Under chapter 51 of the Internal Revenue Code (IRC), distilled spirits produced or imported into the United States are subject to Federal excise tax, which is determined at the time the spirits are withdrawn from bond and which is paid by return, subject to regulations prescribed by the Secretary of the Treasury. In addition, a credit may be taken against that tax for the portion of a distilled spirits productâs alcohol content derived from wine or flavors. The Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations in 27 CFR parts 19 and 26 require distilled spirits excise taxpayers to keep certain records in support of the information provided on their excise tax returns, including information on the distilled spirits removed from their premises and the productsâ applicable tax rates, as well as records related to nontaxable removals, shortages, and losses. The required records are necessary to protect the revenue as TTB uses the data collected to ensure the appropriate amount of tax is paid, to verify claims for refunds or remission of tax, and to account for the transfer of certain distilled spirits excise taxes to the governments of Puerto Rico and the U.S. Virgin Islands.
Program changes: In general, under the IRC at 26 U.S.C. 5061(d), Federal alcohol excise taxpayers are required to file returns on a semi-monthly basis. However, in 2005, section 11127(a) of Public Law 109â59 amended 26 U.S.C. 5061(d) to add a quarterly filing option for certain small Federal alcohol excise taxpayers (in general, those with tax liabilities under $50,000 in a calendar year). In addition, in beginning in 2017, section 332 of Division Q of Public Law 114â113 amended 26 U.S.C. 5061(d) to add an annual filing option for certain very small Federal alcohol excise tax payers (in general, those with tax liabilities of under $1,000 in a calendar year). TTB has not previously accounted for these statutory amendments and the resulting program changes on this information collection. Based on the 2,198 annual respondents previously reported for this information collection, these program changes result in decreases to the average number of annual responses per respondent, from 26 to 13.8165, which results in decreases in the estimated number of annual responses and burden hours for this collection, from 57,148 to 30,369, a decrease of 26,779.
Adjustments: Due to changes in agency estimates resulting from continued growth in the number of DSPs in the United States, TTB is increasing the number of respondents to this information collection, from 2,198 to 3,160. Based on the new average number of annual responses per respondent (13.8165) resulting from the statutory changes noted above, this change in agency estimates results in an increase of 13,291 annual responses and burden hours for this information collection. (The estimated burden per respondent remains unchanged at 1 hour per response).
Overall changes and adjustments: Taken together, the program changes and adjustments noted above result in an increase in the number of respondents to this information collection, from 2,198 to 3,160, but a decrease in its average number of annual responses per respondent, from 26 to 13.1865. As a result, while the 1 hour per-response burden for this collection is unchanged, the combined changes result in a decrease in the number of annual responses and burden hours for this information collection, from 57,148 to 43,660 (an overall decrease of 13,488).
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.
1513-0045 Supporting Statement (08-2019).docx
TTB REC 5110/06: Distilled Spirits Plants - Excise Taxes