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

Extended tax-free withdrawal of distilled spirits

The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) today extended the tax-free withdrawal of distilled spirits and products containing distilled spirits for hand sanitizer purposes through June 30, 2021, in response to the coronavirus (COVID-19) pandemic.

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Prior TTB guidance relieved distilled spirits permittees of certain federal excise tax law requirements through December 31, 2020, in an effort to facilitate hand sanitizer production. Read TaxNewsFlash

Today’s TTB release (TTB G 2020-1B) authorizes the use of additional formulas for the manufacture of hand sanitizer and denatured alcohol for use in hand sanitizer without first obtaining formula approval from TTB. Any hand sanitizer or denatured alcohol for use in hand sanitizer produced in accordance with FDA guidance may be removed tax-free from a distilled spirits plant, now through June 30, 2021.


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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