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year,
each member of the controlled group is required to pay applicable
excise taxes by EFT.
Any
taxpayer required to make tax payments by EFT may not use cash,
check or money order to make such payments. Doing so will subject
the taxpayer to the failure to make deposit penalty imposed
by 26 U.S.C. 6656.
The
$5 million threshold applies separately to the tax on distilled
spirits products, wine products and beer products. However it
does apply to a combined tax liability on tobacco products and
cigarette papers and tubes.
When
a taxpayer not currently making tax payments by EFT, reaches
the $5 million threshold, the Chief, National Revenue Center,
must be notified, in writing, of that fact. The notice will
constitute an agreement to make tax payments by EFT.
The
written notification, due on or before January 10 of the year
in which the taxpayer is required to begin using EFT, should
identify each of the taxpayer's premises that are required to
make tax payments by EFT. Each location should be identified
by name (as it appears on the tax returns), registry or plant
number, plant address, and employer identification number. Taxpayers
already using EFT are not required to notify the Chief, National
Revenue Center of their continued use of EFT in succeeding years.
Additional
information about the requirement to pay excise taxes by EFT
and about preparing Fedwire messages for payments made in connection
with ATF tax returns should be directed to the Chief, National
Revenue Center at (513) 684-3334 or 1-800-398-2282. p
Products
Made with Fuel Alcohol
By
Steve Simon (202) 927-8210
 Alcohol
produced at an Alcohol Fuel Plant (AFP) is restricted by law
to use "exclusively for fuel use" (26 U.S.C. 5181).
This means that alcohol produced at an AFP may not be used on
the premises, or removed from the premises, for any purpose
except for use as fuel.
But
what is "fuel"? ATF has received requests to use fuel
alcohol in the manufacture of products such as charcoal lighter
fluid, firelighter gel, and chafing dish "fuel." These
requests must be turned down, because these products are not
within the intent of the law restricting the alcohol to "fuel
use."
Although
the law does not contain a definition of "fuel use,"
the legislative history states that AFP's were authorized because
"Congress concluded that it was important to encourage
the development of energy sources other than petroleum products
for use in motor fuels." Based on this statement in the
Senate Finance Committee report for the Crude Oil Windfall Profit
Tax Act of 1980, ATF has concluded that "fuel use"
in 26 U.S.C. 5181 means only the use of alcohol in motor fuel
products that decrease reliance on petroleum. This includes
the use of fuel alcohol to manufacture gasoline additives such
as ETBE (ethyl tertiary butyl ether), which are burned in the
engine of a motor vehicle.
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The
restriction to "exclusively for fuel use" applies
as well to alcoholic byproducts produced at an AFP. Such byproducts
may not be used for other than fuel purposes. For example, the
residue of distillation may not be used for animal feed unless
the residue contains no significant alcohol.
AFP
proprietors who wish to use alcohol produced at their plants
for purposes other than fuel use must requalify their plants
as regular distilled spirits plants (DSP's). Information on
doing this may be obtained from the ATF National Revenue Center
by calling 1-800-398-2282. q
Digital
Maps
By
Marjorie Ruhf (202) 927-8210
 A
vendor of digital maps based on United States Geological Survey
(U.S.G.S.) maps has asked if the Bureau of Alcohol, Tobacco
and Firearms (ATF) will accept a customized digital copy of
the appropriate U.S.G.S. map in support of a viticultural area
petition. We have decided that we will accept copies of U.S.G.S.
maps that have been scanned, customized and reprinted, under
certain conditions. Vendors should be aware that viticultural
area petitions and their supporting materials, including maps,
are public documents. For more information, contact the Regulations
Division at (202) 927-8210. q
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FROM
THE "NET"
Question:
"Could you please tell me if I need a special ATF
license to sell tobacco at the retail level?"
Answer:
You do not need a Federal license to sell tobacco products.
There are Federal recordkeeping requirements if you sell
more than 60,000 cigarettes in a single transaction. Refer
to ATF regulations at Subpart F of 27 CFR Part 296 at
the following web site: (http://www.atf.gov/
regulations/27cfr296.htm). You should be aware of
other requirements that may impact your sales of tobacco
products. Please read ATF Industry Circulars 99-2 and
2000-4 and Subpart G of 27 CFR Part 296 also found at
the above internet address. If you intend to engage in
the business of importing tobacco products, you will have
to apply and receive ATF approval before you engage in
business. This requirement is stated in 27 CFR Part 275 (http://www.atf.gov/
regulations/27cfr275.pdf).
If
you need assistance to apply for a Federal permit, you
may contact the National Revenue Center, 550 Main St.,
Cincinnati, OH 45203-3263, by phone at 1-800-398-2282.
Other ATF forms may be required and may be available from
ATF's web site. Also, you need to find out about customs
duties and requirements from U.S. Customs Service.
In addition, you'll need to contact the State government
agencies where you will be selling tobacco products to
find out their requirements. However, in general, you
cannot import previously exported cigarettes, other tobacco
products, cigarette papers or tubes. Refer to ATF Industry
Circular 2000-4 for further information. Also, refer to
ATF Industry Circular 99-2 about cigarette sales.
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