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BOND requirement removed for small wineries

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GreginND

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FYI --

https://www.ttb.gov/announcements/2017-01-04-path-act-bond-changes-temp-rule-ttb-announcement.pdf

January 4, 2017

TTB Makes Changes Relating to Certain Bond Requirements and Tax Return Filing Periods for Alcohol Excise Taxpayers and Applicants for Permits and Brewers'
Notices


On January 4, 2017, the Alcohol and Tobacco Tax and Trade Bureau (TTB) published in the Federal Register a temporary rule, T.D.TTB–146, that amended its regulations related to alcohol excise taxes. The temporary rule implements changes to the Internal Revenue Code of 1986 (IRC) made by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). The amendments implement a new annual return period for taxpayers paying taxes imposed with respect to distilled spirits, wines, and beer who reasonably expect to be liable for not more than$1,000 in such taxes imposed for the calendar year and who were liable for not more than $1,000 in such taxes in the preceding calendar year.

To implement the PATH Act, the temporary rule also amends the regulations to remove bond requirements for taxpayers who reasonably expect to be liable for not more than $50,000 in taxes imposed on distilled spirits, wine, and beer for the calendar year, who were liable for not more than $50,000 in such taxes in the preceding calendar year, and who pay taxes on a semi- monthly, quarterly, or annual basis. Such taxpayers are exempt from bond requirements with respect to distilled spirits and wine only to the extent those products are for nonindustrial use.

The PATH Act changes applied beginning January 1, 2017. The temporary rule is effective upon publication.

TTB is soliciting comments on the changes in the temporary rule through a notice of proposed rulemaking, Notice No. 167, that was also published on January 4, 2017. At the Regulations.gov website, within Docket No. TTB–2016–0013, you may view copies of T.D.TTB–146 and Notice No. 167 and any comments about the proposal. You may also submit comments online about the proposal through Regulations.gov, or through alternate means outlined in Notice No. 167. Comments on Notice No. 167 must be received by March 6, 2017.

As previously announced, to help alcohol excise taxpayers and applicants for permits and brewers' notices understand these changes and how TTB is implementing them, TTB issued an Industry Circular on December 30, 2016. Industry Circular 2016–2 provides an overview of the changes, describes how new applicants for permits and brewers’ notices and existing proprietors can communicate their eligibility for the bond exemption, and describes the use of the annual return period.
 

richmke

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Such taxpayers are exempt from bond requirements with respect to distilled spirits and wine only to the extent those products are for nonindustrial use.
So, what are the "industrial" uses for wine?
 

grapeman

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New York did this last year. I have seen the TTB but is it in effect yet? My TTB Bond is renewing and I got a bill for it but don't want to cancel if it isn't in effect yet.
 

ralphie513

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Grapeman,
The bond is no longer required as of 1-1-2017 but you cannot simply just not renew your bond. You need to file for an exemption from the bond requirement from the TTB first then cancel your bond
 

grapeman

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That is good to know ralphie513. I will check into that.
 

Hokapsig

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where is the link to file for the exemption?
 

ralphie513

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I dont know if there is a link. I got my exemption through permits online. But, I have a DSP it might be different. Seems like it would be all the same for everyone.
 

GreginND

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If you log into permits online go amend your winery application. There you will have an option to select "bond no longer required". It is very easy.
 

skeenatron

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If you log into permits online go amend your winery application. There you will have an option to select "bond no longer required". It is very easy.
Oh snap man I've been wondering how to get my $1000 bucks back ha! I'm 5 months into my waiting period with the TTB. Thanks for the heads up.
 

skeenatron

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Hmm actually I'm not seeing create and amendment as an available action on my application. Strange. I'll probably have to do with it later in the process.
 

GreginND

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If you look at your list of approved applications, there should be an amendment link on the right hand side of the entry for your winery.
 
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