Department of the Treasury 

Alcohol and Tobacco Tax and 

Trade Bureau 

Congressional Budget 

Justification and Annual 

Performance Plan and Report 

FY 2022 
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 – Object Classification (Schedule O) Obligations ................................................................ 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 .................................................................... 10

2.1.1 – Collect the Revenue Resources and Measures .............................................................. 10

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

2.1.2 – Protect the Public Resources and Measures .................................................................. 16

Protect the Public Budget and Performance ............................................................................. 17

C – Changes in Performance Measures .................................................................................... 23

D– Evidence-Building Activity ................................................................................................ 23

Section III – Additional Information ........................................................................................ 26

A – Summary of Capital Investments ....................................................................................... 26

 
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. In FY 2020, TTB 

collected approximately $20 billion in excise taxes from the alcohol, tobacco, firearms, and 

ammunition industries. 

Many U.S. businesses experienced significant financial hardships due to the pandemic, including 

many of the small breweries, wineries, and distilleries that comprise the majority of TTB 

taxpayers. At the FY 2022 funding level, and in support of the Administration’s pandemic 

recovery and economic growth priorities, TTB plans to focus on timely service levels and 

facilitating voluntary compliance by simplifying tax and regulatory requirements, modernizing 

its online filing systems, and issuing clear and timely industry guidance. 

Complex or overly burdensome regulatory requirements do not serve the interests of taxpayers or 

the government. In FY 2022, TTB plans to pursue three major regulatory reform efforts in 

permitting, tax, and alcohol beverage labeling to consolidate, clarify, or simplify requirements 

and, where possible, minimize filing frequency. The revised requirements will ease applicant 

burden and make it easier for industry members to voluntarily comply. At the same time, TTB 

plans to tailor the requirements to improve data quality and better detect risk to direct its 

enforcement efforts. 

At the FY 2022 funding level, TTB will also prioritize improvements to its online filing systems 

as part of its IT modernization strategy to develop an integrated online experience for all tax and 

regulatory transactions with TTB. By improving the ease and usability of its online platforms, 

TTB aims to increase electronic submissions, improve timely filings, and support taxpayer 

compliance. Reducing paper submissions also supports “green” filing practices in line with the 

Administration’s climate change agenda. 

TTB will also continue to focus on providing clear and consistent industry guidance to facilitate 

the submission of compliant filings. Omissions and errors on permit and alcohol label 

applications create inefficiencies for TTB and delays in service to industry. Undue delays in 

service can be a barrier to industry expansion and ongoing product innovation that fuel the 

economy. Further, to support these industries as they rebound, TTB plans to use compliance data 

to target and tailor its guidance, industry outreach, and enforcement activities, ensuring that 

businesses have the information they need to comply and are operating on a level playing field. 
TTB - 4 

Additionally, TTB is working with Treasury on options to administer statutory changes to the 

import refund program included in the Taxpayer Certainty and Disaster Tax Relief Act of 2020. 

The law made permanent most Craft Beverage Modernization Act (CBMA) provisions of the 

Tax Cuts and Jobs Act of 2017 with several amendments, including transferring responsibility 

for administering certain provisions related to imported alcohol from U.S. Customs and Border 

Protection (CBP) to Treasury after December 31, 2022. The law requires that importers submit 

refund claims to Treasury to receive the reduced CBMA tax rates and credits as opposed to 

taking them at the time of entry. TTB and Treasury are still assessing the overall impact, 

including the resources, personnel, and information technology systems needed to implement 

and administer the import claims program. A report detailing Treasury’s plans to implement and 

administer the refund program starting in 2023 will be submitted to Congress and made publicly 

available in June 2021 as required by P.L. 116-260. 

1.1 – Appropriations Detail Table 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 FY 2021 to 

FY 2022 

Appropriated Resources Operating Plan1 Operating Plan Request % Change 

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT 

Collect the Revenue 206 $57,513 222 $57,526 222 $60,761 0.0% 5.6% 

Protect the Public 256 $62,087 265 $66,811 265 $70,569 0.0% 5.6% 

Subtotal New Appropriated Resources 462 $119,600 487 $124,337 487 $131,330 0.0% 5.6% 

Other Resources 

Reimbursable and Offsetting Collections2 11 $6,744 12 $7,977 12 $7,977 0.0% 0.0% 

Unobligated Balances from Prior Years3

 22 $4,577 21 $4,696 21 $4,680 0.0% -0.3% 

Transfers In/Out4

 0 $349 0 $350 0 $0 NA -100.0% 

Subtotal Other Resources 33 $11,670 33 $13,023 33 $12,657 0.0% -2.8% 

Total Budgetary Resources 495 $131,270 520 $137,360 520 $143,987 0.0% 4.8% 

1/ FY 2020 New Appropriated Resources by Budget Activity reflect levels appropriated in P.L. 116-93, the Consolidated Appropriations Act of 

2020. FY 2020 Full-time Equivalents (FTE) and FY 2020 Other Resources reflect actuals. 

2/ Includes reimbursements from the Treasury Executive Office of Asset Forfeiture (TEOAF) Mandatory Fund, Community Development

Financial Institution (CDFI) Fund, and Treasury Departmental Offices (DO), and offsetting collections from Puerto Rico cover-over program. 

3/ All years include carryover unobligated balances from prior two-year set aside funding for trade practice enforcement and education as well 

as recoveries of 50 percent in unobligated balances from prior one-year funding. 

4/ Actual obligations (FY 2020) and approved allocation (FY 2021) from TEOAF Secretary's Enforcement Fund transfer. 
TTB - 5 

1.2 – Budget Adjustments Table 

Dollars in Thousands 

Alcohol and Tobacco Tax and Trade Bureau FTE Amount 

FY 2021 Operating Plan 508 $124,337 

Changes to Base: 

Maintaining Current Levels (MCLs): 0 $3,885 

Pay Annualization (1.0% average pay raise) 0 $196 

Pay Raise (2.7% average pay raise) 0 $1,774 

FERS Contribution Increase 0 $995 

Non-Pay 0 $920 

Subtotal Changes to Base 0 $3,885 

FY 2022 Current Services 508 $128,222 

Program Changes: 

Program Increases: 0 $3,108 

MyTTB IT System Modernization 0 $2,500 

Electric Vehicles and Associated Infrastructure 0 $608 

FY 2022 President's Budget Request 508 $131,330 

C – Budget Increases and Decreases Description 

Maintaining Current Level (MCLs)........................................... +$3,885,000 / +0 FTE 

Pay Annualization (1.0%) +$196,000 / +0 FTE 

Funds are requested for annualization of the January 2021 1.0% average pay raise. 

Pay Raise (2.7% in 2022) +$1,774,000 / +0 FTE 

Funds are requested for a 2.7% average pay raise in January 2022. 

FERS Contribution Increase +$995,000 / +0 FTE 

Funds are requested for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022. 

Non-Pay +$920,000 / +0 FTE 

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, and 

equipment. 

Program Increases................................................................. +$3,108,000 / +0 FTE

MyTTB IT System Modernization +$2,500,000 / +0 FTE 

TTB will continue to invest in IT system modernization to transform the industry member 

service experience. The desired end-state, known as MyTTB, will provide a personalized “onestop shop” to help industry members efficiently conduct all business transactions online. This 

initiative would transform the industry member experience with TTB incrementally through the 

development and delivery of functional modules to provide a seamless and consistent experience 

across all permitting, tax, and alcohol labeling interactions. MyTTB would also facilitate 

improved data integration and data quality across TTB programs and systems, enabling TTB to 

better detect noncompliance and fraud, validate application data, automate workflows, and 

increase data-driven decision making. 
TTB - 6 

Electric Vehicles and Associated Infrastructure +$608,000 / +0 FTE 

Following the lead from Executive Order (E.O.) 14008, “Tackling the Climate Crises at Home 

and Abroad,” the U.S. Department of the Treasury joins in the Administration’s priority to 

develop a comprehensive plan to create good jobs and stimulate clean energy industries by 

revitalizing the Federal Government’s sustainability efforts. This includes Treasury’s 

commitment to use all available procurement authorities to augment its Department-wide fleet 

management program with a continued focus on the leasing of electric vehicles (EV) and 

purchasing, installing, and maintaining its essential infrastructure. The requested resources will 

help Treasury comply with the requirements of E.O. 14008 and reduce the carbon footprint of 

emissions into the atmosphere by acquiring an updated fleet of zero-emissions vehicles that can 

support mission operations. 

For FY 2022, TTB requests $608,000 to fund the conversion of its fleet to EV. Of that money, 

approximately $50,000 will be allocated to the purchase, installation, maintenance, and/or 

upgrade of infrastructure required to maintain an EV fleet management program, including 

charging stations to support its future EV fleet. Currently, TTB has a total of 21 vehicles in its 

fleet, none of which are EVs. 

 
TTB - 7 

1.3 – Object Classification (Schedule O) Obligations 

Dollars in Thousands 

 FY 2020 FY 2021 FY 2022 

Object Classification 

Actual 

Obligations* 

Estimated 

Obligations* 

Estimated 

Obligations* 

11.1 - Full-time permanent 55,418 58,541 60,112 

11.5 - Other personnel compensation 953 1,005 1,006 

11.5 - Overtime 423 584 669 

11.9 - Personnel Compensation (Total) 56,794 60,130 61,787 

12.0 - Personnel benefits 19,660 21,573 22,986 

13.0 - Benefits for former personnel 0 5 5 

Total Personnel and Compensation Benefits $76,454 $81,708 $84,778 

21.0 - Travel and transportation of persons1 767 1,344 2,364 

22.0 - Transportation of things 23 30 32 

23.1 - Rental payments to GSA 4,070 4,342 4,425 

23.3 - Communications, utilities, and miscellaneous charges 894 1,300 1,325 

24.0 - Printing and reproduction 153 315 321 

25.1 - Advisory and assistance services 13,829 14,082 15,736 

25.2 - Other services from non-Federal sources 14,390 13,533 14,486 

25.3 - Other goods and services from Federal sources 8,750 9,388 9,883 

25.4 - Operation and maintenance of facilities 2 22 22 

25.7 - Operation and maintenance of equipment 3,302 2,595 2,639 

26.0 - Supplies and materials 380 375 386 

31.0 - Equipment 3,189 3,194 2,890 

32.0 - Land and structures 49 0 0 

Total Non-Personnel $49,798 $50,520 $54,509 

Total Obligations2 $126,252 $132,228 $139,287 

 

Full-time Equivalents (FTE)3 495 520 520 

*Amounts reflect actual and anticipated obligations from all fund sources including annual appropriated resources, carryover balances, 

reimbursables, offsetting collections, and transfers. 

1/ The FY 2022 Request for BOC 21.0 includes $608 thousand for leasing of electric vehicles through GSA. 

2/ FY 2020 reflects actual obligations totaling $126.3 million, of which $119.5 million was from direct resources (new 

appropriations, carryover from prior years, and a TEOAF transfer) and $6.7 million was from reimbursable resources/offsetting 

collections. FY 2021 reflects anticipated obligations totaling $132.2 million, of which $124.5 million is from direct resources

(new appropriations and carryover from prior years) and $7.7 million is from reimbursable resources/offsetting collections. 

FY 2022 reflects anticipated obligations totaling $139.3 million, of which $131.6 million is from direct resources (new 

appropriations and carryover from prior years) and $7.7 million is from reimbursable resources/offsetting collections. 

3/ FY 2020 FTE reflects actual total FTE of 495, of which 484 FTE were from direct resources and 11 FTE were from 

reimbursable resources/offsetting collections. FY 2021 reflects anticipated total FTE of 520, of which 508 FTE are anticipated 

from direct resources and 12 FTE are anticipated from reimbursable resources/offsetting collections. FY 2022 reflects 

anticipated total FTE of 520, of which 508 FTE are anticipated from direct resources and 12 FTE are anticipated from 

reimbursable resources/offsetting collections. 

 
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, [$124,337,000]$131,330,000; of which $5,000,000 shall 

remain available until September 30, 2023; 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[: Provided, That of the 

amount appropriated under this heading, $5,000,000 shall be for the 

costs of accelerating the processing of formula and label 

applications: Provided further, That of the amount appropriated 

under this heading, $5,000,000, to remain available until September 

30, 2022, shall be for the costs associated with enforcement of and 

education regarding the trade practice provisions of the Federal 

Alcohol Administration Act (27 U.S.C. 201 et seq.)] (Department 

of the Treasury Appropriations Act, 2021.)

The 2022 Budget 

proposes $5M in two-year 

funding to allow greater 

flexibility to use funds for 

all FAA Act/IRC 

enforcement activities that 

promote a level playing 

field for industry 

members. 

E – Legislative Proposals 

TTB has no legislative proposals. 
TTB - 9 

Section II – Annual Performance Plan and Report 

A – Strategic Alignment 

In accordance with the Government Performance and Results Act Modernization Act (GPRAMA)

of 2010, Treasury is currently developing the FY 2022 – 2026 Departmental Strategic Plan. The 

Strategic Plan is scheduled for publication in 2022. The Annual Performance Plan will be 

updated in the FY 2023 President’s Budget to reflect new departmental strategic goals and 

objectives. TTB will publish a component plan that aligns bureau activities and priorities to the 

Department’s by the fall of 2022. 

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. TTB generally administers 

its jurisdiction according to five strategic goals that support U.S. economic growth and stability: 

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

Risk; and 5) Workforce Readiness. TTB’s strategic goal of Workforce Readiness 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 through fair and 

effective administration and enforcement of tax laws. The FY 2022 funding level continues the 

investment in a multi-year IT system modernization effort, leveraging technology to improve 

mission outcomes and reduce paper filings, consistent with the Administration’s priorities. In 

addition, the industries TTB regulates have grown significantly in recent years, which presents 

workload and enforcement challenges, particularly in light of recent tax reform legislation. 

Funding is required to address outdated tax and regulatory systems to support efficient filing and 

processing. IT modernization also facilitates data analytics to timely detect fraud, tax evasion, 

and critical compliance issues that undermine a level playing field. 

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. Timely service remains a priority for TTB and the businesses it regulates. As the 

demand for TTB services from these businesses continues to increase, TTB will aim, within 

FY 2022 resources, to sustain improved service times for permit, label, and formula approvals. 

TTB will combine IT system modernization efforts with streamlined application requirements 

and enhanced guidance to achieve its performance goals for customer service. 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 in order to correct 

application errors. 
TTB - 10 

B – Budget and Performance by Budget Activity 

2.1.1 – Collect the Revenue Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $52,785 $53,560 $53,560 $58,856 $57,513 $57,526 $60,761 

Reimbursable & Offsetting Collections $3,143 $3,217 $3,923 $3,573 $4,131 $4,866 $4,866 

Unobligated Balances from Prior Years $170 $125 $112 $214 $98 $113 $125 

Transfers In/Out $0 $197 $902 $597 $349 $350 $0 

Budget Activity Total $56,098 $57,099 $58,497 $63,240 $62,091 $62,855 $65,752 

Full-time Equivalents (FTE) 234 223 212 213 211 227 227 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Amount of Revenue Collected 

Per Program Dollar ($) 414 406 369 339 380 I I I 

Voluntary Compliance from 

Large Taxpayers in Filing Tax 

Returns/Payments Timely (by 

taxpayer) (%) 1

- 60 69 69 DISC DISC N/A N/A 

Voluntary Compliance from 

Large Taxpayers in Filing 

Operational Reports Timely (by 

taxpayer) (%) 

- 66 74 76 DISC DISC N/A N/A 

Voluntary Compliance from 

Large Taxpayers - Overall (%) 90 90 90 91 91 95 95 95 

By Payment 99 99 99 99 99 - - - 

By Tax Return 81 79 82 84 84 - - - 

By Operational Report 82 82 82 83 83 - - - 

Electronically Filed Tax Returns 

- Pay.gov (%) 33 35 37 41 43 50 55 65 

Electronically Filed Operational 

Reports - Pay.gov (%) 39 40 42 46 50 50 55 65 

Key: DISC – Discontinued; I - Indicator 

1/ TTB revised its measure of taxpayer compliance for FY 2020, enabling more accurate and timely analysis of compliance trends by 

taxpayers; the new method also supports separate reporting of compliance rates by payments, tax returns, and operational reports. 
TTB - 11 

Collect the Revenue Budget and Performance 

($60,761,000 from new direct appropriations, $125,000 from unobligated balances from the 

prior year, and $4,866,000 from reimbursable sources): 

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. TTB collects approximately $20 billion in Federal tax revenue annually from a tax 

base of nearly 35,000 businesses. TTB’s regulated taxpayers include distilleries, breweries, and 

wineries, 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 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.............................................................................. $4,991,000 

Unobligated Balances from the Prior Year.........................................................$125,000 

Offsetting Collections/Reimbursables.............................................................$4,866,000 

Other resources that fund this budget activity include unobligated balances from the prior year 

appropriation; reimbursement for the operating costs of TTB’s Puerto Rico field office, which 

are offset against the roughly $470 million in taxes collected on the alcohol beverage products 

that are manufactured in Puerto Rico and imported to the United States; reimbursement from 

CDFI for IT services provided by TTB; and funding from the TEOAF Mandatory Fund to cover 

investigative expenses, data systems, and training. 

Description of Performance: 

TTB combines measures and indicators to demonstrate the effectiveness and efficiency 

with which TTB operates its tax administration function, including through facilitating 

voluntary compliance as well as field enforcement efforts to address critical threats to 

Federal revenues. Through FY 2022, TTB plans to improve tax compliance by updating 

its tax filings, processes, and technologies; enhancing its capacity to timely identify and 

address non-compliance through analytics and other detection tools; and continuing to 

improve taxpayer education and outreach. 

The Amount of Revenue Collected per Program Dollar indicator uses annual collections 

figures and the actual expenditures and obligations for collection activities to quantify the 

efficiency of the TTB tax collection program. In FY 2020, TTB achieved a return on 

investment of $380 for every program dollar spent on collection activities. 

Revenue from the alcohol, tobacco, and firearms and ammunition industries increased yearto-year, with alcohol collections up three percent and firearms and ammunition excise tax 

revenues up 17 percent compared to FY 2019. Tobacco revenues have steadily declined in 

line with shifts in consumption patterns, product manufacturing, and trade. In total, revenue 

collections are up approximately one percent compared to FY 2019. 
TTB - 12 

At the same time, TTB’s tax administration and enforcement costs decreased, as TTB 

significantly curtailed in-person outreach and enforcement activities following the outbreak of 

COVID-19. TTB antitipates returning to a more robust in-person outreach and enforcement 

posture in FY 2021, guided by direction from the Administration and public health officials. 

Going forward, TTB will continue to monitor its return on investment for its Collect the 

Revenue activities as a key indicator; however, results will depend on several external factors, 

including the long-term effects of the craft beverage modernization provisions and the 

duration of the COVID-19 pandemic. 

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

TTB. The Percent of Voluntary Compliance from Large Taxpayers is a key performance 

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

$50,000 in annual taxes) in voluntarily filing their required tax returns, operational reports, 

and payments on or before the scheduled due date. In FY 2020, TTB revised this measure 

based on a new scoring method to better reflect risk by filing type and revenue exposure. 

With this update, TTB maintained a comprehensive picture of compliance by taxpayer, but 

improved the bureau’s ability to rate and prioritize taxpayers based on relative risk to ensure 

TTB pursues the most serious patterns of non-compliance. 

To ensure adequate protection of Federal tax revenue, TTB established a high standard for 

its largest taxpayers, with a targeted filing compliance rate of 95 percent. In FY 2020, TTB 

achieved an overall compliance rate of 91 percent from its large taxpayers in meeting all tax 

filing requirements. Payment compliance rates remained high, at over 99 percent, indicating 

that the majority of reported liabilities are paid on time. Compliance rates for tax returns and 

operational reports were 84 percent and 83 percent, respectively. Although below target, 

these rates held constant with FY 2019, even with disruptions to TTB and industry 

operations caused by COVID-19. 

 

$5,000

$7,000

$9,000

$11,000

$13,000

$15,000

$17,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Collections (in Millions)

Alcohol and Tobacco Excise Tax Collections

Alcohol Tobacco

$50

$150

$250

$350

$450

$550

$650

$750

$850

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Collections (in Millions)

Firearms andAmmunition Excise Tax Collections

FAET

Dollars in Thousands

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Alcohol 7,596,587 $ 7,849,426 $ 7,851,953 $ 7,924,951 $ 7,997,467 $ 8,075,476 $ 8,103,714 $ 7,877,214 $ 7,865,036 $ 8,088,717 $ 

Tobacco 15,515,073 $ 15,015,830 $ 14,321,017 $ 13,553,508 $ 13,623,229 $ 13,274,371 $ 12,966,317 $ 12,050,283 $ 11,375,038 $ 11,239,189 $ 

Firearms 344,262 $ 514,622 $ 764,675 $ 768,927 $ 638,518 $ 749,789 $ 761,630 $ 624,802 $ 567,330 $ 665,650 $ 

TOTAL $ 23,379,878 23,455,922 $ 22,937,645 $ 22,937,645 $ 22,259,214 $ 22,099,636 $ 21,831,661 $ 20,552,299 $ 19,807,404 $ 19,993,556 $ 
TTB - 13 

As the taxpayer universe grows, TTB faces resource challenges in maintaining industry 

compliance. In the last five years, the number of TTB taxpayers has increased nearly 60 

percent, which has created additional workload and enforcement challenges in maintaining 

industry compliance, particularly in light of recent tax reforms. This growth has cut across 

industry types, with the most significant increases in small businesses entering the alcohol 

industry. Over time, with limited resources, TTB outreach efforts to educate industry 

members on tax requirements have also decreased. More recently, TTB has also faced 

competing enforcement priorities, including efforts to address illicit trade practice activity in 

the alcohol industry. 

In FY 2020, to improve tax oversight, TTB piloted new analytics tools and internal 

procedures to address identified non-compliance. TTB created dashboard views of taxpayer 

compliance scores, including summary and detailed information about each compliance 

factor (i.e., late/missing returns, late/missing reports, late payments, and underpayments). 

Based on these scores, TTB tested and validated streamlined procedures for reconciling 

taxpayer accounts and issuing assessments. At the same time, TTB established and validated 

new risk criteria for taxpayer referrals for field audits to address serious non-compliance 

issues that undermine the level playing field. These policy and process improvements proved 

effective, with TTB assessing approximately $60 million in delinquent taxes in FY 2020. 

While these assessments were necessary to protect revenue, at the same time, TTB also 

provided additional guidance to industry on payment options in cases of financial distress 

caused by COVID-19. 

In fiscal years 2021-2022, improving compliance rates will remain a priority for TTB, as 

non-compliance undermines the level playing field, which is particularly critical for the 

small producers who comprise the majority of TTB taxpayers. Plans over the next year 

include continuing TTB’s risk-based reviews of taxpayer accounts, with a focus on 

improving analytics tools and expanding the pilot to include additional taxpayer segments. 

Over the next several years, TTB also plans to improve its education and outreach strategies 

to drive compliant behavior across TTB taxpayers. TTB will continue to actively manage its 

online guidance to provide current information on rules and requirements related to the craft 

beverage modernization provisions, which were permanently enacted in December 2020. 

TTB plans to use data on common compliance issues and trends to direct its annual outreach 

plan as well as to prioritize the development of new online tax guidance. 

 
TTB - 14 

TTB will also focus on improving tax compliance through developing the integrated, 

modernized IT systems supported by the FY 2022 budget request. Today, TTB relies on 

Pay.gov, a Bureau of the Fiscal Service system designed for government payments, for the 

electronic filing of tax returns and operational reports. TTB’s two measures to monitor the 

Electronic Filing Rates for Tax Returns and Operational Reports in Pay.gov support 

ongoing efforts to reduce paper filings. 

E-filing rates for tax returns and operational reports trended positively in FY 2020, but 

remain low compared to other TTB online systems. TTB ended the year at 43 percent of tax 

returns and 50 percent of operational reports submitted electronically. These low rates 

impede TTB’s ability to timely and effectively detect and address non-compliance and add 

costs to making the data available for routine reconciliation or advanced analytics. 

Additional Pay.gov promotion may improve e-filing rates in the near term to achieve its 

FY 2022 target of 65 percent, although more significant tax system modernization is likely 

required for TTB to achieve its long-term target of 80 percent. 

At the FY 2022 funding level, and as part of its IT modernization efforts, TTB intends to 

implement phased releases to its tax system, including developing a custom external 

interface for electronic tax filings and enhancing internal workflows to support TTB tax 

administration. In FY 2020, TTB deployed new document and imaging archives and an 

internal claims processing module to streamline internal processes and improve service times 

for issuing refunds on claims – filling a critical need for businesses potentially experiencing 

cash flow issues during the pandemic. TTB also initiated critical identity management work, 

laying the groundwork for a single industry member login across TTB’s online systems. 

Combined, these releases provide foundational infrastructure for the new integrated 

“MyTTB” system. 

Effective tax administration also requires modernized systems to facilitate TTB’s data-driven 

approach to monitoring compliance and timely identifying potential tax evasion – even more 

critical in light of recent tax reforms. At present, resource-intensive manual analysis and 

94%

90%

91%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Large Taxpayers Oveall Compliance Rate

Overall Compliance

TARGET: 95%

100% 99%

88%

81%

84%

87% 82%

83%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Large Taxpayers Oveall Compliance Rate

Payments Tax Returns Operational Reports

Large Taxpayer Filing Compliance Rate – Overall Large Taxpayer Filing Compliance Rate – By Filing Type

Overall compliance has trended down over the past decade – 

down from 94% in FY 13 to 91% today – requiring enhanced 

technology and guidance to support voluntary compliance by the 

increased number of taxpayers. 

Compliance with tax payment remains high; however, lower 

compliance scores for required tax returns and operational reports 

pose challenges to verifying the taxes paid. In addition to IT and 

guidance, TTB plans to issue rulemaking to streamline its tax 

requirements to minimize filing burden and support voluntary 

compliance. 
TTB - 15 

reconciliation of multiple reports and returns, in combination with other data sources, by 

specialists, auditors, and investigators are required to detect and address high-risk activity. 

In the years ahead, and at the requested funding level, TTB will enhance its tax systems and 

analytics tools to facilitate TTB’s use of its tax information, in combination with other data 

sources such as import and export data, to more effectively target its limited resources to 

suspected evasion schemes. This includes continued coordination CPB to support 

implementation of the import-related provisions of the tax reform legislation, which requires 

coordinating data and information sharing needs and identifying opportunities for joint 

enforcement to effectively combat revenue risks. 

Starting in January 2023, Treasury will be responsible for administering refund claims to 

importers eligible for reduced tax rates and credits under CBMA. Currently administered by 

CBP, the Taxpayer Certainty and Disaster Tax Relief Act of 2020 transferred this 

jurisdiction from CBP to Tresaury as of December 31, 2022. TTB is supporting Treasury in 

its analysis of options for implementing and administering refund claims to importers, with a 

proposed plan for implementation and adminstration due to Congress in June 2021. 

 

At the FY 2022 funding level, TTB also plans to continue pursuing regulatory remedies to 

improve tax administration and industry compliance. TTB recognizes that a number of current 

tax-related reporting requirements are burdensome on industry and, in some cases, require 

significant TTB resources to administer. To address these issues, and to ensure that TTB’s tax 

requirements are commensurate with revenue risk, TTB completed a broad-based review of its 

tax return and operational report filing requirements. 

The review generated recommendations to significantly streamline requirements to decrease 

both the amount of information collected as well as the frequency with which it is collected. 

The review also incorporated changes to TTB requirements to address new risks to 

underreporting introduced by recent tax reforms. The net effect of these revisions would 

substantially reduce reporting and filing burdens for industry. 

This multi-year initiative will require rulemaking to implement. TTB will work these 

efforts in tandem with the IT modernization efforts funded through FY 2022 to deliver 

these new requirements through a new tax system interface. As TTB initiates these efforts, 

the bureau will continuously evaluate and refine its regulatory and statutory options to find 

solutions to gain efficiencies for industry and TTB, while also boosting overall tax 

compliance. 
TTB - 16 

2.1.2 – Protect the Public Resources and Measures 

Dollars in Thousands 

 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request 

Appropriated Resources $53,654 $57,879 $57,879 $60,744 $62,087 $66,811 $70,569 

Reimbursable & Offsetting Collections $2,577 $2,637 $2,366 $2,666 $2,613 $3,111 $3,111 

Unobligated Balances from Prior Years $170 $125 $4,166 $4,865 $4,479 $4,582 $4,554 

Transfers In/Out $0 $0 $87 $0 $0 $0 $0 

Budget Activity Total $56,401 $60,641 $64,498 $68,275 $69,179 $74,504 $78,235 

Full-time Equivalents (FTE) 246 265 273 282 284 293 293 

Performance Measure 

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022 

Actual Actual Actual Actual Actual Target Target Target 

Permit Applications Processed within 

Service Standards 

(75 days) (%) 

32 48 71 58 84 85 85 85 

Alcohol Beverage Label and Formula 

Applications Processed within Service 

Standards (15 days) (%)1

80 62 84 48 83 85 85 85 

Initial Error Rate for Permit 

Applications 81 83 80 71 62 25 25 25 

Initial Error Rate for Label and 

Formula Applications 44 43 40 37 34 25 25 25 

Electronically Filed Permit 

Applications (%) 81 85 87 89 92 95 95 98 

Electronically Filed Label and 

Formula Applications (%) 97 98 98 99 99 I I I 

Customer Satisfaction Rate with eGov 

Systems - COLAs Online 74 82 81 77 80 80 80 80 

Customer Satisfaction Rate with eGov 

Systems - Permits Online 54 68 77 68 78 80 80 80 

Customer Satisfaction Rate with eGov 

Systems - Formulas Online2 58 70 79 70 73 80 80 80 

Key: I - Indicator 

1/ Service standards are set annually based on TTB analysis of submission volume, error rates, and resource levels. In FY 2016, the service 

standards were 30 days for labels and 45 days for formulas. In FY 2017, TTB set the service standards at 10 days for both labels and formulas, 

after receiving dedicated funding to support accelerated processing times. In FY 2018, following a spike in submission volume, TTB established 

new service standards of 15 days for both labels and formulas; these standards remain in effect through 2020. 

2/ Results represent beverage alcohol filers only (nonbeverage alcohol formula submissions are excluded). 
TTB - 17 

Protect the Public Budget and Performance 

($70,569,000 from new direct appropriations, $4,554,000 from unobligated balances from the 

prior year, and $3,111,000 from reimbursable sources): 

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 106,000 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. 

Other Resources..................................................................................$7,665,000 

Unobligated Balances from the Prior Year...........................................................$4,554,000 

Offsetting Collections/Reimbursables..................................................................$3,111,000 

Other resources that support this budget activity include unobligated balances from the prior year 

appropriation; reimbursement for the operating costs of the TTB Puerto Rico field office, which 

are offset against the roughly $470 million in taxes collected on the alcohol beverage products 

that are manufactured in Puerto Rico and imported into the United States; reimbursement by 

CDFI for TTB’s IT services; and funding from the TEOAF Mandatory Fund to cover 

investigative expenses, data systems, and training. 

Description of Performance: 

TTB uses a combination of measures to monitor the degree to which the bureau is meeting 

its established service standards 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; and the level of satisfaction that industry members have with 

TTB’s online systems. TTB’s strategies to achieve its performance targets for these 

measures include a combination of improving internal processes, streamlining application 

requirements, modernizing its IT systems, and providing clearer guidance to industry 

members. 

TTB monitors its timeliness in processing 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. 

In recent years, the volume of submissions, particularly in the more complex permit 

application types for alcohol beverage producers, has caused approval times to increase. 

Approval times spiked to an average of 122 days in FY 2016, and over 200 days for alcohol 

producer applications, delaying operations for these applicants, many of whom had already 

made significant upfront investments. Under a two-year Agency Priority Goal (APG) for 

FY 2018 – 2019, TTB and Treasury set a performance goal to improve the timeliness and 

consistency of service levels by reducing average processing times for new permit 

applications by 20 percent and achieving its service standard for 85 percent of applicants. 
TTB - 18 

TTB met one of its two APG targets in FY 2019, 

reducing average approval times to 75 days. 

However, TTB fell short of its second target to 

achieve the 75-day service standard for 85 

percent of permit applicants. In FY 2020, TTB 

retained this second prong of its priority goal 

and, by year-end, nearly achieved the target by 

meeting the standard for 84 percent of applicants. 

Average review times also decreased 

significantly, down to 42 days overall in 

FY 2020, with improvements across all 

application types. TTB attributes these gains to 

improved backlog management, which was 

facilitated by new permit application dashboards 

that display key metrics on the status and age of 

pending applications to support effective 

processing and management. 

TTB achieved these improvements even as the 

volume of permit applications spiked in 

FY 2020, driven by new and amended permits 

related to hand sanitizer production. TTB 

expedited its processing of over 2,400 permit applications, facilitating a shift in industry 

operations to hand sanitizer production following the Coronavirus Aid, Relief, and Economic 

Security (CARES) Act. Under the law, Congress provided certain flexibilities for tax-free 

withdrawals of spirits used to produce hand sanitizer in accordance with U.S. Food and Drug 

Administration guidance through the end of calendar year 2020. Recognizing the urgency, 

TTB approved many of these applications within one day. 

Sustaining these performance improvements in FY 2022 and beyond will require progress on 

several cross-cutting initiatives. At the requested funding level, TTB will focus on achieving 

its performance target through continued process improvements, IT system enhancements, 

and updates to its permit applications to simplify and streamline requirements. TTB will also 

continue to update its procedures to screen permit applicants, refining the risk criteria, tools, 

and procedures used to vet applicants for suitability to hold a Federal permit. TTB will use the 

results of its field investigations to inform its risk factors to improve the timeliness and 

effectiveness of its business qualification process. 

TTB measures the Initial Error Rate on Permit Applications, which tracks how many 

applications are submitted either incomplete or with errors, to develop directed strategies to 

maintain timely service by increasing the number of first-time permit application approvals. 

Errors increase the overall workload volume, requiring extensive back-and-forth with 

applicants to ensure the application is complete prior to TTB review and verification, which 

adds to the total processing time. Over the last five years, TTB’s ability to meet its service 

standard for new permit applications has been challenged by high error rates, which had 
TTB - 19 

consistently remained around 80 percent. Error rates are much higher for prospective 

breweries, wineries, and distilleries, which have more complex applications compared to 

non-manufacturers (i.e., wholesalers and importers). With recent system and guidance 

enhancements, as well as the permit application changes implemented to date, TTB has been 

able to reduce the high volume of applications submitted with errors. For FY 2020, the error 

rate on permit applications decreased to 62 percent, with improvements achieved across most 

application types. 

Further, to improve both error rates and approval times, TTB plans to implement 

recommendations from a review of its process for returning permit applications for 

corrections. In FY 2020, TTB integrated new tools and processes to streamline the 

application return process and standardize internal procedures. In fiscal years 2021 - 2022, 

to continue making progress toward its target of 25 percent, TTB plans to implement system 

enhancements to provide greater consistency in reviews and improve industry interactions 

with TTB. Presently, Permits Online, the online filing system for permit applications, does 

not allow an applicant to add or correct information on the application after it is submitted. 

This is instead handled via email exchange between the TTB specialist and applicant, 

creating processing inefficiencies and limiting effective oversight of in-process applications. 

As part of the MyTTB IT modernization initiative, TTB plans to enable incomplete 

applications to be returned and corrected within Permits Online, which should result in 

processing efficiencies, reduced error rates, and a better user experience for industry. 

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

tracks the electronic filing rate for new business applications, TTB received 92 percent of 

permit applications via Permits Online in FY 2020. TTB attributes this ongoing increase to 

TTB.gov improvements following the release of the redesigned Permits Online system in 

2018, which included improved guidance for first-time filers to help them navigate the 

application process. These system changes, combined with the online training available to 

industry, will support TTB in achieving its FY 2022 targets of increasing the electronic filing 

rate to 98 percent and reducing the initial error rate on permit applications to 25 percent. 

In alignment with its strategy to optimize its electronic filing systems, TTB measures 

Customer Satisfaction with the Permits Online eGov System through an e-mail survey to 

assess how satisfied businesses are in applying for a permit or registration through Permits 

Online. In FY 2020, system satisfaction rates increased 10 percent, from 68 percent in 

FY 2019 to 78 percent in FY 2020. Notably, satisfaction rebounded significantly with 

improved permit approval times later in the year, demonstrating a strong correlation between 

service levels and system satisfaction. Although still below the annual target of 80 percent, 

TTB expects the positive trend to continue in line with overall improvements in service levels, 

and as TTB initiates broader system modernization efforts supported by FY 2022 funding. 

TTB will also focus on improving the level of service provided to customers seeking live 

assistance with the permit application process via TTB’s call center. 

Broader changes to TTB’s application requirements, some of which require rulemaking, are 

underway and may need to be fully implemented before TTB can achieve and sustain its targeted 

performance levels for FY 2022, particularly as the alcohol beverage industry continues to 
TTB - 20 

recover from the pandemic. In FY 2020, TTB continued to make progress towards modernizing 

its permit applications. Using a multi-disciplinary team, TTB has reviewed its permit 

requirements and developed recommendations to modernize and streamline the applications 

based on TTB’s statutory responsibilities and enforcement needs. These proposals are being 

informed by industry input on Treasury regulations that can be eliminated, modified, or 

streamlined to reduce burdens. 

Certain changes in the Brewer’s Notice application have been implemented in advance of 

rulemaking, including the elimination of lease or proof of ownership agreements. The bureau 

intends to publish a series of rulemakings in fiscal years 2021 and 2022 for more significant 

modifications to TTB permit applications that should result in additional burden reductions for 

both industry and TTB. Further, simplifying and clarifying TTB’s regulatory requirements 

should also result in a reduced volume of initial permit applications submitted with errors, which 

would contribute to improved approval times. 

In FY 2020, TTB received approximately 183,000 label applications and 24,000 formula 

applications for new alcohol beverage product approvals. 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 the last five years, in line with industry expansion and product innovation, submission 

volume has increased nearly 15 percent for labels and nearly 70 percent for formulas. 

COVID-19 temporarily halted this growth in label applications, with volume down 8 

percent overall compared to FY 2019. This decline was driven by reductions in wine and 

malt beverage label applications, with a decrease of 11 percent in wine and 5 percent in malt 

beverages in FY 2020. Distilled spirits label applications, however, continued to increase, 

with another 4 percent growth over prior years, driven by innovation in the craft spirits 

sector. Formula submissions continued their growth trend, indicating continued industry 

innovation during the pandemic. Although all alcohol beverage commodities contributed to 

the increase in formula submissions, malt beverage submissions increased at the fastest rate, 

up over 40 percent compared to last year, due to the use of innovative ingredients and 

market trends such as flavored malt beverage products. 
TTB - 21 

In light of customer expectations, as well 

as ongoing program improvements 

supported by directed funding enacted in 

the FY 2020 budget to accelerate approval 

times, TTB maintained its service 

standards for beverage alcohol labels and 

formulas at 15 days in FY 2020. Despite 

increased submission volume, the 

formulation area achieved the targeted 

performance level, and ended the year at 

87 percent of formula applications meeting 

the 15‐day standard, exceeding the target 

of 85 percent. This was achieved through 

effective monitoring and management of 

the application backlog combined with 

strategic workforce management to 

efficiently deploy staff. By employing 

similar strategies, label performance nearly 

achieved the target in FY 2020 at 83 

percent. Performance significantly improved 

for both application types in the latter half 

of the fiscal year as TTB cleared backlogs 

while the overall label application volume 

decreased, with the vast majority of 

applications processed in 10 days or less. 

TTB expects the positive trends to continue 

through FY 2022 through continuous 

management of pending applications and 

strategic resource alignment. TTB plans to 

maintain its 15-day service standard for 

label and formula applications, and will 

work toward its fiscal years 2021 and 2022 

targets of meeting this standard for 85 

percent of applications through strategic initiatives to upgrade online systems and guidance, 

with particular focus on reducing application errors that increase total workload and 

challenge timely processing. 

Application errors are a key driver of label and formula processing times due to the 

additional review required for each resubmitted application. TTB relies on its measure of the 

Initial Error Rate of Label and Formula Applications to monitor error trends and evaluate 

the effect of system and guidance enhancements on first-time approvals. In FY 2020, 

approximately 34 percent of label and formula applications were submitted incomplete or 

with errors, falling short of the targeted performance level of 25 percent, although 

demonstrating year-to-year progress. 

TTB successfully reduced approval times in the latter half of 

FY 2020 in efforts to support industry members in 

maintaining operations during the COVID-19 pandemic. 

Commodity

% Meeting

Standard Median

% Meeting

Standard Median

DISTILLED SPIRITS 41% 19 75% 8

MALT BEVERAGE 46% 16 86% 6

WINE 91% 5 94% 3

Overall 74% 7 90% 4

Commodity

% Meeting

Standard Median

% Meeting

Standard Median

DISTILLED SPIRITS 80% 8 88% 5

MALT BEVERAGE 86% 7 95% 4

WINE 86% 7 91% 4

Overall 83% 7 91% 5

Completed Formula Application Statistics

Pre‐COVID

(10/01/19 ‐ 3/14/20)

Post‐COVID

(3/15/20 ‐ 9/30/20)

Completed Label Application Statistics

Pre‐COVID

(10/01/19 ‐ 3/14/20)

Post‐COVID

(3/15/20 ‐ 9/30/20)
TTB - 22 

In FY 2020, TTB continued to use a data-driven strategy to address the most frequent 

application errors, with the goal of increasing the number of applications that do not need to 

be returned for correction. This year, TTB made progress in issuing improved guidance on 

TTB.gov. This includes detailed examples of compliant label and formula submissions by 

commodity, as well as web-based tools to make it easier for industry members to determine if 

their products require TTB formula approval prior to filing a label. Going forward, TTB 

intends to further reduce error rates by increasing and integrating industry guidance available 

on TTB.gov and its online systems. 

In addition, TTB continued its initiative to modernize Federal alcohol beverage labeling 

regulations to reflect current TTB policy and modern industry practices. In FY 2020, TTB 

published a final rule as part of its multi-year labeling modernization rulemaking project. 

This final rule codified liberalizing proposals that received broad industry consensus. 

Subsequent phases planned for fiscal years 2021 and 2022 will address specific labeling and 

advertising proposals for each alcohol beverage commodity, as well as crosscutting labeling 

issues. TTB will also indicate issues the bureau intends to close or reserve for future 

rulemaking. Through rulemaking, as well as policy guidance, TTB is seeking to equip 

industry with the information needed to submit more complete and accurate label and 

formula applications. 

Sustaining service levels will also be supported through ongoing enhancements to TTB’s 

eGov systems. Over the last several years, TTB has deployed system enhancements to 

COLAs Online and Formulas Online, focusing its efforts on compliance validations and 

embedded help features to address frequent application errors. These system releases have 

targeted both application and label compliance errors and, in FY 2020, results indicate that 

the changes implemented to date have proven effective, with error rates down 4 percent 

overall for both application types compared to last year, with labels ending the year at 33 

percent (down from 37 percent) and formulas at 35 percent (down from 39 percent). 

To be successful in this strategy, TTB must maintain high rates of electronic filing for label and 

formula applications. According to its measure of the Percent of Electronically Filed Label and 

Formula Applications, TTB now receives 99 percent of applications via COLAs Online and 

Formulas Online, indicating that continued focus on system validations is warranted and will 

support performance goals in increasing accurate applications and accelerating approval times. 

Going forward, through its IT system modernization efforts funded in FY 2022, TTB plans to 

expand and improve system-based validations. These efforts include testing artificial intelligence 

techniques to detect text and image errors on label applications, with the goal of alerting users to 

certain types of errors prior to submitting an application. TTB will also continue to employ user 

testing and feedback to make iterative enhancements to COLAs Online and Formulas Online to 

reduce application errors. 

Through its measures of Customer Satisfaction with COLAs Online and Formulas Online, 

TTB monitors user satisfaction with the process of submitting an application through its 

eGov systems, collecting responses via e-mail survey to assess factors such as ease of access, 

guidance, and overall experience. In FY 2020, satisfaction rates increased from 77 percent to 

80 percent for COLAs Online users and 70 percent to 73 percent for Formulas Online users. 
TTB - 23 

TTB generally attributes these increases to reduced processing times and anticipates that 

performance will continue to improve through FY 2021 in line with timely service levels. 

Further, TTB expects that planned system improvements and regular review of survey 

feedback will help TTB to exceed its user satisfaction target of 80 percent and continue to 

attract users to its online systems to maintain electronic filing rates above its target of 95 

percent. 

C – Changes in Performance Measures 

Performance Measure or Indicator Proposed Change and Justification 

Voluntary Compliance from Large 

Taxpayers in Filing Tax 

Returns/Payments Timely (by 

taxpayer) 

Replaced by Voluntary Compliance from Large 

Taxpayers - Overall. TTB revised its measure of 

taxpayer compliance for FY 2020, enabling more 

accurate and timely analysis of compliance trends 

by taxpayers. The new method provides an overall 

compliance score based on late and missed tax 

filings, and also supports separate reporting of 

compliance rates by payments, tax returns, and 

operational reports. 

Voluntary Compliance from Large 

Taxpayers in Filing Operational 

Reports Timely (by taxpayer) 

See above. 

D– Evidence-Building Activity 

Type of 

EvidenceBuilding Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

Evaluation 

Collection and 

analysis of data to 

assess effectiveness 

and efficiency of 

programs, policies, 

or procedures

Estimated share of all 

Evidence-Building 

Activities: 

 15%

Major activities: 

 Requirements Analysis 

 Customer/User Experience 

(CX/UX) Research and Analysis 

 Customer Surveys 

 0301 – 

Miscellaneous 

Administration 

and Program 

 0340 – 

Program 

Manager 

 0343 – 

Management 

& Program 

Analyst 

 1530 – 

Statistics 

 1801 – 

General 

Inspection, 

Investigation, 

☒ For internal 

policy 

 decisionmaking 

☒ During 

internal 

 strategic 

management 

 processes 

☐ By external 

partners 

 (government) 

☐ By external 

partners 

 (nongovernment) 

FY21 and FY22 projects: 

 Permit Simplification: Internal 

evaluation of permit application 

requirements (Active) 

 Tax Simplification: Internal 

evaluation of tax filing 

requirements (tax returns/ 

operational reports) (Active) 

 MyTTB IT Modernization UX 

Testing: Collection of customer 

feedback on usability of new 
TTB - 24 

Type of 

EvidenceBuilding Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

system features prior to release 

(Active) 

 Customer Satisfaction Survey: 

Annual survey to collect data on 

industry demographics, 

priorities, and satisfaction 

(Active)

and 

Compliance 

 Analytics 

Contract 

☐ By 

unaffiliated 

 external 

researchers 

☐ Other 

(describe) 

Research 

Modeling or other 

systematic use of data 

to explore emerging 

issues or potential 

scenarios to generate 

new knowledge

Estimated share of all 

Evidence-Building 

Activities: 

 15%

Major activities: 

 Company/Taxpayer 

Relationships 

 Taxpayer Compliance 

 Alcohol Market Trends 

 0301 – 

Miscellaneous 

Administration 

and Program 

 0340 – 

Program 

Manager 

 0343 – 

Management 

& Program 

Analyst 

 1530 – 

Statistics 

 1801 – 

General 

Inspection, 

Investigation, 

and 

Compliance 

 Analytics 

Contract 

☒ For internal 

policy 

 decisionmaking 

☒ During 

internal 

 strategic 

management 

 processes 

☐ By external 

partners 

 (government) 

☐ By external 

partners 

 (nongovernment) 

☐ By 

unaffiliated 

 external 

researchers 

☐ Other 

(describe) 

FY21 and FY22 projects: 

 Controlled Groups: 

Compilation of data to identify 

controlled groups and other 

company relationships for tax 

administration and enforcement 

(Active) 

 Taxpayer Notice Redesign: 

Apply behavioral science to the 

design and issuance of taxpayer 

notices, starting with 

information sharing with the 

Internal Revenue Service 

(Active/Planned) 

 Alcohol Market Trends: Initial 

research into data sources for 

analysis of alcohol beverage 

industry trends based on market 

data (Planned) 

Analysis 

Routine and frequent 

use of data that 

produces insights for 

decision making and 

program 

management

Estimated share of all 

Evidence-Building 

Activities: 

 50%

Major activities: 

 Management Dashboards 

 Performance Measurement 

 Risk Assessment 

 Industry Guidance & Outreach 

 Workforce Analysis

 0301 – 

Miscellaneous 

Administration 

and Program 

 0340 – 

Program 

Manager 

 0343 – 

Management 

& Program 

Analyst 

 1530 – 

Statistics 

 1801 – 

General 

☒ For internal 

policy 

 decisionmaking 

☒ During 

internal 

 strategic 

management 

 processes 

☐ By external 

partners 

 (government) 

☐ By external 

partners 

FY21 and FY22 projects: 

 Permit Dashboard: Views of 

original and amended permit 

application backlog by type, 

age, and status (Active) 

 Tax Compliance Dashboard: 

View of TTB taxpayer 
TTB - 25 

Type of 

EvidenceBuilding Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

compliance scores for filing tax 

returns, operational reports, and 

payments (Active) 

 Executive Dashboards: Views 

of strategic performance 

measures and other key 

indicators that serve as the basis 

for internal strategic 

management meetings (Active) 

 Call Center Dashboard: View 

of call center performance 

measures (e.g., volume, 

handled, abandoned, call wait 

time, handle time) to support 

management decisions (Active) 

 Applicant Risk Review: 

Automated pre-screening of 

permit applicants based on risk 

criteria (Active) 

 TTB.gov Guidance: Prioritizing 

and developing new and 

updated web content based on 

high frequency application 

errors and/or compliance issues 

(Active) 

 Workforce Analysis: Ad hoc 

analyses of staffing levels and 

allocation based on workload 

volume and targeted service 

level scenarios (Active) 

Inspection, 

Investigation, 

and 

Compliance 

 Analytics 

Contract 

 (nongovernment) 

☐ By 

unaffiliated 

 external 

researchers 

☐ Other 

(describe) 

Statistics 

Collection, 

compilation, and 

processing of data for 

describing or 

estimating 

characteristics or 

insights concerning 

groups

Estimated share of all 

Evidence-Building 

Activities: 

 20%

Major activities: 

 Statistical Releases 

 Data Quality Assessment 

 0301 – 

Miscellaneous 

Administration 

and Program 

 0343 – 

Management 

& Program 

Analyst 

 1530 – 

Statistics 

 1801 – 

General 

Inspection, 

Investigation, 

and 

Compliance 

☒ For internal 

policy 

 decisionmaking 

☒ During 

internal 

 strategic 

management 

 processes 

☒ By external 

partners 

 (government) 

☒ By external 

partners 

 (nongovernment) 
TTB - 26 

Type of 

EvidenceBuilding Activity 

Major Activities and Planned 

Projects

Resource 

Types 

Use 

FY21 and FY22 projects: 

 Commodity Statistical Reports: 

Public data on production and 

trade of alcohol and tobacco 

products (Active) 

 Data Quality (DQ) Assessment: 

Collection and compilation of 

data quality issues in DQ 

Monitoring Tool by data 

characteristic, issue type, and 

priority level (Active) 

 Analytics 

Contract 

☒ By 

unaffiliated 

 external 

researchers 

☒ Other: Tax 

administration 

and 

enforcement 

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 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 compliance with excise tax laws and 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 
TTB - 27 

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 and equipment is essential for TTB laboratories to remain state-of-theart and effective to support the bureau’s mission, strategy, and day-to-day operations. 

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx.