Letterhead Applications and Notices Relating to Tax-Free Alcohol (TTB REC 5150/04)

Forms and Documents

Document Name	Status
1513-0060 Supporting Statement (06-2019).docx Supporting Statement A	2019-06-19

IC Document Collections

IC ID	Document Title	Status
44547	Letterhead Applications and Notices Relating to Tax-Free Alcohol (TTB REC 5150/4) (Public Sector)	Modified
16054	Letterhead Applications and Notices Relating to Tax-Free Alcohol (TTB REC 5150/4) (Private Sector)	Modified

ICR Details

OMB Control No: 1513-0060	ICR Reference No: 201904-1513-010
Status: Active	Previous ICR Reference No: 201603-1513-011
Agency/Subagency: TREAS/TTB	Agency Tracking No: ICN 73 - 9/18
Title: Letterhead Applications and Notices Relating to Tax-Free Alcohol (TTB REC 5150/04)
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 08/02/2019
	Date Received in OIRA: 06/28/2019
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	08/31/2022	36 Months From Approved	08/31/2019
Responses	800	0	400
Time Burden (Hours)	400	0	200
Cost Burden (Dollars)	0	0	0

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Abstract: In general, the Internal Revenue Code (IRC) at 26 U.S.C. 5001 imposes a Federal excise tax on all distilled spirits produced in or imported into the United States. The IRC at 26 U.S.C. 5214 provides for the tax-free withdrawal of distilled spirits from distilled spirits plants (DSPs) for certain nonbeverage purposes, including for use by educational institutions, laboratories, hospitals, clinics, and blood banks, and by State, local, and tribal governments, and, at 26 U.S.C. 5271–5275, the IRC sets permit, bond, formula submission, recordkeeping, and reporting requirements for the use of tax-free distilled spirits, all of which is subject to regulations prescribed by the Secretary. Under those authorities, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations in 27 CFR part 22 require users of tax-free alcohol to submit certain letterhead applications and notices, which serve as qualifying documents for specific regulated activities or as amendments to previously-filed documents. The collected information is necessary to protect the revenue and ensure compliance with Federal laws and regulations regarding tax-free alcohol as it allows TTB to detect diversion of tax-free alcohol to taxable beverage use and ensure lawful use of such alcohol. In general, activities posing a greater jeopardy to the revenue require a letterhead application and TTB approval before the respondent begins the activity, while activities posing less jeopardy to the revenue require a letterhead notice stating that the respondent will undertake the activity.

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Authorizing Statute(s): US Code: 26 USC 5214 Name of Law: Internal Revenue Code
   US Code: 26 USC 5271 - 5275 Name of Law: Internal Revenue Code
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 11867	03/28/2019
30-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 30805	06/27/2019
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Letterhead Applications and Notices Relating to Tax-Free Alcohol (TTB REC 5150/4) (Private Sector)
Letterhead Applications and Notices Relating to Tax-Free Alcohol (TTB REC 5150/4) (Public Sector)

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ICR Summary 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	800	400	0	0	400	0
Annual Time Burden (Hours)	400	200	0	0	200	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: There are no program changes associated with this information collection. Based on recent experience, TTB estimates that 800 of its 5,270 tax-free alcohol permittees will file one letterhead application or notice annually. As for adjustments, due to changes in agency estimates, TTB is increasing the estimated burden for this information collection—from 400 to 800 respondents, from 400 to 800 annual responses, and from 200 to 400 burden hours.

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Annual Cost to Federal Government: $3,680

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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: 06/28/2019

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