The eighteenth article of amendment to the United States Constitution laid the foundation for Title 27 of the United States Code (USC) and all regulations derivative therefrom for the regulation of achohol and enforcement thereof (see the Code of Federal Regulations or CFR). The National Prohibition Act was passed by the Congress, being the legislation necessary to carry into effect the newly granted power to regulate achohol. When the twenty-first article of amendment to the United States Constitution repealed the eighteenth, all federal legislation that rested on it was inoperative in the states of the union. But, as constitutional prohibititions and restraints does not apply to Puerto Rico, the National Prohibition Act, though initially passed as a result of the 18th amendment, is still in effect there, codified at 48 USC § 734a. It is in this jurisdiction that 27 USC and 27 CFR can be applied, but not in the states of the union.

As it has developed, all IRS enforcement regulations are contained in 27 CFR (which implements 27 USC). So if the IRS comes after someone to enforce a tax lien, they are assuming that their victim is a resident of Puerto Rico, or ignorant of the law.

Notes on Title 27 Ch. 1, from LII:

Act Oct. 28, 1919, ch. 85, 41 Stat. 305, as amended and supplemented, known as the National Prohibition Act, was included in chapters 1, 2, 3, and 4 of this title. Such provisions of that act and subsequent legislation as were dependent upon the 18th Amendment to the United States Constitution became inoperative by adoption of the 21st Amendment to the Constitution on Dec. 5, 1933, repealing the 18th Amendment.

Sections 2 to 5 of this chapter (acts Oct. 28, 1919, ch. 85, Sec. 1, 41 Stat. 307; Nov. 23, 1921, ch. 134, Sec. 3, 5, 42 Stat. 223) and sections 11 to 40, 44 to 57, 61, 62, and 64 of chapter 2 (acts Oct. 28, 1919, ch. 85, Sec. 2 to 39, 41 Stat. 308 to 319; Nov. 23, 1921, ch. 134, Sec. 2, 5, 42 Stat. 222, 223; Mar. 31, 1933, ch. 18, Sec. 1 to 3, 48 Stat. 23, 24) constituting title II of the National Prohibition Act as amended and supplemented, were repealed to the extent in force in the District of Columbia, Puerto Rico and the Virgin Islands, Hawaii, and Alaska by acts Jan. 24, 1934, ch. 4, Sec. 1, 48 Stat. 319; Mar. 2, 1934, ch. 37, Sec. 2, 3, 48 Stat. 361; Mar. 26, 1934, ch. 88, Sec. 2, 3, 48 Stat. 467; and Apr. 13, 1934, ch. 119, Sec. 1, 5, 48 Stat. 583, 584, respectively.

Note on Title 27 Ch. 1, from 27 USCA Ch. 1, pp:

"The National Prohibition Act, as amended and supplemented, was included in chapters 1, 2, 3, and 4 of this title. Such provisions of that Act and subsequent legislation as were dependent upon the 18th Amendment became inoperative by adoption of the 21st Amendment to the Constitution on December 5 1933, repealing the 18th Amendment." 27 USCA Ch. 1 note.

27 USCA 2, note 3: 

"National Prohibition Act (incorporated in this title) is in force in Porto Rico. Ramos v. U. S. (C. C. A. Porto Rico, 1926) 12 F.(2d) 761. (27 USC 2, note 3.)

"[2] The National Prohibition Act, if it was not extended to Porto Rico by section 14 of the Act of April 12, 1900 (31 Stat. 80; Comp. St. § 3762), and section 9 of the Act of March 2, 1917 (39 Stat. 954 [Comp. St. 1918, Comp. St. Ann. Supp. 1919 § 3803ccc]), was by section 3 of the Act of November 23, 1921 (42 Stat. 223 [Comp. St. Ann. Supp. 1923, § 10138-4/5a]), which provides:
   "That this act and the National Prohibition Act shall apply not only to the United States but to all territory subject to its jurisdiction, including the territory of Hawaii and the Virgin Islands."
   "And the Supreme Court in Cunard S. S. Co. v. Mellon, 262 U. S. 100, 127, 43 S. Ct. 504, 67 L. Ed. 894, 27 A. L. R. 1306, in speaking of said section 3, said that since its enactment the "field" of the National Prohibition Act "coincides with that of the Eighteenth Amendment.
"[3] The National Prohibition Act being a federal law and in force in Porto Rico..."
(Ramos v. United States, 12 F.(2d) 761, 762, C. C. A. 1st, 1926.)

48 USC Sec. 734a. Extension of industrial alcohol and internal revenue laws to Puerto Rico

   Title III of the National Prohibition Act, as amended, and all provisions of the internal revenue laws relating to the enforcement thereof, are extended to and made applicable to Puerto Rico from and after August 27, 1935. The Insular Government shall advance to the Treasury of the United States such funds as may be required from time to time by the Secretary of the Treasury for the purpose of defraying all expenses incurred by the Treasury Department in connection with the enforcement in Puerto Rico of the said Title III and regulations promulgated thereunder. The funds so advanced shall be deposited in a separate trust fund in the Treasury of the United States and shall be available to the Treasury Department for the purposes of this section.

(June 26, 1936, ch. 830, title III, Sec. 329(c), 49 Stat. 1957.)

REFERENCES IN TEXT

   The National Prohibition Act, as amended, referred to in text, is act Oct. 28, 1919, ch. 85, 41 Stat. 305, as amended. Title III of such Act was classified principally to chapter 3 (Sec. 71 et seq.) of Title 27, Intoxicating Liquors, and was omitted from the Code in view of the incorporation of such provisions in the Internal Revenue Code of 1939, and subsequently into the Internal Revenue Code of 1986.

CODIFICATION

   Provisions similar to those comprising this section relating to the Virgin Islands are classified to section 1402 of this title.
   Section was not enacted as part of the Puerto Rican Federal Relations Act which comprises this chapter.

   Industrial alcohol plants, application of internal revenue laws to Puerto Rico, see section 5314 of Title 26, Internal Revenue Code.

Amendment XVIII (effective January 27, 1920)

Section 1. After one year from the ratification of this article the manufacture, sale, or transportation of intoxicating liquors within, the importation thereof into, or the exportation thereof from the United States and all territory subject to the jurisdiction thereof for beverage purposes is hereby prohibited.

Section 2. The Congress and the several states shall have concurrent power to enforce this article by appropriate legislation.

Section 3. This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by the legislatures of the several states, as provided in the Constitution, within seven years from the date of the submission hereof to the states by the Congress.

Amendment XXI (effective December 5, 1933)

Section 1. The eighteenth article of amendment to the Constitution of the United States is hereby repealed.

Section 2. The transportation or importation into any state, territory, or possession of the United States for delivery or use therein of intoxicating liquors, in violation of the laws thereof, is hereby prohibited.

Section 3. This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by conventions in the several states, as provided in the Constitution, within seven years from the date of the submission hereof to the states by the Congress.

27 USC § 1 - Short name of title.

The short name of this title shall be the "National Prohibition Act." (Oct. 28, 1919, c. 85, § 1, 41 Stat. 305.)

27 USC § 2 - Territory affected.

This title shall apply not only to the United States but to all territory subject to its jurisdiction, including the Territory of Hawaii and the Virgin Islands; and jurisdiction is conferred on the courts of the Territory of Hawaii and the Virgin Islands to enforce this title in such Territory and islands. (Nov. 23, 1921, c. 134, § 3, 42 Stat. 223.)

27 USC § 3 - Effect on existing legislation.

All laws in regard to the manufacture and taxation of and traffic in intixicating liquor, and all penalties for violations of such laws that were in force on October 28, 1919, shall be and continue in force, as to both beverage and non-beverage liquor, except such provisions of such laws as are directly in conflict with any provision of this title; but if any act is a violation of any of such laws and also of this title, a conviction for such act or offense under one shall be a bar to prosecution therefor under the other. (Nov. 23, 1921, c. 134, § 5, 42 Stat. 223.)

27 USC § 4 - Definitions.

"When used in this title*
(1) The word "liquor" ...
(2) The word "person" ...
(3) The word "commissioner" ...
(4) The word "application" ...
(5) The word "permit" ...
(6) The word "bond" ...
(7) The word "reulation" ...
(Oct. 28, 1919, Title II, § 1, 41 Stat. 307.+)

* It would seem that the words "or in section 77 of Title 18," should be inserted.

+ It would seem that "Nov. 23, 1921, c. 134, § 1, 42 Stat. 222" should be added to the credit.

27 USC § 5 - .

Sec. 1 to 5. Repealed. Aug. 27, 1935, ch. 740, title I, Sec. 1, 49 Stat. 872

Section 1, act Oct. 28, 1919, ch. 85, Sec. 1, 41 Stat. 305, set forth the short title of act as ''National Prohibition Act''.

Section 2, act Nov. 23, 1921, ch. 134, Sec. 3, 42 Stat. 223, provided that this title apply to the United States and all territory subject to its jurisdiction, including the Territory of Hawaii and the Virgin Islands.

Section 3, act Nov. 23, 1921, ch. 134, Sec. 5, 42 Stat. 223, authorized all laws relating to the manufacture and taxation of and traffic in intoxicating liquor, and all penalties for violations of such laws that were in force on Oct. 28, 1919, to continue in force, as to both beverage and nonbeverage liquor, except to the extent provisions of such laws were directly in conflict with provisions of this title.

Section 4, acts Oct. 28, 1919, ch. 85, title II, Sec. 1, 41 Stat. 307; Nov. 23, 1921, ch. 134, Sec. 1, 42 Stat. 222, defined ''liquor'' or ''intoxicating liquor'', ''person'', ''commissioner'', ''application'', ''permit'', ''bond'', and ''regulation''.

Section 5, act Oct. 28, 1919, ch. 85, title II, Sec. 1, 41 Stat. 308, provided that any act authorized to be done by the commissioner could be performed by any assistant or agent designated by him for that purpose, and any records required to be filed with the commissioner could be filed with an assistant commissioner or any other person designated to receive such records

"There is no inherent right in a citizen to sell intoxicating liquors, nor a privilege to a citizen of Florida or a citizen of the United States. Mears v. Stone, 151 Fla. 760, 10 So.2d 487." Permenter v. Younan, 31 So.2d 387, hn. 2 & p. 389 (S.C.Fla. Div.B 1947).