Quarterly Excise Tax Payment Procedure
If you are a small alcohol excise taxpayer who paid less than $50,000 in beer excise tax in the previous year, you MAY be eligible to file returns and pay excise taxes on a quarterly basis.
Public Law 109-59 amended Internal Revenue Code section 26 U.S.C. 5061 to give small taxpayers an extended time to submit tax returns and pay distilled spirits, wine, and beer excise taxes.
- The quarterly tax payment procedure will be available to certain taxpayers who pay the gallonage taxes on distilled spirits, wine, and beer produced in or imported into the United States, and the gallonage taxes on spirits, wines, and beer coming to the United States from Puerto Rico and the U.S. Virgin Islands.
- The quarterly tax payment procedure applies to "any taxpayer who reasonably expects to be liable for not more than $50,000 in taxes ...for the calendar year and who was liable for not more than $50,000 in such taxes in the preceding calendar year." We are working to make conforming changes to our regulations as soon as possible. The quarterly payment procedure will be available to eligible taxpayers with the quarter beginning January 1, 2006, whether or not we publish amended regulations.
- Taxpayers are reminded that this extended deferral of payment will result in a higher amount of taxes that have been determined, but not paid. We encourage taxpayers eligible for the quarterly payment procedure to review their bond coverage to see if it will cover the taxes they will owe in a typical quarter. If your current distilled spirits or wine bond is sufficient to cover two semimonthly return periods, it would need to be increased to cover seven semimonthly periods to qualify you for quarterly filing. Updated bond rules for brewers are pending.
- If your bond amount is not sufficient, you may file a superseding or strengthening bond to increase bond coverage so the quarterly liability will not exceed the bond. Or, you may continue on the semimonthly payment schedule.
Due Dates for Quarterly Tax Returns
For more information or to discuss bond changes, contact TTB at TTBInternetQuestions@ttb.gov or write or call us at:
National Revenue Center
550 Main Street, Suite 8002
Cincinnati , OH 45202-5215
Toll Free: 1-877-TTB-FAQS (1-877-882-3277)