INCREASED RATE OF INTEREST
Proprietors of distilled spirits plants and bonded wine cellars;
manufacturers of tobacco products, cigarette papers and
cigarette tubes; brewers; wholesale dealers in alcoholic
beverages; and others concerned.
PURPOSE. This circular advises industry members and others
concerned that, effective July 1, 1975, the rate of interest was
increased to an annual rate of 9 percent. The increased rate of
interest applies both to special (occupational) taxes and excise
ATF published a Treasury decision, T.D. ATF-18, in the
Federal Register on July 17, 1975. The Treasury decision amended
27 CFR Part 194, Liquor Dealers, to implement the increased rate
of interest as it applies to delinquent special taxes paid by
liquor dealers. No other regulatory changes were made since
§194.110 was the only section of ATF's regulations which specifi-
cally referred to the former 6 percent rate of interest. However,
we wish to point out that the increased rate of interest also
applies to excise taxes. If the proprietor of a distilled spirits
plant failed to pay excise taxes on time, for example, interest
would be assessed at an annual rate of 9 percent.
Section 7 of Public Law 93-625 initially increased to 9 percent
the rate of interest which is assessed on underpayment or erroneous
refund of taxes and which is allowed in the case of overpayment
of taxes. In addition, the public law provides for future "adjusted
rates of interest" which could replace the new 9 percent rate to
reflect significant changes in the prime rate of interest.
INQUIRIES. Inquiries regarding this circular should refer to
its number and be addressed to the Assistant Director, Regulatory
Enforcement, Bureau of Alcohol, Tobacco and Firearms, Federal
Building, 12th and Pennsylvania Avenue, N.W., Washington, D.C.
REX D. DAVIS