close
Share with your friends

TTB guidance, tax-free withdrawal of distilled spirits for hand sanitizers (COVID-19)

Distilled spirits for hand sanitizer purposes

The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) today released guidance concerning the tax-free withdrawal of distilled spirits and products containing distilled spirits for hand sanitizer purposes, in response to the coronavirus (COVID-19) pandemic.

1000

Related content

Prior TTB guidance relieved distilled spirits permittees of certain federal excise tax law requirements through June 30, 2020, in an effort to facilitate hand sanitizer production. Congress then provided additional flexibilities for hand sanitizer production for all of calendar year 2020 under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136). The CARES Act allows distilled spirits plants to withdraw distilled spirits tax-free for use in or contained in hand sanitizer that is produced and distributed in a manner consistent with FDA guidance, and not limited to hospitals and certain other designated producers as required by prior law and TTB guidance.

Today’s TTB release clarifies that because the exemptions authorized under TTB’s prior guidance are separate from the CARES Act, distilled spirits permittees can continue to operate under those TTB exemptions even if they also conduct separate operations under the CARES Act.  Today’s release states that TTB is extending its approval of these exemptions through December 31, 2020.

The TTB guidance also includes a set of “questions and answers” about tax-free withdrawals of distilled spirits and hand sanitizer under the CARES Act and TTB’s exemptions. 


For more information, contact a tax professional with KPMG’s Excise Tax Practice group:

Taylor Cortright | +1 (202) 533 6188 | tcortright@kpmg.com

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal