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Excise Taxes Paid by Electronic Funds Transfer

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 (EFT).

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 by EFT.

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.

Originally posted 12/29/03

 

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For more information, contact the National Revenue Center at 877-882-3277 / 877-TTB-FAQS, or send us a message using our National Revenue Center (NRC) Contact Form.

 

Page last reviewed: September 24, 2021
Page last updated: September 24, 2021
Maintained by: National Revenue Center