Under the Internal Revenue Code (IRC) at 26 U.S.C. 5214, denatured spirits (alcohol to which denaturants have been added to render it unfit for beverage purposes) may be withdrawn from distilled spirits plants free of tax for nonbeverage industrial purposes in the manufacture of certain personal and household products. Since it is possible to recover potable alcohol from denatured spirits and articles made with denatured spirits, the IRC at 26 U.S.C. 5271â5275 sets forth provisions relating to denatured spirits and articles made with denatured spirits. Under those IRC authorities, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations in 27 CFR part 20 require specially denatured spirits (SDS) dealers and manufacturers of nonbeverage products made with denatured alcohol to apply for and obtain a permit. In addition, the part 20 regulations that concern this information collection require such permit holders to submit letterhead applications and notices to TTB regarding certain changes to permit information, use of alternate methods and emergency variations from requirements, adoption or use of certain formulas, discontinuance of business, losses in transit, and requests to waive certain sample shipment and invoice requirements. The information collected implements the IRCâs statutory provisions regarding denatured spirits.
Program changes: While there are no changes to this information collection, TTB is submitting this collection as a revision as a matter of agency discretion. This information collection was previously reported as a recordkeeping requirement. However, TTB notes that this information collection consists of letterhead applications and notices submitted to TTB and, as such, this collection should be characterized as a reporting requirement, rather than as a recordkeeping requirement.
Adjustments: Due to changes in agency estimates resulting from growth in the number of denatured spirits dealers and users, TTB is increasing the number of respondents and annual responses to this information from 3,778 to 3,800 (private sector respondents and responses increase from 2,519 to 2,540, and State, local and tribal government respondents and responses increase from 1,259 to 1,260). This results in an increase of 10 estimated annual burden hours, from 1,890 to 1,900 hours. TTB is also now accounting for postal and mailing supply costs to respondents for this information collection as a result of a change in agency estimates.
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.
1513-0061 Supporting Statement (01-2020).docx
Letterhead Applications and Notices Relating to Denatured Spirits (TTB REC 5150/2)