Excise Taxes Paid by Electronic
This is a reminder to taxpayers who are liable
during any calendar year for $5 million or more in excise taxes
imposed on distilled spirits, wines, or beer or on tobacco products
and cigarette papers and tubes you are required to pay such
taxes during the following year by electronic funds transfer
The law (26 U.S.C. 6651(a)(2)) provides for a penalty for failure
to pay the amount shown as tax on a return on or before the
date prescribed for payment of such tax. The law (26 U.S.C.
6656(a)) also provides a penalty for failure to make timely
deposits of taxes. The penalties shall be imposed unless it
is shown that the failure to make a timely deposit or payment
of tax is due to reasonable cause and not due to willful neglect.
There is no such provision for forgiving interest when a tax
payment is not paid timely.
Any taxpayer who, in a calendar year, was liable for a gross
amount of $5 million or more in excise taxes on distilled spirits
products, wine products, or beer products or on tobacco products
and cigarette papers and tubes shall use a financial institution
in making payment by EFT of taxes during the succeeding calendar
year. Payments of taxes by cash, check, or money order are not
authorized for a taxpayer who is required to make remittances
The term "taxpayer" includes a controlled group of
corporations as defined in sections 5061(e)(3) and 5703(b)(3)
of the Internal Revenue Code of 1986. Therefore, if, in any
calendar year, the combined liability of the controlled group
was $5 million or more with respect to the taxes on distilled
spirits, wines, or beer or on tobacco products and cigarette
papers and tubes, then, during the following calendar year,
each member of the controlled group of corporations is required
to pay such taxes by EFT.
Inquiries 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 Alcohol and Tobacco
Tax and Trade Bureau (TTB) National Revenue Center, 550 Main
Street, Room 8002, Cincinnati OH 45202. Due to the time limitations,
you may wish to call our toll free number at 1-877-882-3277.