Tax Class Statement Required on Hard Cider Labels

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
1513-NEW SS (Tax Class Statement on Hard Cider Labels).docx	Supporting Statement A	Uploaded 2016-12-07	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
224686	Tax Class Statement Required on Hard Cider Labels		New

ICR Details

OMB Control No: 1513-0138	ICR Reference No: 201704-1513-001
Status: Historical Active	Previous ICR Reference No: 201612-1513-010
Agency/Subagency: TREAS/TTB	Agency Tracking No: PATH (Cider) 1/3
Title: Tax Class Statement Required on Hard Cider Labels
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 04/13/2017
	Date Received in OIRA: 04/13/2017
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2020	36 Months From Approved
Responses	777	0	0
Time Burden (Hours)	777	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: In response to Section 335, of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act; Division Q of Pub. Law 114–113), which, effective January 1, 2017, amends the Internal Revenue Code to modify the definition of wines eligible for the hard cider tax rate of $0.226 per wine gallon, TTB is issuing a temporary rule (and a concurrent notice of proposed rulemaking) titled “Implementation of Statutory Amendments Requiring the Modification of the Definition of Hard Cider.” The temporary rule will amend § 24.257 by requiring a tax class statement on labels of wine claiming the hard cider tax rate provided for in 26 U.S.C. 5041(b)(6). Specifically, the new information collection in new section § 24.257(a)(4)(v) will require that industry members who remove wine on which the hard cider tax rate applies place a specific statement, “Tax class 5041(b)(6),” on containers of such wine, in order to adequately identify the applicable tax rate. For imported wines claiming the hard cider tax rate, a new § 27.59(b) will cross-reference the tax class statement labeling requirement contained in amended § 24.257. TTB has determined that this new information collection regarding the tax class statement is necessary to protect the revenue and demonstrate compliance with the statutory requirements regarding products eligible for the hard cider tax rate. The tax class statement ensures the proper identification of the content of the wine container, protects the Federal government’s revenue interest prior to removal of the wine from bonded premises, and identifies the wine at the time of its removal from bond coverage in order to ensure that the correct Federal excise tax will be collected. TTB believes that this label statement is the simplest and clearest way to identify such products in order to avoid confusion with other, higher-rate tax classes of wine. This regulatory amendment does not require any other changes to label statements that industry members use or may wish to use to identify their products.

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Authorizing Statute(s): US Code: 26 USC 5041 Name of Law: Internal Revenue Code
   US Code: 26 USC 5386(b) Name of Law: Internal Revenue Code
  

Citations for New Statutory Requirements: PL: Pub.L. 114 - 113 335 (Div. Q) Name of Law: PATH Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1513-AC30	Final or interim final rulemaking	82 FR 7653	01/23/2017

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

table that charts list of burden

IC Title	Form No.	Form Name
Tax Class Statement Required on Hard Cider Labels

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ICR Summary of Burden

table that charts list of burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	777	0	777	0	0	0
Annual Time Burden (Hours)	777	0	777	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: TTB is revising 27 CFR 24.257(a)(4), by requiring the placement of the tax class statement “Tax class 5041(b)(6)” on containers of wine that are eligible for the hard cider tax rate. This requirement will be cross-reference for imported products in new 27 CFR 27.59(b). In addition, TTB believes that there would be a one-time burden of one hour for wines that are eligible for the hard cider tax rate to come into compliance with this information collection, but that the continued compliance burden will be negligible. (This is a new collection; therefore, there are no adjustments.)

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 12/29/2016

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