In general, the Internal Revenue Code (IRC) at 26 U.S.C. 5001 imposes Federal alcohol excise tax on distilled spirits produced or imported into the United States. To protect that revenue, the IRC at 26 U.S.C. 5207 also provides that distilled spirits plant (DSP) proprietors must maintain records related to their production, storage, denaturing, and processing activities and render reports covering those activities âas the Secretary shall by regulations prescribe.â Under those IRC authorities, the TTB regulations in 27 CFR parts 19, 26, 27, and 28 require DSP proprietors to keep certain usual and customary records related to their production, storage, denaturing, and processing activities. This information collection consists of the transaction and supporting records that are common to all four of those DSP activities. Proprietors use those common records, along with records that are unique to each activity, to document the data provided on their monthly DSP production, storage, denaturing, and processing operations reports. (TTB requirements to keep records unique to each of the four DSP activities, and the four related DSP operations reports, are approved under other OMB control numbers.) TTB personnel may examine the required records to verify the data provided by DSP proprietors in their monthly operations reports as those reports assist TTB in determining a DSP proprietorâs Federal excise tax liability. As such, this information collection is necessary to protect the revenue.
US Code:
26 USC 5207
Name of Law: Internal Revenue Code
Program changes: Previously, this information collection included three types of DSP records that are not usually and customarily kept during the normal course of business: (1) Security device records, (2) alternating premises records, and (3) wine tax credit records. As part of a rulemaking to update and reorganize its DSP regulations in 27 CFR part 19, which was finalized in 2011, TTB removed the security device recordkeeping requirement from part 19 as unnecessary. In addition, TTB transferred the alternating premises and wine tax credit recordkeeping requirements for DSPs to the information collections approved by OMB under, respectively, control numbers 1513â0044 and 1513â0045. TTB notes that the rulemaking-related revisions made to those two information collections have been previously reviewed and approved by OMB. However, TTB inadvertently did not revise this information collection to reflect the removal of the DSP security device recordkeeping requirement, and the transfer of the alternation and wine tax credit recordkeeping requirements, as noted above. Therefore, as a matter of agency discretion, TTB is now eliminating those non-customary recordkeeping requirements from this information collection. This, in turn, eliminates this collectionâs previously-reported total annual burden of 47,916 hours. (As previously reported: 2,198 respondents, each taking annually an average of 12 hours to keep security device records, 1.8 hours to keep alternation of premises records, and 8 hours to keep wine tax credit records, resulted in an average annual total of 21.8 hours of burden per respondent, which equaled an estimated total annual burden of 47,916 hours.)
Adjustments: Due to a change in agency estimates resulting from continued growth in the number of DSPs operating in the United States, TTB is increasing this information collectionâs estimated number of annual respondents, from 2,198 to 3,340. And, given that each respondent makes one annual response to this recordkeeping information collection, TTB also is increasing this collectionâs number of annual responses, from 2,198 to 3,340. However, because this information collection now consists only of usual and customary records kept by DSP proprietors during the normal course of business, there is no annual burden associated with this collection, per the OMB regulations at 5 CFR 1320.3(b)(2).
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.
1513-0056 Supporting Statement (02-2020).docx
Distilled Spirits Plants - Transaction and Supporting Records (TTB REC 5110/05)