In general, the Internal Revenue Code
(IRC) at 26 U.S.C. 5001 imposes Federal alcohol excise tax on
distilled spirits produced or imported into the United States. To
protect that revenue, the IRC at 26 U.S.C. 5207 also provides that
distilled spirits plant (DSP) proprietors must maintain records
related to their production, storage, denaturing, and processing
activities and render reports covering those activities “as the
Secretary shall by regulations prescribe.” Under those IRC
authorities, the TTB regulations in 27 CFR parts 19, 26, 27, and 28
require DSP proprietors to keep certain usual and customary records
related to their production, storage, denaturing, and processing
activities. This information collection consists of the transaction
and supporting records that are common to all four of those DSP
activities. Proprietors use those common records, along with
records that are unique to each activity, to document the data
provided on their monthly DSP production, storage, denaturing, and
processing operations reports. (TTB requirements to keep records
unique to each of the four DSP activities, and the four related DSP
operations reports, are approved under other OMB control numbers.)
TTB personnel may examine the required records to verify the data
provided by DSP proprietors in their monthly operations reports as
those reports assist TTB in determining a DSP proprietor’s Federal
excise tax liability. As such, this information collection is
necessary to protect the revenue.
US Code:
26
USC 5207 Name of Law: Internal Revenue Code
Program changes: Previously,
this information collection included three types of DSP records
that are not usually and customarily kept during the normal course
of business: (1) Security device records, (2) alternating premises
records, and (3) wine tax credit records. As part of a rulemaking
to update and reorganize its DSP regulations in 27 CFR part 19,
which was finalized in 2011, TTB removed the security device
recordkeeping requirement from part 19 as unnecessary. In addition,
TTB transferred the alternating premises and wine tax credit
recordkeeping requirements for DSPs to the information collections
approved by OMB under, respectively, control numbers 1513–0044 and
1513–0045. TTB notes that the rulemaking-related revisions made to
those two information collections have been previously reviewed and
approved by OMB. However, TTB inadvertently did not revise this
information collection to reflect the removal of the DSP security
device recordkeeping requirement, and the transfer of the
alternation and wine tax credit recordkeeping requirements, as
noted above. Therefore, as a matter of agency discretion, TTB is
now eliminating those non-customary recordkeeping requirements from
this information collection. This, in turn, eliminates this
collection’s previously-reported total annual burden of 47,916
hours. (As previously reported: 2,198 respondents, each taking
annually an average of 12 hours to keep security device records,
1.8 hours to keep alternation of premises records, and 8 hours to
keep wine tax credit records, resulted in an average annual total
of 21.8 hours of burden per respondent, which equaled an estimated
total annual burden of 47,916 hours.) Adjustments: Due to a change
in agency estimates resulting from continued growth in the number
of DSPs operating in the United States, TTB is increasing this
information collection’s estimated number of annual respondents,
from 2,198 to 3,340. And, given that each respondent makes one
annual response to this recordkeeping information collection, TTB
also is increasing this collection’s number of annual responses,
from 2,198 to 3,340. However, because this information collection
now consists only of usual and customary records kept by DSP
proprietors during the normal course of business, there is no
annual burden associated with this collection, per the OMB
regulations at 5 CFR 1320.3(b)(2).
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.
1513-0056 Supporting Statement (02-2020).docx
Distilled Spirits Plants - Transaction and Supporting Records (TTB REC 5110/05)