The Alcohol and Tobacco Tax and Trade Bureau (TTB) of the U.S. Treasury Department issued a release explaining that businesses (such as wineries) affected by the recent wildfires in California may obtain a waiver of excise tax-related penalties for not timely filing or paying excise taxes.
As explained in the TTB release, natural disasters including hurricanes, tornadoes, wildfires, or floods may affect a business’s ability to timely file returns and pay or deposit federal excise taxes administered by TTB. In recognition of the challenges faced by the businesses affected by the California wildfires, TTB announced it may waive late filing, payment or deposit penalties. However, there is no provision for waiver of the underlying tax liabilities or interest.
To qualify for a penalty waiver, a taxpayer must contact the TTB National Revenue Center and demonstrate that its inability to timely file, pay or deposit excise tax was due to reasonable cause and not to willful neglect.
For more information, contact a tax professional with KPMG’s Excise Tax Practice group:
Taylor Cortright | +1 (202) 533 6188 | firstname.lastname@example.org
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