Usual and Customary Business Records Relating to Tax-Free Alcohol (TTB REC 5150/3)

Forms and Documents

Document Name	Status
1513-0059 Supporting Statement (04-2020).docx Supporting Statement A	2020-04-23

IC Document Collections

IC ID	Document Title	Status
46339	Usual and Customary Business Records Relating to Tax-Free Alcohol (TTB REC 5150/3)	Modified
46338	Usual and Customary Business Records Relating to Tax-Free Alcohol (TTB REC 5150/3)	Modified
16052	Usual and Customary Business Records Relating to Tax-Free Alcohol (TTB REC 5150/3)	Modified

ICR Details

OMB Control No: 1513-0059	ICR Reference No: 202003-1513-001
Status: Active	Previous ICR Reference No: 201704-1513-003
Agency/Subagency: TREAS/TTB	Agency Tracking No: ICN 77 - 1/6
Title: Usual and Customary Business Records Relating to Tax-Free Alcohol (TTB REC 5150/3)
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: 06/04/2020
	Date Received in OIRA: 04/29/2020
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2023	36 Months From Approved	06/30/2020
Responses	5,600	0	5,268
Time Burden (Hours)	0	0	1
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 Federal excise tax on distilled spirits produced or imported into the United States. However, under the IRC at 26 U.S.C. 5214(a)(2) and (a)(3), distilled spirits may be withdrawn free of tax for nonbeverage purposes for use by Federal, State, and local governments, and for use by certain educational organizations and institutions, research laboratories, hospitals, blood banks, sanitariums, and nonprofit clinics, subject to regulations prescribed by the Secretary of the Treasury. In addition, the IRC at 26 U.S.C. 5275 requires those that procure or use distilled spirits withdrawn free of tax under sections 5214(a)(2) and (3) to keep records and make reports regarding the receipt and use of such spirits as the Secretary requires by regulation. Under that IRC authority, in order to maintain accountability over tax-free spirits and prevent their diversion to taxable beverage use, the TTB regulations in 27 CFR part 22 require tax-free alcohol users to maintain certain usual and customary records regarding the receipt, loss, shipment, destruction, return, consignment, and inventories of such alcohol. Such accountability is necessary to protect the revenue.

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Authorizing Statute(s): US Code: 26 USC 5214 and 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:
	85 FR 785	01/07/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 23885	04/29/2020
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 3

IC Title	Form No.	Form Name
Usual and Customary Business Records Relating to Tax-Free Alcohol (TTB REC 5150/3)
Usual and Customary Business Records Relating to Tax-Free Alcohol (TTB REC 5150/3)
Usual and Customary Business Records Relating to Tax-Free Alcohol (TTB REC 5150/3)

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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	5,600	5,268	0	0	332	0
Annual Time Burden (Hours)	0	1	0	0	-1	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, and TTB is submitting it for extension purposes only. However, due to a change in agency estimates resulting from continued growth in the number of tax-free alcohol users, TTB is increasing the number of annual respondents and responses to this information collection, from 5,268 to 5,600. Also due to changes in agency estimates, TTB is increasing the number of private sector respondents to this collection from 2,634 to 3,800, but is lowering the number of State, local, and tribal government respondents from 1,317 to 1,200, and is lowering the number of Federal government respondents from 1,317 to 600. In addition, TTB is removing the one hour of annual burden previously reported for this information collection as a place holder since, under the OMB regulations at 5 CFR 1320.3(b)(2), regulatory requirements to maintain usual and customary records kept during the normal course of business place no annual burden on respondents.

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Annual Cost to Federal Government: $0

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? No

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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: 04/29/2020

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