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Additional TTB Tax Act Guidance

On Thursday evening, February 1, the Alcohol and Tobacco Tax and Trade Bureau (TTB) released additional FAQ guidance on the alcohol excise tax provisions of the 2018 tax reform (the Tax Act). Imports: Echoing a January 31 pronouncement by Customs and Border Protection, TTB has instructed importers to continue paying the full rate of excise tax until it can establish the procedures by which foreign producers can assign their tax credits to US importers. TTB promises to give importers the opportunity to seek excise tax relief (refunds) on entries made after the law went into effect, once procedures and guidance have been issued. Wine: TTB interprets the Tax Act’s tiered tax structure as requiring a precise determination of which removals were “first” when deciding how to divide the excise tax credits between the credits (as high as $1/gallon) available for most wines and the credits (only as high as ¢6.2/gallon) available for wine taxed at the “hard cider”...

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TTB Updates to the Semi-Annual Regulatory Agenda

Last week in its regular newsletter, Alcohol and Tobacco Tax and Trade Bureau (TTB) announced updates to the Fall edition of the semi-annual Unified Agenda of Federal Regulatory and Deregulatory Actions (Regulatory Agenda). Like other federal agencies, TTB uses the Regulatory Agenda to report on its current rulemaking projects. In the updated agenda, a few new items have been added, and many expected publication dates of Notices of Proposed Rulemaking (NPRMs), Advanced Notices of Proposed Rulemaking (ANPRMs) and Final Rules have changed. As always, readers should recognize that TTB rulemaking moves very slowly, and the Agency often does not meet the aspirational dates published in the Regulatory Agenda. The updated Regulatory Agenda lists the following projects of interest: Wines, Distilled Spirits and Malt Beverages The reform of TTB’s labeling and advertising regulations for all three commodities, on the Regulatory Agenda for years, now indicates that TTB...

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Recent Revisions to Internal Revenue Code Affecting Alcohol Beverages

In December 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015 (PATH Act).  The PATH Act amends several provisions of the Internal Revenue Code of 1986 (IRC) administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB).  Those amendments relate to alcohol excise tax due dates and bond requirements, the definition of wine eligible for treatment as “hard cider” for tax purposes, and cover over of rum excise taxes imported from Puerto Rico and the US Virgin Islands.  In January 2016, TTB issued an announcement concerning the IRC amendments. Starting with the first calendar quarter of 2017, taxpayers who anticipate being liable for no more than $1,000 in alcohol excise taxes (for sales of distilled spirits, beer and wine) for the calendar year, and who were not liable for more than $1,000 in such excise taxes the prior year, may make excise tax payments annually (rather than the current quarterly payment requirement). ...

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