The Alcohol and Tobacco Tax and Trade Bureau (TTB) of the U.S. Treasury Department today released for publication in the Federal Register temporary regulations and, by cross-reference, proposed regulations to implement legislative changes concerning alcohol excise taxes.
The TTB administers provisions of chapter 51 of the Code pertaining to the taxation of distilled spirits, wines, and beer. Today’s releases from the TTB amend the regulations relating to excise taxes imposed on distilled spirits, wines, and beer in order to implement certain changes made to the Internal Revenue Code of 1986 by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). In general, these regulations:
The preamble explains that the term “deferred payment of tax” refers to payment using one of the three return periods prescribed under the Code (semi-monthly, quarterly, or annually) other than immediate payment each time the tax becomes due for payment. The excise taxes on distilled spirits, wines, and beer generally become due for payment when the products are removed from qualified facilities in the United States or imported into the United States. To be eligible to use the annual or quarterly return periods, the taxpayer must reasonably expect to be liable for not more than $1,000 in excise taxes in the case of annual returns, or $50,000 in excise taxes in the case of quarterly returns, for the calendar year and must have been liable for not more than these amounts in the preceding calendar year. Because the ceiling amounts of $1,000 and $50,000 are based on liability for payment of taxes by return under section 5061, they do not include liability for taxes imposed but not necessarily due—such as liability associated with taxes imposed on distilled spirits, wines, and beer produced in or imported into the United States that have not been removed from qualified facilities on payment or determination of tax.
For more information, contact a tax professional with KPMG’s Excise Tax Practice group:
Taylor Cortright | +1 (202) 533 6188 | email@example.com
Deborah Gordon | +1 (202) 533 5965 | firstname.lastname@example.org
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.