Small Brewers Bond Reduction and Requirement To File Tax Returns, Remit Tax Payments and Submit Reports Quarterly
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SUMMARY: The Alcohol and
EFFECTIVE DATE: This final rule is effective on
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Background
TTB Authority
Chapter 51 of the Internal Revenue Code of 1986 (IRC) pertains to the taxation of distilled spirits, wines, and beer (see title 26 of the United States Code (U.S.C.), chapter 51 (26 U.S.C. chapter 51)). With regard to beer, IRC section 5051 (26 U.S.C. 5051) imposes a Federal excise tax on all beer brewed or produced, and removed for consumption or sale, within
Section 5061 pertains to the time and method for submitting tax returns and payment of the applicable excise taxes. Section 5061 states that Federal excise taxes on distilled spirits, wines, and beer shall be collected on the basis of a return, and that the Secretary of the Treasury (the Secretary) shall, by regulation, prescribe the period or event for which such return shall be filed. Section 5061(d)(1) generally requires that the excise taxes owed on alcohol beverages, including beer, withdrawn under bond be paid no later than the 14th day after the last day of the semimonthly period during which the withdrawal occurs. Under a special rule, September has three return periods (section 5061(d)(5)), resulting in a total of 25 returns due each year. Section 5061(d)(4) provides an exception to the semimonthly rule for taxpayers who reasonably expect to be liable for not more than
Section 5401(b) (26 U.S.C. 5401(b)) provides that all brewers shall obtain a bond to insure the payment of any taxes owed. The amount of such bond shall be "in such reasonable penal sum" as prescribed by the Secretary in regulations "as necessary to protect and insure collection of the revenue."
Section 5415 of the IRC (26 U.S.C. 5415) requires brewers to keep records and to make true and accurate "returns" of their brewing and associated operations at the times and for such periods as the Secretary prescribes by regulation. The implementing regulations refer to these "returns" as "reports" of operations.
The Alcohol and
Reducing Burdens on
Executive Order 13563, Improving Regulation and Regulatory Review (E.O. 13563), signed by the President on
Revisions to the Beer Regulations (Part 25): Under the authority of the Internal Revenue Code, TTB regulates activities at breweries. The regulations of Title 27 of the Code of Federal Regulations, Part 25, address the qualification of breweries, bonds and taxation, removals without payment of tax, and records and reporting. Brewery regulations were last revised in 1986 and need to be updated to reflect changes to the industry, including the increased number of small ("craft") brewers. In an advance notice of proposed rulemaking, TTB plans to solicit comments regarding potential ways to decrease the regulatory burden on industry members (including but not limited to streamlining and/or reducing the reporting and recordkeeping requirements for the industry, including small business members) and increase efficiency for both the industry and TTB. Upon consideration of comments received, TTB intends to develop and propose specific regulatory changes.
In
There is no specific statutory or regulatory definition as to who is a "small" brewer. However, for taxpayers who reasonably expect to be liable for not more than
Tax Return Filing, Tax Payment, Bond, and Reporting Requirements
Statutory requirements for brewers include filing tax returns, remitting excise tax payments, obtaining a brewer's bond, and submitting reports of operations. Under TTB's current regulations, there are options that a small brewer must consider. First, the regulations provide that a small brewer may file tax returns and pay taxes either semimonthly or quarterly (27 CFR 25.164(c)). Under
--This is a summary of a
Final rule; Treasury decision.
CFR Part: "27 CFR Part 25"
RIN Number: "RIN 1513-AB94"
Citation: "79 FR 58674"
Document Number: "Docket No. TTB-2012-0006; T.D. TTB-123; Re: Notice No. 131 and T.D. TTB-109"
Federal Register Page Number: "58674"
"Rules and Regulations"
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