Denatured distilled spirits may be used for industrial purposes in the manufacture of nonbeverage products. To prevent diversion of denatured spirits to taxable beverage use, the Internal Revenue Code (IRC) at 26 U.S.C. 5271â5275 imposes a system of permits, bonds, recordkeeping, and reporting requirements on persons that procure or use such alcohol. Those IRC sections also authorize the Secretary of the Treasury to issue regulations regarding those matters. Under those IRC authorities, the TTB regulations in 27 CFR part 20 require industrial alcohol users to keep certain usual and customary business records regarding the distribution, procurement, and use of denatured spirits. TTB uses the required records to account for denatured spirits and ensure compliance with statutory and regulatory requirements.
There are no program changes associated with this information collection. As for adjustments, due to changes in agency estimates, TTB is decreasing the estimated total number of annual respondents from 3,430 to 3,100, evenly divided between private sector respondents (1,550) and State, local, and tribal government respondents (1,550). In turn, this decreases the total number of annual responses to 3,100, also evenly divided between the two types of respondents. TTB also is removing the one hour of annual burden previously reported as a placeholder for this usual and customary business record collection because, under the OMB regulations at 5 CFR 1320.3(b)(2), there is no burden associated with such collections.
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.
1513-0062 Supporting Statement (08-2020).docx
Usual and Customary Business Records Relating to Denatured Spirits TTB REC 5150/1