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 taxpayer’s
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 Brewer’s 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 taxpayer’s
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.
None
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 Brewer’s 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)