Two TTB documents published January 4, 2017 have different legal roles. The temporary rule changes alcohol excise return periods and bond requirements. The companion proposes permanent adoption of that text and additional reporting amendments. This January 7 weekend account concerns those earlier publications, not a new Saturday decision or two independently corroborating sources. [2016-31417][2016-31415]
For an annual deferred-payment return, both years matter. The taxpayer must reasonably expect covered alcohol excise liability of no more than $1,000 in the current calendar year and have actual liability of no more than $1,000 in the preceding calendar year. Quarterly eligibility uses corresponding $50,000 ceilings. These are eligibility tests for payment periods, not exemptions from the underlying tax. [2016-31417]
The proposed annual operating report for distillers and brewers adds a different test: filing annual tax returns and keeping unpaid alcohol-tax liability at no more than $50,000 throughout the year. Unpaid liability includes taxes imposed but not necessarily due. A producer's return schedule consequently would not, by itself, settle its proposed reporting schedule. [2016-31415]
The temporary rule took effect January 4, implementing statutory amendments applying from January 1. Its bond exemption requires eligibility for quarterly or annual returns and deferred payment, with spirits and wine limited to nonindustrial use. Reporting changes remain proposals in the companion. Reading the two documents together prevents a tax-calendar change from being mistaken for permission to stop reporting operations. [2016-31417][2016-31415]
Source documents
- Changes to Certain Alcohol-Related Regulations Governing Bond Requirements and Tax Return Filing Periodshttps://www.govinfo.gov/content/pkg/FR-2017-01-04/html/2016-31417.htm
- Changes to Certain Alcohol-Related Regulations Governing Bond Requirements and Tax Return Filing Periodshttps://www.govinfo.gov/content/pkg/FR-2017-01-04/html/2016-31415.htm