Number: 2025-1
Date: April 30, 2025
Alternate Procedure for Submitting Excise Tax Returns and Operational Reports under a Tax Simplification Pilot Program for Brewers
To: All Brewers
1. Purpose
The Alcohol and Tobacco Tax and Trade Bureau (TTB) is issuing this industry circular to provide an alternate procedure for brewers to participate in a Tax Simplification Pilot Program. Under the pilot program, filers submit their excise tax returns and operational data using new simplified and consolidated forms in lieu of the excise tax returns and operational reports currently required under TTB regulations.
This industry circular describes the pilot program and how brewers may apply for it as an approved alternate procedure authorized by TTB regulations. This program is part of TTB’s continuing efforts to streamline and update requirements, processes, systems, and technologies to reduce burden.
2. Overview of TTB’s Tax Simplification Pilot Program for Brewers
Background
TTB tested earlier pilot forms with a small group of brewers representing different types of filers. The pilot forms were designed to simplify the information submitted to TTB by combining the minimum necessary elements from the current Excise Tax Return (TTB Form 5000.24) and the Brewer’s Report of Operations (TTB Forms 5130.9 and 5130.26). TTB has incorporated the brewers’ feedback from the testing into two new pilot forms.
TTB is now ready to expand the pilot program to include any brewers interested and eligible to participate.
Eligibility and Application
Brewers who hold a TTB-approved Brewer’s Notice, TTB Form 5130.10, and who pay their Federal excise taxes on beer to TTB on a semimonthly, quarterly, or annual basis are eligible to participate. Brewers under direction to prepay their taxes under 27 CFR 25.173 are not eligible.
Interested brewers may apply by submitting a request on brewery letterhead to TTB using the Tax Simplification Contact Us webpage. The request must be signed by a person who has authority on file with TTB to sign or act on behalf of the brewer.
Duration
TTB expects the pilot program to continue for no less than 12 months. If TTB terminates it prior to that, we will notify participants when the pilot forms may no longer be used. Ultimately, TTB intends to use the experience of the pilot program to roll out new, streamlined forms and reporting requirements for all brewers, which would also require rulemaking.
Industry Feedback
TTB encourages feedback from pilot participants on their use of the pilot forms and the form instructions to guide improvements. Participants can provide feedback at any time through the Tax Simplification Contact Us webpage. TTB may also provide specific opportunities for voluntary feedback for interested participants.
3. TTB Authority
TTB regulations at 27 CFR part 25 set forth requirements under the authority of the Internal Revenue Code for the payment of excise tax on beer and the related reporting on production, receipt, and removal of beer from the brewery. These provisions require brewers to pay taxes using the Excise Tax Return (TTB Form 5000.24) and report brewery operational data on the Brewer’s Report of Operations (TTB Forms 5130.9 and 5130.26). See 27 CFR 25.163; 27 CFR 25.297. The regulations at 27 CFR 25.164 set forth the return periods for payment of excise tax as follows:
- Annual: Brewers may file annually if they reasonably expect to be liable for not more than $1,000 in taxes with respect to beer imposed by 26 U.S.C. 5051 and 7652 in the current calendar year, and who were liable for not more than $1,000 in such taxes in the preceding calendar year.
- Quarterly: Brewers may file quarterly if they reasonably expect to be liable for not more than $50,000 in taxes with respect to beer imposed by 26 U.S.C. 5051 and 7652 in the current calendar year, and who were liable for not more than $50,000 in such taxes in the preceding calendar year.
- Semimonthly: Brewers must file semimonthly if they do not qualify for annual or quarterly return periods.
The regulations at 27 CFR 25.297 require monthly reporting of brewery operations on the Brewer’s Report of Operations (TTB Form 5130.9), but provide for quarterly reporting on the Brewer’s Report of Operations (TTB Forms 5130.9 or 5130.26) for brewers who are eligible for quarterly or annual tax filing.
TTB may authorize the use of an alternate method or procedure (sometimes referred to as a “variance”) to fulfill the regulatory requirements of 27 CFR part 25 if it finds that the alternate method or procedure meets certain criteria.
Specifically, there must be good cause to use the alternate procedure, it must be consistent with the purpose and effect of the procedure prescribed in the regulations and provide equal security to the revenue, it must not cause an increase in the cost to the Government or hinder the effective administration of 27 CFR part 25, and it must not be contrary to any provision of law. See 27 CFR 25.52. TTB has determined that the alternate procedure followed in the pilot program, described below, meets these criteria.
This alternate procedure does not affect the due dates for filing an excise tax return and paying excise taxes. This alternate procedure does not affect the assessment, payment, or collection of tax under 27 CFR 25.52(a)(4). The return periods (i.e. whether a brewer files their excise tax returns semimonthly, quarterly, or annually) are set forth in statute at 26 U.S.C. 5061 and are not affected by this alternate procedure.
4. The Pilot Program Alternate Procedure
Brewers approved to participate in the pilot program will prepare and submit the pilot form(s) listed below instead of the Excise Tax Return (TTB Form 5000.24) and the Brewer’s Report of Operations (TTB Forms 5130.9 or 5130.26).
Semimonthly filers must use the Pilot Brewer Excise Tax Return for First Semimonthly Period(s) (TTB Form 5130.Pilot-A) to submit their excise tax return and payment for the first return period(s)[1] of the month. Semimonthly filers must also file the Pilot Brewer Excise Tax Return and Report of Operations (TTB Form 5130.Pilot-B) to submit their excise tax return and payment for the last return period of the month, and to report their brewery operational information for the entire month.
Brewers eligible to submit excise tax returns and payments quarterly or annually may use the Pilot Brewer Excise Tax Return and Report of Operations (TTB Form 5130.Pilot-B) to submit their excise tax return and payment for the applicable return period, and to report their brewery operational information for this same period. Quarterly or annual filers will submit this form at the quarterly or annual frequencies set forth for excise tax return filing at 27 CFR 25.164.
In addition to submitting the pilot forms in lieu of those forms currently required under TTB regulations at 27 CFR part 25, participating brewers must:
- Participate in the Pilot Program for the duration of the program or until they notify TTB that they no longer wish to participate;
- Submit completed and signed pilot forms via Pay.gov, on or before the due date for excise tax returns for the applicable filing period (see Tax Returns and Operational Reports Due Dates);
- Submit excise tax payments by EFT (ACH or Fedwire). Participants submitting payments via Pay.gov must do so one business day prior to the required due date;
- Ensure that the person completing and signing the pilot forms for the brewery has authority on file with TTB to sign or act on behalf of the brewer;
- Enter tax and operational reporting data on the pilot forms using the instructions for the forms. If brewers have questions related to certain entries on the pilot forms, they may contact TTB using the Tax Simplification Contact Us webpage; and
- Maintain records supporting the data entered on the pilot forms and make them available upon request, as required by 27 CFR part 25.
TTB may update the pilot forms or instructions during the pilot program based on feedback from participating brewers and TTB's examination of submitted forms. TTB will notify participants if new versions of a pilot form or instructions are made available.
5. Approval
TTB will notify applicants if their request to participate in the pilot program is approved or denied. Applicants must obtain approval prior to participating.
If a brewer wishes to discontinue participation, the brewer must submit a written notice to TTB, signed by a person who has authority on file with TTB to sign or act on behalf of the brewer. Brewers must send this notice using the Tax Simplification Contact Us webpage. As of the date the brewer submits the notice, TTB’s approval to participate in the pilot under the alternate procedure will be withdrawn, and the brewer must resume submitting tax returns and operational reports on the Excise Tax Return (TTB Form 5000.24) and the Brewer’s Report of Operations (TTB Forms 5130.9 or 5130.26), consistent with the current regulations.
TTB may at any time withdraw its approval for a brewer to use this alternate procedure if TTB finds that the approval hinders effective administration of TTB regulations at 27 CFR part 25 or causes jeopardy to the revenue. If TTB withdraws its approval, it will notify the brewer, who must then resume submitting tax returns and operational reports on the Excise Tax Return (TTB Form 5000.24) and the Brewer’s Report of Operations (TTB Forms 5130.9 or 5130.26), consistent with the current regulations.
6. Questions
If you have any questions concerning this circular, please contact TTB via the Tax Simplification Contact Us webpage.
Mary G. Ryan
Administrator
Alcohol and Tobacco Tax and Trade Bureau
[1]There is a special rule for the month of September providing that the second semimonthly period for this month is divided into two payment periods
(see 27 CFR 25.164a). For this pilot program, semimonthly filers will submit TTB Form 5130.Pilot-A for the second return period in September and TTB Form 5130.Pilot-B for the third and final return period in September.