Notification waivers for destroyed beer extended through Sept. 1
The Alcohol and Tobacco Tax and Trade Bureau (TTB) has extended through Sept. 1, 2020 relief for brewers that it first issued in June.
Earlier this year, the TTB issued Frequently Asked Questions addressing the destruction of beer during COVID-19. FAQ COV-B1 allows unmerchantable beer in the marketplace to be destroyed without first returning it to the brewery. FAQ COV-B4 allows beer that has reached or exceeded its freshness date to be transferred to a distilled spirits plant for use in the production of hand sanitizer without imposition of tax. FAQ COV-B2A and B5A originally extended waivers to the requirement that brewers notify the TTB prior to the destruction of beer under the scenarios described above through July 1, 2020. (See prior alert on the issuance of other TTB FAQ.)
The recent TTB update to FAQs COV-B2A and COV-B5A extend waivers of the notification requirements through Sept. 1, 2020. The TTB stated the extension of the waivers are due to “ongoing and significant business disruptions due to COVID-19.”
Washington National Tax observations
With the continued business disruptions brewers are facing during this unprecedented time, extension of the TTB notification waiver surrounding the destruction of unmerchantable and expired beer will be a welcome relief to taxpayers.
It is important to remember that while TTB is continuing to waive the brewer’s Notice of Intent to TTB of the destruction of taxpaid beer as well as the 12-day waiting period, brewers must continue to maintain records showing the information ordinarily required by the Notice.
Taxpayers who destroy and transfer to a distilled spirits plant taxpaid beer may be eligible for a refund of the tax.
For assistance with filing TTB excise tax refund claims, please consult with your tax advisor.