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TTB NEWSLETTER | Weekly News

May 6, 2016


IN THIS ISSUE

Greetings! We hope you had an animated and chipper week! This week's top stories include the proposed establishment of the “Appalachian High Country” viticultural area, information about tax penalties and interest, and a list of the past week's top National Revenue Center pages at TTB.gov.

TTB PROPOSES ESTABLISHMENT OF THE "APPALACHIAN HIGH COUNTRY" AMERICAN VITICULTURAL AREA

We are accepting comments through July 5, 2016, on Notice No. 158, Proposed Establishment of the Appalachian High Country Viticultural Area, which was published in the Federal Register on May 3, 2016.  The 2,400-square mile proposed viticultural area is located in all or portions of Alleghany, Ashe, Avery, Mitchell, and Watauga Counties in North Carolina, Carter and Johnson Counties in Tennessee, and Grayson County in Virginia.  The proposed viticultural area is not located within, nor does it contain, any established viticultural area.

We are making this proposal in response to a petition filed by a local wine industry member on behalf of the local vineyard and winery owners.  We designate viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

You may comment on this proposal and view copies of the proposed rule, selected supporting materials, and any comments we receive about this proposal at Regulations.gov within Docket No. TTB-2016-0003.  A link to that docket is posted at our Wine – Notices of Proposed Rulemaking page at TTB.gov under Notice No. 158.

Read the press release: Proposed Establishment of the "Appalachian High Country" Viticultural Area.

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 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 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 failure to file and a penalty for failure to pay 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 Penalty 

Regulations require certain taxes be paid using deposits or electronic fund transfer. The failure to deposit penalty is charged for failure to deposit correctly. Deposits must be made timely, and in the correct amount, and in the correct manner. Failure to comply may invoke the failure to deposit penalty. Deposits are timely if made 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 the most recent release about interest rates from the Internal Revenue Service.


Please visit the homepage of TTB.gov for the most recent news, or visit the Contact Us page if you have any questions.