TTB Reduces Regulatory Burden on Small Brewers
Small brewers (i.e., those with excise tax liability reasonably expected to be not more than $50,000 in a given calendar year and who were liable for not more than $50,000 in such taxes during the preceding calendar year) will soon be getting a break from the Alcohol and Tobacco Tax and Trade Bureau (“TTB”). TTB today announced that as of January 1, 2015, TTB will implement a regulatory change that will impose a flat $1,000 brewer’s bond amount for brewers whose excise tax liability is reasonably expected to be not more than $50,000 in a given calendar year and who were liable for not more than $50,000 in such taxes during the preceding calendar year. TTB originally set forth this change in a temporary rule issued on December 7, 2012, which was set to expire in December 2015. In addition, beginning in January, TTB will allow such small brewers to file Federal excise tax returns, pay tax, and submit reports of operations on a quarterly basis. TTB expects that these changes will reduce the regulatory burdens on such brewers and create more efficiency for TTB. Updated versions of the Brewer’s Report of Operations (BROPs, TTB Forms 5130.9 and 5130.26), will be made available in early 2015 and TTB will be releasing more information as the effective date of the changes approach.
For more information regarding brewer’s bonds or brewer operations, please contact Bahaneh Hobel.