In general, chapter 51 of the Internal Revenue Code (IRC; 26 U.S.C.) sets forth Federal excise tax rates and application, permit, and other requirements related to alcohol products produced in or imported into the United States. However, while volatile fruit-flavor concentrates contain alcohol when they are manufactured from the mash or juice of a fruit by an evaporative process, under the IRC at 26 U.S.C. 5511, alcohol excise tax and most other provisions of chapter 51 do not apply to such concentrates if their manufacturers file applications, keep records, submit reports, and meet certain other requirements prescribed by regulation for the protection of the revenue. As authorized by that IRC section, the TTB regulations in 27 CFR part 18 require volatile fruit-flavor concentrate manufacturers to submit an annual summary report using form TTB F 5520.2 to account for all concentrates produced, removed, or treated so as to be unfit for beverage use. Concentrate manufacturers compile this report from usual and customary records kept during the normal course of business, and, under the part 18 regulations, respondents must retain such records for 3 years. The annual summary reports and their supporting records are necessary to protect the revenue; TTB uses the required information to verify that volatile fruit-flavor concentrates, which contain untaxed alcohol, are not being diverted to taxable alcohol beverage use.
US Code:
26 USC 5511
Name of Law: Internal Revenue Code
There are no program changes associated with this information collection. As for adjustments, due to a decrease in the number of volatile fruit-flavor concentrate manufacturing plants, TTB is decreasing the estimated number of annual respondents and responses for this information collection from 80 to 55, and is decreasing its estimated total annual burden hours from 27 to 18. In addition, for clarity and consistency, TTB is revising the title of this information collection request from âAnnual Report of Concentrate Manufacturers, and Usual and Customary Business Records of Volatile Fruit-Flavor Concentrate Manufacturers, TTB REC 5520/1â to âVolatile Fruit-Flavor Concentrate ManufacturersâAnnual Report, and Usual and Customary Business Records (TTB REC 5520/1).â
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form TTB F 5520.2 Volatile Fruit-Flavor Concentrate Manufacturers-Annual Report, and Usual and Customary Business Records (TTB REC 5520/1)
1513-0022 Supporting Statement (03-2018).docx
Volatile Fruit-Flavor Concentrate Manufacturers-Annual Report, and Usual and Customary Business Records (TTB REC 5520/1)