Under the Internal Revenue Code (IRC) at 26 U.S.C. 5041(c), certain small wine producers are eligible for a tax credit which may be taken to reduce the Federal excise tax they pay on wines (including hard ciders) removed from their premises during a calendar year. In addition, small producers can transfer their tax credit to other bonded wineries and bonded warehouses ("transferees") that store their wine and ship it on their instructions. Under the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations, a transferee uses information provided by the small wine producer to take the appropriate tax credit on behalf of the producer, and the producer uses the information to monitor its own tax payments to ensure it does not exceed the authorized annual credit. TTB uses the collected information to protect the revenue and ensure compliance with Federal law and regulations. During field audits, TTB uses the collected information to verify excise tax computations, and to ensure that wines claimed for this credit were lawfully produced, stored, shipped, and transferred.
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.
1513-0104 Supporting Statement (06-2019).docx
TTB REC 5120/11 - Information Collected in Support of Small Producer's Wine Tax Credit