U S Alcohol and Tobacco Tax and Trade Bureau : TTB Newsletter for January 12, 2018

IN THIS ISSUE

Greetings! This week's top news includes a reminder that annual excise tax returns are due today, information about the recent changes to the tax laws for alcohol beverages, information about home distilling, and a notice that the civil penalty for violations of the Alcoholic Beverage Labeling Act has been adjusted for inflation.

REMINDER TO ANNUAL FILERS: 2017 EXCISE TAX RETURNS MUST BE FILED ON OR BEFORE JANUARY 12, 2018

Certain taxpayers are eligible to file a single excise tax return per year. This is a reminder that since the due date for annual returns falls on a Sunday this year, annual returns for tax year 2017 are due on Friday, January 12, 2018.
Note: The new tax rates that became effective January 1, 2018, DO NOT apply to any wine, beer, or distilled spirits covered by the 2017 annual return. See the next article for more information.

CRAFT BEVERAGE MODERNIZATION AND TAX REFORM

On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act of 2017, which makes extensive changes to the Internal Revenue Code of 1986, including to the excise tax rates for alcohol. Those changes are effective during calendar years 2018 and 2019.

We recently created a new Web page containing our initial guidance on the changes. We will be adding additional guidance and information to this page over the coming weeks.

Visit the Craft Beverage Modernization and Tax Reform page

View charts with the new tax rates

HOME DISTILLING

While individuals of legal drinking age may produce limited quantities of wine or beer at home for personal or family use, Federal law strictly prohibits individuals from producing distilled spirits at home. Producing distilled spirits at any place other than a TTB-qualified distilled spirits plant can expose you to Federal charges for serious offenses.
Read more.

ALCOHOLIC BEVERAGE LABELING ACT CIVIL PENALTY ADJUSTED FOR INFLATION

The Alcoholic Beverage Labeling Act of 1988 (ABLA) requires a government health warning statement to appear on all containers of alcoholic beverages sold or distributed in the United States. ABLA provides that any person who violates the provisions of the ABLA is subject to a civil penalty of not more than $10,000, with each day constituting a separate offense. However, the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, requires agencies to make periodic cost-of-living adjustments to civil monetary penalties.

On Friday, January 12, 2018, we published the latest civil monetary penalty inflation adjustment notification, adjusting the maximum penalty for ABLA violations occurring after that date from $20,111 to $20,521, per offense.

For more information, visit our Alcoholic Beverage Labeling Act Penalty page at TTB.gov.

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