but inapplicable to taxes imposed for periods before such date, see , set out as a note under .

### Effective Date of 1976 Amendment

Amendment by  effective on first day of first month which begins more than 90 days after , see , set out as a note under .