Information Collected in
Support of Wine Producer Tax Credit Transfers (TTB REC
5120/11)
Revision of a currently approved collection
No
Regular
07/27/2022
Requested
Previously Approved
36 Months From Approved
07/31/2022
30,000
2,800
30,000
2,800
0
0
Under the Internal Revenue Code (IRC)
at 26 U.S.C. 5041(c), importers and domestic producers may take
certain tax credits on specified quantities of wine, including hard
cider, imported or removed from their premises during a calendar
year. In addition, under that IRC section, domestic producers may
transfer their wine tax credits to other bonded premises that store
their wine and ship it on their instructions, provided that the
producer supplies such transferees with the information necessary
to properly determine the transferee’s allowable tax credits. Under
that IRC authority, the Alcohol and Tobacco Tax and Trade Bureau
(TTB) regulations in 27 CFR part 24 require wine producers to
provide such transferees with a written record containing certain
information regarding the producer, transferee, the wine, its tax
rate, its removal, and the tax credits involved. The required
information may be supplied and maintained using usual and
customary business records such as shipping invoices. The required
information is necessary to ensure that the IRC provisions
regarding wine producer tax credits and their transfer are properly
applied.
US Code:
26
USC 5041(c) Name of Law: Internal Revenue Code
PL: Pub.L. 116 - 260 Div. EE, title I, sec.
106-107 Name of Law: Consolidated Appropriations Act of 2021 (Div.
EE = Taxpayer Certainty and Disaster Tax Relief Act)
PL: Pub.L. 116 - 94 Div. Q, title I, sec. 144 Name of Law: Further
Consolidated Appropriations Act, 2020
PL: Pub.L. 115 - 97 Title I, sec. 13804-13806 Name of Law: Tax Cuts
and Jobs Act of 2017 (Title I = Craft Beverage Modernization
Act)
Program changes: Previously,
under the IRC at 26 U.S.C. 5041(c), producers making no more than
250,000 gallons of wine during a calendar year could claim a tax
credit of 90 cents per gallon on the first 100,000 gallons of wine
removed for consumption or sale during that year. Additionally,
under that section, such “small” wine producers could transfer
their tax credits to other bonded premises that received their wine
for storage and shipment on their instructions. As such, this
information collection was originally titled “Information Collected
in Support of Small Producer’s Wine Tax Credit (TTB REC 5120/11).”
However, due to the statutory changes made to 26 U.S.C. 5401(c),
all domestic wine producers, regardless of size, as well as certain
importers, may now claim the expanded tax credits prescribed in
those statutory amendments on the first 750,000 gallons of wine
that they produce or import. Additionally, as was previously
authorized, domestic wine producers may transfer their tax credits
to other bonded premises that receive their wine for storage and
shipment on their instructions. See the Consolidated Appropriations
Act of 2021 (Public Law 116–260), Division EE, titled the Taxpayer
Certainty and Disaster Tax Relief Act of 2020 (“the Tax Relief Act
of 2020”), which made permanent most amendments to the alcohol
excise tax provisions previously made on a temporary basis by the
Craft Beverage Modernization and Tax Relief Act (CBMA; included in
the Tax Cuts and Jobs Act of 2017 (Public Law 115–97)), and by the
Further Consolidated Appropriations Act, 2020 (Public Law 116–94).
As such, now that all domestic wine producers, rather than just
“small” producers, are eligible for, and may transfer, the expanded
tax credits described in 26 U.S.C. 5401(c), as amended, TTB is: (1)
Revising the title of this information collection from “Information
Collected in Support of Small Producer’s Wine Tax Credit (TTB REC
5120/11),” to “Information Collected in Support of Wine Producer
Tax Credit Transfers (TTB REC 5120/11)” in order to more accurately
reflect its purpose; and is (2) increasing the estimated annual
burden associated with this information collection, from 280
respondents to 3,000, from 2,800 responses to 30,000, and from
2,800 burden hours to 30,000. (The average number of responses per
respondent remains the same at 10 annually, and the average
per-response burden remains unchanged at 1 hour.) However, while
the recent statutory amendments to 26 U.S.C. 5401(c) recodified the
wine tax credit transfer provisions, from paragraph (c)(6) to
(c)(5) of that section, the amendments did not otherwise alter
those provisions. As such, the wine producer tax credit transfer
record requirements contained in 27 CFR 24.278(b)(2)(iv) as
previously approved under this collection remain unchanged.
Adjustments: There are no adjustments associated with this
information collection at this time; all respondent burden changes
noted above result from the described program changes resulting
from the described statutory changes.
$0
No
No
No
No
No
No
No
Jesse Longbrake 202
453-2265
No
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.
OMB No. 1513-0104 Supporting Statement (07-2022)-1.docx
Information Collected in Support of Wine Producer's Tax Credit Transfers (TTB REC 5120/11)