Department of the Treasury

Alcohol and Tobacco Tax and 

Trade Bureau

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2020
TTB - 2

Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Appropriations Detail Table ............................................................................................................4

1.2 – Budget Adjustments Table ..............................................................................................................5

C – Budget Increases and Decreases Description....................................................................... 5

1.3 – Operating Levels Table ...................................................................................................................7

D – Appropriations Language and Explanation of Changes ...................................................... 8

E – Legislative Proposals............................................................................................................ 8

Section II – Annual Performance Plan and Report................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 11

2.1.1 Collect the Revenue Resources and Measures................................................................. 11

Collect the Revenue Budget and Performance ......................................................................... 11

2.1.2 Protect the Public Resources and Measures..................................................................... 15

Protect the Public Budget and Performance ............................................................................. 16

C – Changes in Performance Measures.................................................................................... 20

Section III – Additional Information ........................................................................................ 22

A – Summary of Capital Investments....................................................................................... 22
TTB - 3

Section I – Budget Request

A – Mission Statement

To collect the taxes on alcohol, tobacco, firearms, and ammunition; protect the consumer by 

ensuring the integrity of alcohol products; ensure only qualified businesses enter the alcohol and 

tobacco industries; and prevent unfair and unlawful market activity for alcohol and tobacco 

products.

B – Summary of the Request 

Supporting the nation’s economic vitality is at the core of the work performed by the Alcohol 

and Tobacco Tax and Trade Bureau (TTB). The bureau’s role in permitting, regulating, and 

taxing the alcohol, tobacco, and firearms industries facilitates a compliant and fair marketplace

for those engaged in the manufacture and trade of these commodities, and ensures that the 

Federal government has the resources needed to fund national priorities. TTB’s broad mission 

serves Treasury’s Strategic Goal 1 (Boost U.S. Economic Growth), with two strategic goals 

focused on facilitating commerce through Labeling Modernization and enhanced Business 

Qualification, and two strategic goals to support fair and effective tax administration by 

improving Tax Compliance and addressing Cross-Border Tax Risk. Further, TTB conducts its 

operations in support of Treasury’s Strategic Goal 5 (Achieve Operational Excellence), with a 

focus on building its workforce through its strategic goal of Training Revitalization. 

TTB is the third largest tax collection agency in the U.S. government, after the Internal Revenue 

Service and U.S. Customs and Border Protection (CBP), collecting nearly $21 billion in excise 

tax revenue annually. As the most efficient means of tax administration, facilitating voluntary 

compliance will remain a priority for TTB in FY 2020. To this end, and to ensure the efficient 

collection of tax revenue, TTB will make critical IT investments to modernize TTB’s tax system

with the aim of increasing electronic submissions, improving timely filings, and supporting 

taxpayer compliance. Further, in FY 2020, TTB will enhance its guidance related to Federal 

alcohol, tobacco, firearms, and ammunition laws and regulations, and explore opportunities to 

streamline regulations and requirements to reduce compliance burden. These strategies are

critical for TTB to mitigate potential performance impacts as TTB continues to prioritize its 

implementation and enforcement of the Craft Beverage Modernization and Tax Reform

provisions of P.L. 115-97. In the first year, Federal revenues have declined, with the full impact 

not yet known. TTB expects enforcement will continue to pose significant challenges, given the 

multitude of tax rates and complexity of verifying their appropriate application, and requires 

ongoing and extensive coordination with CBP to enforce with regards to imported products. 

Alcohol and tobacco diversion remain long-term tax enforcement challenges given the high 

profits to be gained from illegal activity, the relative ease of diversion, and the substantial 

revenue loss that it represents. Failure to address illicit trade not only deprives governments of 

revenue, but also gives non-compliant actors an unfair competitive advantage over their lawful 

counterparts. To improve tax enforcement outcomes, and promote a more efficient Federal 

government, the Administration is proposing the consolidation of Federal alcohol and tobacco 

tax enforcement authorities within the Department of the Treasury, including transferring 

jurisdiction for the Contraband Cigarette Trafficking Act (CCTA) from the Department of 

Justice’s (DOJ) Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to TTB. 
TTB - 4

The FY 2020 request supports an initial investment of $3.3 million in start-up funding for TTB 

to initiate the transfer and begin to implement this enforcement program. Upon transfer of 

CCTA authority, and once fully resourced, TTB expects that its current enforcement model, 

which uses a data-driven approach and relies on teams of agents, auditors, and investigators, as 

well as state and local law enforcement partners, will provide positive returns in terms of 

increased revenue and reduced criminal activity.

As demand for TTB services has grown in line with the expanding alcohol industries, TTB has 

responded through updated burden-reducing policies, improved systems, and streamlined 

processes to support the timely turnaround of applications for new and existing wineries, 

breweries, and distilleries. Delays can cause financial hardships for these businesses and create a 

barrier to compliant commerce. At the FY 2020 funding level, and anticipating continued 

increases in permit, label, and formula applications, TTB will review its service standards in line 

with anticipated staffing levels. TTB will clearly communicate these standards to industry to 

manage expectations and allow appropriate operational planning. TTB will further adjust its 

strategy for systems modernization to align with resource levels, continuing to focus on clear and 

consistent guidance to industry to facilitate the submission of compliant applications.

1.1 – Appropriations Detail Table

Dollars in Thousands

Alcohol and Tobacco Tax and Trade 

Bureau

FY 2018 FY 2019 FY 2020 FY 2019 to FY 2020

Enacted 1/ Annualized CR Request $ Change % Change

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

Collect the Revenue 207 $53,560 242 $53,560 255 $59,956 13 $6,396 5.37% 11.94%

Protect the Public 268 $57,879 265 $57,879 252 $55,471 (13) ($2,408) -4.91% -4.16%

Subtotal New Appropriated Resources 475 $111,439 507 $111,439 507 $115,427 0 $3,988 0.00% 3.58%

Other Resources:

Offsetting Collections – Reimbursables 2/ 10 $6,289 10 $6,900 10 $6,900 0 $0 0.00% 0.00%

Transfers 3/ 0 $989 0 $0 0 $0 0 $0 0.00% 0.00%

Subtotal Other Resources 10 $7,278 10 $6,900 10 $6,900 0 $0 0.00% 0.00%

Total Budgetary Resources 485 $118,717 517 $118,339 517 $122,327 0 $3,988 0.00% 3.37%

1/ FY 2018 FTE and Other Resources are Actuals. This column reflects levels appropriated in P.L. 115-141, the Consolidated 

Appropriations Act of 2018. For further details on the execution of these resources see the 2020 Budget Appendix chapter for the 

Department of the Treasury.

2/ Includes reimbursements from TEOAF Mandatory Fund and CDFI, and offsetting collections from Puerto Rico Cover-Over Program.

3/ Transfer from the TEOAF Strategic Support Fund.
TTB - 5

1.2 – Budget Adjustments Table

Dollars in Thousands

Alcohol and Tobacco Tax and Trade Bureau FTE Amount

FY 2019 Annualized CR 507 $111,439

Changes to Base:

Maintaining Current Levels (MCLs) 0 $1,001

Non-Pay 0 $1,001

Subtotal Changes to Base 0 $1,001

Total FY 2020 Base 507 $112,440

Program Changes:

Program Decreases (13) ($3,013)

Trade Practice Enforcement (13) ($3,013)

Program Increases 13 $6,000

Consolidation of Federal Alcohol &Tobacco Tax Jurisdiction 1/ 9 $3,330

Tax System Modernization 4 $2,500

Operations and Maintenance (O&M) of Prior-year Enterprise-wide

Cybersecurity investments 0 $170

Total FY 2020 Request 507 $115,427

1/ Pending legislation to effectuate the transfer of federal alcohol and tobacco jurisdiction from the Department of Justice to the 

Department of the Treasury. 

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ......................................................+$1,001,000 / +0 FTE

Non-Pay +$1,001,000 / +0 FTE 

TTB requests funds for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment.

Program Decreases ....................................................................................-$3,013,000 / -13 FTE

Trade Practice Enforcement -$3,013,000 / -13 FTE

TTB will reduce its Trade Practice Enforcement program. TTB enforcement addresses unlawful 

trade practices in the marketplace and ensures a level playing field for U.S. alcohol 

manufacturers and distributors. With two-year funding provided in both FY 2017 and FY 2018, 

TTB added staffing to increase its capacity for trade practice investigations from approximately 

one each year to more than 50 active cases annually. At the FY 2020 funding level, TTB will 

work to bring most of its active trade practice investigations to closure and continue its process 

of evaluating and prioritizing the highest risk cases as part of its annual enforcement planning 

process. 

Program Increases ..................................................................................... $6,000,000 / +13 FTE

Consolidation of Federal Alcohol & Tobacco Tax Jurisdiction +$3,330,000 /+9 FTE

TTB requests start-up funding to support the Administration’s proposal to consolidate Federal 

alcohol and tobacco tax jurisdiction within the Department of the Treasury and TTB. This initial 

investment will enable TTB to begin hiring the necessary additional enforcement personnel to 

conduct the complex, multi-state investigations associated with contraband cigarette 

smuggling. The requested funding level supports 9 FTE, which will allow TTB to hire auditors, 

investigators, and other program staff. Further, TTB will hire criminal enforcement agents under 
TTB - 6

an expansion of the existing interagency agreement with the IRS. This initial investment would 

also enable TTB to initiate any needed rulemaking and guidance as well as support initial 

research into system requirements and data analytics to improve enforcement targeting. During 

this transition period, and at the proposed staffing level, TTB will also expand its outreach to 

state law enforcement partners and work closely with DOJ on the transfer and continuation of 

existing cases.

Tax System Modernization +$2,500,000 / +4 FTE

TTB requests an investment of $2.5 million and 4 FTE for the first year of a multi-year effort to 

modernize its outdated tax system to support efficient filing and processing as well as facilitate 

data analytics to timely detect tax evasion, all of which is particularly important in light of recent 

tax reforms that present workload and enforcement challenges. 

The functionality of TTB’s Integrated Revenue Information System (IRIS) is substantially the 

same as in 2000 while, over the same period, the number of TTB taxpayers has increased nearly 

250 percent to approximately 25,000. Outdated and labor-intensive processes are contributing to 

low and declining tax compliance. By creating a TTB-designed external interface to support 

industry filing compliance, as well as enhancing the internal system design to streamline desk 

reviews of taxpayer accounts, TTB expects to be able to complete timely follow up and/or 

enforcement actions that will, over time, result in increased taxpayer compliance rates. 

Additionally, without a significant redesign of the legacy tax system, TTB will continue to face 

challenges in using advanced analytics for tax administration and fraud detection, a key strategy 

for Treasury and TTB to maximize the reach of limited resources. Enhanced systems and 

analytics would enable TTB to use its tax information, as well as import and export data from 

other Federal agencies, to more effectively target known tax evasion schemes. 

The IT development plan would transform IRIS incrementally, using multiple system releases to 

deliver independent modules to create the full functionality needed. The total cost includes the 

IT development team; additional tax specialist positions to backfill the experienced staff required 

to support the development effort; and analytics support to streamline work processes, improve 

non-compliance detection, and improve workload management.

Operations and Maintenance of Prior-year Enterprise-wide Cybersecurity Investments, 

+$170,400 / +0 FTE 

The FY 2020 request includes funding to support operations and maintenance (O&M) for prior 

year Cybersecurity Enhancement Account investments. O&M will be funded for Treasury 

bureaus through the Treasury Franchise Fund (TFF). This increase represents TTB’s portion of 

the $17.5 million O&M total for Treasury.
TTB - 7

1.3 – Operating Levels Table

Dollars in Thousands

TTB FY 2018 FY 2019 FY 2020

Object Classification Enacted 1/ Annualized CR Request

11.1 - Full-time permanent $51,531 $51,531 $51,083

11.5 - Other personnel compensation $619 $619 $627

11.9 - Total personnel compensation $52,150 $52,150 $51,710

12.0 - Personnel benefits $15,671 $15,671 $15,501

13.0 - Benefits for former personnel $5 $5 $5

Total Personnel and Compensation Benefits $67,826 $67,826 $67,216

21.0 - Travel and transportation of persons $2,561 $2,561 $2,304

22.0 - Transportation of things $30 $30 $30

23.1 - Rental payments to GSA $4,276 $4,276 $4,276

23.3 - Communication, utilities, and misc charges $1,732 $1,732 $1,766

24.0 - Printing and reproduction $268 $268 $269

25.2 - Other services from non-Federal sources $24,395 $24,395 $27,577

25.3 - Other goods and services from Federal sources $7,715 $7,715 $9,239

26.0 - Supplies and materials $499 $499 $507

31.0 - Equipment $2,137 $2,137 $2,242

Total Non-Personnel $43,613 $43,613 $48,211

New Budgetary Resources $111,439 $111,439 $115,427

FTE 475 507 507

1/ FY18 Appropriated Resources are enacted and FTE are Actual. This column reflects levels appropriated in P.L. 115-141, the 

Consolidated Appropriations Act of 2018. For further details on the execution of these resources see the 2020 Budget Appendix

chapter for the Department of the Treasury.
TTB - 8

D – Appropriations Language and Explanation of Changes

Appropriations Language Explanation of 

Changes

DEPARTMENT OF THE TREASURY

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU

Federal Funds

SALARIES AND EXPENSES

For necessary expenses of carrying out section 1111 of the 

Homeland Security Act of 2002, including hire of passenger motor 

vehicles, $115,427,000, of which $5,000,000 shall remain 

available until September 30, 2021; of which not to exceed $6,000 

shall be available for official reception and representation 

expenses; and of which not to exceed $50,000 shall be available for 

cooperative research and development programs for laboratory 

services and provision of laboratory assistance to State and local 

agencies with or without reimbursement.

Note. – A full-year 2019 appropriation for this account was not 

enacted at the time the budget was prepared; therefore, the budget 

assumes this account is operating under the Continuing 

Appropriations Act, 2019 (Division C of P.L. 115-245, as 

amended). The amounts included for 2019 reflect the annualized 

level provided by the continuing resolution.

E – Legislative Proposals

Government Reform Initiative - Consolidation of Federal Alcohol & Tobacco Tax 

Jurisdiction

The Administration proposes to transfer primary jurisdiction over Federal tobacco and alcohol 

anti-smuggling laws from the Department of Justice and the Bureau of Alcohol, Tobacco, 

Firearms and Explosives to the Department of the Treasury and TTB. Under the proposal, TTB 

would be responsible for the administration and enforcement of the Jenkins Act of 1949 (as 

amended by the Prevent All Cigarette Trafficking Act of 2009), 15 U.S.C. Chapter 10A, the 

Contraband Cigarette Trafficking Act of 1978, 18 U.S.C. Chapter 114, and the criminal statutes 

involving Liquor Trafficking, 18 U.S.C. Chapter 59. Specific statutory language to effect the 

transfer and facilitate Federal enforcement against tobacco smuggling has been developed in 

consultation with the Secretary of the Treasury and with the Attorney General. 
TTB - 9

Section II – Annual Performance Plan and Report

A – Strategic Alignment

TTB is responsible for administering and enforcing the sections of the Internal Revenue Code of 

1986 associated with the collection of excise taxes on alcohol, tobacco, firearms, and 

ammunition, and the Federal Alcohol Administration Act, which provides for the regulation of 

the alcohol beverage industry for the protection of U.S. consumers. In essence, TTB administers 

its jurisdiction according to five strategic goals that support economic growth and stability: 1) 

Tax Compliance; 2) Cross-Border Tax Risk; 3) Business Qualification; 4) Labeling 

Modernization; and 5) Training Revitalization. TTB’s strategic goal of Training Revitalization 

directly contributes to Treasury’s Strategic Goal 5 (Achieve Operational Excellence) through 

Strategic Objective 5.1 (Workforce Management) and underpins TTB’s performance across all 

of its goals and objectives.

TTB’s strategic goals to improve Tax Compliance and address Cross-Border Tax Risk ensure 

that the Federal government has the resources needed to fund national priorities and support 

Treasury’s Strategic Goal 1 (Boost U.S. Economic Growth) and Strategic Objective 1.1 (Tax 

Law Implementation) to administer tax laws to better enable all taxpayers to meet their 

obligations while protecting the integrity of the tax system. The FY 2020 funding level provides 

the initial investment in a multi-year tax system modernization effort. The industries TTB 

regulates have grown significantly in recent years, which present workload and enforcement 

challenges, particularly in light of recent tax reforms. Funding is required to address outdated 

tax systems to support efficient filing and processing as well as facilitate data analytics to timely 

detect tax evasion.

Additionally, in support of effective tax administration, the Administration is proposing the 

consolidation of Federal alcohol and tobacco tax jurisdiction within the Department of the 

Treasury to improve mission alignment and focus and, in turn, create tax enforcement 

efficiencies. This proposal calls for the transfer of enforcement authority for the CCTA and the 

Prevent All Cigarette Trafficking (PACT) Act from DOJ to Treasury. These Federal statutes 

were intended, among other things, to stop criminal organizations from profiting by smuggling 

cigarettes across state borders from low-tax states to high-tax states, and protect state and local 

governments from revenue losses from interstate cigarette smuggling. ATF, which currently has 

primary jurisdiction for CCTA and PACT Act enforcement, has estimated that the sale of 

contraband cigarettes costs Federal, state, and local governments close to $5 billion a year in 

revenue. The FY 2020 funding request represents the initial investment required to begin the 

transfer of these authorities, including preliminary hiring and contract actions to support 

investigations, as well as required rulemaking, IT, and data analytics efforts to support the 

program and generate leads for future investigations. The full program costs will be higher and 

will be addressed in future budgets. When fully implemented, TTB anticipates that the 

consolidation of CCTA and PACT Act enforcement with TTB’s existing tobacco enforcement 

authorities will result in increased Federal and state tobacco excise tax revenues. 

These investments will require tradeoffs in TTB’s enforcement plans. TTB conducts trade 

practice enforcement in the alcohol beverage marketplace in support of the Treasury’s Strategic 

Goal 1 (Boost U.S. Economic Growth) and Strategic Objective 1.4 (Free and Fair Trade) to 
TTB - 10

advance a free and fair trade environment for U.S. businesses. At the FY 2020 funding level, 

TTB will need to rebalance enforcement priorities to support the successful closure of most 

active trade practice investigations and sustain a modest enforcement presence, as well as the 

effective transition of CCTA cases from ATF to TTB.

TTB’s strategic goals to enhance Business Qualification and implement Labeling Modernization 

ensure that lawful U.S. alcohol businesses are competitive and thriving in the global marketplace 

and support the Treasury’s Strategic Goal 1 (Boost U.S. Economic Growth) and Strategic 

Objective 1.3 (Trusted Currency and Services) to deliver trusted currency and services that 

enable citizens and businesses to participate in the economy. Timely service remains a priority 

for TTB and the businesses it regulates. As the demand for TTB services from these businesses 

continues to rise, and within the FY 2020 resources, TTB will review its customer service 

standards based on anticipated staffing levels. TTB will also scale down plans to modernize its 

online systems for filing permit, label, and formula applications, and instead seek to increase 

guidance to support compliant applications. These strategies will help TTB maintain timely 

service by increasing the number of first-time approvals, and reducing delays caused by 

extensive back-and-forth with industry members to correct initial applications containing errors. 
TTB - 11

B – Budget and Performance by Budget Activity

2.1.1 Collect the Revenue Resources and Measures

Dollars in Thousands

 Resource Level FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Actual Actual Actual Actual Actual Annualized

CR Request

Appropriated Resources $51,721 $50,976 $53,385 $53,375 $53,313 $53,560 $59,956

Reimbursables $3,506 $3,681 $3,143 $3,217 $3,923 $4,304 $4,304

Transfers In 1/ $468 0 0 $197 $902 0 0

Budget Activity Total $55,695 $54,657 $56,528 $56,789 $58,138 $57,864 $64,260

FTE 2/ 224 223 234 223 212 255 252

1/ TEOAF Strategic Support Fund

2/ Includes 5 FTE from Puerto Rico cover-over reimbursables

Performance Measure

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 FY 2020

Actual Actual Actual Actual Actual Target Target Target

Amount of Revenue 

Collected Per Program 

Dollar 1/

457 437 414 406 369 400 DISC DISC

Percent of Voluntary 

Compliance from Large 

Taxpayers in Filing 

Returns/Payments Timely 

(by filing) 2/

90 88 87 85 85 90 DISC DISC

Percent of Voluntary 

Compliance from Large 

Taxpayers in Filing Tax 

Returns/Payments Timely 

(by taxpayer) 2/

N/A N/A N/A N/A N/A N/A B

Percent of Voluntary 

Compliance from Large 

Taxpayers in Filing 

Operational Reports Timely 

(by taxpayer) 2/

N/A N/A N/A N/A N/A N/A B

Percent of Electronically 

Filed Tax Returns –

Pay.gov

32 33 34 35 38 50 50 50

Percent of Electronically 

Filed Operational Reports –

Pay.gov

37 38 39 40 42 50 50 50

1/ Beginning in FY 2019, results will be reported as an indicator rather than a performance measure; as such, no 

target is established for FY 2019.

2/ TTB is developing new measures to evaluate and monitor taxpayer compliance for FY 2019, which will calculate compliance 

rates on a taxpayer basis, rather than a per filing basis; TTB will also formally add a measure of the compliance rate for 

operational reports.

Collect the Revenue Budget and Performance

($59,956,000 from direct appropriations, $4,304,000 from reimbursable resources):

This budget activity includes all tax processing, verification, enforcement, and outreach efforts 

related to administering the Federal tax code for alcohol, tobacco, firearms, and ammunition

products, and supports Treasury’s Strategic Objective 1.1 (Tax Law Implementation). TTB 

collects approximately $21 billion in Federal tax revenue annually from a tax base of more than 

29,000 businesses. TTB’s regulated taxpayers include distilleries, breweries, and wineries, 

which have boomed in recent years, as well as manufacturers and importers of tobacco and

firearms. TTB extends the reach of its enforcement resources through advanced analytics and 

risk-based audits and investigations. To ensure a level playing field for those engaged in the 
TTB - 12

trade of these regulated commodities, TTB also takes appropriate enforcement action to detect 

and address diversion activity to ensure all products sold in the marketplace are properly taxpaid.

Other Resources (Offsetting Collections/Reimbursables).................................... $4,304,000

Other resources that fund this budget activity include reimbursement for the operating costs of 

TTB’s Puerto Rico field office, which are offset against the roughly $400 million in taxes 

collected on the alcohol beverage products that are manufactured in Puerto Rico and imported to

the United States; reimbursement from the Community Development Financial Institutions Fund 

(CDFI) for IT services provided by TTB; and funding from the Department of the Treasury’s 

Executive Office for Asset Forfeiture (TEOAF) mandatory account to cover investigative 

expenses, data systems, and training.

Description of Performance – Collect the Revenue:

In FY 2018, TTB met neither of its two annual targets for the performance measures under the 

Collect the Revenue budget activity. Taken together, TTB’s measures of the Amount of 

Revenue Collected per Program Dollar and the Percent of Voluntary Compliance from Large 

Taxpayers in Filing Payments Timely are intended to demonstrate the effectiveness and 

efficiency with which TTB operates its revenue collection function. TTB is proposing several 

updates to its measures for this budget activity, including adding measures of Percent of 

Electronically Filed Tax Returns and Percent of Electronically Filed Operational Reports via 

Pay.gov. These measures of electronic filing rates, combined with an update to the measure of 

Percent of Voluntary Compliance from Large Taxpayers in Tax Filings (Tax Returns, Payments, 

and Operational Reports), will inform TTB’s efforts to improve its level of taxpayer service and 

enhance tax oversight. TTB’s strategies for achieving results under its new suite of measures 

include applying technology to streamline internal and external processes and leveraging data 

sources to direct our outreach and enforcement efforts. At the FY 2020 funding level, TTB will 

initiate critical system modernization efforts to increase its effectiveness in tax administration 

and to help ensure resources are deployed to maximize the deterrent effect. 

Improve Efficiency of Tax Collection 

The Amount of Revenue Collected per Program Dollar measure uses annual collections figures 

and the actual expenditures and obligations for collection activities to quantify the efficiency of 

TTB’s tax collection program. In FY 2018, TTB achieved a return on investment of $369 for 

every program dollar spent on collection activities, below the annual performance target of $400. 

TTB set this performance target based on historical trends and other predictors that influence 

consumer behaviors. 

The year‐to‐year decline in performance represents continued declines in tobacco revenue that, 

after peaking in FY 2010 following the significant tax rate increases enacted in 2009, have 

steadily declined in line with shifts in consumption patterns, product manufacturing, and trade. 

Annual alcohol revenue also trended down, largely due to the recent tax reform legislation that 

lowered effective tax rates across all commodities and expanded eligibility for reduced rates and 

credits. In total, revenue collections were down 6 percent from FY 2017; however, as the law 

took effect in January 2018, the full impact of these provisions is not yet known. Going forward, 

TTB will continue to monitor its return on investment for its Collect the Revenue activities as a 

key indicator; however, it will be discontinued as a performance measure under which TTB 
TTB - 13

establishes an annual target, given the substantial influence of external factors on performance 

results.

Excise Tax and Other Collections by Fiscal Year

Dollars in Thousands

FAET – Firearms and Ammunition Excise Tax; SOT – Special Occupational Tax; FST – Floor Stocks Tax

In FY 2020, to maintain positive returns on its revenue mission, TTB will continue to improve 

efficiencies and results in its tax enforcement program through systems and process 

improvements related to tax verification. The FY 2020 funding level includes $2.5 million to 

initiate a multi-year effort to modernize TTB’s tax systems, which will allow TTB to increase 

automation in the detection, notification, assessment, and collection of excise taxes due while

preserving staff time for substantive tax analysis. TTB’s two new measures of Electronically 

Filed Tax Returns and Electronically Filed Operational Reports indicate that less than half of 

these required tax filings are submitted to TTB via Pay.gov, the current online system for 

electronic submissions. High rates of paper filings – with just 38 percent of returns and 42 

percent of required operational reports submitted electronically – make compliance checks and 

fraud monitoring more difficult and costly. The tax system investment will drive increases in 

electronic filing rates, which should support timelier, complete, and more accurate submissions 

as well as timely access to the data for TTB tax verification and analysis. 

System modernization efforts also support a data-driven approach to efficiently and effectively 

identify and address high-risk activity for audit and investigation. In FY 2020, TTB will 

continue to use data analytics and other intelligence to efficiently deploy its limited enforcement 

resources. A primary focus for TTB tax enforcement continues to be diversion schemes related 

to imported and exported alcohol and tobacco products given the relative ease of these schemes 

and the high profit potential. Investigations to date have identified significant tax liabilities and 

remain an enforcement priority under the Craft Beverage Modernization and Tax Reform 

provisions, effective through calendar year 2019, which include reduced rates for alcohol 

importers as well as domestic producers. 

Increase Voluntary Compliance from Taxpayers

Fostering voluntary compliance among taxpayers is a primary tax administration strategy for 

TTB. The Percent of Voluntary Compliance from Large Taxpayers in Filing Tax Payments 

Fiscal

Year Alcohol Tobacco FAET SOT FST Other Total

2009 $ 7,424,292 $ 11,548,504 $452,693 $ 272 $1,192,375 $ 970 $ 20,619,106

2010 7,476,789 15,913,479 360,813 300 8,558 180 23,760,119

2011 7,594,330 15,515,073 344,262 268 5,220 2,257 23,461,410

2012 7,856,391 15,002,616 514,622 249 5,942 61 23,379,881

2013 7,851,953 14,321,017 762,836 280 1,521 38 22,937,645

2014 7,924,951 13,552,711 768,927 332 465 2 22,247,388

2015 7,997,467 13,620,497 638,518 288 2,444 7 22,259,221

2016 8,075,476 13,274,371 749,789 258 245 505 22,100,644

2017 8,103,714 12,966,317 761,630 227 69 521 21,832,478

2018 7,877,214 12,050,283 624,802 273 7 1,006 20,553,585

Average $ 7,818,258 $ 13,776,487 $597,889 $ 275 $ 121,685 $ 555 $ 22,315,148
TTB - 14

Timely indicates the rate of compliance by large taxpayers (i.e., those that pay more than 

$50,000 in annual taxes) in voluntarily filing their tax payments on or before the scheduled due 

date. In FY 2018, TTB achieved a compliance rate of 85 percent from its large taxpayers, which 

fell below the performance target of 90 percent. The declining compliance rate in recent years is 

due, in part, to industry growth and expansion and a corresponding increase in the number of 

industry members who qualify as “large taxpayers” because they owe more than $50,000 in 

annual taxes due. Such recent permittees may be less familiar with TTB’s statutory and 

regulatory requirements. Although TTB analysis indicates that this trend does not represent a 

significant revenue risk, non-compliance undermines the level playing field, which is especially 

critical for small producers who comprise the majority of TTB taxpayers. 

In FY 2018, TTB began developing new measures that will calculate voluntary compliance rates 

by taxpayer and incorporate additional stratifications by tax liability, resulting in the 

discontinuation of the current Percent of Voluntary Compliance from Large Taxpayers in Filing 

Tax Payments Timely measure. The new measures will also incorporate voluntary compliance 

rates for operational reports, a critical information collection that provides production 

information to support TTB tax verification efforts. TTB will baseline these new measures in 

FY 2019 and establish annual targets. By enhancing its data‐driven and risk‐based approach, 

TTB will be able to develop more targeted strategies to better align its resources to the most 

critical revenue risks and address potential underreporting or fraud. 

In FY 2020, TTB will strive to improve the voluntary compliance rate under the new metrics 

through complementary strategies that focus on promoting electronic filing options to enable 

taxpayers to file complete, accurate, and timely tax returns and payments; improving online 

guidance and industry outreach strategies, particularly for those industry members with 

expanding operations; and maintaining an enforcement presence to encourage voluntary 

compliance. Moving forward on all three fronts is required to ensure that TTB strikes the 

appropriate balance between supporting businesses in establishing compliant operations while 

ensuring adequate coverage of the high-risk activity that undermines lawful business activity. 

Further, TTB will review its enforcement plans to address potential vulnerabilities and new tax 

evasion schemes arising from both the new tax legislation and TTB’s expanded enforcement 

responsibilities in the interstate smuggling of cigarettes. The Administration has proposed 

legislative changes to consolidate Federal alcohol and tobacco tax authorities within Treasury, 

which will integrate ATF authorities into TTB’s Federal excise tax enforcement program. The 

FY 2020 budget supports an initial investment to ramp up CCTA enforcement at TTB, which 

TTB expects to result in enforcement efficiencies, increased field presence, and, over time,

improved voluntary compliance through an increased deterrent effect.
TTB - 15

2.1.2 Protect the Public Resources and Measures

Dollars in Thousands

 Resource Level FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Actual Actual Actual Actual Actual Annualized

CR Request

Appropriated Resources $47,279 $47,451 $52,709 $53,527 $56,995 $57,879 $55,471

Reimbursables $3,236 $2,451 $2,577 $2,637 $2,366 $2,596 $2,596

Transfer In 1/ $432 0 0 0 $87 0 0

Budget Activity Total $50,947 $49,902 $55,286 $56,164 $59,448 $60,475 $58,067

FTE 2/ 246 243 246 265 273 247 245

1/ TEOAF Strategic Support Fund

2/ Includes 5 FTE from Puerto Rico cover-over reimbursables

Performance Measure

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2018 FY 2019 FY 2020

Actual Actual Actual Actual Actual Target Target Target

Percentage of Permit 

Applications Processed 

within Service Standards

(75 days) 1/

58 47 32 48 71 85 85 85

Initial Error Rate for Permit 

Applications 2/ 73 77 81 83 80 25 25 25

Percent of Electronically 

Filed Permit Applications 3/ 80 84 81 84 86 87 90 90

Customer Satisfaction 

Rate with TTB Permitting 

Process 

B 76 71 80 83 80 DISC DISC

Customer Satisfaction 

Rate with eGov Systems -

Permits Online 4/

B 64 54 68 77 80 80 80

Percentage of Alcohol 

Beverage Label and 

Formula Applications 

Processed within Service 

Standards 5/

71 80 80 62 84 85 85 85

Initial Error Rate for Label 

and Formula Applications 39 42 44 43 40 25 25 25

Percent of Electronically 

Filed Label and Formula 

Applications

93 94 97 98 98 95 95 95

Customer Satisfaction 

Rate with eGov Systems -

COLAs Online 6/

71 71 74 82 81 80 80 80

Customer Satisfaction 

Rate with eGov Systems -

Formulas Online 6/

53 48 58 70 81 80 80 80

1/ Prior year data subject to additional validations following TTB migration to new reporting platform in FY 2018.

2/ Prior year data revised due to errors in methodology related to wholesaler and importer applications.

3/ Revised actuals for fiscal years 2016 and 2017 due to error in source data.

4/ New measure of user satisfaction with TTB's Permits Online electronic filing system; replaces discontinued measure of 

satisfaction rates with permitting process.

5/ Service standards are set annually based on TTB analysis of submission volume, error rates, and resource levels. For FY 

2018, TTB established new service standards of 15 days for both labels and formulas based on a significant spike in 

submissions. In FY 2017, the service standard was 10 days for both labels and formulas. Between FY 2014 - 2016, the service 

standard was 30 days for labels and 45 days for formulas.

6/ New measures of user satisfaction with TTB’s COLAs Online and Formulas Online (FONL) electronic filing systems. Results 

for FONL represent beverage alcohol formula filers; nonbeverage alcohol formula filers are excluded.
TTB - 16

Protect the Public Budget and Performance

($55,471,000 from direct appropriations, and $2,596,000 from reimbursable resources): 

This budget activity funds the programs that ensure the integrity of the products and industry 

members in the marketplace; promote compliance with Federal laws and regulations by more 

than 90,000 businesses that TTB regulates; facilitate fair and lawful domestic and international 

trade in the alcohol and tobacco commodities; and provide full and accurate alcohol beverage 

product information to the public as a means to prevent consumer deception. These activities 

support Treasury’s Strategic Goal 1 (Boost U.S. Economic Growth) and Strategic Objective 1.3 

(Trusted Currency and Services) to deliver trusted currency and services that enable citizens and 

businesses to participate in the economy as well as Strategic Objective 1.4 (Free and Fair Trade)

to advance a free and fair trade environment for U.S. businesses. 

Other Resources (Offsetting Collections/Reimbursables).................................... $2,596,000

Other resources that support this budget activity include reimbursement for the operating costs of 

the TTB Puerto Rico field office, which are offset against the roughly $400 million in taxes 

collected on the alcohol beverage products that are manufactured in Puerto Rico and imported 

into the United States ; reimbursement by the Community Development Financial Institutions 

Fund (CDFI) for TTB’s IT services; and funding from the Department of the Treasury’s 

Executive Office for Asset Forfeiture (TEOAF) mandatory account to cover investigative 

expenses, data systems, and training.

Description of Performance – Protect the Public:

In FY 2018, TTB met two of its seven annual targets for the performance measures under its 

Protect the Public budget activity. These measures help TTB monitor the degree to which it is 

meeting the service standards it establishes for permit, label, and formula applications; its 

effectiveness in reducing error rates on applications to address processing delays caused by 

incomplete or non-compliant submissions; the impact that electronic filing initiatives are having 

on improved service delivery; and the level of satisfaction that industry members have with 

TTB’s permitting process. TTB is revising its suite of measures to discontinue its current metric 

of customer satisfaction and instead track customer satisfaction with its eGov systems for filing 

permit, label, and formula applications, as TTB continues to pursue system enhancements to 

streamline filing and processing to help manage increasing workloads. TTB’s strategies to 

achieve its performance targets for these measures include a combination of streamlining internal 

processes, implementing enhancements to online filing systems, modernizing application 

requirements, and providing clearer guidance to industry members.

Improve Efficiency and Effectiveness of Permitting Process

TTB protects consumers by screening permit applicants to ensure only qualified persons engage 

in the alcohol, tobacco, firearms, and ammunition industries. For this purpose, in FY 2018, TTB 

processed approximately 9,000 original permit applications, performing investigations into highrisk applicants to meet TTB’s business integrity objectives. TTB monitors its timeliness in 

approving permit applications through its measure of the Percentage of Permit Applications 

Processed within Service Standards. As businesses rely on accurate information related to TTB 

service delivery in their operational planning, this measure provides important data related to a 

key outcome for TTB and its stakeholders. 
TTB - 17

Ongoing expansion of the alcohol beverage industry in recent years has increased the volume of

permit and brewer’s notice applications, particularly for new alcohol producers. This growth in 

workload has contributed to delayed permit approvals by TTB – reaching a peak of 122 days on 

average in FY 2016 – so that new businesses often waited months to begin producing and selling 

their products while having already made significant investments in their operations. To address 

this performance challenge, in FY 2018, Treasury and TTB established a priority goal to reduce 

average approval times for alcohol and tobacco business permits by at least 20 percent (from 96

days to 75 days) and achieve the 75-day standard for 85 percent of applicants by September 30, 

2019. 

In FY 2018, in driving toward its priority goal targets, TTB dramatically improved processing 

times, decreasing from an average of 96 days in FY 2017 to 61 days in FY 2018, exceeding the 

targeted 20 percent reduction. TTB also improved the consistency of its service, processing 71

percent of permit applications within the 75-day standard compared to 48 percent the prior year. 

TTB achieved these gains through revised processes and policies, and strategic workforce 

management.

At the FY 2020 funding level, TTB expects to meet its 75-day standard for 85 percent of permit 

applications through targeted industry education efforts and continued enhancements to Permits 

Online. Additionally, TTB intends to continue its modernization of its qualification 

requirements, informed by public comment, to streamline TTB’s permit applications and further 

reduce burdens related to the filing process. These changes, combined with incremental 

enhancements to TTB’s permitting system, will support TTB in reaching and sustaining its 

current service standard. At the FY 2020 funding level, TTB would postpone custom system 

development efforts and reassess the timeline for its long-term goal of reducing service times to 

60 days or less across alcohol application types. 

According to its measure of the Percent of Electronically Filed Permit Applications, which tracks 

the electronic filing rate for new business applications, TTB received approximately 87 percent 

of permit applications via Permits Online in FY 2018. This year-to-year increase is attributed to 

its regular outreach to direct applicants to the online filing system. TTB expects this trend to 

continue following the July 2018 release of the redesigned Permits Online system. The 

redesigned system includes improved guidance for first-time filers to reduce errors on 

applications that delay processing times as well as a simplified method for amending an existing 

permit that replaces the current paper-based process. These system changes, combined with 

effective outreach and training for industry, will support TTB in achieving and maintaining its 

targeted electronic filing rate of 90 percent in fiscal years 2019 and 2020.

Given the new system features, TTB expects Customer Satisfaction Rates with eGov Systems to 

increase for Permits Online in the years ahead following a transition period for TTB and 

industry. In FY 2018, TTB discontinued its measure of the Customer Satisfaction Rate with 

TTB’s Permitting Process and replaced it with a new measure oriented toward satisfaction with 

its online permitting system. The vast majority of permit applicants file electronically, and TTB 

is focused on ensuring the system supports them in filing complete, accurate applications to 

improve its service levels. 
TTB - 18

The Permits Online enhancements should also contribute to improved outcomes for TTB’s

measure of the Initial Error Rate on Permit Applications, which tracks how many applications 

are submitted either incomplete or with errors. This measure is critical to timely processing, as 

the error rate significantly influences total approval time given the necessary back-and-forth with 

applicants to obtain additional documentation or complete information. In FY 2018, the error 

rate trended positively, with 80 percent of original permit applications submitted with errors

compared to 83 percent in the prior year. This rate is well above the target of 25 percent,

however, and reflects the need for improved guidance and system validations to ensure 

applicants are able to submit correctly the first time. Following the FY 2018 system release, 

TTB expects to draw closer to its target in the year ahead, although current system limitations 

limit TTB’s ability to deploy more advanced features to support applicants in accurate and 

complete filings. Broader changes to streamline permit application requirements, most of which 

will require rulemaking to fully implement, are underway and may also be required before TTB 

can achieve its targeted performance level.

Improve Efficiency and Effectiveness of Alcohol Beverage Label Processing

TTB protects U.S. consumers by ensuring that the alcohol beverage products sold at retail outlets 

are properly labeled and comply with Federal production standards. In FY 2018, TTB received 

nearly 195,000 Certificate of Label Approval (COLA) applications and 17,000 formula 

applications, which reflect historically high submission rates and indicate the ongoing expansion 

of the alcohol beverage industry. Given the importance of timely TTB approvals and the 

negative impact that delays have on U.S. businesses, TTB monitors its ability to provide timely 

and consistent service through its measure of the Percentage of Alcohol Beverage Label and 

Formula Applications Processed within Service Standards. TTB combines label and formula 

applications in this measure given the interdependent nature of these approvals. 

In FY 2018, TTB continued to progress toward its strategic goal to modernize its labeling 

program, making significant strides in maintaining timely service in spite of tremendous year-toyear increases in submission volume, which reached 15 percent or more for both label and 

formula applications. Based on these increases, TTB revised its service standards for labels and 

formulas from 10 days to 15 days in FY 2018.

Through effectively managing its backlog and strategic workforce management, relying on 

additional staffing resources hired using directed funding to accelerate these approvals, TTB was 

able to respond to these challenges and sustain average processing times at or below its service 

standards, and maintained a total average review time of 30 days or less for products requiring 

lab analysis, formula approval, and label approval. Further, in terms of consistent service, TTB 

met or nearly met its target to process 85 percent of label and formula applications within the 15-

day standard, with 91 percent of formulas and 84 percent of labels turned around in 15 days or 

less. 

In the year ahead, TTB will focus its efforts on increasing voluntary compliance through 

initiatives to reduce label and formula application errors. Application errors are a key driver of 

processing times, as additional review is required for each resubmitted application. Results for 

its measure of the Initial Error Rate for Label and Formula Applications indicate that these 
TTB - 19

updates are having a positive effect in reducing label error rates, with errors holding below 40 

percent for the first time in the second half of FY 2018. 

In FY 2020, TTB will continue to make iterative enhancements to COLAs Online and Formulas 

Online, informed by user testing and feedback, which will include additional help features and 

system-based validations to reduce application errors. According to its measure of the Percent of 

Electronically Filed Label and Formula Applications, TTB receives 98 percent of applications 

via COLAs Online and Formulas, indicating that continued focus on system validations is 

warranted and will support performance goals in increasing accurate applications and 

accelerating approval times. TTB expects that these ongoing improvements will help TTB 

continue to attract users to its online systems and maintain a submission rate above its 95 

percent target in FY 2020.

Efforts to drive down error rates also include enhancing information on TTB.gov related to 

obtaining label and formula approval for alcohol beverage products. In FY 2018, in response to 

industry input, TTB published formula guidance with specific example applications and 

supporting documentation to clarify the requirements. TTB also released an updated web-based 

tool to assist malt beverage producers and importers in determining whether their products 

require formula approval, with the aim of bringing down filings for products that no longer 

require advance TTB approval. Additional step-by-step guidance to support industry in checking 

label and formula compliance prior to submitting applications is planned for FY 2019.

In addition, TTB will continue its efforts to improve industry guidance through updated labeling 

regulations. In FY 2018, TTB made substantial progress on its multi-year effort to modernize 

Federal labeling regulations by consolidating, streamlining, and simplifying requirements to 

reflect current TTB policy and modern industry practices. The notice of proposed rulemaking, 

published in November 2018, also reflects proposals that are designed to reduce regulatory 

burden.
TTB - 20

C – Changes in Performance Measures

TTB continues its work to develop and baseline performance measures to align to the new 

strategic objectives in the Treasury and TTB Strategic Plans for FY 2018-2022. This could 

result in additional changes to performance measures included in the FY 2020 budget.

Performance Measure or 

Indicator Change and Justification

1. Amount of Revenue Collected 

Per Program Dollar

(Discontinue)

TTB proposes to discontinue this measure in the CJ/BIB 

and instead report on its return on investment for its 

Collect the Revenue budget activity as an indicator, 

whereby TTB no longer establishes an annual target 

given the significant influence of external factors on the 

overall result.

2. Percent of Voluntary 

Compliance from Large 

Taxpayers in Filing 

Returns/Payments Timely (by 

filing) (Discontinue)

TTB proposes to discontinue this measure in the CJ/BIB 

and replace it with measures that report voluntary 

compliance rates by taxpayer rather than by filing. TTB 

also proposes adding a measure for the voluntary 

compliance rates for operational reports, a required 

companion filing to support tax return validation and 

verification. The new methodologies, in development in 

FY 2019, will inform targeted outreach and enforcement 

strategies.

3. Percent of Voluntary 

Compliance from Large 

Taxpayers in Filing Tax 

Returns/Payments Timely (by 

taxpayer) (New)

Percent of Voluntary Compliance from Large Taxpayers 

in Filing Returns/Payments Timely is defined as the total 

number of taxpayers with annual liabilities of $50,000 or 

greater who filed their semi-monthly tax return and 

payment on time divided by the total number of large 

taxpayers. The data source for this measure is the TTB 

Integrated Revenue Information System (IRIS). This 

measure provides actionable information to address late 

or missing returns and payments and supports effective 

outreach and enforcement strategies.

4. Percent of Voluntary 

Compliance from Large 

Taxpayers in Filing 

Operational Reports Timely 

(by taxpayer) (New)

Percent of Voluntary Compliance from Large Taxpayers 

in Filing Operational Reports Timely is defined as the 

total number of taxpayers with annual liabilities of 

$50,000 or greater who filed their monthly operational 

report on time divided by the total number of large 

taxpayers. The data source for this measure is the TTB 

Integrated Revenue Information System (IRIS). This 

measure provides actionable information to address late 
TTB - 21

or missing reports and supports effective outreach and 

enforcement strategies.

5. Percent of Electronically Filed 

Tax Returns - Pay.gov (New)

Percent of electronically filed tax returns is defined as 

the number of tax returns submitted via Pay.gov divided 

by the total number of tax returns filed. The data source 

for this measure is Pay.gov. This measure provides 

information on taxpayer use of the current online tax 

filing system and informs TTB initiatives to increase 

electronic submissions, including custom system 

development efforts.

6. Percent of Electronically Filed 

Operational Reports - Pay.gov

(New)

Percent of electronically filed operational reports is 

defined as the number of operational reports submitted 

via Pay.gov divided by the total number of operational 

reports filed. The data source for this measure is 

Pay.gov. This measure provides information on 

taxpayer use of the current online tax filing system and 

informs TTB initiatives to increase electronic 

submissions, including custom system development 

efforts.

7. Customer Satisfaction Rate 

with TTB Permitting Process

(Discontinue)

TTB proposes to discontinue this metric in the CJ/BIB 

and replace it with a focused measure on customer 

satisfaction with Permits Online (see below). The 

majority of TTB permit applicants are serviced through 

this online filing system and, going forward, TTB will 

emphasize online guidance and enhanced system 

features to achieve its targets for timely service to 

prospective businesses seeking a TTB permit. 

8. Customer Satisfaction Rate 

with eGov Systems – Permits 

Online (New)

Customer satisfaction rate for Permits Online is defined 

as the total percentage of system users who responded 

that they are very satisfied or satisfied with TTB’s online 

permit application process. User data is derived from the 

Permits Online system, and satisfaction scores are 

collected through an email survey to system users with 

activity within the reporting period. This measure 

provides information on the areas of relative 

dissatisfaction with the permit application process and 

informs system enhancements to improve the 

completeness and accuracy of applications to support 

timely service. 
TTB - 22

9. Customer Satisfaction Rate 

with eGov Systems – COLAs 

Online (New)

Customer satisfaction rate for COLAs Online is defined 

as the total percentage of system users who responded 

that they are very satisfied or satisfied with TTB’s online 

label application process. User data is derived from the 

COLAs Online system and satisfaction scores are 

collected through an email survey to system users with 

activity within the reporting period. This measure 

provides information on the areas of relative 

dissatisfaction with the label application process and 

informs system enhancements to improve the 

completeness and accuracy of applications to support 

timely service. 

10. Customer Satisfaction Rate 

with eGov Systems - Formulas

Online (New)

Customer satisfaction rate for Formulas Online is 

defined as the total percentage of system users who 

responded that they are very satisfied or satisfied with 

TTB’s online formula application process. User data is 

derived from the Formulas Online system and 

satisfaction scores are collected through an email survey

to system users with activity within the reporting period. 

This measure provides information on the areas of 

relative dissatisfaction with the formula application 

process and informs system enhancements to improve 

the completeness and accuracy of applications to support 

timely service. 

Section III – Additional Information

A – Summary of Capital Investments

Information Technology

TTB’s Strategic Plan establishes the vision and objectives for the bureau in the business context. 

TTB’s Information Technology (IT) Strategic Plan is a five-year plan based on its business 

strategy, which includes the bureau’s mission, vision, goals, and objectives from an IT 

perspective. This plan charts the course the bureau will follow in the coming years to develop 

and implement IT solutions that are aimed at streamlining the collection of data, leveraging web 

technologies, and continuing to make the internet the method of choice for the reporting and 

exchanging of information between businesses and TTB. By aligning business and technical 

strategy, TTB is able to leverage technology to enable the bureau to meet its objectives in the 

most efficient and cost-effective manner while identifying ways to minimize system redundancy. 
TTB - 23

TTB has no major IT investments based on the OMB and the Department of Treasury criteria. 

Several non-major investments, however, directly support the mission, strategy, and day-to-day 

operations of the bureau. These include:

TTB Tax System: This investment consists of several component applications that ensure fair 

and proper collection of revenue from the industry members for alcohol, tobacco, firearms, and 

ammunition excise taxes and to ensure compliance with the excise tax regulations.

TTB Regulatory System: This investment includes applications that streamline the beverage 

and nonbeverage alcohol formula approval process and COLA issuance for tax and regulatory 

compliance.

TTB General Support Services: This investment provides TTB users with the infrastructure 

applications necessary to conduct daily business.

TTB Enterprise Architecture: This investment supports strategic management of IT operations 

(e.g., business process redesign efforts not part of an individual investment, enterprise 

architecture development, capital planning and investment control processes, procurement 

management, and IT policy development and implementation) and costs for Chief Information 

Officer functions.

In addition to leveraging IT to support the mission, strategy, and day-to-day operations of the 

bureau, TTB supports and maintains strategy alignment with OMB and Treasury through 

enterprise-wide IT initiatives. These include: Cyber Security; IT Infrastructure; Electronic 

Identity and Access Management (HSPD-12); Enterprise-wide Contracts and Services; and 

Program Metrics and Milestones.

Scientific Equipment for Laboratories

This investment will enable TTB’s chemists to continue to provide accurate and reproducible 

scientific data and laboratory results to support regulatory compliance, tax enforcement, tax 

classification, rulemaking, and investigations for both the alcohol and tobacco commodities.

Laboratory instruments require periodic replacement, as they have finite lifecycles due to use and 

as advances in scientific technology render older instruments obsolete. Periodic replacement of 

the existing technologies is essential for TTB laboratories to remain state-of-the-art and effective 

to support the bureau’s mission, strategy, and day-to-day operations.

A summary of capital investment resources, including major information technology and nontechnology investments can be found at:

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx

This website also contains a digital copy of this document.