How to Properly Discontinue a Brewery Operation

By Loraine Craycraft (513)684-6961

The National Revenue Center (NRC) receives and processes a "Brewer's Notice" from every brewer who discontinues their business. Based on our experience, we have developed an "Out of Business" package which lists each step an industry member must go through to properly close their brewery physical premises and the files maintained by the NRC. If you are a brewer who will be closing your doors, you should call the NRC in advance, notify us that brewing operations will cease, and get an "Out of Business" package mailed to you. Here are the items that are included in this package along with some helpful hints for completing them:

• Brewer's Notice, ATF F 5130.10: Must be completed and include the date the brewery ceased or will cease operations.



• Excise Tax Return, ATF F 5000.24: Must be completed and clearly marked "FINAL", even if the liability for the last tax period is zero. All Excise Tax returns must be filed and paid prior to ATF releasing the Brewer's Bond.



• Brewer's Report of Operations, ATF F 5130.9 or Brewpub Report of Operations, ATF F 5130.26: Must be completed and clearly marked "FINAL." The ending on hand balance must be zero on ATF F 5130.9. In the remarks section you need to write, "Operations ceased as of: (date)." You must file all Brewer's Report of Operations or Brewpub Report of Operations that are outstanding.



• All Special Occupational Tax returns must be filed and paid prior to ATF releasing the Brewer's Bond.

Note that all beer remaining on hand must be lawfully disposed of. We may ask that ATF field Inspectors contact you and conduct a closeout inspection at your premises. Once we receive and verify your final paperwork, we will mail you a "Termination Letter", an "Approved Amended Final Brewer's Notice" and a "Bond Termination Letter", as applicable.

Anyone needing help obtaining or completing these, or any other brewery application forms, should contact the NRC at 1-800-398-2282 (513-684-3337) or e-mail us at: natlrevctr@cinc.atf.treas.gov.

Red Hot - Hill(s)

By Tim DeVanney (202)927-8196

The name "Red Hill" is garnering a lot of attention in the wine industry these days. We have received two petitions for viticultural areas using the name "Red Hill," and word is that the southern hemisphere is getting into the act, too. On October 30th, the Federal Register published Notices of Proposed Rulemakings (NPRMs) for Red Hill (Oregon) and Red Hills (California). Meanwhile, on the other side of the world, Australia and New Zealand are said to be in the process of establishing viticultural areas using the same name.

We published Notices No. 960--Red Hill (Oregon) and No. 961--Red Hills (California) simultaneously in order to solicit comments on the proposed names and to seek suggestions about eliminating possible name confusion. We are considering using the names "Red Hill-Oregon" and "Red Hills-California" to distinguish between the viticultural areas. In both cases, the viticultural area name would include the appropriate State name.

Notice 960, "Red Hill" (Oregon) results from a petition filed by Mr. Wayne Hitchings, a vineyard owner. The proposed viticultural area is in the State of Oregon in northeastern Douglas County and is entirely within the Umpqua Valley viticultural area. The proposed area consists of approximately 8.6 square miles or 5,500 acres. Mr. Hitchings, the sole grower within these boundaries, devotes approximately 194 acres to the cultivation of wine grapes. Currently, no bonded wineries exist in the proposed area.

Notice 961, "Red Hills" (California) results from a petition filed by Ms. Sara Schorske of Compliance Service of America on behalf of a group of grape growers in the Red Hills area. The petition proposes the establishment of the 31,250-acre "Red Hills" viticultural area in Lake County, California. This proposed viticultural area lies entirely within the Clear Lake viticultural area in Lake County, which lies, in turn, entirely within the multicounty North Coast viticultural area.