The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) announced that for a limited time, “producing wineries” can determine and pay the federal excise tax, on removal from bond, on such wine of their production that is stored “untaxpaid” at a bonded wine cellar or a bonded winery as if the wine had been removed from the producing winery’s bonded premises.
The TTB industry circular (May 2018) modifies and supersedes a prior industry circular (March 2018). Read about the March 2018 industry circular (and an alternative procedure provided in the March 2018 industry circular) in TaxNewsFlash
As noted in the May 2018 release, the new industry circular restates the alternate procedure, but specifically extends the alternative procedure’s provisions to wine that is stored at a bonded winery because the prior industry circular version only referred to wine stored at a bonded wine cellar.
TTB also extended the duration of the alternate procedure through December 31, 2019.
For more information, contact a tax professional with KPMG’s Excise Tax Practice group:
Deborah Gordon | +1 (202) 533 5965 | firstname.lastname@example.org
Taylor Cortright | +1 (202) 533 6188 | email@example.com
© 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.
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.