This information collection consists of a single check box question added to the Brewers Notice form, the Wine Premises application form, and Distilled Spirits Plant registration form, all of which currently exist as approved information collections in TTB's electronic Permits Online (PONL) system. This question allows new applicants who submit these PONL forms before 2017 to indicate that they will be exempt from bond requirements under the new PATH Act once the new law goes into effect (see Pub. L. 114-113, Div. Q, Sec. 332). TTB cannot independently determine whether a taxpayer is exempt from the bond requirement because it depends, in part, on the taxpayerâs expectation for the coming year. Therefore, in the case of applicants who apply before 2017 but whose application is still in process on January 1, 2017, TTB will use this information to streamline the application process so that applicants who indicate that they are eligible for the bond exemption do not need to take additional action in order to obtain authorization to operate without a bond beginning in 2017.
On December 18, 2015, the President signed into law the Consolidated Appropriations Act, 2016 (Public Law 114-113). Division Q of this Act is titled the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). Section 332 of the PATH Act amends the IRC to change tax return due dates and remove bond requirements for certain taxpayers with respect to the taxes on distilled spirits, wine, and beer. Under the new law, certain taxpayers will be exempt from bond requirements if they reasonably expect to be liable for not more than $50,000 in taxes for the calendar year and if they were liable for not more than $50,000 in taxes in the preceding calendar year. The amendments apply beginning on January 1, 2017, and TTB is drafting regulations to implement the new law. While preparing the new regulations, TTB determined that it is necessary to immediately amend the electronic Permits Online (PONL) versions of the Brewerâs Notice form (TTB F 5130.10), the Application to Establish and Operate Wine Premises (TTB F 5120.25), and the Distilled Spirits Plant Registration form (TTB F 5110.41) to allow new applicants who submit these PONL forms before 2017 to indicate that they will be exempt from bond requirements once the new law goes into effect. TTB cannot independently determine whether a taxpayer is exempt from the bond requirement because it depends, in part, on the taxpayerâs expectation for the coming year. Therefore, in the case of applicants who apply before 2017 but whose application is still in process on January 1, 2017, TTB will use this information to streamline the application process so that applicants who indicate that they are eligible for the bond exemption do not need to take additional action in order to obtain authorization to operate without a bond beginning in 2017. If TTB did not solicit this information in PONL before the PATH Act goes into effect, such applicants would have to withdraw their existing applications and submit new ones, or take additional actions to become exempt from bond requirements. Because TTB did not anticipate the need for this change at the time the law was enacted and because this change is necessary to relieve unnecessary regulatory burden on certain new applicants, TTB is requesting expedited/emergency approval of this information collection separately from the existing OMB approvals for the PONL forms in order to solicit this information for a temporary period of time until the implementing regulations and related permanent changes to the PONL forms go into effect. Because this change simply requires applicants to check a box on the form regarding whether they meet the statutory criteria for the bond exemption, TTB does not believe that this additional, temporary change to the three PONL forms is unduly burdensome.
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PL: Pub.L. 114 - 113 Div. Q, Sec. 332 Name of Law: Protecting Americans from Tax Hikes Act of 2015 (PATH Act)
On December 18, 2015, the President signed into law the Consolidated Appropriations Act, 2016 (Public Law 114-113). Division Q of this Act is titled the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). Section 332 of the PATH Act amends the IRC to change tax return due dates and remove bond requirements for certain taxpayers with respect to the taxes on distilled spirits, wine, and beer. Under the new law, certain taxpayers will be exempt from bond requirements if they reasonably expect to be liable for not more than $50,000 in taxes for the calendar year and if they were liable for not more than $50,000 in taxes in the preceding calendar year. The amendments apply beginning on January 1, 2017, and TTB is drafting regulations to implement the new law. While preparing the new regulations, TTB determined that it is necessary to immediately amend the electronic Permits Online (PONL) versions of the Brewerâs Notice form (TTB F 5130.10), the Application to Establish and Operate Wine Premises (TTB F 5120.25), and the Distilled Spirits Plant Registration form (TTB F 5110.41) to allow new applicants who submit these PONL forms before 2017 to indicate that they will be exempt from bond requirements once the new law goes into effect. TTB estimates that during the period October 1, 2016 through December 31, 2016, up to 2,000 PONL applications may be received, requiring respondents to determine their bond requirements under the PATH Act and respond to the check box question which makes up this information collection. We estimate that each respondent may require up to 6 minutes to determine if their expected tax liability for the next calendar year will be above or below $50,000, for a total of 200 estimate annual burden hours.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
1513-NEW Supporting Statement (PATH Act Bond Question).docx
PATH Act Bond Requirement Statements for PONL (Temporary)