Department of the Treasury

Alcohol and Tobacco Tax and 

Trade Bureau

Congressional Budget

Justification and Annual 

Performance Plan and Report

FY 2024
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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................................................................ 6

D – Appropriations Language and Explanation of Changes ...................................................... 7

E – Legislative Proposals............................................................................................................ 7

Section II – Annual Performance Plan and Report................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity ...................................................................... 9

2.1.1 – Collect the Revenue Resources and Measures................................................................ 9

Collect the Revenue Budget and Performance ........................................................................... 9

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

Protect the Public Budget and Performance ............................................................................. 15

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

Section III – Additional Information ........................................................................................ 23

A – Summary of Capital Investments....................................................................................... 23
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Section I – Budget Request

A – Mission Statement

To collect taxes on alcohol, tobacco, firearms, and ammunition; protect consumers 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 that the Alcohol and 

Tobacco Tax and Trade Bureau (TTB) performs. 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 2022, 

TTB collected approximately $19.6 billion in excise taxes from the alcohol, tobacco, firearms, 

and ammunition industries. 

Like so many others, TTB is defining its new normal and taking lessons learned during the 

pandemic to strengthen our business model and meet the evolving needs of the businesses we 

regulate. At the FY 2024 funding level, and in support of the Administration’s economic 

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

improving taxpayer experience by simplifying tax and regulatory requirements, modernizing 

online filing systems to improve the customer experience, and issuing clear and timely industry 

guidance to facilitate voluntary compliance. 

Service remains a top priority, as delays to issuing permits or product approvals have financial 

consequences for the viability of businesses. At the FY 2024 funding level, TTB expects to 

maintain permit, label, and formula approval times within service standards. Further, TTB will 

ensure access to tax benefits available to alcohol producers and importers under the permanent 

craft beverage modernization tax provisions, including by issuing timely refunds on import 

claims. In FY 2024, TTB plans to take a data-driven and risk-based approach to administering

the new import claims program. The budget request supports ongoing enhancements to new

online registration and filing systems, as well as the necessary tax administration and

enforcement staff to administer this program.

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

consumers, or government effectiveness. In FY 2024, TTB plans to continue three major 

regulatory reform efforts in permitting, tax, and alcohol beverage labeling to consolidate, clarify, 

and simplify requirements and, where possible, minimize filing frequency. The revised 

requirements will ease burdens placed on new and existing businesses and make it easier to 

voluntarily comply. At the same time, TTB plans to tailor the requirements to improve data 

quality and better detect risk to direct enforcement efforts. Further, TTB will prioritize 

rulemaking to stimulate trade and market competition, including proposals that would expand

information on alcohol beverage labels to provide greater transparency for consumers and 

alcohol producers. 
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At the FY 2024 funding level, TTB will continue to make critical investments in 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. Investments planned in FY 2024 focus on the 

initial phases of implementing simplified tax filings for all wineries, breweries, and distilleries, a 

priority focus for TTB, in its efforts to make compliance clearer and easier while addressing the 

fact that the industry still submits roughly half of all tax filings on paper.

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

the submission of compliant filings in other areas. 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 post-pandemic, 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.

1.1 – Appropriations Detail Table

Dollars in Thousands

FY 2022 FY 2023 FY 2024 FY 2023 to FY 2024

Appropriated Resources Operating Plan 1 Operating Plan1 Request % Change

New Appropriated Resources FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Collect the Revenue 223 59,252 262 76,895 265 80,847 1% 5%

Protect the Public 238 68,815 265 71,968 265 74,757 0% 4%

Subtotal New Appropriated 

Resources 461 $128,067 527 $148,863 530 $155,604 1% 5%

Other Resources

Reimbursables and Offsetting 

Collections 2 12 8,533 11 9,690 11 9,690 0% 0%

Unobligated Balances from Prior 

Years 3 18 4,850 21 4,450 21 4,450 0% 0%

Transfer In/Out 4 0 821 0 0 0 0 NA NA

Subtotal Other Resources 30 $14,204 32 $14,140 32 $14,140 0% 0%

Total Budgetary Resources 491 $142,271 559 $163,003 562 $169,744 1% 4%

1/ FY 2022 New Appropriated Resources by Budget Activity reflect levels appropriated in P.L. 117-103, the Consolidated Appropriations Act, 

2022. FY 2022 Other Resources and Full-time Equivalents (FTE) reflect actuals. FY 2023 New Appropriated Resources by Budget Activity 

& FTE reflect levels appropriated in P.L. 117-328, the Consolidated Appropriations Act, 2023.

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

Financial Institutions (CDFI) Fund along with offsetting collections from Puerto Rico Cover-Over Program.

3/ All years include carryover of prior two-year set-aside funding for trade practice enforcement and recoveries of 50 percent in unobligated 

balances from prior one-year funding.

4/ FY 2022 actual obligations include a transfer from TEOAF Strategic Support & Secretary's Enforcement Fund.
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1.2 – Budget Adjustments Table

Dollars in Thousands

FTE Amount

FY 2023 Operating Plan 548 $148,863

Changes to Base:

Maintaining Current Levels (MCLs): 0 $5,770

Pay Annualization (4.6% average pay raise) 0 $1,038

Pay Raise (5.2% average pay raise) 0 $3,560

Non-Pay 0 $1,172

Subtotal Changes to Base 0 $5,272

FY 2024 Current Services 548 $154,633

Program Changes:

Program Increases: 3 $971

Taxpayer Experience & Administration 3 $971

Subtotal Program Changes 3 $971

FY 2024 President's Budget Request 551 $155,604

Note: In addition to the amounts requested above, a total of $2.5 million from 

the Cybersecurity Enhancement Account will be allocated to support TTB’s 

Zero Trust Architecture.

C – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ........................................................+$5,770,000 / +0 FTE

Pay Annualization (4.6%) +$1,038,000 / +0 FTE

Funds are requested for annualization of the January 2023 4.6% average pay raise. 

Pay Raise (5.2% in FY 2024) +$3,560,000 / +0 FTE

Funds are requested for a 5.2% average pay raise in January 2024. 

Non-Pay (2.0% in FY 2024) +$1,172,000 / +0 FTE

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

and equipment.

Program Increases ......................................................................................+$971,000 / +3 FTE

Taxpayer Experience & Administration +$971,000 / +3 FTE

TTB is requesting $971 thousand and 3 FTE to invest in improvements to transform the TTB 

taxpayer experience and tax administration through simplified tax filings. Through a 

combination of tax expertise and customer engagement, TTB plans to initiate implementation of 

redesigned tax returns, reporting requirements, and system enhancements to reduce compliance 

burden and to streamline and improve data collections. This investment will make it easier for 

taxpayers to comply, especially for the small businesses who comprise the vast majority of TTB 

taxpayers and cannot afford compliance staff to support their operations. 
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1.3 – Object Classification (Schedule O) Obligations

Dollars in Thousands

FY 2022 FY 2023 FY 2024

Object Classification

Actual

Obligations

Estimated

Obligations

Estimated

Obligations

11.1 - Full-time permanent 56,332 67,243 71,598 

11.3 - Other than full-time permanent 483 22 0 

11.5 - Other personnel compensation 1,339 1,089 1,094 

11.5 - Overtime 612 615 

11.9 - Personnel Compensation (Total) 58,154 68,966 73,308 

12.0 - Personnel benefits 21,470 25,370 26,852 

13.0 - Benefits for former personnel 482 0 5 

Total Personnel and Compensation Benefits $80,106 $94,336 $100,164 

21.0 - Travel and transportation of persons 1,249 1,611 1,650 

22.0 - Transportation of things 29 34 34 

23.1 - Rental payments to GSA 4,680 4,083 4,184 

23.2 - Rental payments to others 10 4 0 

23.3 - Communications, utilities, and miscellaneous charges 967 1,476 1,509 

24.0 - Printing and reproduction 265 329 335 

25.1 - Advisory and assistance services 13,529 21,846 22,380 

25.2 - Other services from non-Federal sources 16,778 17,007 17,287 

25.3 - Other goods and services from Federal sources 10,343 10,149 10,259 

25.4 - Operation and maintenance of facilities 25 24 24 

25.7 - Operation and maintenance of equipment 1,923 2,686 2,743 

26.0 - Supplies and materials 363 402 411 

31.0 - Equipment 6,433 3,885 4,001 

32.0 - Land and structures 83 0 0 

99.5 – Adjustment for rounding 1,002 0 0 

Total Non-Personnel $57,679 $63,535 $64,818 

Total Obligations 1 $137,785 $157,871 $164,983 

Full-time Equivalents (FTE) 2 491 559 562

*Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

1/ FY 2022 reflects actual obligations totaling $137.3 million, of which $128.8 million was from direct resources (new appropriations, 

carryover from prior years, and a TEOAF transfer) and $8.5 million was from reimbursable resources/offsetting collections. FY 2023 

reflects anticipated obligations totaling $157.9 million, of which $148.5 million is from direct resources (new appropriations and carryover 

from prior years) and $9.4 million is from reimbursable resources/offsetting collections. FY 2024 reflects anticipated obligations totaling 

$165.0 million, of which $155.3 million is from direct resources (new appropriations and carryover from prior years) and $9.7 million is 

from reimbursable resources/offsetting collections.

2/ FY 2022 FTE reflects actual total FTE of 491, of which 479 FTE was from direct resources and 12 FTE was from reimbursable 

resources/offsetting collections. FY 2023 reflects anticipated total FTE of 559, of which 548 FTE is anticipated from direct resources and 

11 FTE is anticipated from reimbursable resources/offsetting collections. FY 2024 reflects anticipated total FTE of 562, of which 551 FTE 

is anticipated from direct resources and 11 FTE is anticipated from reimbursable resources/offsetting collections.
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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, [$148,863,000]$155,604,000; of which 

$5,000,000 shall remain available until September 30, 2025; 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 remain available until 

September 20, 2025. (Department of the Treasury 

Appropriations Act, 2023.)

The 2024 Budget 

proposes $5M in twoyear 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.
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

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

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

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

the alcohol beverage industry for the protection of U.S. consumers. 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. These efforts support Treasury’s Strategic 

Objective 1.1: Tax Administration and Policy, which aims to enhance tax compliance and 

service, as well as improve tax policy design. The industries that TTB regulates have grown 

significantly in recent years, which presents taxpayer service and enforcement challenges, 

particularly in light of recent tax reform legislation. These reforms expanded TTB’s tax mission 

to include a new import claims program. This new program requires additional investments in 

TTB to ensure businesses receive timely refunds for claims filed on imported alcohol beverage 

products and to prevent fraudulent claims. At the FY 2024 funding level, TTB will also continue 

its multiyear IT system modernization of outdated tax and regulatory systems to support efficient 

filing and processing. In addition, TTB plans to leverage technology to improve the TTB 

taxpayer experience and increase voluntary compliance, consistent with the Administration’s 

priorities. 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. These efforts support Treasury’s Strategic Objective 1.3: Economically Resilient 

Communities by promoting economic recovery and growth for small businesses in communities 

across the country, including the thousands of breweries, wineries, and distilleries that TTB 

regulates. To this end, timely service remains a priority for TTB. As the demand for TTB 

services from these businesses continues to rise, and within the FY 2024 resources, TTB will aim 

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 to correct application errors.
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B – Budget and Performance by Budget Activity

2.1.1 – Collect the Revenue Resources and Measures

Dollars in Thousands

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request

Appropriated Resources $53,560 $58,856 $57,513 $57,526 $59,252 $76,895 $80,847 

Reimbursable and Offsetting Collections $3,923 $3,573 $4,131 $3,654 $4,556 $5,174 $5,174 

Unobligated Balances from Prior Years $112 $214 $98 $77 $135 $125 $125 

Transfers In/Out $902 $597 $349 $1,087 $821 0 0

Budget Activity Total $58,497 $63,240 $62,091 $62,344 $64,763 $82,194 $86,146

Full-time Equivalents (FTE) 212 213 211 211 230 262 271

Performance Measure

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2022 FY 2023 FY 2024

Actual Actual Actual Actual Actual Target Target Target

Amount of Revenue Collected 

Per Program Dollar ($)* 369 339 380 375 336 I I I

Voluntary Compliance from 

Large Taxpayers - Overall (%) 90 91 91 93 93 95 95 95

By Payment 99 99 99 99 99 - - -

By Tax Return 83 84 84 87 87 - - -

By Operational Report 82 83 83 87 86 - - -

Electronically Filed Tax 

Returns - Pay.gov (%) 37 41 43 47 51 50 65 65

Electronically Filed Operational 

Reports - Pay.gov (%) 42 46 50 53 56 50 65 65

Claims Processed within 

Service Standard (30-45 days) 

(%) 1

35 18 46 59 58 85 85 85

Key: DISC - Discontinued; B - Baseline; I - Indicator

* Performance Indicators do not have a target

1/ Claims services standards are set annually and vary by type: Manufacturer of Nonbeverage Products = 30 days; Other Claims = 45 days; 

CBMA Import Claims = TBD. Current standards account for when interest starts to accrue to the government, as defined by statute. 

Collect the Revenue Budget and Performance

($80,847,000 from new direct appropriations, $5,174,000 from reimbursable sources, and 

$125,000 from unobligated balances from the prior year):

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 39,000 businesses based on their production and operations. TTB also issues 

approximately $400 million in tax refunds and drawback payments on taxes paid by 

manufacturers of nonbeverage products. TTB’s regulated taxpayers include distilleries, 

breweries, bonded wineries, bonded wine cellars, manufacturers of tobacco products, 

manufacturers of paper and tubes for tobacco products, and manufacturers and importers of 

firearms and ammunition.
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Federal excise tax evasion in relation to alcohol and tobacco products is another core focus for 

TTB. The diversion of these products outside of legitimate commercial channels without the 

payment of taxes due threatens federal revenues, undermines fair competition, and provides a 

source of funding for criminal enterprises. 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 tax evasion and fraud to ensure all products sold in the 

marketplace are properly taxpaid.

Other Resources..............................................................................$5,299,000

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

Offsetting Collections/Reimbursables............................................................. $5,174,000

Other resources that support 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 $414 million in taxes collected on the alcohol beverage products 

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

Community Development Financial Institution (CDFI) for IT services provided by TTB; and 

funding from the Treasury Executive Office of Asset Forfeiture (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 2024, 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 2022, TTB achieved a return on investment of $336 for 

every program dollar spent on collection activities, down from $375 in FY 2021. 

In FY 2022, Federal tax revenue from the alcohol and tobacco industries decreased year-to-year. 

Tobacco collections continued to steadily decline, down another 6 percent in FY 2022, in line 

with shifts in consumption and market patterns. Alcohol collections also trended down 2 

percent, likely due to supply chain and other operational challenges for industry members. 

Firearms and ammunition excise tax collections, which represent a small percentage of total 

collections continued to trend up, increasing another 6 percent, and nearly doubling over the past 

five years. At the same time, TTB’s tax administration and enforcement costs have generally 

returned to historic levels over the past two years, as TTB resumed in-person enforcement and 

outreach activities. TTB received funding in FY 2023 to implement and administer the CBMA 

import provisions, and the FY 2024 funding level will enable TTB to sustain ongoing program 

and service improvements.
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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 market and consumption trends, as well as the duration and impact of inflationary 

pressures on TTB-regulated industries.

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. TTB uses its tax compliance data to improve the 

Bureau’s ability to rate and prioritize taxpayers based on relative risk to ensure TTB addresses

the most serious instances and 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 2022, TTB 

achieved an overall compliance rate of 93 percent from its large taxpayers in meeting all tax 

filing requirements, sustaining progress achieved last year. The overall compliance rate has 

increased from 90 percent in FY 2018 due to strategic program improvements. Payment 

compliance rates remain high at more than 99 percent, indicating that the majority of reported 

liabilities were paid on time. Compliance rates for tax returns remained at 87 percent in FY 2022 

and operational reports dipped slightly to 86 percent, warranting continued focus on these filing 

requirements in the year ahead. 

As the taxpayer universe grows, and workloads increase, TTB has faced resource challenges in 

maintaining industry compliance. 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 renewed efforts to address illicit trade 

practice activity in the alcohol industry, with directed funding for this purpose enacted in TTB’s 

appropriations since FY 2017. Since then, TTB has increased its trade practice enforcement to 

address anti-competitive conduct as well as expanded its industry outreach and education in this 

area so that businesses understand their obligations and can voluntarily comply.

In FY 2022, to improve tax oversight, TTB refined analytics tools and internal procedures to 

address identified non-compliance. By partnering its tax experts with its analytics team, TTB 

continued to enhance new dashboard views of taxpayer compliance scores, including summary 
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and detailed information about each compliance factor (i.e., late/missing returns, late/missing 

reports, late payments, and underpayments). Based on these scores, TTB used streamlined 

procedures for reconciling taxpayer accounts and issuing assessments. At the same time, TTB 

continued to improve its coordination of taxpayer referrals for field audits to address serious noncompliance issues that undermine the level playing field. These policy and process 

improvements proved effective and resulted in identified tax liabilities of $89.3 million and 

$45.3 million in collections during the last two years.

At the FY 2024 funding level, improving compliance rates will remain a priority for TTB. Plans 

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

enhancements to analytics tools and expanding analysis into 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, using compliance data to direct its annual outreach 

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

prove critical to supporting and increasing compliance by the thousands of small businesses that 

TTB regulates. 

TTB continues to emphasize external communication strategies to improve tax compliance. 

Given that TTB.gov remains the Bureau’s primary industry resource for tax guidance, 

improvements to online tax resources continue to be a priority.

In FY 2022, TTB continued to expand its outreach efforts and opportunities, delivering a number 

of presentations and training sessions both remotely and in-person, including commodityfocused Boot Camps to improve industry compliance with tax and regulatory requirements. TTB 

also staffed booths at a number of trade conferences, providing real-time answers to questions 

from industry members. Going forward, TTB will continue to maximize virtual options to 

conduct industry training and outreach, along with in-person conference attendance.

Overall compliance trended down in the first part of the 

past decade – from 94% in FY 13 to 90% in FY 17. 

Recent enforcement efforts have increased overall 

taxpayer compliance to 93% in FY 22. Sustaining these 

improvements requires enhanced technology and 

increased guidance to support voluntary compliance by 

the increased number of TTB 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 improvements, at the 

FY 2024 funding level, TTB plans to streamline its tax 

requirements to minimize filing burden and support 

voluntary compliance.

94%

90%

93%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Large Taxpayers Oveall Compliance Rate

Overall Compliance

TARGET: 95%

100% 99% 99%

88%

79%

87%

87% 82% 86%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Payments Tax Returns Operational Reports

Large Taxpayer Compliane Rate - Overall Large Taxpayer Compliane Rate - by Filing Type
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At the FY 2024 funding level, TTB plans to focus on strategic communications, using customer 

feedback and user testing to help prioritize and design effective and evidence-based web 

guidance and industry educational materials. TTB also plans to increase and improve tax 

guidance on TTB.gov, a priority area that has been delayed due to competing program priorities. 

In addition, with the permanent enactment of the CBMA provisions, TTB will continue to update 

its online guidance to provide current information on rules and requirements, informed by 

common taxpayer questions. These efforts will include outreach to importers, Customs brokers, 

and relevant trade associations to support understanding and compliance with new import refund 

requirements to facilitate timely processing.

TTB will also focus on increasing tax compliance by developing an improved and integrated

online taxpayer experience, supported by the FY 2024 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 tax filings. 

E-filing rates for tax returns and operational reports trended positively in FY 2022, but remain 

low compared to other TTB e-filing systems. TTB ended the year at 51 percent of tax returns 

and 56 percent of operational reports submitted electronically, exceeding the annual target of 50 

percent for both filing types for the first time. Even though TTB exceeded its target, 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. In FY 2022, 

TTB worked with BFS to implement a self-enrollment process for new Pay.gov users, 

eliminating a time-consuming registration process that previously deterred users. Enrollment 

rates have nearly doubled in the six months since implementing this change, contributing to the 

progress achieved in FY 2022. Additional Pay.gov promotion should result in increased e-filing 

rates, although more significant tax system modernization is likely required for TTB to achieve 

its long-term target of 80 percent.

Going forward, as part of its IT modernization efforts, TTB intends to implement phased releases 

to its tax system, including a custom external interface for electronic tax filings and account 

management, as well as enhanced internal workflows to support TTB tax administration. At the 

FY 2024 funding level, these efforts will focus on implementing redesigned tax filing 

requirements to reduce compliance burden and to streamline and improve data collections. This 

investment will make it easier for taxpayers to comply, especially for the many small businesses 

that comprise the vast majority of TTB taxpayers. 

In FY 2022, TTB continued to focus its IT development efforts on claims to improve existing 

claims processes as well as prepare to administer the new CBMA import claims program 

beginning in FY 2023. TTB measures its service levels through its measure of Claims Processed 

within Service Standards, with service standards of 30 or 45 days depending on claim type. For 

the majority of claims types, TTB met the 45-day service standard for 69 percent of submissions; 

however, for claims submitted by manufacturers of non-beverage products (MNBP), the highest 

volume claim type, TTB only met the 30-day standard for 46 percent of submissions. This year, 

TTB deployed enhancements to its existing module to support timely processing of MNBP 
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claims. These improvements helped to reduce backlogs and increase MNBP claims meeting the 

30-day service standard from 30 percent or less in the first six months of FY 2022 to 

approximately 70 percent or more in the last six months of the year. In addition, TTB initiated 

development of a new module to enable industry to file claims online, which will replace the 

web form deployed as an interim solution at the pandemic onset. 

At the FY 2024 funding level, TTB will also continue to deploy enhancements to two systems to 

administer CBMA import claims – Foreign Producer Registration/Assignment and Import 

Claims Submission/Processing – including associated data and usability improvements to 

facilitate implementation of the statute. Both systems incorporate external data sets to validate 

registrants and eligibility for refunds, critical features to prevent ineligible or fraudulent claims. 

TTB plans to continue to enhance system-based validations to support effective and efficient 

claims processing, and ensure that TTB maintains timely service despite the influx of new claims

beginning in FY 2023, which TTB expects to nearly double the current number of claims 

submitted to TTB. 

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

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

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

reconciliation of multiple reports and returns by specialists, auditors, and investigators, in 

combination with other data sources, are required to detect and address high-risk activity. In FY 

2024, and at the requested funding level, TTB plans to enhance its IT systems and analytics tools 

to facilitate TTB’s use of tax information to more effectively target its resources to suspected 

evasion schemes.
TTB - 15

2.1.2 – Protect the Public Resources and Measures

Dollars in Thousands

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

 Resource Level Actual Actual Actual Actual Actual Operating 

Plan Request

Appropriated Resources $57,879 $60,744 $62,087 $66,811 $68,815 $71,968 $74,757

Reimbursable and Offsetting Collections $2,366 $2,666 $2,613 $3,418 $3,977 $4,516 $4,516 

Unobligated Balances in Prior Years $4,166 $4,865 $4,479 $4,534 $4,716 $4,325 $4,325 

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

Budget Activity Total $64,498 $68,275 $69,179 $74,763 $77,508 $80,809 $83,598 

Full-time Equivalents (FTE) 273 282 284 290 261 291 291

Performance Measure

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2022 FY 2023 FY 2024

Actual Actual Actual Actual Actual Target Target Target

Permit Applications Processed 

within Service Standards (Original 

- 75 days) (%)

71 58 84 92 91 85 85 85

Alcohol Beverage Label and 

Formula Applications Processed 

within Service Standards 

(15 days) (%) 1

84 48 83 92 93 85 85 85

Initial Error Rate for Permit 

Applications 78 71 62 67 64 25 25 25

Initial Error Rate for Label and 

Formula Applications 40 37 34 31 29 25 25 25

Electronically Filed Permit 

Applications - Original (%) 87 89 92 95 95 95 95 95

Electronically Filed Permit 

Applications - Amendments (%) 

(NEW) 2

85 83 79 90 90 90

Electronically Filed Label and 

Formula Applications (%) * 98 99 99 100 100 I I I

Customer Satisfaction Rate with 

eGov Systems - Permits Online 77 68 78 79 78 80 80 80

Customer Satisfaction Rate with 

eGov Systems - COLAs Online 81 77 80 83 83 80 80 80

Customer Satisfaction Rate with 

eGov Systems - Formulas Online 3 79 70 73 80 78 80 80 80

Key: DISC - Discontinued; B - Baseline; I - Indicator

*Performance Indicators do not have a target

1/ Service standards are set annually based on TTB analysis of submission volume, error rates, and resource levels. In FY 2018, following a 

spike in submission volume, TTB set service standards of 15 days for both label and formula applications. TTB has maintained this standard 

through FY 2024.

2/ Results represent amendment submissions, with multiple permit amendment types often submitted on a single submission; the ability to 

submit multiple amendments via a single submission took effect in Q4 FY 2019.

3/ Results represent beverage alcohol filers only (nonbeverage alcohol formula submissions are excluded).

Protect the Public Budget and Performance

($74,757,000 from new direct appropriations, $4,325,000 from unobligated balances from the 

prior year, and $4,516,000 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 119,000 alcohol and tobacco businesses that TTB regulates; facilitate fair and lawful 

domestic and international trade in the alcohol and tobacco commodities; and provide full and 
TTB - 16

accurate alcohol beverage product information to the public as a means to prevent consumer 

deception. 

Other Resources................................................................................. $8,841,000

Unobligated Balances from the Prior Year...........................................................$4,325,000

Offsetting Collections/Reimbursables..................................................................$4,516,000

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 $414 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 uses a combination of measures to monitor the degree to which the bureau is improving 

industry services and customer experience through meeting its established service standards 

for permit, label, and formula applications; reducing error rates on applications to address 

processing delays caused by incomplete or non-compliant submissions; and increasing the 

user satisfaction rates 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 IT systems, and providing 

clearer guidance to industry members.

TTB protects Federal revenues and U.S. consumers by screening permit applications and 

registrations to ensure only qualified persons engage in the alcohol and tobacco industries. 

TTB’s strategic goal to improve its business qualification program calls for TTB to streamline 

permit applications to reduce applicant burden and make effective use of technology to minimize

application errors and improve processing times.

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. 

High submission volume, particularly in the more 

complex permit application types related to producing 

alcohol beverage products, continues to present service 

challenges. TTB has maintained a priority focus on 

timely approvals, recognizing the financial 

consequence of delays on applicants, many of whom

make significant upfront investments prior to applying. 

TTB established a priority performance goal in FY 

2018 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 - 17

Since establishing this priority goal, TTB has achieved and sustained significant improvements 

in its service levels for permitting. Average approval times are now 36 days, sustaining progress 

achieved last year, and a reduction of more than 60 percent since this goal was established. This 

year, TTB also demonstrated its ability to provide consistent service – the second part of its 

priority goal. In FY 2022, TTB again surpassed its target to achieve the 75-day service standard 

for 85 percent of permit applicants, ending the year at 91 percent. 

These performance gains are in part due to TTB’s improved management of in-process permit 

applications, employing dashboards that display key metrics on the status and age of applications 

to proactively identify and address any processing delays. TTB also continues to cross-train 

specialists to allow management to redeploy staff as necessary to cover fluctuations in 

application types.

Sustaining these performance improvements will require continued progress on several 

crosscutting initiatives. Going forward, TTB plans to achieve its performance target through 

ongoing process improvements and updates to its permit applications to simplify and 

streamline requirements. At the FY 2024 requested funding level, TTB will also continue its 

IT modernization efforts to improve the customer experience with Permits Online, including 

enhanced guidance and self-service features to help applicants submit compliant 

applications.

TTB will also continue to improve its procedures to screen permit applicants, refining the 

risk criteria, tools, and processes 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 to track how many applications 

are submitted either incomplete or with errors. These results inform strategies to maintain 

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

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

applicants to verify the information provided, which adds to the total processing time. 

TTB’s ability to meet its service standard for new permit applications continues to be hindered

by high error rates on submissions, which reached over 80 percent in prior years. Error rates are 

highest for prospective breweries, wineries, and distilleries, which have more complex 

applications compared to non-manufacturers (i.e., wholesalers and importers). In FY 2022, TTB 

reduced error rates on new permit applications to 64 percent, down from 67 percent in FY 2021. 

The most significant improvement has been achieved on wholesaler and importer applications, 

with error rates decreasing another five percent, and down a total of 30 percent since FY 2018. 

Over the last five years, TTB has reduced total permit application errors by approximately 15 

percent, indicating that efforts to streamline applications and processes are resulting in sustained 

improvements. 

To meet its permitting performance goals, TTB will continue to focus on reducing errors on 

permit applications that delay processing and frustrate applicants. The Bureau expects 
TTB - 18

significant progress in the next few years as it continues to simplify permit requirements and 

improve IT systems to make filing easier. In FY 2022, TTB fully implemented a new business 

process for returning permit applications for corrections. Previously, the Permits Online filing 

system did not allow an applicant to add or correct application information after it was 

submitted. Instead, it was handled via email exchange between the TTB specialist and applicant, 

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

 

In FY 2022, TTB implemented an IT enhancement to enable incomplete applications to be 

returned and corrected by the submitter within Permits Online. This new functionality provides 

valuable data on frequent errors, which TTB is using to direct plans for improved online 

guidance and system support. TTB is also using the information to ensure consistency in its own 

reviews. At the FY 2024 funding level, TTB will continue monitoring customer feedback to 

support ongoing process and system enhancements.

Additionally, TTB’s call center will focus on improving the level of service provided to 

customers seeking live assistance with the permit application process. TTB plans to use call 

center data to understand customer pain points to develop effective guidance and support 

strategic system enhancements to improve the overall customer experience with TTB 

services.

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

tracks the electronic filing rate for new business applications, TTB received 95 percent of 

permit applications via Permits Online in FY 2022. TTB attributes the high rate of electronic 

filing to recent improvements in Permits Online as well as ongoing system promotion at 

industry conferences and seminars. More recently, TTB introduced a new measure for the 

Percent of Electronically Filed Permit Applications – Amendments to provide similar 

visibility into electronic filing rates for applications to amend an existing TTB permit, a 

requirement following certain changes to a business premises, operations, and/or ownership. 

These submissions represent both a critical service to existing industry members and a 

significant workload for TTB, with roughly 16,000 amendments filed annually. Future IT 

modernization efforts, combined with improved online guidance to help first-time filers 

navigate the application process, will support TTB in achieving its targets to sustain electronic 

filing rates at or above 95 percent for original permits and 90 percent for permit amendments, 

as well as support efforts to reduce error rates on permit applications to 25 percent. 

 

As part of its strategy to optimize electronic filing systems, TTB measures Customer Satisfaction 

with the Permits Online eGov System through an email survey to assess how satisfied businesses 

are in applying for a permit or registration through Permits Online. In FY 2022, TTB achieved a 

system satisfaction rate of 78 percent, down slightly compared to last year, and holding just 

below the 80 percent target. Notably, satisfaction continues to rise and fall in line with permit 

approval times, demonstrating a strong correlation between service levels and system 

satisfaction. 

TTB expects system satisfaction to improve as it initiates broader modernization efforts to 

provide applicants with a single integrated online filing experience. However, system 

satisfaction in Permits Online may continue to lag behind other TTB systems, as the Bureau 
TTB - 19

expects to continue to face tradeoffs in IT modernization priorities due to competing needs 

related to tax administration.

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

are also underway. The proposed changes are informed by industry input on Treasury 

regulations that can be eliminated, modified, or streamlined to reduce burden. These changes 

will enable TTB to achieve and sustain its targeted performance levels in FY 2024, particularly 

as the alcohol beverage industry continues to grow. 

In FY 2022, TTB made significant progress in its regulatory modernization efforts. TTB 

published the first in its series of proposed rulemakings to simplify permit applications in early 

FY 2022, starting with distilled spirits plants, followed by a proposed rule to simplify the 

brewer’s notice process in June 2022. In the year ahead, TTB plans to issue Final Rules for 

distilled spirits and brewer applications, and publish proposed rulemaking for winery 

applications. The proposed changes should dramatically decrease the number of open text fields 

and requirements to upload supporting documentation, thereby streamlining the permit 

application experience and reducing burden on applicants. TTB also expects that simplifying 

and clarifying these regulatory requirements will reduce errors on permit applications and 

contribute to improved approval times in the years ahead. 

TTB also protects U.S. consumers by ensuring that alcohol beverage products sold are properly 

labeled and comply with Federal regulatory standards. TTB’s strategic goal to modernize its 

labeling program calls for the Bureau to provide timely and consistent service, reducing the 

burden of resubmissions on industry and TTB, and to employ risk-based market sampling and 

investigations to ensure product integrity and fair competition.

In FY 2022, TTB received nearly 193,000 label and 27,000 formula applications for new alcohol 

beverage products. 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.

Label and formula submission volume remains high, reflecting industry expansion and product 

innovation over the last five years. COVID-19 temporarily halted the growth in label 

applications in FY 2020. Submissions rebounded to near pre-pandemic levels in FY 2021; 

however, these signals of industry recovery slowed in FY 2022, with total label applications 

down roughly one percent. Likewise, after years of double-digit growth, formula applications 

decreased for the first time in FY 2022, down over five percent compared to last year. The 

exception to this trend was distilled spirits submissions, with both label and formula applications 

continuing to increase in FY 2022, although at a more modest rate. Even so, industry has 

demonstrated resilience and continued to innovate through the pandemic, with total formula 

submissions remaining more than 70 percent higher than FY 2018, due to the use of novel 

ingredients and market trends toward flavored products. 
TTB - 20

In light of customer expectations, and supported 

by set-aside funding again enacted in the FY 2022

budget to accelerate approval times, TTB 

maintained a 15-day service standard for alcohol 

beverage label and formula applications in FY 

2022. TTB ended the year at 93 percent of label

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 in response to submission 

fluctuations. By employing similar strategies,

TTB was also able to overcome significant 

staffing shortages in its formulation office and exceed the targeted performance level, ending the 

year at 90 percent of formula applications meeting the 15-day standard. By year-end, label and 

formula applicants received approvals in less than 10 days on average, well below the 15-day 

standard, and a significant improvement over the 30 - 45 day standards that the Bureau set and 

struggled to achieve in the past.

TTB expects performance to continue to trend positively through FY 2024 through continuous 

queue management and strategic resource alignment. As a result, TTB intends to maintain its 

15-day service standard for label and formula applications. TTB will also work toward its 

performance target of meeting this standard for 85 percent of applications through initiatives to 

modernize IT systems and guidance, with particular focus on reducing errors on applications 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 uses 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 2022, approximately 29 percent of label 

and formula applications were submitted 

incomplete or with errors, demonstrating 

continued year-to-year progress toward the 

targeted performance level of 25 percent. TTB 

made gains across commodity and application 

types and, notably, ended the fiscal year at target 

for wine labels and below target for wine, malt beverage, and distilled spirits formulas, 

proving the ongoing effectiveness of prior year strategies that focused on reducing wine 

label and formula errors.
TTB - 21

In FY 2022, 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. Distilled spirits and malt beverage submissions continue to have 

the highest error rates. This year, TTB focused on improving industry outreach and 

education, including guidance on TTB.gov. TTB launched its TTB Boot Camp webinar 

series in FY 2022, starting with distillers, which includes compliance guidance on various 

topics, including labeling. In the year ahead, TTB plans to expand its series to include other 

commodities.

TTB also continues to make progress in issuing improved guidance on TTB.gov for each 

alcohol beverage commodity. 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 –

a high frequency error. Going forward, TTB intends to further reduce error rates by 

integrating industry guidance available on TTB.gov into its online systems. Once complete, 

TTB will have completely refreshed its core labeling guidance in an easy-to-read, userfriendly format to help improve compliant label submissions and reduce the burden of 

resubmissions on TTB and industry.

In recent years, to help address processing delays, TTB has implemented risk-based policy 

changes to reduce the volume of label and formula applications without compromising TTB’s 

market protection role. These changes temporarily reduced the volume of label and formula 

submissions; however, industry growth combined with market trends toward products that 

require formula approval have resulted in increased submissions that offset these reductions in 

recent years. Going forward, TTB will continue to focus on its strategy to reduce total workload 

volume by addressing errors on label and formula applications, as these errors require TTB to rereview submissions and delay timely approvals. 

In FY 2022, TTB also made further progress on its initiative to modernize Federal alcohol 

beverage labeling regulations to reflect current TTB policy and modern industry practices. 

When finalized, the updated regulations will facilitate industry compliance by simplifying and 

clarifying regulatory standards, incorporating guidance documents and other current policies into 

the regulations, and reducing regulatory burden on industry members where possible. 

To date, TTB has published two final rules in its phased labeling modernization rulemaking, 

starting in FY 2020 with new rules that reflect areas of broad consensus and industry support, 

and in FY 2022 addressing malt beverages, distilled spirits, and certain crosscutting labeling 

issues. TTB has also focused on updating industry guidance on TTB.gov to implement the new 

regulatory requirements and aid industry compliance. In addition, TTB continues to prioritize 

internal training to improve the quality of its reviews and ensure determinations on label and 

formula applications are consistent with current policies and regulations.

Going forward, TTB plans to initiate the last final rule to address wine-specific issues and 

advertising for all commodities. With this final phase, TTB will also make clear which topics 

will be reserved for future rulemaking and close other issues that we do not plan to pursue. 
TTB - 22

Additionally, TTB continues to pursue regulatory modernization that will further stimulate 

trade and market competition. Executive Order 14036, “Promoting Competition in the 

American Economy,” and Treasury’s related February 2022 report “Competition in the 

Markets for Beer, Wine, and Spirits,” seek to address market conditions and practices that 

hinder competition and act as a barrier to new entrants. In line with Treasury report 

recommendations, TTB published an advanced notice of proposed rulemaking in November 

2022 to evaluate current trade practice regulations. Treasury report recommendations also 

include TTB rulemaking on Alcohol Facts Labeling (akin to food nutritional labels), Allergen 

Labeling, and Ingredient Labeling, which TTB plans to pursue in the year ahead. 

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 

errors (e.g., incomplete form fields) and label compliance errors (e.g., use of prohibited terms or 

images). FY 2022 results indicate that the changes implemented to date have proven effective, 

with error rates for label and formula applications down 2 percent overall compared to last year, 

and over 11 percent since FY 2018. 

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 nearly 100 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. 

In FY 2022, through its IT system modernization efforts, TTB expanded and improved systembased validations. These efforts included an enhancement to prevent the submission of label 

applications with low quality images. Problems with image legibility are among the top errors 

on label applications, and the system now flags low-resolution images so an applicant can 

address the error before they submit. Since implementing this enhancement, TTB has reduced 

this error type by as much as 70 percent. In FY 2022, TTB also continued 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. Legacy systems limit 

current opportunities to implement broader validations, but TTB plans to continue evaluating 

technical solutions to prevent submissions with errors as it modernizes its IT systems. As part of 

the myTTB initiative, and at the FY 2024 funding level, TTB will also 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 2022, satisfaction rates held at 83 percent for COLAs 

Online users, exceeding the 80 percent performance target; however, satisfaction rates declined 

from 80 percent to 78 percent for Formulas Online users. System satisfaction rates track closely 

to approval times, and TTB anticipates that performance will improve through FY 2023 in line 
TTB - 23

with timely service levels. Further, and at the FY 2024 funding level, TTB expects that future 

system improvements and regular review of survey feedback will help TTB continue to exceed 

its user satisfaction target of 80 percent and attract users to its online systems to maintain high 

electronic filing rates.

C – Changes in Performance Measures

Performance Measure or Indicator Proposed Change and Justification

1. Electronically Filed Permit 

Applications – Amendments 

(new measure)

TTB proposes to add a performance measure on the 

electronic filing rate of applications to amend a Federal 

permit or registration. The data will come from Permits 

Online, TTB’s current online filing system for permit 

applications. This measure provides information on 

system use for this critical industry service and aids in 

monitoring the efficiency of program operations.

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 Mission Investments:

• TTB Tax System: This investment includes several legacy applications and new myTTB 

modules supporting permitting and taxation to ensure fair and proper collection of alcohol, 

tobacco, firearms, and ammunition excise taxes, as well as industry compliance with excise 

tax laws and regulations.

• TTB Regulatory System: This investment includes legacy applications and myTTB 

regulatory modules that streamline the beverage and nonbeverage alcohol formula approval 

process and COLA issuance for tax and regulatory compliance.

• TTB Mission Applications Support Services (MASS): This investment provides shared 

software, platforms, and myTTB modules needed to operate the TTB mission systems (TTB 

Tax System and TTB Regulatory System).
TTB - 24

TTB Standard Information Technology (IT) Investments: According to CIRCULAR NO. A–

11 PREPARATION, SUBMISSION, AND EXECUTION OF THE BUDGET, “standard IT 

investments are expenditures of IT resources that include, but are not limited to, commonly used 

enterprise-wide information systems and services, computing infrastructure, and other 

technology services and applications that are commonly used across agencies.” The following 

investments support TTB and CDFI Fund’s common IT resources/standard IT investments:

• TTB IT Infrastructure Data Center and Cloud

• TTB IT Infrastructure End User Systems and Support

• TTB IT Infrastructure Network

• TTB IT Security and Compliance Program

• TTB IT Management

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.