TTB Newsletter: Week of September 26, 2008

In the TTB Newsletter, we compile the top TTB news of the week and other helpful information about the Bureau and the Federal alcohol and tobacco laws and regulations we enforce.

Please send any questions and/or comments to Susan Stewart Evans, Executive Liaison for Industry Matters (susan.stewart-evans@ttb.gov) and/or Frosty Chapman, State Liaison (forrest.chapman@ttb.gov).

TTB Newsletter Archives

WAIVER OF EXCISE TAX PENALTIES FOR BUSINESSES AFFECTED BY HURRICANE IKE

TTB recognizes that the devastation caused by Hurricane Ike may have affected the operations of certain taxpayers. As a result, those taxpayers may not be able to timely file or timely make payment or deposit of excises taxes administered and enforced by the Alcohol and Tobacco Tax and Trade Bureau (TTB) as required under the Internal Revenue Code.

In light of this, TTB will consider waiving late filing, payment or deposit penalties on a case-by-case basis. Wherever warranted, waivers will be approved based on the statutory standard of reasonable cause and a lack of willful neglect demonstrated by the taxpayer.

Affected taxpayers include all taxpayers located in the following Texas and Louisiana areas.

TEXAS: Angelina, Austin, Brazoria, Chambers, Cherokee, Fort Bend, Galveston, Grimes, Hardin, Harris, Houston, Jasper, Jefferson, Liberty, Madison, Matagorda, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Trinity, Tyler, Walker, Waller, and Washington Counties

LOUISIANA: Acadia, Beauregard, Calcasieu, Cameron, Iberia, Jefferson, Jefferson Davis, Lafourche, Plaquemines, Sabine, St. Mary, Terrebonne, Vermilion, and Vernon Parishes

The waiver of penalties may also apply to taxpayers such as relief workers, taxpayers whose place of employment is located in an affected area, and taxpayers whose records are maintained in the above areas.

Demonstrate, to the satisfaction of the appropriate TTB officer, that recent floods or related events directly affected their ability to timely file, pay or deposit.
Contact the TTB National Revenue Center (NRC) at
550 Main St, Ste 8002
Cincinnati, OH 45202-5215
Toll free: 1-877-882-3277
Direct: (513) 684-3334
Email: ttbquestions@ttb.gov

See 'Public Information: When Disaster Strikes' for more information on disaster claims.

Following national Prohibition, the 21st Amendment to the Constitution provides states with broad powers and authority to regulate the sale and distribution of alcohol within their borders. (This is in addition to Federal requirements.) Each state created its own unique system of alcohol beverage control. There are two general classifications. "Control" states, 18 in number, are the sole wholesalers of distilled spirits, as well as the retailers in various ways in some of these States. "License" states, of which there are 32, do not participate in the sale of alcohol beverages and regulate through the issuance of licenses to industry members that do business within their states. (Control states also license those activities outside of the state's direct involvement in the sale of alcohol beverages.)

In addition to meeting Federal regulations, individuals and businesses must meet each state's individual laws and regulations. These state laws and regulations, which vary widely from state to state, may be more restrictive than Federal regulations and must be met in addition to Federal requirements unless the Federal law pre-empts the State law wherein they desire to do business. For example regarding pre-emption, the Government Warning label on alcohol beverages pre-empts the states from imposing a similar requirement. (See 27 U.S.C. section 216.) Likewise, the state may not authorize a bottle size for distilled spirits that is not also authorized at the Federal level.

The following directory provides the contact information for each state and a link to their Web site. Please contact those states directly wherein you desire to do business.

We have released a new booklet containing examples of approvable wine labels along with explanations of some aspects of the labeling rules. This booklet allows you to conveniently copy the label layouts or simply read the explanatory text to help avoid common pitfalls. Comments on for this booklet are welcome! See Sample Wine Labels: A Bit Beyond the Basics under the quick links section of the TTB.gov Wine page.