Requirements for New Users of Tax Free Alcohol
TTB has approved your User of Tax Free Alcohol application. You must keep all approval documents readily available for examination by TTB officials.
The following information explains the requirements you must meet to maintain your business.
You must maintain records of your receipt and use of tax-free alcohol, and take a physical inventory of the alcohol on a semi-annual basis.
You must monitor your withdrawals to ensure that the cumulative quantity withdrawn or received during a calendar year does not exceed the amount authorized by your permit. If you need more alcohol than your permit allows, you must obtain from TTB an updated permit authorizing the appropriate amount, and provide to your supplier a copy of the updated permit.
Anyone removing, selling, transporting, or using tax-free alcohol in violation of the law or regulations will be required to pay the distilled spirits federal excise tax on the alcohol.
If you filed your original application on paper, and haven't requested that your data be migrated to our Permits Online system, you should file these amendments on the TTB forms described in the applicable regulations. If you filed your original application through Permits Online, you should also electronically file your amendments in Permits Online. For more information about changes see the regulations at 27 CFR 22.57-64.
- Change in Location (Premises)
Select this amendment if you will be moving your business operations to another location within the same state.
- Change in Mailing Address
Select this amendment if there has been a change to where you will receive mail.
- Change in Permit Address – USPS
Select this amendment if your address was changed by the United States Postal Service but no physical move has taken place.
- Add/Remove Signing Authority
Select this amendment if you will be making any changes to the existing signing authority on file. You will be required to attach the appropriate documentation showing where the authorization is granted.
- Add/Remove Power of Attorney
Select this amendment if adding or removing individuals from outside your company with the power to sign and/or act on behalf of the company. When adding a Power of Attorney you must upload the form into Permits Online. Download TTB F 5000.8 PDF].
- Change in Business Name
Select this amendment if there has been a change to your legal business entity’s name. You will need to attach a copy of your amended articles showing the name change.
- Change in Control
A change in actual or legal control occurs in stock ownership, LLC membership ownership, or possibly major changes in the corporate officers or directors of a corporation. In such situations, the legal business entity which operated the business in the past continues to operate the business. In other words, the same legal entity remains in existence.
- Change in Officer, Director, Member, or Stockholder/Interest
Select this amendment when there is a change in the officers, directors, members and managers, as well as any stockholders who hold percent or more. An Owner Officer Information Application must be completed for each new person through Permits Online.
- Add/Remove Variance or Alternate Method
Selecting this amendment is a request to vary from the regulations. You will need to state the regulations you wish to vary from along with an explanation of why this variance is needed.
- Termination of Business
Select this amendment if you are discontinuing business. If you permanently discontinue operations under your permit, you must give written notice to TTB’s National Revenue Center (NRC), surrender your permit, and properly dispose of all alcohol you have on hand before the NRC terminates your permit. You must also retrieve all photocopies of your permit from suppliers and destroy them.
- Add/Remove Ship to Location
Select this amendment if you will have a designated area where the alcohol will be delivered and dispersed to the location (on the permit) where operations are being conducted. For example, alcohol is shipped to a central location, such as, a receiving dock, and then ship from the dock to the permitted premises. You will need to give a list of each ship to location within Permits Online.
- Add/Remove Use Location (State Agencies Only)
Select this amendment if you will are a state agency that will have multiply locations where alcohol will be used. For example, a state-approved university may have one permit for several areas where alcohol is used on campus. A list for each location must be documented.
- Change in Withdrawal Amount
Select this amendment if you will Increase or decrease your authorized annual amount of alcohol used. If increasing your annual withdrawals over 1500 proof gallons a year, you will be required to submit for additional information, such as organization documents.
- Laws
Please select an item to view the statute.
- Regulations
Select an item to view the relevant section of the Code of Federal Regulations.
27 CFR Part 22, Distribution and Use of Tax-Free Alcohol.
- Copy of Permit
To withdraw tax-free alcohol, you must make a copy of your permit, manually sign the copy, enter the date of signature, and send the copy to your supplier. You may make as many copies as necessary to be sure that each of your suppliers, or prospective suppliers, has a copy of your permit. After you have sent the copy to your supplier, there is no need to submit one with subsequent orders.
More Information
An approved tax-free alcohol user may withdraw alcohol from a bonded distilled spirits plant, free of tax. The alcohol withdrawn under these conditions may only be used for nonbeverage purposes and not for resale or use in the manufacture of any product for sale, subject to the use limitations specified in Subpart G of Part 22 of TTB regulations.
- Beverage Purposes
Under no circumstances may tax-free alcohol withdrawn be used for beverage purposes, food products, or in any preparation used in preparing beverage or food products.
- Alcohol Sale
Persons are prohibited from selling tax-free alcohol, using tax-free alcohol in the manufacture of any product for sale, or selling any products resulting from the use of tax-free alcohol. A separate charge may be made by a hospital, sanitarium or clinic for medicines compounded with tax-free alcohol and dispensed to patients for use on the premises, as provided in 27 CFR 22.105 and 27 CFR 22.106. Hospitals may not furnish tax-free alcohol for use of physicians in their private practice.
- Removal from Premises
Persons may not remove tax-free alcohol or products resulting from the use of tax-free alcohol from the permit premises unless specifically authorized by the terms of their permit, or permission is obtained from the appropriate TTB officer.
There are additional responsibilities and requirements that you may have to meet including state laws.
- TTB personnel have the right of entry into your premises.
- Please ensure you are in compliance with your state and local authorities before commencing operations (including building/use permits and zoning requirements).
CONTACT US
Questions? For more information contact the National Revenue Center using our online form or at 877-882-3277.For a complete list of TTB contact information see our Contact Us page.
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Page last reviewed: May 29, 2015 |