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TTB Newsletter for May 18, 2020

COVID-19 Special Edition
Tax-Free Withdrawal of Distilled Spirits and Products Containing Distilled Spirits for Hand Sanitizer
Purposes Under the CARES Act

Today, we published new guidance (TTB G 2020-4) about tax-free withdrawals of distilled spirits and hand sanitizer under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and extending approval of the exemptions announced in TTB’s earlier hand sanitizer guidance through December 31, 2020.

Previous TTB guidance on hand sanitizers relieved distilled spirits permittees of certain Internal Revenue Code (IRC) requirements through June 30, 2020, to facilitate hand sanitizer production.  Congress then provided additional flexibilities for hand sanitizer production for all of calendar year 2020 through the CARES Act. The CARES Act allows distilled spirits plants to withdraw distilled spirits free of tax for use in or contained in hand sanitizer that is produced and distributed in a manner consistent with FDA guidance, but is not limited to hospitals and certain other designated producers, as prior law and TTB guidance required.

See TTB Guidance 2020-4 for details.

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