Alcohol and Tobacco Tax and Trade Bureau

Mission Statement 

To collect alcohol, tobacco, firearms, and ammunition excise taxes that are rightfully due; to 

protect the consumer of alcohol beverages through compliance programs that are based upon 

education and enforcement of the industry to ensure an effectively regulated marketplace; and to 

assist industry members to understand and comply with Federal tax, product, and marketing 

requirements associated with the commodities we regulate.

Program Summary by Budget Activity 

Dollars in Thousands 

Appropriation FY 2009 FY 2010 FY 2011

Enacted Enacted Request $ Change % Change

 Collect the Revenue $50,524 $51,500 $53,084 $1,584 3.1% 

 Protect the Public $48,541 $51,500 $53,084 $1,584 3.1% 

Total Appropriated Resources $99,065 $103,000 $106,168 $3,168 3.1%

Total FTE 511 535 547 12 2.2%

Note: FY 2011 Total Appropriated Resources includes $106,168 (dollars in thousands) in offsetting receipts collections from licensing and 

registration fee revenues. TTB's entire budget for FY 2011 is to be funded from licensing and registration fees, to cover both the Collect the 

Revenue and Protect the Public Budget Activities. The 547 FTE for FY 2011 excludes 15 FTE from the Puerto Rico reimbursable. 

FY 2011 Priorities 

• Collect roughly $21 billion in excise taxes rightfully due to the federal government; 

• Process permit applications that allow for the commencement of new alcohol and tobacco 

businesses; 

• Process applications for Certificates of Label Approval (COLAs) required to introduce 

alcohol beverage products into the marketplace; 

• Conduct investigations to effectively administer the Internal Revenue Code (IRC) and 

Federal Alcohol Administration (FAA) Act provisions with the objective to minimize tax 

fraud and diversion risks; 

• Conduct statistically valid sampling programs to determine industry-wide compliance with 

advertising, labeling, and formulation regulations; 

• Complete audits of large and at-risk taxpayers who pay federal excise taxes; 

• Promote e-filing of industry member data, including taxpayer operational reports and tax 

returns, alcohol beverage formula submissions, and COLA applications; 

• Detect counterfeit alcohol and tobacco products, and those industry products diverted from 

lawful channels, and collect the taxes rightfully due; 

• Enhance food safety programs focusing on the integrity and safety of domestic and imported 

beverage alcohol products; 

• Implement licensing and registration fee program contingent upon passage of legislation. 

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Table of Contents 

Alcohol and Tobacco Tax and Trade Bureau ........................................................................ 1

Section 1 – Purpose ................................................................................................................... 3

1A – Description of Bureau Vision and Priorities ............................................................. 3

1B – Program History and Future Outlook ........................................................................ 4

Section 2 – Budget Adjustments and Appropriation Language ......................................... 10

2.1 – Budget Adjustments Table ...................................................................................... 10

2A – Budget Increases and Decreases Description .......................................................... 10

2.2 – Operating Levels Table ........................................................................................... 12

2.3 – Appropriations Detail Table .................................................................................... 12

2B – Appropriations Language and Explanation of Changes .......................................... 13

2C – Legislative Proposals ............................................................................................... 20

Section 3 – Budget and Performance Plan ........................................................................... 23

3.1 – Budget by Strategic Outcome .................................................................................. 23

3.2.1 – Collect the Revenue Budget and Performance Plan ............................................. 24

3.2.2 – Protect the Public Budget and Performance Plan ................................................. 26

Section 4 – Supporting Materials .......................................................................................... 28

4A – Human Capital Strategy Description ....................................................................... 28

4.1 – Summary of IT Resources Table ............................................................................. 31

4B – Information Technology Strategy ............................................................................ 32

4.2 – Program Evaluation ................................................................................................. 32

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 Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible for the administration and 

enforcement of federal law, namely those 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 and the protection of consumers of alcohol beverages. 

In Fiscal Year (FY) 2011, TTB will continue to focus its efforts on helping industry members 

comply with federal alcohol, tobacco, firearms, and ammunition laws and regulations, in the 

interest of collecting all appropriate excise taxes and promoting a marketplace for alcoholic 

beverages that complies fully with federal production, labeling, advertising, and marketing 

requirements. 

TTB’s priorities are directly linked to the following key strategic objectives: 

• Collect all Revenue that is rightfully due: 

 Through partnerships with industry, states, and other federal agencies, develop methods 

of promoting voluntary tax compliance; 

 Ensure correct payment of taxes focusing on audits of “major” and “at-risk” taxpayers; 

 Account accurately for the tax assessed and collected; 

 Reduce the taxpayer paperwork burden associated with collection of revenue by creating 

alternative electronic filing methods; 

 Ensure consistent tax administration; 

 Prevent tax evasion and identify other criminal conduct in the regulated industries, 

including diversion and smuggling of taxable commodities. 

• Protect the Public through education, inspection, and investigation: 

 Ensure the integrity of the alcohol beverage products in the marketplace, and that only 

qualified permit applicants operate in the alcohol beverage industry; 

 Enforce compliance with federal laws related to the production, labeling, advertising, and 

marketing of alcohol products; 

 Utilize electronic government solutions to reduce taxpayer burden and improve service 

with online filing for permit applications and formula submissions, business activity 

reports, claims, COLA and formula applications, and other required forms; 

 Perform appropriate testing, laboratory analyses, and evaluation of regulated 

commodities to ensure product safety and integrity; 

 Review and act on labels, formulas, and advertising for domestic and imported beverage 

alcohol products and maintain public access to approved COLAs; 

 Respond to industry and consumer complaints regarding the regulated commodities; 

 Investigate product contamination and adulteration incidents and allegations; 

 Investigate suspected cases of unfair trade practices and violations of labeling and 

advertising standards in the beverage alcohol industry; 

 Regulate the international import/export trade in beverage and industrial alcohol. 

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The total resources required to support TTB activities for FY 2011 are $106,168,000 from annual 

licensing and registration fees (offsetting receipts) and $3,050,000 from reimbursables (offsetting 

collections), mainly from the Puerto Rico cover over program. 

1B – Program History and Future Outlook 

 TTB has two budget activities that focus on collecting all the revenue rightfully due the federal 

government and ensuring products meet regulatory standards. 

Collect the Revenue - This activity collects alcohol, tobacco, firearms, and ammunition excise 

taxes. These products generate nearly $21 billion in tax revenue annually, making TTB the third 

largest tax collection agency in the federal government. 

The excise taxes collected by TTB come from 6,800 businesses that had operations that resulted 

in tax payments in a given year. Members of the regulated industries paying excise taxes are 

distilleries, breweries, bonded wineries, bonded wine cellars, manufacturers of cigarette papers 

and tubes, manufacturers of tobacco products, and manufacturers and importers of firearms and 

ammunition. Approximately 200 of the largest taxpayers account for about 98 percent of the 

annual excise tax collected. In FY 2009, the majority of taxes collected were from tobacco (62 

percent) and alcohol (36 percent), with the remainder from firearms and ammunition (2 percent). 

Strategies used to collect the revenue rightfully due the federal government focus on identifying 

any gaps in tax payment, illegal entities, and individuals operating outside the excise tax system; 

developing a balanced field approach of audits and investigations that targets non-compliant 

industry members; and establishing an identifiable presence within the industry that encourages 

voluntary compliance. 

Alcohol and tobacco taxes collected by the bureau are remitted to the Department of the 

Treasury General Fund. Firearms and ammunition excise taxes are remitted to the Fish and 

Wildlife Restoration Fund under provisions of the Pittman-Robertson Act of 1937. 

The investments in this activity resulted in the following performance highlights and 

accomplishments during FY 2009: 

• Collected approximately $21 billion in excise taxes, interest, and other revenues from 

alcohol, tobacco, firearms, and ammunition industries. The bureau collected $427 for every 

$1 expended on collection activities; 

• Expanded the e-filing program to allow all excise taxpayers to file and pay taxes and file 

monthly operational reports electronically through the Pay.gov system. The total number of 

Pay.gov registrants increased by 36 percent in FY 2009, bringing the total to over 4,900; 

• Achieved voluntary compliance among taxpayers with greater than $50,000 in annual excise 

tax obligations to a compliance rate of 94 percent in FY 2009, measured in terms of timely 

remittance of tax payments. TTB’s educational outreach efforts at industry seminars and 

premises, and improvements in online filing options, assisted in this effort; 

• Processed $481 million in cover-over payments to Puerto Rico and the U.S. Virgin Islands. 

Federal excise taxes collected on all imported rum, and on rum produced in Puerto Rico and 

TTB - 4 
the Virgin Islands and subsequently brought into the United States, are “covered-over” (or 

paid into) the treasuries of Puerto Rico and the Virgin Islands; 

• Processed $269 million in drawback claims. Under current law, persons who use nonbeverage alcohol in the manufacture of medicines, food products, flavors, extracts, or 

perfume and other non-potable products may be eligible to claim drawback of excise taxes 

paid on distilled spirits used in their products. Analyzed beverage alcohol and tobacco 

product samples to assign or verify a tax classification. For this purpose, TTB analyzed 

1,021 beverage alcohol samples associated with pre-import evaluations, the 5010 tax credit, 

and enforcement activities. Another 265 tobacco product samples were analyzed to ensure 

products were appropriately classified for tax purposes; 

• Completed 171 audits and roughly 400 investigations that recovered $12.2 million in 

additional tax, penalties, and interest from industry members. 

This table displays the amount of federal excise tax collections at the bureau from FY 2005 – 

2009 by revenue type: 

REGISTRY TYPE 2005 2006 2007 2008 2009

Tobacco $7,409,749,000 $7,350,204,000 $7,194,113,000 $6,851,705,000 $11,548,504,000

Alcohol $7,074,076,000 $7,182,940,000 $7,232,138,000 $7,420,576,000 $7,424,292,000

Firearms Ammunition Mfg $225,818,000 $249,578,000 $287,835,000 $312,622,000 $452,693,000

Special Occupational Taxes $10,190,000 $2,895,000 $2,808,000 $1,082,000 $272,000

Floor Stocks Tax (Tobacco) $9,000 $638,000 $0 $0 $1,193,345,000

Grand Total $14,719,833,000 $14,785,617,000 $14,716,894,000 $14,585,985,000 $20,619,106,000

Note: Tobacco revenue increased in 2009 as a result of the passage of the Children’s Health Insurance Program 

Reauthorization Act (CHIPRA) legislation which increased the tax rate on tobacco products.

Tax Collections from the Alcohol Industry 

The beverage alcohol industry in the United States pays over $7 billion in federal excise taxes 

each year and also contributes tax revenues for state and local governments. Economic forecasts 

predict continued modest growth in the alcohol industry, and taxes collected on alcoholic 

beverages are expected to continue to rise throughout the period of FY 2010 – FY 2011. TTB 

envisions that in the next few years the increase in new alcohol businesses will be most 

prominent in the number of wineries, craft breweries, and craft distilleries. 

Tobacco Product Floor Stocks Tax 

In FY 2009, TTB collected federal excise taxes on alcohol and tobacco products and also 

implemented a floor stocks tax on tobacco products in accordance with the Children’s Health 

Insurance Program Reauthorization Act of 2009 (CHIPRA). This legislation provided for a tax 

increase on all tobacco products (except large cigars), and cigarette papers and cigarette tubes, 

effective April 1, 2009. The floor stocks tax is a one-time excise tax placed on commodities 

subject to a tax increase and it is equal to the difference between the new tax rate and the 

previous rate. The last floor stocks tax enacted was in 2002. Floor stocks tax collections for FY 

2009 were $1.2 billion and represent collections from hundreds of thousands of wholesaler and 

retailer dealers (who do not hold a permit with TTB) and manufacturers and importers (who are 

required to hold a TTB permit). 

 

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Firearms and Ammunition Excise Tax (FAET) Collections 

Firearms and ammunition excise taxes are remitted to the Fish and Wildlife Restoration Fund 

under provisions of the Pittman-Robertson Act of 1937. Federal excise tax collections on 

firearms and ammunition have increased from $193 million in FY 2003 to more than $452 

million, an increase of roughly $259 million over the past 6 years, or a 134 percent growth in 

federal FAET revenues. The increase in reported tax revenue can be attributed to industry 

growth, effective outreach and collection initiatives at the bureau, and the field presence of our 

auditors, which continues to promote voluntary taxpayer compliance. 

Protect the Public - This activity ensures the integrity of the alcohol and tobacco industries and 

of beverage alcohol products found in the marketplace, and regulates roughly 50,000 alcohol and 

tobacco businesses. TTB enforces federal laws related to the issuance of permits to industry 

members and the production, importation, exportation, labeling, advertising, and marketing of 

alcohol products. These activities are conducted through investigations, application reviews, 

laboratory testing, and educational programs. TTB works with industry, foreign and state 

governments, and other interested parties to reduce the burden of compliance with regulatory 

requirements and to maintain the appropriate level of oversight to ensure public safety. 

Education, partnerships, and open communication are paramount strategies in facilitating 

compliance with regulatory requirements. 

The investments in this budget activity have resulted in the following performance highlights and 

accomplishments during FY 2009: 

• Approved 99,320 of the 124,966 COLA applications received; the remaining 25,646 (21 

percent) were either rejected, returned for correction, withdrawn, expired, or surrendered. 

About 74 percent of COLA applications were filed electronically through COLAs Online. 

This proprietary TTB system has been in operation since 2003; 

• Processed 5,533 original and 17,755 amended permits. TTB averaged 64 days to process 

perfected permit applications. TTB protects consumers by screening permit applicants, 

analyzing market samples, reviewing labels for accuracy, and investigating unfair trade 

practices; 

• Evaluated about 6,300 beverage alcohol formulas and analyzed about 2,600 beverage alcohol 

samples in support of audits and investigations, and the product integrity, pre-import, 

Alcohol Beverage Sampling Program, 5010 tax credit, and consumer complaints programs; 

• Issued cease and desist letters to tobacco importers operating without permits. Through its 

effective information sharing relationship with U.S. Customs and Border Protection, TTB 

was able to compare import data in the customs International Trade Data System with permit 

information in TTB’s Integrated Revenue Information System (IRIS) and determined that 15 

percent of entities importing tobacco products had done so without a permit. TTB’s issuance 

of cease and desist letters, and appropriate follow up activities, ensured that the responsible 

parties ended operations or obtained a permit; 

• Initiated about 1,300 field investigations of industry members regarding applications, 

consumer complaints, trade practice violations, product and labeling integrity verifications, 

tax fraud and related revenue investigations. Included in these investigations are high-risk 

permit applications to meet TTB’s public protection objectives.

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Specific Challenges in FY 2011 

Tobacco and Alcohol Smuggling and Diversion 

The enforcement challenges on the alcohol and tobacco industries revolve principally around tax 

fraud and label fraud. Tax fraud in these industries, through unlawful diversion or other means, 

represents an extremely high risk to federal revenue while at the same time presents a lucrative 

funding source for organized crime and terrorists. This not only threatens our national security, 

but is detrimental to the Nation’s economic stability, as the Government does not realize the 

revenue collections lawfully due. In addition, counterfeit alcohol beverages masquerading under 

legitimate domestic brand or trade names jeopardize domestic alcohol beverage commerce by 

trading on the brand reputation of authentic domestic producers. Likewise, label fraud deceives 

consumers as to the identity of the product offered for sale. Typically, the consumer deception 

involves counterfeit high-end products. 

TTB was directed by Congress under the Children’s Health Insurance Program Reauthorization 

Act of 2009 (CHIPRA) to conduct a study to determine the magnitude of tobacco smuggling in 

the United States and to make recommendations on how to reduce tobacco smuggling. The 

findings will become a cornerstone of TTB’s law enforcement efforts on diversion and tobacco 

smuggling operations. The study, due to Congress in February 2010, will provide an estimate of 

the loss in Federal tax receipts from the illicit tobacco trade by using a gap analysis modeled 

after a study conducted in Great Britain. This method compares total tobacco consumption 

levels to the excise taxes paid to arrive at net revenue loss. The FY 2010 budget included a 

provision that directed $3 million of TTB appropriations, available until September 30, 2011, to 

be used for the hiring, training, and equipping of special agents and related support personnel to 

address both the diversion of tobacco and alcohol products. This investment directs the bureau 

to launch an enforcement program to include criminal investigations, and to conduct seizures of 

counterfeit or smuggled alcohol and tobacco products. 

 

Alcohol Fuel Plants (AFPs) 

TTB has issued approximately 1,638 alcohol fuel plant permits, which are regulated by TTB as 

Distilled Spirits Plants. The establishment of these new plants creates new challenges because of 

the possibility for significant revenue losses that would result from unlawful diversion of 

alcohol. The Energy Independence and Security Act of 2007 mandates the use of 36 billion 

gallons of renewable fuel per year by 2022. In comparison, total U.S. consumption of beverage 

distilled spirits is about 420 million gallons per year – and beverage spirits contain less than half 

the ethanol that is in alcohol fuel. Most alcohol fuel production comes from fewer than 150 large 

plants, but hundreds of smaller plants have applied for TTB permits in each of the last few years. 

Succession Planning 

Succession planning is high on the list of TTB’s strategic priorities, especially regarding its 

investigative forces. TTB expects to lose 40 percent of its workforce by 2011 due to retirements 

and other attrition. To mitigate these losses, TTB continues to use the personnel interventions 

identified in the Pay Demonstration Project to enable the bureau to improve its capacity to 

recruit, develop, and retain high-caliber employees. TTB uses tailored approaches designed, 

developed, and implemented specifically for the bureau’s continuing and evolving needs in order 

to meet mission requirements and remain competitive for highly skilled talent. Continuation of 

TTB - 7 
the Pay Demonstration authority is key to closing skill gaps in mission critical occupations. The 

FY 2011 budget proposes to continue this program for an additional year. 

Rulemaking 

TTB’s regulatory actions will support its mission objectives to collect the revenue and protect the 

public. The bureau will work on a number of regulatory projects in FY 2011, and several key 

regulatory initiatives are detailed below. Over the next few years, Congress may enact 

legislation changing excise taxes on commodities that TTB regulates, and the bureau anticipates 

continued industry and interest group petitions, inquiries, and other expressions of interest in 

more detailed alcohol beverage labeling which will result in regulatory action to protect the 

public. TTB’s regulatory activity will be sufficiently flexible to adjust to any changes in agency 

priorities. 

Key Regulatory Initiatives

Collect the Revenue and Protect the Public - Modernization of Title 27, Code of Federal 

Regulations. In FY 2011, TTB will continue to pursue its multi-year program of modernizing its 

regulations in title 27 of the Code of Federal Regulations. This program involves updating and 

revising the regulations to be more clear, current, and concise, with an emphasis on the 

application of plain language principles. Modernizing the regulations will ultimately result in 

greater compliance by industry members, thus protecting both the revenue and the public, as well 

as cost savings to TTB through the use of more efficient regulatory processes. To date, TTB has 

published notices of proposed rulemaking to revise Part 19 and to amend Part 9 and has reviewed 

the public comments received in response to those notices. 

Collect the Revenue--Alcohol Fuel Plants. In FY 2011, TTB intends to prepare proposed 

amendments to the alcohol fuel plant regulations, in recognition of the significant growth in this 

industry segment. The proposed changes would include updated procedures for producers of 

distilled spirits intended for fuel use that will enhance their operations consistent with TTB’s 

responsibility to protect the revenue. 

Protect the Public--Serving Facts Labeling. In July 2007, TTB published in the Federal Register 

for public comment proposed regulatory changes which would require a statement of alcohol 

content for all beverage alcohol products, expressed as a percentage of alcohol by volume and 

appearing on any label affixed to the container. Also included in the proposed regulatory 

changes is a requirement for a Serving Facts panel on alcohol beverage labels, which would 

include a content statement covering calories, carbohydrates, fat, and protein. Under the 

proposals, industry members may also disclose on the Serving Facts panel the number of U.S. 

fluid ounces of pure alcohol per serving as part of the alcohol content statement. The new 

regulations would also specify reference serving sizes for wines, distilled spirits, and malt 

beverages based on the amount of beverage customarily consumed as a single serving rather than 

based on a definition of a standard drink. The purpose of these proposed regulatory changes is to 

ensure that beverage alcohol labels provide consumers with adequate information about the 

products they are consuming. TTB will continue its rulemaking on this issue in FY 2011 if a 

final rule on this matter has been not published by that time. 

 

TTB - 8 
Protect the Public--Allergen Labeling. In July 2006, TTB published in the Federal Register an 

interim rule setting forth standards for voluntary allergen labeling of alcohol beverages 

concurrently with a notice of proposed rulemaking for mandatory allergen labeling for alcohol 

beverages. In FY 2010, TTB will consider the feasibility of adopting mandatory allergen labeling 

requirements and, in FY 2011, TTB will continue rulemaking action on this issue, if necessary. 

Electronic Permit Application Process (E-Government) 

TTB’s vision for the Permits Online investment is to provide a secure, web-based E-Government 

solution that will allow members of TTB’s regulated industry to electronically submit 

amendments and applications for original establishment of operations. Applicants who plan to 

produce finished distilled spirits, wines, malt beverages, and tobacco products, as well as persons 

wishing to operate businesses such as alcohol wholesalers, alcohol importers, tobacco importers, 

specially denatured spirits users and dealers, tax-free alcohol users, alcohol fuel plants, tobacco 

processors, and tobacco export warehouses, must submit original and amended permit 

applications. The National Revenue Center (NRC) currently processes original application 

packets for 23 types of permits/registrations. New or existing customers file these packets to 

request permission to commence a new regulated industry operation, or to update critical 

industry member information such as trade names. 

Over the past several years, the volume of paper applications has increased making it difficult to 

maintain current service levels. The bureau has purchased a commercial off-the-shelf software 

package that will be the core of the electronic submission system for new and amended permit 

applications. Plans are to implement this system in stages, with the initial deployment scheduled 

for late FY 2010 and all permit applications automated by late FY 2011. 

By shifting the current paper-intensive, repetitive, and often varied permit application process to 

a simplified, streamlined Web-based system, the bureau expects to achieve efficiencies and 

performance improvements of measurable value to industry applicants. Once the commercial 

product is fully implemented, industry can expect reduced processing time, electronically guided 

assistance through the application process, improved communications with TTB, and an overall 

reduction in mailing and materials costs. Applicants wishing to enter these regulated industries 

will be able to commence operations sooner and supply their customers more quickly. 

TTB - 9 
Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands 

Alcohol and Tobacco Tax and Trade Bureau FTE Amount

FY 2010 Enacted 535 103,000 

Changes to Base: 

Maintaining Current Levels (MCLs): - $1,790 

FERS % Change - 128 

Non-Pay Inflation Adjustment - 500 

Pay Annualization - 325 

Pay Inflation Adjustment - 837 

Non-Recurring Costs: - ($3,500) 

Two Year Funding for Special Agents - (3,500) 

Efficiencies Savings: - ($622) 

Business Process Reengineering - (213) 

Reconfiguration of Field Offices - (112) 

Procurement Savings (VOIP) - (297) 

Subtotal FY 2011 Changes to Base - ($2,332) 

Total FY 2011 Base 535 100,668 

Program Changes: 

Program Increases: 12 $5,500 

Implement Annual Licensing & Registration Fee 12 5,500 

Subtotal FY 2011 Program Changes 12 $5,500 

Total FY 2011 Budget Request 547 106,168

Annual Licensing and Registration Fees (547) (106,168) 

Total FY 2011 Budget Request (Net) - -

2A – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ........................................... +$1,790,000 / +0 FTE 

FERS % Change +$128,000 / +0 FTE 

Funds are requested for the increase in agency retirement contribution percentages for GS 

employees from 11.2% to 11.5% for FY 2011 as required by OPM. 

Non-Pay Inflation Adjustment +$500,000 / +0 FTE 

Funds are requested for non-pay related items such as contracts, travel, supplies, equipment and 

GSA rent. 

Pay Annualization +$325,000 / +0 FTE 

Funds are requested for the FY 2011 cost of the January 2010 pay raise. 

Pay Inflation Adjustment +$837,000 / +0 FTE 

Funds are requested for the January 2011 pay raise. 

Non-Recurring Costs ...................................................................... -$3,500,000 / +0 FTE 

Two Year Funding for Special Agents -$3,500,000 / +0 FTE 

Under the FY 2010 appropriation, two-year funding was designated for law enforcement agents 

and related support staff to target tobacco smuggling and diversion criminal activities. The FY 

2010 carry forward balance from this multi-year account will be used to cover this activity in FY 

2011. 

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TTB - 11 

Efficiencies Savings ............................................................................ -$622,000 / +0 FTE 

Business Process Reengineering -$213,000 / +0 FTE 

Savings realized by the introduction of automation and redesigned business processes to ensure 

bureau operations are efficiently and effectively managed. 

Reconfiguration of Field Offices -$112,000 / +0 FTE 

Savings from the reconfiguration of bureau field offices. 

Procurement Savings (VOIP) -$297,000 / +0 FTE 

Savings from the implementation of new technology (Voice Over Internet Protocol) that will 

lower the cost of communication services as compared to traditional phone services. 

Program Increases ....................................................................... +$5,500,000 / +12 FTE 

Implement Annual Licensing & Registration Fee +$5,500,000 / +12 FTE 

Legislation will be proposed to establish a permanent program for FY 2011 continuing each 

fiscal year thereafter, requiring resources to support labor and operating costs. TTB will be 

responsible for establishing and administering an annual fee proposal, including the collection of 

roughly $111 million in annual fee revenues from approximately 400,000 businesses. A $5.5 

million investment is needed to set up this program. Much if not all of the initial investment 

costs are expected to be recurring to administer the program. The successful management of 

this activity will necessitate the long-term investment in both government staff (12 FTE), 

contractor support, and other general and administrative costs, including information technology. 

Following are key business activities and details of the amount requested: 1) Mailing and 

processing roughly 400,000 annual fee bills; 2) Processing approximately 60,000 to 80,000 noncompliance letters; 3) Maintaining the registry of the client database for 400,000 businesses; 4) 

Responding to customer inquiries (e.g., claims, waiver requests, etc.); 5) Accounting for the 

annual fee collections and processing of the revenues. The roughly 400,000 annual fee payers 

include retailers and wholesale dealers in liquors and beer; every proprietor of distilled spirits 

plants, bonded wine cellars, bonded wine warehouses, and tax-paid wine bottling houses; every 

brewer; denatured spirits, recovery, and tax-free users (industrial alcohol); and non-beverage 

domestic drawback claimants. Tobacco importers, retailers, and wholesalers are also included. 

Annual Licensing and Registration Fees — Regulatory Implementation: Amendments to TTB 

regulations would be necessary to implement this statutory program. At a minimum, this would 

cover payment procedures, including the use of a specified form to accompany the payment, and 

probably related registration, reporting, and recordkeeping requirements. 

Adjustments to Request Annual Fees .................................... -$106,168,000 / -547 FTE 

Annual Licensing and Registration Fees -$106,168,000 / -547 FTE 

Annual special receipts (annual fees) will reduce direct funding. The receipts from the annual 

fee program will be budgeted and accounted for as offsetting collections. 
2.2 – Operating Levels Table 

Alcohol and Tobacco Tax and Trade 

Bureau

FY 2009 

Enacted

FY 2010 

President's 

Budget

Congression

al Action 

Including 

Rescission

FY 2010 

Enacted 

Level

Proposed 

Reprogram

mings

FY 2010 

Proposed 

Operating 

Level

FY 2011 

Requested 

Level

 

FTE 525 525 0 535 0 535 547

Object Classification: 

11.1 - Full-time permanent 44,940 46,048 1,327 47,375 0 47,375 48,170

11.5 - Other personnel compensation 778 794 0 794 0 794 794

12 - Personnel benefits 11,235 11,464 242 11,706 0 11,706 11,832

21 - Travel and transportation of persons 3,000 3,015 493 3,508 0 3,508 3,066

22 - Transportation of things 101 102 0 102 0 102 103

23.1 - Rental payments to GSA 5,219 4,796 0 4,796 0 4,796 4,754

23.3 - Comm, utilities, and misc charges 5,050 5,073 59 5,132 0 5,132 5,372

24 - Printing and reproduction 386 388 0 388 0 388 567

25.2 - Other services 22,296 15,586 1,042 16,628 0 16,628 19,759

25.3 - Other purchases of goods and 0 7,159 0 7,159 0 7,159 6,600

services from Govt. accounts 

26 - Supplies and materials 670 673 67 740 0 740 684

31 - Equipment 5,390 4,402 243 4,645 0 4,645 4,467

42 - Insurance claims and indemnities 0 0 27 27 0 27 0

Total Budget Authority $99,065 $99,500 $3,500 $103,000 $0 $103,000 $106,168

 

Budget Activities: 

Collect the Revenue 50,523 49,750 1,750 51,500 0 51,500 53,084

Protect the Public 48,542 49,750 1,750 51,500 0 51,500 53,084

Total Budget Authority $99,065 $99,500 $3,500 $103,000 $0 $103,000 $106,168

 

2.3 – Appropriations Detail Table 

Dollars in Thousands 

FY 2009 FY 2009 FY 2010 FY 2011 FY 2010

Resources Available Obligations Enacted Enacted Request to FY 2011

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Budget Activity

Collect the Revenue 268 50,523 268 50,523 268 51,500 274 53,084 2.24% 3.08%

Protect the Public 257 48,542 257 48,542 267 51,500 273 53,084 2.25% 3.08%

Subtotal by Budget Activity 525 $99,065 525 $99,065 535 $103,000 547 $106,168 2.25% 3.08%

Appropriated Resources and Special Receipts

Appropriated Resources 525 99,065 525 99,065 535 103,000 0 0 -100.00% -100.00%

Special Receipts (Annual Fees) 0 0 0 0 0 0 547 106,168 100.00% 100.00%

Total by Appropriated and Special Receipts 525 $99,065 525 $99,065 535 $103,000 547 $106,168 2.25% 3.08%

Other Resources:

Offsetting Collections - Reimbursable 15 5,154 15 5,154 15 4,234 15 3,050 0.00% -27.96%

Available multi-year/no-year funds

Recoveries

Subtotal Other Resources 15 $5,154 15 $5,154 15 $4,234 15 $3,050 0.00% -27.96%

Total Resources Available for Obligation 540 $104,219 540 $104,219 550 $107,234 562 $109,218 2.18% 1.85%

% Change

TTB - 12 
2B – Appropriations Language and 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, [$105,000,000] $106,168,000; 

of which not to exceed $5,500,000 for administrative 

expenses related to implementation of the fees 

authorized by 27 U.S.C. Section 202, as amended by this 

Act, to remain available until [September 30, 2011] 

September 30, 2012; not to exceed $6,000 for official 

reception and representation expenses; not to exceed 

$50,000 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 the sum herein 

appropriated from the general fund shall be reduced as 

offsetting collections assessed and collected pursuant to 

the Federal Alcohol Administration Act (27 U.S.C. 201 

et seq.), as amended by this Act, are received during 

fiscal year [2010] 2011, so as to result in a fiscal year 

[2010] 2011 appropriation from the general fund 

estimated at [$25,000,000] $0: Provided further, That 

any amount received in excess of [$80,000,000 in fiscal 

year 2010] $106,424,000 in fiscal year 2011 shall be 

available only to the extent provided in subsequent 

appropriations acts. (Department of the Treasury 

Appropriations Act, 2009.) 

Treasury General Provisions:

Legislation will be 

proposed to establish a 

permanent program for 

fiscal year 2011 and each 

fiscal year thereafter, 

requiring the payment of 

annual licensing and 

registration fees 

TTB proposes to 

continue the Pay 

Demonstration Project by 

amending the language to 

Sec. 113. Section 122(g) (1) of Public Law 105-119 as extend the program for 

amended (5 U.S.C. 3104 note), is further amended by one additional year. 

striking [“12 years”] “13 years” and inserting [“12 years”] 

“13 years”. 

SEC. 617 The Federal Alcohol "Section 301 - Authority to Collect Fees. 

Administration Act (27 U.S.C. 201 et "Section 302 - Reduced fees. 

seq.) is amended by inserting immediately "Section 303 - Exemptions and exceptions. 

after "Title II—Alcoholic "Section 304 - Administrative provisions. 

Beverage Labeling" a new Title III that "Section 305 - Definitions. 

provides as follows: "* * * * * 

"Title III—ANNUAL FEES, ETC. "Annual Fees, Etc. 

TTB - 13 
"§ 301 Authority to Collect Fees. 

"(a) General rule.—The Secretary of the 

Treasury is authorized to collect a fee for 

services 

rendered to the regulated community at 

levels not lower than those 

provided in subsections (b), (c), and (d), to 

the extent provided in advance 

by an appropriations act, to be credited as 

offsetting collections to the 

Alcohol and Tobacco Tax and Trade Bureau 

Salaries and Expenses account, 

to fund the operations of the Alcohol and 

Tobacco Tax and Trade 

Bureau as authorized by 6 U.S.C. §531. 

"(b) Fee Category 1.—Each of the following 

shall pay a fee of $1,000 

per year in respect of each such premises 

under his control— 

"(1) proprietors of a distilled spirits plant; 

"(2) proprietors of a bonded wine cellar; 

"(3) proprietors of a bonded wine 

warehouse; 

"(4) proprietors of a taxpaid wine bottling 

house; or 

"(5) proprietors of a brewery; 

“(6) manufacturers of processed tobacco. 

"(c) Fee Category 2.—Each of the following 

shall pay a fee of $500 per 

year— 

"(1) wholesale dealers in liquor; 

"(2) wholesale dealers in beer; 

“(3) wholesale dealers in tobacco products; 

“(4) wholesale dealers in processed tobacco; 

“(5) importers of tobacco products; 

“(6) importers of processed tobacco; 

"(7) every person intending to claim 

eligibility for drawback under 

section 5131 of the Internal Revenue Code 

of 1986; 

"(d) Fee Category 3.—Each of the following 

shall pay a fee of $350 per 

year— 

"(1) retail dealers in liquors; 

"(2) retail dealers in beer; 

“(3) retail dealers in tobacco products; 

"(4) except that every holder of a permit 

issued under section 5271 of the Internal 

Revenue Code of 1986, shall be subject to a 

fee of $300. 

"(e) Fee adjustment.—The Secretary shall 

provide for automatic annual 

fee increases in accordance with the 

Consumer Price Index, and shall 

publish a notice of the fee increases in the 

Federal Register 60 days prior 

to their effective date. 

"§ 302 Reduced fees.— 

"(a) In general.—Section 301(b) shall be 

applied by substituting "$500" 

for "$1,000" with respect to any person 

(other than one described in section 

303(a)) the gross receipts of which (for the 

most recent taxable year 

ending before the 1st day of the taxable 

period to which the fee imposed 

by section 301(b) relates) are less than 

$500,000. 

"(b) Controlled group rules.—All persons 

treated as 1 taxpayer under 

section 5061(e)(3) of the Internal Revenue 

Code of 1986 shall be treated 

as 1 fee payer for purposes of subsection (a). 

"(c) Certain rules to apply.—For purposes of 

determining gross receipts 

under subsection (a), the rules contained in 

subparagraphs (B) and (C) 

of section 448(c)(3) of the Internal Revenue 

Code of 1986 shall apply. 

"§ 303. Exemptions and Exceptions. 

"(a) Exemption for small producers.—

Section 301(b) shall not apply 

with respect to any person who is a 

proprietor of an eligible distilled 

spirits plant. 

"(b) Sales by proprietors of controlled 

premises.—No proprietor of a 

distilled spirits plant, bonded wine cellar, 

taxpaid wine bottling house, 

or brewery, shall be required to pay the fee 

under section 301(c) on account 

TTB - 14 
of the sale at his principal business office as 

designated in writing 

to the Secretary, or at his distilled spirits 

plant, bonded wine cellar, 

taxpaid wine bottling house, or brewery, as 

the case may be, of distilled 

spirits, wines, or beer, which, at the time of 

sale, are stored at his distilled 

spirits plant, bonded wine cellar, taxpaid 

wine bottling house, or brewery, 

as the case may be, or had been removed 

from such premises to a taxpaid 

storeroom operated in connection therewith 

and are stored therein. 

However, no such proprietor shall have 

more than one place of sale, as 

to each distilled spirits plant, bonded wine 

cellar, taxpaid wine bottling 

house, or brewery, that shall be exempt from 

fee by reason of the sale of 

distilled spirits, wines, or beer stored at such 

premises (or removed 

therefrom and stored as provided in this 

section), by reason of this subsection. 

"(c) Sales by liquor stores operated by 

States, political subdivisions, 

etc.—No liquor store engaged in the 

business of selling to persons other 

than dealers, which is operated by a State, 

by a political subdivision of 

a State or by the District of Columbia, shall 

be required to pay any fee 

under this section 301(c), by reason of 

selling distilled spirits, wines, or 

beer to dealers qualified to do business as 

such in such State, subdivision, 

or District, if such State, political 

subdivision, or District has paid the 

applicable fee under section 301(d)(1) and 

301(d)(2) as appropriate, and 

if such State, political subdivision, or 

District has paid fee under section 

301(c)(1) and 301(c)(2) as appropriate, at its 

principal place of business. 

"(d) Casual sales.— 

"(1) Sales by creditors, fiduciaries, and 

officers of court.—No person 

shall be deemed to be a dealer by reason of 

the sale of distilled spirits, 

wines, beer or tobacco products which have 

been received by him as security for or in 

payment of a debt, or as an executor, 

administrator, or other fiduciary, 

or which have been levied on by any officer 

under order or process of 

any court or magistrate, if such distilled 

spirits, wines, or beer are sold 

by such person in one parcel only or at 

public auction in parcels of not 

less than 20 wine gallons, or in the case of 

tobacco products parcels of 

not less than 50 cartons. 

"(2) Sales by retiring partners or 

representatives of deceased partners 

to incoming or remaining partners.—No 

person shall be deemed to be 

a dealer by reason of a sale of distilled 

spirits, wines, beer or tobacco products 

 made by such person as a retiring partner or 

the representative of a deceased 

partner to the incoming, remaining, or 

surviving partner or partners of 

a firm. 

"(3) Return of liquors or tobacco products 

for credit, refund, or exchange.— 

No person shall be deemed to be a dealer by 

reason of the bona fide return of distilled 

spirits, wines, beer or tobacco products to 

the dealer from whom purchased (or to the 

successor of the vendor's business or line of 

merchandise) for credit, refund, 

or exchange. 

"(e) Dealers making sales on purchaser 

dealer's premises.— 

"(1) Wholesale dealers in liquors.—No 

wholesale dealer in liquors who 

has paid the fee as such dealer shall again be 

required to pay a fee as such 

dealer on account of sales of wines or beer 

to wholesale or retail dealers 

TTB - 15 
in liquors, or to limited retail dealers, or of 

beer to wholesale or retail 

dealers in beer, consummated at the 

purchaser's place of business. 

"(2) Wholesale dealers in beer.—No 

wholesale dealer in beer who has 

paid the fee as such a dealer shall again be 

required to pay a fee as such 

dealer on account of sales of beer to 

wholesale or retail dealers in liquors 

or beer, or to limited retail dealers, 

consummated at the purchaser's 

place of business. 

"(f) Sales by retail dealers in liquidation.—

No retail dealer in liquors, 

retail dealer in beer or retail dealer in 

tobacco products, selling in liquidation 

his entire stock of liquors or tobacco 

products in one parcel or in parcels 

embracing 

not less than his entire stock of distilled 

spirits, of wines, of beer or of tobacco 

products to any other dealer, shall be 

deemed to be a wholesale dealer in liquors, a 

wholesale dealer 

in beer, or a wholesaler dealer in tobacco 

products, as the case may be, by 

reason of such sale or sales. 

"(g) Sales to limited retail dealers and sales 

by retail dealers of tobacco products.— 

"(1) Retail dealers in liquors.—No retail 

dealer in liquors who has 

paid the fee as such dealer under section 

301(d) shall be required to pay 

additional fee under section 301(c) on 

account of the sale at his place of 

business of distilled spirits, wines, or beer to 

limited retail dealers as 

defined in section 305(d). 

"(2) Retail dealers in beer.—No retail dealer 

in beer who has paid the 

fee as such dealer under section 301(d) shall 

be required to pay additional 

fee under section 301(c) on account of the 

sale at his place of business of 

beer to limited retail dealers as defined in 

section 305(d). 

“(3) Retail dealers in tobacco products.-No 

retail dealer in tobacco products who has 

paid the fee under section 301(d) shall be 

required to an additional fee as a retail 

dealer in liquors or a retail dealer in beer 

under section 301(d). 

"(h) Coordination of fees under sections 

301(c).—No fee as a wholesale 

dealer in liquor shall be charged with respect 

to a person's activities at 

any place during a year if such person has 

paid the fee as a wholesale 

dealer in beer with respect to such place for 

such year. 

"(i) Wholesale dealers in liquors, beer, 

tobacco products and processed tobacco and 

importers of tobacco products and processed 

tobacco.— 

"(1) Wholesale dealers in liquors.—No fee 

shall be charged as a retail 

dealer in liquor or a retailer dealer in beer on 

any dealer by reason of 

the selling, or offering for sale, of distilled 

spirits, wines, or beer at any 

location where such dealer is required to pay 

the fee as a wholesale 

dealer in liquors. 

"(2) Wholesale dealers in beer.—No fee 

shall be charged as a retail 

dealer in beer on any dealer by reason of the 

selling, or offering for sale, 

of beer at any location where such dealer is 

required to pay the fee as a 

wholesale dealer in beer. 

“(3) Wholesale dealers in tobacco products 

and importer of tobacco products.-No fee 

shall be charged as a retail dealer in tobacco 

products on any dealer by reason of the 

selling or offering for sale of tobacco 

products at any location where such dealer is 

required to pay the fee as a wholesale dealer 

in tobacco products or as an importer of 

tobacco products. 

TTB - 16 
“(4) Importers of tobacco products and 

processed tobacco – No fee shall be charged 

as an importer of processed tobacco at any 

location where such person is required to 

pay the fee as an importer of tobacco 

products. 

“(5) Manufacturers of processed tobacco 

and importers of processed tobacco - No fee 

shall be charted as an importer of processed 

tobacco at any location where such person is 

required to pay the fee as a manufacturer of 

processed tobacco or pay the special tax as a 

manufacturer of tobacco products under 

section 5731of the Internal Revenue Code of 

1986. 

"(j) Business conducted in more than one 

location.— 

"(1) Retail dealers at large.—Any retail 

dealer in liquors or retailer 

dealer in beer whose business is such as to 

require him to travel from 

place to place in different States of the 

United States may, under regulations 

prescribed by the Secretary, cover his 

activities throughout the 

United States with the payment of but one 

fee as a retail dealer in liquors 

or as a retail dealer in beer, as the case may 

be. 

"(2) Dealers on trains, aircraft, and boats.—

Nothing contained in this 

chapter shall prevent the payment, under 

such regulations as the Secretary 

may prescribe, of the fee by— 

"(A) persons carrying on the business of 

retail dealers in liquors, retail dealers 

in beer or retail dealer in tobacco products 

on trains, aircraft, boats or other vessels, 

engaged 

in the business of carrying passengers; or 

"(B) persons carrying on the business of 

retail dealers in liquors, 

retail dealers in beer or retail dealers in 

tobacco products on boats or other 

vessels operated by them, when such 

persons operate from a fixed address in a 

port 

or harbor and supply exclusively boats or 

other vessels, or persons thereon, at such 

port or 

harbor. 

"(3) Liquor stores operated by States, 

political subdivisions, etc.—A 

State, a political subdivision of a State, or 

the District of Columbia shall 

not be required to pay more than one fee as a 

retail dealer in liquors 

under section 301(d) regardless of the 

number of locations at which such 

State, political subdivision, or District 

carries on business as a retail 

dealer in liquors. 

"(k) Exception for the United States—

Section 301(d)(4) shall not apply 

to any permit issued to any agency or 

instrumentality of the United 

States. 

"(l) Exception for certain educational 

institutions—Section 301(d)(4) 

shall not apply with respect to any scientific 

university, college of 

learning, or institution of scientific research 

which is issued a permit 

under section 5271 of the Internal Revenue 

Code of 1986 and, with respect 

to any calendar year during which such 

permit is in effect, procures 

less than 25 gallons of distilled spirits free of 

tax for experimental or 

research use but not for consumption (other 

than organoleptic tests) or 

sale. 

"§ 304. Administrative provisions. 

"(a) Computation and Payment of the 

Fees.—All fees charged under 

this part shall be paid no later than the first 

day of July in each year, 

or on commencing any trade or business on 

which such fee is charged. 

TTB - 17 
In the former case, the fee shall be computed 

for 1 year, and in the latter 

case it shall be computed from the first day 

of the month in which the 

trade or business commenced, to and include 

the 30th day of June following. 

The fee shall be paid in the mode and 

manner that the Secretary 

shall by regulation prescribe. 

"(b) Condition precedent to carry on 

business.—No person shall be 

engaged in or carry on any trade or business 

subject to the fee under this 

section until he has paid the fee. 

"(c) Procedures.—Unless otherwise 

specified by the Secretary, rules 

similar to those in section 5733 of the 

Internal Revenue Code of 1986 

shall apply with respect to fees assessed 

under this part. 

"(d) Applicable Rules.—The fees imposed 

by section 301(b) shall be 

assessed, collected, and paid in the same 

manner as taxes, as provided 

in section 6665(a) of the Internal Revenue 

Code of 1986. 

"(e) Claims Collection.—In addition to the 

authority in section 304(d), 

the unpaid fees that are due and owing may 

be collected pursuant to the 

Federal Claims Collection Act, 31 U.S.C. 

Chapter 37. 

"(f) Regulations.—The Secretary may issue 

such regulations as are 

necessary to carry out this title. 

"§ 305. Definitions 

"(a) Brewer.—Every person who brews beer 

(except a person who produces 

only beer exempt from tax under section 

5053(e) of the Internal 

Revenue Code of 1986) and every person 

who produces beer for sale shall 

be deemed a brewer. 

"(b) Dealer.—When used in sections 301 to 

305, the term "dealer" means any 

person who sells, or offers for sale, any 

distilled spirits, wines, beer, tobacco 

products or processed tobacco. 

"(c) Eligible distilled spirits plant.—A plant 

which is used to produce 

distilled spirits exclusively for fuel use and 

the production from which 

does not exceed 10,000 proof gallons per 

year. 

"(d) Limited retail dealer.—When used in 

sections 301 to 305, the term ‘limited 

retail dealer’ means any fraternal, civic, 

church, labor, charitable, benevolent, 

or ex-servicemen's organization making 

sales of distilled spirits, 

wine, or beer on the occasion of any kind of 

entertainment, dance, picnic, 

bazaar, or festival held by it, or any person 

making sales of distilled 

spirits, wine, or beer to the members, guests, 

or patrons of bona fide 

fairs, reunions, picnics, carnivals, or other 

similar outings, if such organization 

or person is not otherwise engaged in 

business as a dealer. 

"(e) Retail dealer in liquors.—When used in 

sections 301 to 305, the term ‘retail 

dealer in liquors’ means any dealer, other 

than a retail dealer in beer 

or a limited retail dealer, who sells, or offers 

for sale, any distilled 

spirits, wines, or beer, to any person other 

than a dealer. 

"(f) Retail dealer in beer.—When used in 

sections 301 to 305, the term ‘retail 

dealer in beer’ means any dealer, other than 

a limited retail dealer, who 

sells, or offers for sale, beer, but not distilled 

spirits or wines, to any 

person other than a dealer. 

"(g) Wholesale dealer in liquors.—When 

used in sections 301 to 305, the term 

‘wholesale dealer in liquors’ means any 

dealer, other than a wholesale 

dealer in beer, who sells, or offers for sale, 

distilled spirits, wines, or 

TTB - 18 
TTB - 19 

beer, to another dealer. 

"(h) Wholesale dealer in beer.—When used 

in sections 301 to 305, the term 

‘wholesale dealer in beer’ means a dealer 

who sells, or offers for sale, 

beer, but not distilled spirits or wines, to 

another dealer. 

“(i) Wholesale dealer in tobacco products.- 

When used in sections 301 to 305, the term 

‘wholesale dealer in tobacco products’ 

means a dealer who sells, or offers for sale, 

tobacco products to another dealer.; 

“(j) Wholesale dealer in processed tobaccoWhen used in sections 301 to 305, the term 

‘wholesale dealer in processed tobacco’ 

means a dealer who sells, or offers for sale, 

processed tobacco to another dealer; 

“(k) Importer of tobacco products.-When 

used in sections 301 to 305, the term 

‘importer of tobacco products’ means an 

importer as defined within section 5702(k) 

of the Internal Revenue Code of 1986 who 

imports tobacco products;. 

“(l) Retail dealer in tobacco products.- 

When used in sections 301 to 305, the term 

‘retail dealer in tobacco products’ means any 

dealer who sells, or offers for sale, tobacco 

products to any person other than a dealer; 

“(m) Manufacturer of processed tobacco.- 

When used in sections 301 to 305, the term 

‘manufacturer of processed tobacco’ means 

a manufacturer as defined within section 

5702(p) of the Internal Revenue Code of 

1986; 

“(n) Importer of processed tobacco.- When 

used in sections 301 to 305, the term 

‘importer of processed tobacco’ means an 

importer defined within section 5702(k) who 

imports processed tobacco.” 

(Financial Services and General 

Government Appropriations Act, 2011.) 
2C – Legislative Proposals 

Extend Pay Demonstration Project

TTB proposes to continue the Pay Demonstration Project (Pay Demo) by amending the General 

Provision language to extend the project for one additional year. This project was established to 

enhance Treasury’s ability to effectively recruit and retain highly qualified employees. It seeks 

to do so by implementing changes in personnel management practices for designated 

occupations. Pay Demo has been extended every year since it was first established in FY 1999, 

and has been a successful intervention tool in the recruitment and retention of critical staff 

positions. 

• The continuation of the pay demonstration authority has proven to be an effective 

recruitment strategy that enables the bureau to timely fill its positions with the right people, 

with the right skills, minimizing loss and skill gaps caused by an aging workforce and 

employee turnover; 

• The pay demonstration authority fosters a results-oriented organizational culture by 

maximizing performance and assuring accountability by focusing on results, therefore, 

improving the bureau’s overall performance; 

• The pay demonstration authority provides continuous focus on improving recruiting and 

hiring procedures, classification and compensation systems, incentive systems, and involves 

employees and labor organizations in personnel decisions, which are all important to 

managing the human capital needs of the bureau; 

• The pay demonstration authority has improved targeted outreach for a more diverse 

workforce, increasing the participation rate of various groups (e.g., women, persons with 

disabilities, veterans, and persons from different age groups) across all occupations and 

band/grade groupings under the authority. 

Annual Licensing and Registration Fees

The Budget proposes establishing a permanent program for FY 2011 and each fiscal year 

thereafter, requiring members of the alcohol and tobacco industries to pay annual licensing and 

registration fees. In general, these fees will support the bureau’s core mission and the funds will 

be used to continue to provide benefits to members of the regulated community, including 

retailers, wholesalers, breweries, wineries, distilleries, importers, and industrial alcohol 

businesses. 

Benefits to Industry: In general, regulation of the beverage alcohol and tobacco industries 

benefits retailers, wholesalers, breweries, wineries, distilleries, importers, and industrial alcohol 

businesses under this legislative proposal. These industries would pay a fee for the benefits they 

receive from the bureau’s regulatory and tax collection efforts. In particular, TTB’s efforts help 

ensure that alcohol and tobacco products are not contaminated, misbranded, or illegally 

marketed, and prevent dishonest persons from entering into the alcohol and tobacco distribution 

systems. This promotes fair competition among all industry members. Regulation of these 

industries also protects the public against adulterated alcohol and tobacco products, and 

misleading labels and advertisements. 

TTB - 20 
Benefits to industry members include: 

• Investigating applications and issuing permits or notices for the operation of distilleries, 

bonded wine premises, and breweries to ensure that only qualified persons operate in the 

industry; 

• Regulating the operations of various industrial users of distilled spirits, including 

manufacturers of non-beverage products, and tax-free and denatured alcohol users to ensure 

that all taxes due on alcohol are collected; 

• Regulating the production, packaging, and storage of alcohol and tobacco products; 

• Regulating the labeling and bottling of alcohol beverages to both protect the revenue due and 

to ensure a safe, fair, and even market in the alcohol trade; 

• Regulating the marketing and promotional practices concerning the sale of tobacco and 

alcohol beverages by producers, importers, and wholesalers primarily through the 

investigation of allegations of unfair trade practices to promote fair competition among the 

industry. 

Legislative Proposal on Annual Licensing and Registration Fees 

The Budget proposes to amend U.S.C. Title 27 to allow TTB to establish a permanent program 

to collect annual fees from alcohol producers, distributors, and retailers that will be classified as 

offsetting receipts. In the first year, TTB estimates the annual estimated offsetting receipt 

collections at $111 million. 

Key provisions of this legislative proposal include: 

(1) Collected annual fees are authorized to cover the budget activities of the Alcohol and 

Tobacco Tax and Trade Bureau to the extent provided in annual appropriations acts.

(2) The Secretary shall provide for increased annual fees consistent with the annual rate of 

inflation as defined by the Consumer Price Index, and shall publish any such changes in the 

Federal Register. 

Annual Fee Requirement:

The annual fees to be charged under this program are as follows: 

Retailer Dealers in Liquors, Beer, and Tobacco $350 

Wholesaler Dealers in Liquors and Beer $500 

Wholesaler Dealers in Tobacco and Processed Tobacco $500 

Importers of Tobacco and Processed Tobacco $500 

Manufacturers of Processed Tobacco 1/ $1000

Alcohol Producers: Distilled Spirits Plant 1/ 

 Bonded Wine Cellar 1/ 

 Bonded Wine Warehouse 1/ 

 Tax paid Wine Bottling House 1/ 

$1000

Every Brewer 1/ $1000

1/ Reduced Fees by substituting “$500” for “$1,000” if gross receipts are less than 

$500,000 for the most recent taxable year before the 1st day of the taxable period. 

$500 

Denatured Spirits, Recovery and Tax-Free Users (Industrial Alcohol) $300 

Non-beverage Domestic Drawback Claimants $500 

TTB - 21 
The licensing and registration fee excludes tobacco businesses covered under the Special 

Occupational Tax (SOT) program, including tobacco export warehouses, manufacturers of 

tobacco products, and manufacturers of cigarettes papers and tubes. In addition, since many 

retailers of alcohol and tobacco products trade in both commodities, only one fee will be required 

for those entities. The legislative proposal includes the various exemptions and exceptions that 

applied under the SOT. 

TTB - 22 
Section 3 – Budget and Performance Plan

This table lists all FY 2011 resources by strategic goal, objective and outcome outlined in the FY 

2007-2012 Treasury Department Strategic Plan. The Treasury Strategic Plan is a corporate level 

plan for the Department that provides a description of what the agency intends to accomplish 

over the next five years. 

For detailed information about the FY 2007-2012 Treasury Strategic Plan, please go to: 

http://www.treas.gov/offices/management/budget/strategic-plan/

3.1 – Budget by Strategic Outcome 

Dollars in Thousands 

Treasury Strategic Outcome FY 2010 

Enacted

FY 2011 

Request Percent Change

 Economic competitiveness 53,617 54,609 1.85%

 Revenue collected 53,617 54,609 1.85%

Total $107,234 $109,218 1.85%

3A – Collect the Revenue ($53,084,000 from direct appropriations and $1,525,000 from 

reimbursable programs): This activity works toward providing the most effective and efficient 

systems for the collection of tax revenue, eliminating or preventing tax evasion and other 

criminal conduct, and providing high quality service while imposing the least regulatory burden 

on taxpayers. TTB will employ a number of strategies to collect revenue that is rightfully due. 

The Tax Audit Division will focus its audit resources on large and at-risk taxpayers. The Office 

of Field Operations will continue to provide industry outreach to facilitate voluntary compliance, 

investigate allegations or indications of tax fraud, verify destruction of large quantities of taxable 

commodities, and conduct compliance investigations of permittees who have substantial 

potential for tax liability. 

Reducing taxpayer burden and improving service remain priorities at TTB. The ultimate goal is 

to allow permittees and taxpayers to file all payments, returns, and applications online with the 

National Revenue Center. The FY 2011 budget request enables the continuation of efforts to 

achieve the performance targets supporting the bureau’s strategic goals of providing the most 

effective and efficient system for the collection of all revenue that is rightfully due, eliminating 

or preventing tax evasion and other criminal conduct, and providing high quality service while 

imposing the least regulatory burden. 

Offsetting Collections............................................................Total $1,525,000 

Non-Federal Sources (Puerto Rico).........................................$1,500,000 

Federal Sources (Laboratory Services).........................................$25,000 

The non-federal reimbursable funds cover the costs associated with the functioning and support 

of the Puerto Rico office, and are paid from the “cover-over” (return), which is offset from the 

roughly $481 million in cover-over taxes collected in the United States. Also, the bureau 

collects a nominal amount of reimbursable funding for lab services performed to support 

criminal investigations at the Bureau of Alcohol, Tobacco, Firearms, and Explosives. 

TTB - 23 
Special Receipts Fund (Annual Fees)..................................................$53,084,000 

The annual licensing and registration fees are to cover the costs of TTB’s operation to the extent 

provided in appropriation acts. 

3.2.1 – Collect the Revenue Budget and Performance Plan 

Collect the Revenue Budget Activity

Resource Level

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Obligated Obligated Obligated Enacted Request

 Appropriated Resources $46,215 $46,758 $50,524 $51,500 $53,084 

 Reimbursable Resources $1,512 $1,878 $2,576 $2,117 $1,525 

Total Resources $47,727 $48,636 $53,100 $53,617 $54,609

Budget Activity Total $47,727 $48,636 $53,100 $53,617 $54,609

Collect the Revenue Budget Activity

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Actual Actual Target Actual Target Target

Amount of revenue collected per program dollar (E) N/A 313 300 427 400 400 

Cumulative percentage of excise tax revenue audited 16 DISC DISC DISC DISC DISC 

over 3 years (%) (Ot) 

Percent of voluntary compliance from large taxpayers 86 94 92 94 92 92 

in filing tax payments timely and accurately (in terms 

of revenue)(Oe) 

Percentage of Voluntary Compliance in filing tax 75 DISC DISC DISC DISC DISC 

payments timely and accurately (in terms of number of 

compliant industry members)(Oe) 

Percentage of total tax receipts collected electronically 98 DISC DISC DISC DISC DISC 

(E) 

Percentage of voluntary compliance in filing timely 86.37 DISC DISC DISC DISC DISC 

and accurate tax payments (in terms of revenue) (Oe) 

Resources as a percentage of revenue (E) 0.31 DISC DISC DISC DISC DISC 

Unit cost to process an excise tax return ($) (E) 61 DISC DISC DISC DISC DISC 

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, DISC – discontinued, and B - baseline 

Description of Performance: In FY 2009, TTB met all of its performance measures under the 

Collect the Revenue budget activity, while showing continued improvements in performance 

scores. TTB collected nearly $21 billion in federal excise taxes in a highly efficient manner. 

Key performance metrics show that 94 percent of industry members voluntarily file their tax and 

operational reports on or before the scheduled due date. 

The amount of revenue collected per program dollar measure quantifies the efficiency of the tax 

collection program and, in FY 2009, TTB reported a return on investment of $427 for every 

dollar spent on collection activities. The actual ratio of collections to expenses far exceeded 

performance targets for FY 2009 due mainly to the passage of legislation that increased tax rates 

on certain tobacco products, effectively doubling the bureau’s revenue collections for tobacco. 

TTB - 24 
3B – Protect the Public ($53,084,000 from direct appropriations and $1,525,000 from 

reimbursable programs): This activity ensures the integrity of products and industry members in 

the marketplace, promotes compliance with laws and regulations by regulated industries, and 

provides information to the public as a means to prevent consumer deception. Under this 

activity, TTB enforces compliance with federal laws related to the issuance of permits to 

industry members and the production, importation, exportation, labeling, advertising, and 

marketing of alcohol products. The bureau conducts investigations, application reviews, 

laboratory testing, and educational programs in support of its mission. TTB works with industry, 

other federal and state governments, and other interested parties, including our counterpart 

regulators in foreign countries, to make it easier to comply with regulatory requirements, while 

maintaining the appropriate level of oversight to ensure public safety. Innovation, partnerships, 

and open communication are paramount to achieving this strategic goal. 

TTB monitors trade practices of the alcohol industry and takes enforcement actions on violations 

or discrepancies, monitors and reviews international trade in alcohol beverages to identify trade 

barriers and incidents of international fraud and contaminated products, and to promote 

international agreements on product integrity. 

Users of specially denatured alcohol are required to submit a formula to TTB’s laboratory. 

Likewise, those using alcohol for non-beverage purposes, such as in the manufacture of 

flavorings or medicines, must also gain approval of their formula in order to file a claim for 

drawback of excise taxes previously paid. In both cases, the TTB laboratory reviews the formula 

and analyzes samples to grant or deny the action requested by the applicant. 

TTB also protects the consumer by monitoring alcohol products and investigating incidents of 

suspected unsafe conditions or product deficiencies related to production and labeling. This is 

done by testing samples of beverage alcohol sold at the retail level and obtained directly from 

producers. The purpose of this testing is to ensure that beverage alcohol products marketed in 

the United States meet formulation and labeling requirements, do not contain unauthorized 

substances or contaminants, and are properly classified for tax purposes. 

Offsetting Collections..........................................................Total $1,525,000 

Non-Federal Sources (Puerto Rico)..........................................$1,500,000 

Federal Sources (Laboratory Services).........................................$25,000 

The non-federal reimbursable funds cover the costs associated with the functioning and support 

of the Puerto Rico office, and are paid from the “cover-over” (return), which is offset from the 

roughly $481 million in cover-over taxes collected in the United States. Also, the bureau 

collects a nominal amount of reimbursable funding for lab services performed to support 

criminal investigations being conducted at the Bureau of Alcohol, Tobacco, Firearms, and 

Explosives. 

Special Receipts Fund (Fees)..................................................$53,084,000 

The annual licensing and registration fees are to cover the costs of TTB’s operation to the extent 

provided in appropriation acts. 

TTB - 25 
3.2.2 – Protect the Public Budget and Performance Plan 

Protect the Public Budget Activity

Resource Level

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Obligated Obligated Obligated Enacted Request

 Appropriated Resources $44,403 $46,757 $48,541 $51,500 $53,084 

 Reimbursable Resources $1,512 $1,877 $2,578 $2,117 $1,525 

Total Resources $45,915 $48,634 $51,119 $53,617 $54,609

Budget Activity Total $45,915 $48,634 $51,119 $53,617 $54,609

Protect the Public Budget Activity

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Actual Actual Target Actual Target Target

Average number of days to process an original permit N/A 64 72 64 72 72 

application at the National Revenue Center (E) 

National Revenue Center (NRC) customer satisfaction survey N/A 90 85 89 85 85 

results (%)(Oe) 

Percent of electronically filed Certificate of Label Approval 51 62 53 74 78 85 

applications (%) (E) 

Percentage of COLA approval applications processed within 42 DISC DISC DISC DISC DISC 

9 calendar days of receipt (%) (E) (This measure will 

become inactive beginning in FY 2008.) 

Percentage of Permit Applications (original and amended) 85.09 DISC DISC DISC DISC DISC 

Processed by the National Revenue Center within 60 Days 

(E) 

Percentage of importers identified by TTB as illegally N/A 22 20 15 19 18 

operating without a Federal permit (%)(Oe) 

Percentage of instances where the utilization of N/A 15 DISC DISC DISC DISC 

International Trade Database System (ITDS) results in 

identifying importers without permits as a percentage of 

total permits on file at TTB's National Revenue Center (Oe)

Unit cost to process a Wine Certificate of Label Approval 34 DISC DISC DISC DISC DISC 

(E) 

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, DISC – discontinued, and B - baseline 

Description of Performance: In FY 2009, TTB met or exceeded its targeted performance for 

each of its Protect the Public measures. 

The bureau reported increases in the percent of electronically filed COLA applications, which in 

FY 2009 reached 74 percent of all applications. The ongoing rise in electronic filing is due to 

successful outreach events for industry sponsored by the bureau, and system enhancements that 

simplify filing for industry members. With continued funding for these efforts, TTB expects 

usage rates to reach 85 percent in FY 2011. 

The NRC customer survey measures satisfaction with processing times and the level of service 

provided to the industry. The survey solicits feedback on the level of service provided to 

applicants for an original or amended permit, or those industry members filing a claim to recover 

taxes paid on non-beverage alcohol or overpayments of tax. TTB continues to exceed its target 

of a sustained score of 85 percent on customer satisfaction for permits and claims processing, 

and achieved a composite score of 89 percent in FY 2009. 

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The NRC foresees continued growth in the number of original permits submitted by new 

applicants to the regulated industries. The bureau expects automation efforts that commenced in 

FY 2010 to expedite permit processing times, as described in Section 1B, Specific Challenges in 

FY 2011. With full system functionality slated for deployment in 2011, and considering the 

requisite transition and training period for industry members, TTB anticipates achieving 

significant improvements in processing times beginning in FY 2012. To improve processing 

times in the interim, TTB made a shift in internal business processes in FY 2009, whereby 

certain permit applications requiring a full investigation were sent to the field offices for review 

on a post-issuance basis. This process improvement enabled the bureau to maintain a 64-day 

turnaround time in permit processing for FY 2009 despite a four percent increase in workload. 

TTB’s monitoring of U.S. Customs and Border Protection’s data through the International Trade 

Data System is yielding results. The percentage of entities illegally operating tobacco without a 

federal permit has declined since this measure was established in FY 2008. This measure gauges 

the effectiveness of the bureau’s cease and desist letters to illicit operators and its follow up 

activities to ensure that illegally obtained or contraband products do not reach U.S. consumers. 

 

For detailed information about each performance measure, including definition, verification and 

validation, please go to: http://treas.gov/offices/management/budget/ 

TTB - 27 
Section 4 – Supporting Materials 

4A – Human Capital Strategy Description 

By properly managing its human capital needs, TTB supports the Department of the Treasury’s 

strategic goals: 

• Effectively managed U.S. Government finances; 

• U.S. and world economies perform at full economic potential. 

To accomplish and fulfill both TTB’s and the Department of the Treasury’s strategic plans, the 

bureau has taken several steps to maintain and improve its current professional workforce. 

TTB’s Human Capital Strategic Plan, which is aligned with the TTB Strategic Plan, documents 

strategies to improve skill and competency gaps, demographics, workforce management and 

performance measurement efforts, and succession planning. The model for strategically 

assessing TTB’s skills gap outlook for future years is predicated on assumptions regarding future 

changes in the workforce, including retirement eligibility rules and rates of attrition. 

Succession planning is a strategic priority for TTB, especially as it relates to the bureau’s 

mission critical positions. The bureau expects to lose approximately 40 percent of its workforce 

between 2009 and 2013 due to retirements and other attrition. To mitigate these losses, it is vital 

that TTB continue to have the use of the personnel interventions identified in the Pay 

Demonstration Project (Pay Demo) to enable the bureau to improve its ability to recruit, develop, 

and retain high-caliber employees in mission critical positions. The bureau has 131 participants 

in the Pay Demo project that function in mission critical positions such as chemists, industry 

analysts, auditors, and information technology specialists. 

Wellness Programs

TTB received a number one ranking among 216 sub-component agencies in the area of work-life 

programs. As part of its culture, the bureau promotes the use of telework and work schedule 

flexibilities. TTB also has gone beyond the standard protocol to maintain a Health Improvement 

Program which allows employees up to three hours per week to exercise during work hours. 

TTB has procured vending services to include “heart healthy” choices in snack machines. 

Finally, the bureau has extensive Employee Assistance Program services available to all 

employees, which include grief and stress management, family counseling, financial consultation 

services, mental health evaluations and referrals, eldercare services, parental skills training, legal 

assistance, and a host of video/literary resources. 

During FY 2009, TTB: 

• Received feedback from the joint Treasury/Office of Personnel Management (OPM) 

evaluation of its human resources program, which was positive and indicated an overall 

effective program rating; 

• Underwent the Department of the Treasury’s first audit of the Treasury Bureaus’ Equal 

Employment Opportunity (EEO) programs. The feedback indicated positive results and an 

overall effective EEO/Diversity Program. EEO is implementing improvement strategies, 

such as a TTB Diversity Week, based on its five-year strategic plan; 

TTB - 28 
• Implemented the Treasury Learning Management System and provided all mandatory 

training to employees in the system through online training modules. The system is the 

primary source of record for employee training histories, and provides thousands of online 

courses through a leading provider of Web-based training in professional development and 

technical training; 

• Administered the FY 2008 Federal Human Capital Survey (FHCS) for TTB in coordination 

with Treasury and OPM, which showed an improvement above the FY 2006 scores. TTB 

was ranked 7th out of 216 federal organizations on the Partnership for Public Service, Best 

Places to Work 2009 overall index score ranking. This is an increase from the ranking of 

10th out of 222 federal agencies in 2007. It is also significant to note that TTB ranked 1st out 

of the 216 federal organizations surveyed on the specific work index for Family-Friendly 

Culture and Benefits and 3rd for the Strategic Management index. TTB developed an FY 

2009 – 2010 FHCS Action Plan using the FY 2008 survey results to target specific strategies 

to improve scores in the FHCS results areas of Leadership/Knowledge Management and 

Performance Culture; 

• Completed the OPM 2009 Performance Appraisal Assessment Tool (PAAT) evaluation and 

reporting on the bureau’s General Schedule performance management program and received 

an excellent rating on the overall evaluation. In its feedback to TTB, Treasury stated the 

following: “Your phenomenal score of 90 reflects not only TTB’s hard work and dedication 

to the PAAT, but is also reflective of the tremendous progress TTB is making in ensuring its 

employees have an effective, results-oriented, performance appraisal program....We 

commend you for taking performance management seriously! We are so very proud of the 

TTB 2009 PAAT score of 90 points;” 

• Prepared for signature the TTB order on the Incentive Awards Program. As part of its 

employee recognition efforts, the bureau holds an annual award ceremony to honor the 

service and performance of its workforce; 

• Continued to exceed the Treasury hiring goal of 45 days with an annual overall average of 33 

days to hire. 

Federal Human Capital Survey Response

In response to the government-wide survey to obtain employee feedback, TTB’s Human 

Resources Division (HRD) developed a Federal Human Capital Survey (FHCS) Action Plan. 

TTB ranked 7th out of 216 sub-component agencies on this survey and had high scores in the 

area of recruitment, development, and retention. The areas where TTB scored lowest are the 

same areas identified as problematic throughout the Federal government – “Performance 

Culture” and “Leadership/Knowledge Management.” The HRD staff conducted focus groups 

with supervisory and non-supervisory employees to identify specific actions that would address 

survey responses of TTB employees. During the remainder of FY 2009 and through FY 2010, 

various program offices will be taking action to: 

• Continue to provide annual management and supervisory training on performance 

management, employee recognition, and dealing with problem employees; 

• Update the Diversity Strategic Plan and post it on the Intraweb for access by all 

employees; 

• Publicize the Tuition Reimbursement Program; 

• Educate employees on performance management policies; 

TTB - 29 
TTB - 30 

• Review, and revise as appropriate, guidance on detail assignments; 

• Encourage career mapping through greater use of Individual Development Plans; 

• Encourage targeted recruitment (e.g., the Presidential Management Fellows Program) and 

employee development (e.g., the Emerging Leaders Program) as a means of satisfying 

workforce planning/succession needs. 

Implementing the action plan will increase communication with employees regarding the 

relationship between individual responsibilities and the bureau’s mission, ensure a highly 

talented and well-developed staff, and enhance succession planning activities. 
4.1 – Summary of IT Resources Table 

Dollars in Thousands 

Information Technology Investments

FY 2008 FY 2009 FY 2010 

Actual Enacted % Change from Enacted % Cha

Major IT Investments / Funding Source Budget Activity Funding Funding FY08 to FY09 Funding FY09 

Subtotal, Major IT Investments 0 0 0.0% 0 0

Collect the 

Revenue/Protect the 

Non-Major IT Investments Public 3,980 4,480 12.6% 4,480 

Collect the 

Revenue/Protect the 

Infrastructure Investments Public 14,915 17,258 15.7% 16,260 

EITIO 11,483 13,826 12,828 

WCF 3,432 3,432 3,432 

Collect the 

Revenue/Protect the 

Enterprise Architecture Public 491 644 31.2% 644 

Collect the 

Revenue/Protect the 

Total IT Investments Public 19,386 22,382 15.5% 21,384 

TTB - 31 
4B – Information Technology Strategy 

TTB has a modernization blueprint that focuses information technology (IT) investments on 

important bureau functions and defines how those functions will be measurably improved. All 

TTB systems and projects have business cases that have been approved by the Department of the 

Treasury’s Office of the Chief Information Officer, and all of IT systems have certification and 

accreditation. The bureau will aggressively pursue all E-Gov opportunities that will reduce 

taxpayer burden for tax filing and increase all regulatory compliance. TTB has established its 

own investment review board that evaluates and makes preliminary selection decisions by 

addressing high level questions: 

• Does the initiative have value to TTB and the Treasury Department? 

• Is there a balance of benefits against costs and risks? 

• Is TTB eliminating duplication and stovepipe projects? 

TTB’s investment review board ensures compliance with guidance and legislation. A scoring 

criterion was developed to help ensure that only sound and viable initiatives that support the 

bureau’s mission and strategic goals are included in the portfolio. 

4.2 – Program Evaluation 

Program Name: Collect the Revenue 

Assessment and Improvement Actions 

• TTB is updating its Web site to enhance search and navigation; improve content and format 

and employ plain language principles. 

• TTB is analyzing the results of its comprehensive TTB-sponsored industry seminar and 

incorporating change and improvements to subsequent seminars. 

• TTB is applying a custom survey and evaluation tool to determine the adequacy of the 

National Revenue Center’s internal accounting and administrative control systems and ensure 

compliance with the Federal Financial Management Improvement Act and GAO standards. 

• TTB is developing new releases of its Web-based “dashboard” that when fully deployed, will 

report to TTB management bureau service standards, relevant performance measure data, and 

other key bureau information such as workloads. 

TTB - 32