TTB issues preliminary guidance on federal excise tax changes
January 14, 2018
By Kristin Carlton, Vice President of Compliance
In a flurry of activity at the end of the year, Congress passed the Tax Cuts and Jobs Act of 2017, and the President signed the bill on December 22nd. As we explained last month, the new law includes significant reductions in federal excise taxes for most suppliers of beverage alcohol. These tax changes became effective on January 1, so TTB had roughly five business days to sort out all of the changes before the new rates took effect.
Use the new rates on the old forms
TTB issued preliminary guidance on the implementation of these new changes late last week, much sooner than many had predicted. In a nutshell, the guidance is to use the same forms that you have been using (TTB Form 5000.24 or TTB Form 5000.24sm, either on paper or through pay.gov), but to use the new rates, which they outline in a handy table on their website.
The guidance also provides a Frequently Asked Questions format to answer some of the more pressing matters, including a clarification that there will be a process for requesting refunds or credits if suppliers accidentally overpay any taxes using the 2017 rates.
We’re on it
Current Compli clients that are subscribed to Federal Excise Tax (FET) filing services can rest assured that we are on top of these changes and will update your account automatically. If you’re not subscribed to FET filings, but need help figuring out how to comply with these new changes, please schedule a consultation and we’ll be here to help!