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Quarterly Tax Payment Procedures for Small Taxpayers

The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, amends the Internal Revenue Code section that gives tax return filing deadlines for alcohol taxpayers. The change allows a quarterly excise tax payment procedure for certain small alcohol excise taxpayers. Before passage of this law, most alcohol excise taxpayers were required to pay the tax on a semimonthly basis. Taxpayers who are eligible to file annual tax returns will not be affected by this change.

The quarterly tax payment procedure will be available to certain taxpayers who pay the gallonage taxes on distilled spirits, wines, and beer produced in or imported into the United States, and the gallonage taxes on spirits, wines, and beer coming to the United States from Puerto Rico and the U.S. Virgin Islands. The quarterly tax payment procedure applies to "any taxpayer who reasonably expects to be liable for not more than $50,000 in taxes ...for the calendar year and who was liable for not more than $50,000 in such taxes in the preceding calendar year."

We are working to make conforming changes to our regulations as soon as possible, but the quarterly payment procedure will be available to eligible taxpayers with the quarter beginning January 1, 2006, whether or not we publish amended regulations. However, we wish to remind proprietors of domestic distilled spirits plants, wineries, and breweries, and proprietors in Puerto Rico who pay deferred taxes on alcohol products they bring to the United States, that they will have a higher amount of taxes that have been determined, but not paid. In each of the regulatory parts governing their operations, we require these proprietors to have adequate bond coverage for their outstanding tax liability. We encourage taxpayers eligible for the quarterly payment procedure to review their bond coverage to see if it will cover the taxes they will owe in a typical quarter.

If the taxpayer's bond amount is not sufficient, the taxpayer has two options: The taxpayer may file a superseding or strengthening bond to increase bond coverage so the quarterly liability will not exceed the bond; or the taxpayer may continue on the semimonthly payment schedule.

For more information or to discuss bond changes:

Domestic proprietors should submit an online inquiry or call us at 1-877-TTB-FAQS (1-877-882-3277).

Puerto Rico proprietors can contact TTB's Puerto Rico Operations by phone at 787-766-5581 or by fax at 787-766-6426.

View The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users

Last updated: January 1, 2020
Maintained by: National Revenue Center