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determined at the time the spirits are withdrawn from bond and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 product’s
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 products’ 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 109–59 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 114–113
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