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TTB NEWSLETTER | Weekly News

May 1, 2015


IN THIS ISSUE

Greetings! We hope you had a peaceful and comforting week! This week's top stories include an announcement about five new information collections, information about penalties and interest, and a list of the past week's top Business Tools pages at TTB.gov/.

TTB SEEKS COMMENTS ON FIVE INFORMATION COLLECTIONS

We are accepting comments through June 23, 2015, on the extension or revision of five existing TTB information collections (forms, recordkeeping requirements, and surveys), as explained in Proposed Information Collections; Comment Request (No. 52), published in the April 24, 2015, Federal Register.

To view this information collection notice and related forms, go to Docket No. TTB-2015-0001 at Regulations.gov/.  We also have published a direct link to that docket on our TTB.gov/ Commenting on a Form and Information Collection Notices pages.  If you would like to submit a comment electronically, use the Regulations.gov/ comment form for this notice.  To submit comments by postal mail or hand delivery, see the instructions in the notice.

In this notice, TTB is requesting comments on the following information collections:

  • OMB No. 1513–0013:  Change of Bond (Consent of Surety), TTB F 5000.18
  • OMB No. 1513–0020:  Application for an Certification/Exemption of Label/Bottle Approval (the COLA form), TTB F 5100.31
  • OMB No. 1513–0052:  Alcohol Fuel Plants (AFP) Records, Reports, and Notices, TTB F 5110.75 and TTB REC 5110/10
  • OMB No. 1513–0107:  Monthly Report–Tobacco Products or Processed Tobacco Importer, TTB F 5220.6
  • OMB No. 1513–0118:  Formulas for Fermented Beverage Products, TTB REC 5052/1

TAX TOPIC: PENALTIES AND INTEREST

The law imposes penalties to ensure that all taxpayers pay their taxes. When you fail to timely file a required tax return, make timely tax payment or deposits, or willfully neglect to pay your taxes, the Government may impose certain financial penalties against you. If you underpay your tax due to negligence or fraud, you may be subject to additional penalties. In certain cases, you may be subject to criminal prosecution.

This is an overview of the most common types of penalties imposed. This information is given to you to help reduce the likelihood of your incurring such liabilities.

Please contact us at 877-882-3277 to obtain official penalty and interest calculations.

Failure to File (FF) Penalty

Under present law, if you fail to timely file your tax return you may have to pay a penalty equal to 5% of the tax not paid by the due date for each month or part of a month that the return is late. This penalty cannot be more than 25% of the tax.

If you pay your taxes by Electronic Fund Transfer, you are still responsible for the timely filing of your tax return.

Failure to Pay (FP) Penalty

If you do not timely pay your taxes, you may have to pay a penalty of 1/2 of 1% of your unpaid taxes for each month or part of a month after the due date that the tax is not paid. This penalty cannot be more than 25% of your unpaid tax. If a penalty for FF and a penalty for FP both apply for the same month, the amount of the penalty for failure to file for that month is reduced by the amount of the penalty for failure to pay tax shown on a return.

Failure to Deposit (FTD) Penalty

Regulations require certain taxes be paid using deposits. The FTD Penalty is charged for failure to deposit correctly. The three components of a correct deposit are that it is made timely, in the correct amount, and in the correct manner. Failure to comply with any of these components may invoke the FTD Penalty. Deposits are due on or before the deposit due date. The penalty rate ranges from 2% to 15% of the underpayment depending on the number of days a deposit is late.

Interest

Interest, compounded daily, is charged on any unpaid tax or penalty as prescribed by law. For more information on determining the rate of interest, as well as a table of interest rates, please see Internal Revenue Service Revenue Ruling 2008-54.

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