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TTB final regulations: Excise taxes on alcoholic beverages

Excise taxes on alcoholic beverages

The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) today released for publication in the Federal Register a final rule (regulations) relating to the excise taxes imposed on distilled spirits, wines, and beer.

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The final regulations [PDF 442 KB] reflect changes made to the Internal Revenue Code by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act)—amendments that removed certain bond requirements and address reporting requirements. According to the preamble to today’s release, these regulations finalize with “minor technical corrections” certain provisions relating to bond requirements from temporary and proposed regulations (January 2017).

The final regulations will be published in the Federal Register on June 2, 2020.

According to a TTB release (June 5, 2020), the final regulations implement and finalize regulatory changes made in 2017 that removed bond requirements for federal excise taxpayers who reasonably expect to be liable for not more than $50,000 in taxes imposed on beverage distilled spirits, wine, and beer for a calendar year, who were liable for not more than $50,000 in such taxes during the preceding calendar year. The amendments also implement a new annual return period for those paying taxes imposed on distilled spirits, wines, and beer who reasonably expect to be liable for not more than $1,000 in such taxes imposed for a calendar year and who were liable for not more than $1,000 in such taxes in the preceding calendar year.


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

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

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