Letterhead Applications and Notices Relating to Tax-Free Alcohol (TTB REC 5150/04)

In general, the Internal Revenue Code (IRC) at 26 U.S.C. 5001 imposes a Federal excise tax on all distilled spirits produced in or imported into the United States. The IRC at 26 U.S.C. 5214 provides for the tax-free withdrawal of distilled spirits from distilled spirits plants (DSPs) for certain nonbeverage purposes, including for use by educational institutions, laboratories, hospitals, clinics, and blood banks, and by State, local, and tribal governments, and, at 26 U.S.C. 5271–5275, the IRC sets permit, bond, formula submission, recordkeeping, and reporting requirements for the use of tax-free distilled spirits, all of which is subject to regulations prescribed by the Secretary. Under those authorities, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations in 27 CFR part 22 require users of tax-free alcohol to submit certain letterhead applications and notices, which serve as qualifying documents for specific regulated activities or as amendments to previously-filed documents. The collected information is necessary to protect the revenue and ensure compliance with Federal laws and regulations regarding tax-free alcohol as it allows TTB to detect diversion of tax-free alcohol to taxable beverage use and ensure lawful use of such alcohol. In general, activities posing a greater jeopardy to the revenue require a letterhead application and TTB approval before the respondent begins the activity, while activities posing less jeopardy to the revenue require a letterhead notice stating that the respondent will undertake the activity.

The latest form for Letterhead Applications and Notices Relating to Tax-Free Alcohol (TTB REC 5150/04) expires 2022-08-31 and can be found here.

Letterhead Applications and Notices Relating to Tax-Free Alcohol (TTB REC 5150/4) (Private Sector)

Federal Enterprise Architecture: General Government - Taxation Management