Information Collected in Support of Wine Producer Tax Credit Transfers (TTB REC 5120/11)
Revision of a currently approved collection
No
Regular
07/27/2022
Requested
Previously Approved
36 Months From Approved
07/31/2022
30,000
2,800
30,000
2,800
0
0
Under the Internal Revenue Code (IRC) at 26 U.S.C. 5041(c), importers and domestic producers may take certain tax credits on specified quantities of wine, including hard cider, imported or removed from their premises during a calendar year. In addition, under that IRC section, domestic producers may transfer their wine tax credits to other bonded premises that store their wine and ship it on their instructions, provided that the producer supplies such transferees with the information necessary to properly determine the transfereeâs allowable tax credits. Under that IRC authority, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations in 27 CFR part 24 require wine producers to provide such transferees with a written record containing certain information regarding the producer, transferee, the wine, its tax rate, its removal, and the tax credits involved. The required information may be supplied and maintained using usual and customary business records such as shipping invoices. The required information is necessary to ensure that the IRC provisions regarding wine producer tax credits and their transfer are properly applied.
PL: Pub.L. 116 - 260 Div. EE, title I, sec. 106-107 Name of Law: Consolidated Appropriations Act of 2021 (Div. EE = Taxpayer Certainty and Disaster Tax Relief Act)
PL: Pub.L. 116 - 94 Div. Q, title I, sec. 144 Name of Law: Further Consolidated Appropriations Act, 2020
PL: Pub.L. 115 - 97 Title I, sec. 13804-13806 Name of Law: Tax Cuts and Jobs Act of 2017 (Title I = Craft Beverage Modernization Act)
Program changes: Previously, under the IRC at 26 U.S.C. 5041(c), producers making no more than 250,000 gallons of wine during a calendar year could claim a tax credit of 90 cents per gallon on the first 100,000 gallons of wine removed for consumption or sale during that year. Additionally, under that section, such âsmallâ wine producers could transfer their tax credits to other bonded premises that received their wine for storage and shipment on their instructions. As such, this information collection was originally titled âInformation Collected in Support of Small Producerâs Wine Tax Credit (TTB REC 5120/11).â However, due to the statutory changes made to 26 U.S.C. 5401(c), all domestic wine producers, regardless of size, as well as certain importers, may now claim the expanded tax credits prescribed in those statutory amendments on the first 750,000 gallons of wine that they produce or import. Additionally, as was previously authorized, domestic wine producers may transfer their tax credits to other bonded premises that receive their wine for storage and shipment on their instructions. See the Consolidated Appropriations Act of 2021 (Public Law 116â260), Division EE, titled the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (âthe Tax Relief Act of 2020â), which made permanent most amendments to the alcohol excise tax provisions previously made on a temporary basis by the Craft Beverage Modernization and Tax Relief Act (CBMA; included in the Tax Cuts and Jobs Act of 2017 (Public Law 115â97)), and by the Further Consolidated Appropriations Act, 2020 (Public Law 116â94).
As such, now that all domestic wine producers, rather than just âsmallâ producers, are eligible for, and may transfer, the expanded tax credits described in 26 U.S.C. 5401(c), as amended, TTB is: (1) Revising the title of this information collection from âInformation Collected in Support of Small Producerâs Wine Tax Credit (TTB REC 5120/11),â to âInformation Collected in Support of Wine Producer Tax Credit Transfers (TTB REC 5120/11)â in order to more accurately reflect its purpose; and is (2) increasing the estimated annual burden associated with this information collection, from 280 respondents to 3,000, from 2,800 responses to 30,000, and from 2,800 burden hours to 30,000. (The average number of responses per respondent remains the same at 10 annually, and the average per-response burden remains unchanged at 1 hour.)
However, while the recent statutory amendments to 26 U.S.C. 5401(c) recodified the wine tax credit transfer provisions, from paragraph (c)(6) to (c)(5) of that section, the amendments did not otherwise alter those provisions. As such, the wine producer tax credit transfer record requirements contained in 27 CFR 24.278(b)(2)(iv) as previously approved under this collection remain unchanged.
Adjustments: There are no adjustments associated with this information collection at this time; all respondent burden changes noted above result from the described program changes resulting from the described statutory changes.
$0
No
No
No
No
No
No
No
Jesse Longbrake 202 453-2265
No
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.
OMB No. 1513-0104 Supporting Statement (07-2022)-1.docx
Information Collected in Support of Wine Producer's Tax Credit Transfers (TTB REC 5120/11)