The TTB has issued Industry Circular 2020-2 which postpones the payment of taxes due to the impact that COVID-19 is having on alcohol beverage industry members nationwide. TTB’s Acting Administrator has determined that (1) any person with a due date for submitting a Federal excise tax payment, return, operational report, or claim on wine, beer, distilled spirits, tobacco products, cigarette papers and tubes, firearms, and ammunition to TTB and (2) any person with a due date for submitting export documentation to TTB, in the period March 1, 2020, through July 1, 2020, is affected by COVID-19 for purposes of the relief described in this Industry Circular. To assist these businesses during this period, the TTB is postponing several filing and payment due dates for 90-days where the original due date falls on or after March 1, 2020, through July 1, 2020. Specifically, the TTB is: Postponing tax payment due dates for wine, beer, distilled spirits, tobacco products, cigarette papers and tubes, firearms, and ammunition excise taxes. Postponing filing due dates for excise tax returns. Postponing filing due dates for submission of operational reports. Postponing filing due dates for claims for credit or refund by producers. Postponing filing due dates for claims by manufacturers of nonbeverage products. Postponing due dates for submission of export documentation. Considering emergency variations from regulatory requirements for affected businesses on a case-by-case basis. Reviewing requests for relief from penalties based on reasonable cause. The TTB will re-evaluate the terms of this immediate relief if circumstances warrant. See…

Please check out our latest regarding importers and the FET reduction for SevenFiftyDaily.

  Senate Bill 51-49 includes a two-year version of the Craft Beverage Modernization and Tax Reform Act, which cuts the federal excise tax on spirits, wine and beer, allows in-bond transfers of bottled spirits and provides for the expensing of certain costs related to the aging process of alcohol. The Craft Beverage Modernization and Tax Reform Act creates a tiered excise tax rate for distilled spirits, a shift from the flat $13.50 per proof gallon rate. The rate of tax is lowered to $2.70 per proof gallon on the first 100,000 proof gallons of distilled spirits, $13.34 for all proof gallons in excess of that amount but less than 22,130,000 proof gallons, and $13.50 for amounts greater. Like many others in the alcohol industry, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is experiencing the effects of the Act. Sizeable federal excise tax reductions on beer, wine, and spirits will undoubtedly impact the TTB’s regulations in one way or another, but for the moment TTB officials are still trying to narrow the practical implications of the Act which went into effect January 1, 2018. TTB has not yet released guidance but their website reads “On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act of 2017, which makes extensive changes to the Internal Revenue Code of 1986, including provisions related to alcohol that are administered by TTB. Those changes are effective January 1, 2018. We are currently assessing the impact of these changes on TTB forms, regulations,…