Source: https://regulations.justia.com/regulations/fedreg/2017/01/04/2016-31415.html
Timestamp: 2020-08-10 09:51:09
Document Index: 233217884

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Changes to Certain Alcohol-Related Regulations Governing Bond Requirements and Tax Return Filing Periods, 780-787 [2016-31415] :: Alcohol And Tobacco Tax And Trade Bureau :: Department Of Treasury :: Regulation Tracker :: Justia
Justia Regulation Tracker Department Of Treasury Alcohol And Tobacco Tax And Trade Bureau Changes to Certain Alcohol-Related Regulations Governing Bond Requirements and Tax Return Filing Periods, 780-787 [2016-31415]
Changes to Certain Alcohol-Related Regulations Governing Bond Requirements and Tax Return Filing Periods, 780-787 [2016-31415]
Download as PDF 780 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules annual implementation or replacement costs began, the State and local agencies are estimated to have nationwide startup implementation costs of $29.4 million to develop maintenance methods and purchase measurement equipment. Finally, the compliance dates to replace markings that do not meet the minimum retroreflectivity have been eliminated. Although agencies will still need to replace these markings, their schedules would be based on their method for maintaining retroreflectivity as well as their resources and relative priorities. Therefore, this proposed rule would not result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $151 million or more in any one year. In addition, pavement marking replacement is eligible for up to 100 percent Federal-aid funding. This applies to local jurisdictions and tribal governments, pursuant to 23 U.S.C. 120(c). Further, the definition of ‘‘Federal Mandate’’ in the Unfunded Mandates Reform Act excludes financial assistance of the type in which State, local, or tribal governments have authority to adjust their participation in the program in accordance with changes made in the program by the Federal Government. The Federal-aid highway program permits this type of flexibility. mstockstill on DSK3G9T082PROD with PROPOSALS Executive Order 13175 (Tribal Consultation) The FHWA has analyzed this proposed action under Executive Order 13175, dated November 6, 2000, and believes that it would not have substantial direct effects on one or more Indian tribes, would not impose substantial direct compliance costs on Indian tribal governments, and would not preempt tribal law. Therefore, a tribal summary impact statement is not required. Executive Order 13211 (Energy Effects) The FHWA has analyzed this proposed action under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. The FHWA has determined that this is not a significant energy action under that order because it is not likely to have a significant adverse effect on the supply, distribution, or use of energy. Therefore, a Statement of Energy Effects under Executive Order 13211 is not required. Executive Order 12372 (Intergovernmental Review) Catalog of Federal Domestic Assistance Program Number 20.205, Highway Planning and Construction. The regulations implementing Executive VerDate Sep<11>2014 18:07 Jan 03, 2017 Jkt 241001 Order 12372 regarding intergovernmental consultation on Federal programs and activities apply to this program. Paperwork Reduction Act Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501, et seq.), Federal agencies must obtain approval from the Office of Management and Budget for each collection of information they conduct, sponsor, or require through regulations. The FHWA has determined that this proposed action does not contain a collection of information requirement for the purposes of the PRA. Executive Order 12988 (Civil Justice Reform) This proposed action meets applicable standards in Sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, to eliminate ambiguity, and to reduce burden. Executive Order 13045 (Protection of Children) The FHWA has analyzed this proposed action under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This is not an economically significant action and does not concern an environmental risk to health or safety that might disproportionately affect children. Executive Order 12630 (Taking of Private Property) This proposed action would not affect a taking of private property or otherwise have taking implications under Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. National Environmental Policy Act The agency has analyzed this proposed action for the purpose of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and has determined that it will not have any significant effect on the quality of the environment and is categorically excluded under 23 CFR 771.117(c)(20). Regulation Identifier Number A regulation identification number (RIN) is assigned to each regulatory action listed in the Unified Agenda of Federal Regulations. The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. The RIN contained in the heading of this document can be PO 00000 Frm 00047 Fmt 4702 Sfmt 4702 used to cross reference this action with the Unified Agenda. List of Subjects in 23 CFR Part 655 Design standards, Grant programs— Transportation, Highways and roads, Incorporation by reference, Pavement markings, Traffic regulations. Issued in Washington, DC under authority delegated in 49 CFR 1.85. Gregory G. Nadeau, Administrator, Federal Highway Administration. For the reasons stated in the preamble, FHWA proposes to amend title 23, Code of Federal Regulations, part 655, subpart F as follows: PART 655—TRAFFIC OPERATIONS 1. The authority for part 655 is revised to read as follows: ■ Authority: 23 U.S.C. 101(a), 104, 109(d), 114(a), 217, 315 and 402(a); 23 CFR 1.32; and 49 CFR 1.85. Subpart F—Traffic Control Devices on Federal-Aid and Other Streets and Highways [Amended] 2. Revise § 655.601(d)(2)(i), to read as follows: ■ § 655.601 Purpose * * * * * (d) * * * (2) * * * (i) Manual on Uniform Traffic Control Devices for Streets and Highways (MUTCD), 2009 edition, including Revision No. 1 and No. 2, dated May 2012, and No. [number to be inserted], dated [date to be inserted], FHWA. * * * * * [FR Doc. 2016–31249 Filed 1–3–17; 8:45 am] BILLING CODE 4910–22–P DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Parts 18, 19, 24, 25, 26, 27, 28, and 30 [Docket No. TTB–2016–0013; Notice No. 167; Re: T.D. TTB–146] RIN 1513–AC30 Changes to Certain Alcohol-Related Regulations Governing Bond Requirements and Tax Return Filing Periods Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Notice of proposed rulemaking; cross-reference to temporary rule. AGENCY: E:\FR\FM\04JAP1.SGM 04JAP1 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules In a temporary rule published elsewhere in this issue of the Federal Register, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is amending its regulations relating to excise taxes imposed on distilled spirits, wines, and beer to implement certain changes made to the Internal Revenue Code of 1986 (IRC) by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). The temporary rule implements section 332 of the PATH Act, which amends the IRC to remove bond requirements and change tax return due dates for certain eligible excise taxpayers. In this document, TTB proposes to adopt the regulations in the temporary rule as a permanent regulatory change. The text of the regulations in the temporary rule serves as the text of the proposed regulations. This document also proposes to amend the regulations governing the submission of reports by certain eligible excise taxpayers. In this document, TTB is soliciting comments on the amendments adopted in the temporary rule and the amendments proposed in this notice of proposed rulemaking. DATES: Comments must be received on or before March 6, 2017. ADDRESSES: Please send your comments on this proposal to one of the following addresses. Comments submitted by other methods, including email, will not be accepted. • Internet: https:// www.regulations.gov (via the online comment form for this document as posted within Docket No. TTB–2016– 0013 at ‘‘Regulations.gov,’’ the Federal e-rulemaking portal); • U.S. Mail: Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; or • Hand delivery/courier in lieu of mail: Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 20005. See the Public Participation section of this document for specific instructions and requirements for submitting comments, and for information on how to request a public hearing. You may view copies of this document, the temporary rule, selected supporting materials, and any comments TTB receives about this proposal at https://www.regulations.gov within Docket No. TTB–2016–0013. A direct link to this docket is posted on the TTB Web site at https:// www.ttb.gov/regulations_laws/all_ rulemaking.shtml under Notice No. 167. You also may view copies of this document, the temporary rule, all related supporting materials, and any mstockstill on DSK3G9T082PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 18:07 Jan 03, 2017 Jkt 241001 comments TTB receives about this proposal by appointment at the TTB Information Resource Center, 1310 G Street NW., Washington, DC 20005. Please call 202–453–2270 to make an appointment. FOR FURTHER INFORMATION CONTACT: For questions concerning this document, contact Ben Birkhill, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau (202–453–2265). SUPPLEMENTARY INFORMATION: Background TTB Authority The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers provisions in chapter 51 of the Internal Revenue Code of 1986, as amended (IRC), pertaining to the taxation of distilled spirits, wines, and beer (see title 26 of the United States Code (U.S.C.), chapter 51 (26 U.S.C. chapter 51)). TTB also regulates distilled spirits, wines, and malt beverages pursuant to the Federal Alcohol Administration Act (FAA Act). TTB administers the provisions of the IRC and FAA Act, and their implementing regulations, pursuant to section 1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). The Secretary has delegated various authorities through Treasury Department Order 120–01, dated December 10, 2013 (superseding Treasury Department Order 120–01, dated January 24, 2003), to the TTB Administrator to perform the functions and duties in administration and enforcement of these laws. Sections 5001, 5041, and 5051 of the IRC (26 U.S.C. 5001, 5041, and 5051) impose tax on distilled spirits, wines, and beer produced in or imported into the United States. Generally, taxes are determined (i.e., become due for payment) when they are removed from qualified facilities in the United States or imported as provided in sections 5006, 5043, and 5054 of the IRC (26 U.S.C. 5006, 5043, and 5054). Section 5061 of the IRC (26 U.S.C. 5061) governs the collection of tax due on distilled spirits, wines, and beer, including the time periods and due dates for paying such taxes by return. Under some circumstances, the IRC authorizes the removal of distilled spirits, wines, and beer from facilities in the United States without paying the excise taxes imposed on such products. For example, the IRC does not require payment of tax for certain transfers between qualified facilities in the United States as provided in sections 5212, 5362(b), and 5414 of the IRC (26 U.S.C. 5212, 5362(b), and 5414). PO 00000 Frm 00048 Fmt 4702 Sfmt 4702 781 The PATH Act and the Temporary Rule On December 18, 2015, the President signed into law the Consolidated Appropriations Act, 2016 (Public Law 114–113). Division Q of this Act is titled the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). Section 332 of the PATH Act amends the IRC to change tax return due dates and remove bond requirements for certain eligible taxpayers who pay excise taxes on distilled spirits, wines, and beer. With respect to tax return due dates, section 332 amends section 5061(d) of the IRC to authorize a new annual return period for deferred payment of excise tax, in addition to the preexisting quarterly and semimonthly deferred payment periods authorized under that section. Deferred payment of tax refers to payment using one of these three return periods prescribed under the IRC rather than payment immediately each time the tax becomes due. As described above, taxes on distilled spirits, wines, and beer generally become due when the products are removed from qualified facilities in the United States or imported into the United States. To be eligible to use the annual or quarterly return periods, the taxpayer must reasonably expect to be liable for not more than $1,000 in excise taxes, in the case of annual returns, or $50,000 in excise taxes, in the case of quarterly returns, for the calendar year and must have been liable for not more than these respective quantities in the preceding calendar year. Since these $1,000 and $50,000 ceilings are based on liability for payment of taxes by return under section 5061 of the IRC, they do not include liability for taxes imposed but not necessarily due, such as liability associated with taxes imposed on distilled spirits, wines, and beer produced in or imported into the United States that have not been removed from qualified facilities on payment or determination of tax. Section 332 of the PATH Act also amends several provisions of the IRC to remove bond requirements for certain taxpayers who are eligible to pay taxes on distilled spirits, wines, and beer using quarterly or annual return periods and who pay taxes on a deferred basis. Under section 332, these taxpayers are exempt from bond requirements with respect to distilled spirits and wine only to the extent those products are for nonindustrial use. The amended provisions relating to this bond exemption are sections 5173, 5351, 5401, and 5551 of the IRC. In a temporary rule published elsewhere in this issue of the Federal Register, TTB is amending the E:\FR\FM\04JAP1.SGM 04JAP1 782 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules regulations in chapter I of title 27 of the Code of Federal Regulations (27 CFR) to implement section 332 of the PATH Act and to make several technical amendments to update certain bondrelated provisions. The temporary rule amends regulations in 27 CFR parts 18, 19, 24, 25, 26, 27, 28, and 30. These amendments include incorporating the new annual return period into the regulations, clarifying the circumstances under which taxpayers are eligible for the bond exemption, and adding new provisions governing qualification and loss of eligibility for the bond exemption. The preamble of the temporary rule explains the proposed regulations in more detail, and this notice solicits comments on the amendments adopted in the temporary rule. The text of the regulations in the temporary rule serves as the text of the proposed regulations for purposes of this document. mstockstill on DSK3G9T082PROD with PROPOSALS Proposed Amendments to Reporting Requirements In this document, TTB is also proposing to amend the regulations governing reporting requirements for distilled spirits plants (DSPs) and brewers in order to reduce unnecessary regulatory burden on some industry members who pay taxes using annual or quarterly return periods. TTB is also soliciting comments on whether to amend current reporting requirements for bonded wine cellars (including bonded wineries). These reporting provisions help protect the revenue by requiring regulated parties to submit information to TTB relating to their operations that are subject to regulation under the IRC. This section discusses current reporting requirements for these industry members and the proposed regulatory amendments. Current Reporting Requirements The regulations in 27 CFR parts 19, 24, and 25 govern the operations of DSPs, bonded wine cellars, and breweries in the United States. Under 27 CFR 19.632, DSP proprietors must submit to TTB certain monthly reports of operations. These reports are TTB Form 5110.40 (Monthly Report of Production Operations), TTB Form 5110.11 (Monthly Report of Storage Operations), TTB Form 5110.28 (Monthly Report of Processing Operations), and TTB Form 5110.43 (Monthly Report of Processing (Denaturing) Operations). Under the current regulations, DSPs may not file required reports less frequently than monthly. Under 27 CFR 24.300(g), bonded wine cellars must generally file reports on a VerDate Sep<11>2014 18:07 Jan 03, 2017 Jkt 241001 monthly basis using TTB Form 5120.17 (Report of Wine Premises Operations), but they may file reports quarterly or annually if they meet the criteria to do so. To be eligible to file reports on a quarterly basis, the proprietor must be filing quarterly tax returns, and the proprietor must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 60,000 gallons for any one quarter during the calendar year when adding up certain wine on the proprietor’s premises. The wine that must be taken into account for this purpose is wine on hand at the beginning of the month, bulk wine produced by fermentation, sweetening, blending, amelioration or addition of wine spirits, bulk wine bottled, bulk and bottled wine received in bond, taxpaid wine returned to bond, bottled wine dumped to bulk, inventory gains, and any activity written in the untitled lines of the report which increases the amount of wine to be accounted for. The wines that must be taken into account for this purpose are wines on which taxes are imposed but not necessarily due, since the wines are not reported as withdrawn on payment or determination of tax. To be eligible to file reports on an annual basis, the proprietor must be filing annual tax returns, and the proprietor must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 20,000 gallons for any one month during the calendar year when adding up certain wine on the proprietor’s premises. The wine that must be taken into account for this purpose is the same as the wine that must be taken into account for purposes of determining eligibility for quarterly reporting. Under 27 CFR 25.297, each brewer must file a monthly report using TTB Form 5130.9 (Brewer’s Report of Operations), unless the brewer is required to file reports on a quarterly basis. A brewer must file quarterly reports using TTB Form 5130.26 (Quarterly Brewer’s Report of Operations) or TTB Form 5130.9 if the brewer was liable for not more than $50,000 in taxes with respect to beer in the preceding calendar year and reasonably expects to be liable for not more than $50,000 in such taxes during the current calendar year. As referenced above, a brewer who meets these $50,000 ceilings is eligible to pay taxes quarterly under section 5061 of the IRC. Since these $50,000 ceilings are based on liability for payment of taxes by return under section 5061 of the IRC, they do not include liability for taxes imposed but not necessarily due. PO 00000 Frm 00049 Fmt 4702 Sfmt 4702 Proposed Amendments and Solicitation of Comments TTB is proposing to amend the reporting regulations applicable to DSPs and brewers, and TTB is soliciting comments on whether to amend the reporting regulations for bonded wine cellars. TTB proposes to amend the regulations to authorize new quarterly and annual reporting periods for certain DSPs, to authorize a new annual reporting period for certain brewers, and to change the existing quarterly reporting requirements for brewers. As discussed further below, the proposed criteria for quarterly and annual reporting by DSPs and brewers are modeled in part on the current criteria for quarterly and annual reporting by bonded wine cellars, with some modifications. TTB is soliciting comment on whether these modified criteria should be adopted for DSPs and brewers. TTB is also requesting comment on whether it should instead adopt criteria for quarterly and annual reporting by DSPs and brewers that resemble the requirements used for such reporting by bonded wine cellars (i.e., by taking into account the sum of certain products listed on specific lines of proprietors’ reports). In addition, TTB is soliciting comment on whether it should amend the current requirements for quarterly and annual reporting by bonded wine cellars so that the requirements are consistent with the proposed modified criteria for quarterly and annual reporting by DSPs and brewers. Under the proposed amendments to §§ 19.632 and 25.297, DSPs and brewers must report monthly unless they are required to report quarterly or annually. Under the proposed amendments, DSPs and brewers must report quarterly for a calendar year if they file quarterly tax returns for that calendar year and if their liability for taxes on alcohol for which taxes have not been paid does not exceed $50,000 at any time during that calendar year. For purposes of the latter criterion, liability for taxes that have not been paid includes liability for taxes determined but not yet paid and liability for taxes imposed but not necessarily due for payment. Under the proposed amendments, DSPs and brewers must report annually if they file annual tax returns and if their liability for taxes on alcohol for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. The purpose of these eligibility criteria is to reduce reporting burdens on taxpayers whose tax payments do not exceed the ceilings described above for paying taxes quarterly or annually and E:\FR\FM\04JAP1.SGM 04JAP1 mstockstill on DSK3G9T082PROD with PROPOSALS Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules whose liability for taxes that have not been paid does not exceed $50,000. As discussed below, both types of liability are relevant for determining required reporting frequency for revenue protection purposes. The proposed criteria for quarterly and annual reporting in amended §§ 19.632 and 25.297 are modeled in part on the current criteria for quarterly and annual reporting by bonded wine cellars, which are based on both the frequency with which the proprietor pays taxes by return and the proprietor’s liability for alcohol on which taxes have not been paid. Both factors are relevant for determining required reporting frequency because they relate to the proprietor’s overall tax liability under the IRC. Generally, more frequent reporting is necessary for a proprietor who has greater tax liability because TTB needs more detailed information regarding the proprietor’s operations for revenue protection purposes. More frequent reporting is necessary for proprietors who use more frequent return periods for paying tax because such proprietors generally have greater liability for taxes due for payment. In addition, since a proprietor’s liability for taxes imposed but not necessarily due also raises revenue risks, this type of tax liability must also be taken into account for determining appropriate reporting frequency. With respect to return periods, TTB believes it is appropriate to require that DSPs and brewers pay taxes on an annual or quarterly basis to be eligible to report on an annual or quarterly basis, respectively. This requirement under proposed §§ 19.632 and 25.297 is consistent with current reporting requirements for bonded wine cellars under § 24.300(g). With respect to liability for taxes imposed but not necessarily due, TTB has determined that the proposed $50,000 maximum discussed above for DSPs and brewers reporting quarterly and annually is necessary for revenue protection purposes. The $50,000 limit ensures that DSPs and brewers reporting quarterly or annually who pay excise taxes using quarterly or annual return periods do not engage in operations that involve significant tax liability for which the IRC does not require payment of tax, such as certain transfers of alcohol between qualified facilities in the United States (see sections 5212, 5362(b), and 5414 of the IRC). Since DSPs and brewers who report quarterly or annually meet the tax payment ceilings for the use of quarterly or annual return periods, TTB has determined that this $50,000 limit on taxes imposed but not necessarily due is VerDate Sep<11>2014 18:07 Jan 03, 2017 Jkt 241001 appropriate for both quarterly and annual reporters. Quarterly and annual reporters will be subject to different tax payment ceilings based on the tax return period they use, and the $50,000 limit is simply intended to ensure that neither category of reporters engages in operations that involve significant tax liability for which the IRC does not require payment of tax. The $50,000 maximum for DSPs and brewers under proposed §§ 19.632 and 25.297 is different from current quarterly and annual reporting requirements for bonded wine cellars. Under § 24.300(g), bonded wine cellars must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 60,000 gallons for any one quarter (in the case of quarterly reporting) or 20,000 gallons for any one month (in the case of annual reporting) when adding up certain wine on the proprietor’s premises as described above. Because section 5041 of the IRC imposes several different tax rates on wine, the tax liability associated with these quantities may or may not exceed $50,000, depending on the circumstances. TTB is soliciting comment on whether there are winespecific reasons for retaining the 60,000gallon and 20,000-gallon limits in the regulations and whether it would instead be appropriate for consistency purposes to amend § 24.300(g) to incorporate the same $50,000 maximum that TTB is proposing for DSPs and brewers under §§ 19.632 and 25.297. Finally, TTB is also requesting comment on whether it should amend § 24.300(g) to require (rather than simply allow) the use of quarterly and annual reporting periods for bonded wine cellars who meet the criteria to use them. Under the current regulations, such proprietors may choose to submit reports monthly even though they are eligible to report less frequently. TTB believes that requiring less frequent reporting for eligible proprietors would reduce reporting burdens on proprietors and would reduce report processing burdens on TTB. TTB is therefore soliciting comment on whether there are wine-specific reasons for continuing to allow the voluntary use of quarterly or annual reporting periods for bonded wine cellars that are eligible to use them. Public Participation Comments Sought TTB requests comments from interested members of the public on the regulations adopted in the temporary rule and the additional regulatory amendments proposed in this PO 00000 Frm 00050 Fmt 4702 Sfmt 4702 783 document. In addition, TTB is requesting comments whether it should amend the current requirements for quarterly and annual reporting by bonded wine cellars so that the requirements are consistent with the criteria proposed in this document for quarterly and annual reporting by DSPs and brewers. Submitting Comments You may submit comments on this proposal by one of the following three methods: • Federal e-Rulemaking Portal: You may electronically submit comments via the online comment form posted with this proposed rule within Docket No. TTB–2016–0013 on ‘‘Regulations.gov,’’ the Federal e-rulemaking portal. A direct link to that docket is available on the TTB Web site at https:// www.ttb.gov/spirits/spiritsrulemaking.shtml. Supplemental files may be attached to comments submitted via Regulations.gov. For information on how to use Regulations.gov, visit the site and click on the ‘‘Help’’ tab. • Mail: You may send comments via postal mail to the Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005. • Hand Delivery/Courier: You may hand-carry your comments or have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 20005. Please submit your comments by the closing date shown above in this proposed rule. Your comments must reference Notice No. 167 and include your name and mailing address. Your comments also must be made in English, be legible, and be written in language acceptable for public disclosure. TTB does not acknowledge receipt of comments and considers all comments as originals. In your comment, please clearly state if you are commenting for yourself or on behalf of an association, business, or other entity. If you are commenting on behalf of an entity, your comment must include the entity’s name as well as your name and position title. In your comment via Regulations.gov, please enter the entity’s name in the ‘‘Organization’’ blank of the online comment form. If you comment via postal mail or hand delivery/courier, please submit your entity’s comment on letterhead. You may also write to the Administrator before the comment closing date to ask for a public hearing. The Administrator reserves the right to E:\FR\FM\04JAP1.SGM 04JAP1 784 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules determine whether to hold a public hearing. Confidentiality All submitted comments and attachments are part of the public record and subject to disclosure. Do not enclose any material in your comments that you consider to be confidential or inappropriate for public disclosure. mstockstill on DSK3G9T082PROD with PROPOSALS Public Disclosure TTB will post, and you may view, copies of this proposed rule, the temporary rule, and any online or mailed comments received about this proposal within Docket No. TTB–2016– 0013 on the Federal e-rulemaking portal. A direct link to that docket is available on the TTB Web site at https:// www.ttb.gov/regulations_laws/all_ rulemaking.shtml under Notice No. 167. You may also reach the relevant docket through the Regulations.gov search page at https://www.regulations.gov. For information on how to use Regulations.gov, click on the site’s ‘‘Help’’ tab. All posted comments will display the commenter’s name, organization (if any), city, and State, and, in the case of mailed comments, all address information, including email addresses. TTB may omit voluminous attachments or material that it considers unsuitable for posting. You may view copies of this proposed rule, the temporary rule, and any electronic or mailed comments TTB receives about this proposal by appointment at the TTB Information Resource Center, 1310 G Street NW., Washington, DC 20005. You may also obtain copies for 20 cents per 8.5- x 11inch page. Contact TTB’s information specialist at the above address or by telephone at 202–453–2270 to schedule an appointment or to request copies of comments or other materials. Regulatory Flexibility Act TTB certifies that this proposed regulation, if adopted, will not have a significant economic impact on a substantial number of small entities. The proposed amendments would reduce reporting requirements for certain proprietors described in this document. The proposed rule, if adopted, will not impose, or otherwise cause, a significant increase in reporting, recordkeeping, or other compliance burdens on a substantial number of small entities. Accordingly, a regulatory flexibility analysis is not required. Pursuant to 26 U.S.C. 7805(f), TTB will submit the proposed regulations to the Chief Counsel for Advocacy of the Small Business VerDate Sep<11>2014 18:07 Jan 03, 2017 Jkt 241001 Administration for comment on the impact of the proposed regulations on small businesses. Executive Order 12866 Certain TTB regulations issued under the IRC, including this one, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory impact assessment is not required. Paperwork Reduction Act The six collections of information associated with the proposed regulatory requirements discussed in this notice of proposed rulemaking (including the regulatory requirements relating to wine reporting on which TTB is seeking comment) have been previously reviewed and approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) and assigned control numbers 1513–0007, 1513–0039, 1513–0041, 1513–0047, 1513–0049, and 1513–0053. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. The proposed regulatory text in 27 CFR 19.632 contains alterations to the information collections currently approved under OMB control numbers 1513–0039, 1513–0041, 1513–0047, and 1513–0049. These control numbers cover, respectively, TTB Forms 5110.11, 5110.28, 5110.40, and 5110.43. If adopted, these revisions would provide for less frequent reporting by certain DSPs. Under the current regulations, DSPs must submit required reports on a monthly basis. Under the proposed regulatory amendments, a DSP would report quarterly if they file quarterly tax returns and would report annually if they file annual tax returns as long as, in either case, the DSP’s liability for taxes on distilled spirits for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. Taking into account the proposed regulatory amendments, TTB estimates the burden associated with these information collections as follows: 1513–0039 • Estimated number of respondents: 684 reporting monthly; 651 reporting quarterly; 424 reporting annually. • Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. • Estimated average annual total burden hours: 11,236. PO 00000 Frm 00051 Fmt 4702 Sfmt 4702 1513–0041 • Estimated number of respondents: 634 reporting monthly; 603 reporting quarterly; 392 reporting annually. • Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. • Estimated average annual total burden hours: 20,824. 1513–0047 • Estimated number of respondents: 571 reporting monthly; 544 reporting quarterly; 354 reporting annually. • Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. • Estimated average annual total burden hours: 18,764. 1513–0049 • Estimated number of respondents: 184 reporting monthly; 175 reporting quarterly; 114 reporting annually. • Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. • Estimated average annual total burden hours: 3,022. The proposed regulatory text in 27 CFR 25.297 contains alterations to the information collection currently approved under OMB control number 1513–0007. This control number covers TTB Forms 5130.9 and 5130.26. If adopted, these revisions would provide for less frequent reporting by certain brewers who file annual tax returns and would continue to authorize quarterly reporting by certain brewers who file quarterly tax returns. In the case of a brewer who reports quarterly or annually, the brewer’s liability for taxes on beer for which taxes have not been paid must not exceed $50,000 at any time during the calendar year. Taking into account the proposed regulatory amendments, TTB estimates the burden associated with this information collection as follows: • Estimated number of respondents: 1,344 reporting monthly; 2,998 reporting quarterly; 1,956 reporting annually. • Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. • Estimated average annual total burden hours: 22,557. Finally, TTB is requesting comments on whether to amend § 24.300(g) so that the reporting requirements for bonded wine cellars on TTB Form 5120.17 are consistent with the proposed reporting E:\FR\FM\04JAP1.SGM 04JAP1 mstockstill on DSK3G9T082PROD with PROPOSALS Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules requirements for DSPs and brewers. The reporting requirements in § 24.300(g) are covered under OMB control number 1513–0053. Similar to the proposed amendments for DSPs and brewers, the current reporting provisions for bonded wine cellars require that the proprietor file tax returns quarterly or annually to be eligible for quarterly or annual reporting, respectively. In addition, the proprietor must not expect the sum of the bulk and bottled wine to be accounted for in all tax classes to exceed 60,000 gallons for any one quarter (in the case of quarterly reporting) or 20,000 gallons for any one month (in the case of annual reporting) when adding up certain wine on the proprietor’s premises. TTB is soliciting comment on whether to adopt the proposed $50,000 limit described above for DSPs and brewers in lieu of the 20,000-gallon and 60,000-gallon limits in the current regulations. TTB does not estimate that this change, if adopted, would result in changes in reporting burden for proprietors. We are, however, reporting an increase in the number of respondents to this collection to reflect the current number of proprietors who file the form. TTB estimates the burden associated with this information collection as follows: • Estimated number of respondents: 2,316 reporting monthly; 4,733 reporting quarterly; 4,467 reporting annually. • Estimated annual frequency of responses: 12 for monthly reporting; 4 for quarterly reporting; 1 for annual reporting. • Estimated average annual total burden hours: 56,310. Revisions of these six currently approved collections have been submitted to OMB for review. Comments on the revisions should be sent to OMB at Office of Management and Budget, Attention: Desk Officer for the Department of the Treasury, Office of Information and Regulatory Affairs, Washington, DC 20503 or by email to OIRA_submissions@omb.eop.gov. A copy should also be sent to TTB by any of the methods previously described. Comments on the information collections should be submitted no later than March 6, 2017. Comments are specifically requested concerning: • Whether the proposed revisions of the collections of information are necessary for the proper performance of the functions of the Alcohol and Tobacco Tax and Trade Bureau, including whether the information will have practical utility; • The accuracy of the estimated burdens associated with the proposed VerDate Sep<11>2014 18:07 Jan 03, 2017 Jkt 241001 revisions of the collections of information; • How to enhance the quality, utility, and clarity of the information to be collected; • How to minimize the burden of complying with the proposed revision of the collection of information, including the application of automated collection techniques or other forms of information technology; and • Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Drafting Information Ben Birkhill of the Regulations and Rulings Division drafted this document with the assistance of other Alcohol and Tobacco Tax and Trade Bureau personnel. List of Subjects 27 CFR Part 19 Administrative practice and procedure, Alcohol and alcoholic beverages, Authority delegations (Government agencies), Caribbean Basin initiative, Chemicals, Claims, Customs duties and inspection, Electronic funds transfers, Excise taxes, Exports, Gasohol, Imports, Labeling, Liquors, Packaging and containers, Puerto Rico, Reporting and recordkeeping requirements, Research, Security measures, Spices and flavorings, Stills, Surety bonds, Transportation, Vinegar, Virgin Islands, Warehouses, Wine. 27 CFR Part 24 Administrative practice and procedure, Claims, Electronic funds transfers, Excise taxes, Exports, Food additives, Fruit juices, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Research, Scientific equipment, Spices and flavorings, Surety bonds, Vinegar, Warehouses, Wine. 27 CFR Part 25 Beer, Claims, Electronic funds transfers, Excise taxes, Exports, Labeling, Packaging and containers, Reporting and recordkeeping requirements, Research, Surety bonds. 27 CFR Part 26 Alcohol and alcoholic beverages, Caribbean Basin initiative, Claims, Customs duties and inspection, Electronic funds transfers, Excise taxes, Frm 00052 Fmt 4702 Packaging and containers, Puerto Rico, Reporting and recordkeeping requirements, Surety bonds, Virgin Islands, Warehouses. 27 CFR Part 27 Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties and inspection, Electronic funds transfers, Excise taxes, Imports, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Wine. 27 CFR Part 28 Aircraft, Alcohol and alcoholic beverages, Armed forces, Beer, Claims, Excise taxes, Exports, Foreign trade zones, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Surety bonds, Vessels, Warehouses, Wine. 27 CFR Part 30 Liquors, Scientific equipment. 27 CFR Part 18 Alcohol and alcoholic beverages, Fruits, Reporting and recordkeeping requirements, Spices and flavorings. PO 00000 785 Sfmt 4702 Proposed Regulatory Amendments For the reasons discussed in the preamble, TTB proposes to amend 27 CFR, chapter I, parts 18, 19, 24, 25, 26, 27, 28, and 30 as set forth below: PART 18—PRODUCTION OF VOLATILE FRUIT-FLAVOR CONCENTRATE 1. The authority citation for part 18 is revised to read as follows: ■ Authority: 26 U.S.C. 5001, 5171–5173, 5178, 5179, 5203, 5351, 5354, 5356, 5511, 5552, 6065, 6109, 7805. 2. [The proposed amendatory instructions and the proposed regulatory text for part 18 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. ■ PART 19—DISTILLED SPIRITS PLANTS 3. The authority citation for part 19 continues to read as follows: ■ Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004–5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111–5114, 5121–5124, 5142, 5143, 5146, 5148, 5171– 5173, 5175, 5176, 5178–5181, 5201–5204, 5206, 5207, 5211–5215, 5221–5223, 5231, 5232, 5235, 5236, 5241–5243, 5271, 5273, 5301, 5311–5313, 5362, 5370, 5373, 5501– 5505, 5551–5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306. 4. [With the addition of the amendatory instructions and proposed regulatory text set forth below, the ■ E:\FR\FM\04JAP1.SGM 04JAP1 786 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules proposed amendatory instructions and the proposed regulatory text for part 19 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. § 19.147 [Amended] 5. In § 19.147, paragraph (d) is amended by removing the word ‘‘monthly’’. ■ 6. Section 19.632 is revised to read as follows: ■ mstockstill on DSK3G9T082PROD with PROPOSALS § 19.632 Submission of reports. (a) General. Each proprietor must submit reports of its distilled spirits plant operations to TTB in accordance with paragraph (b) of this section. The proprietor must submit the original reports to TTB and must retain a copy for its records. The required report forms are as follows: (1) Report of Production Operations, form TTB F 5110.40, except that no report is required when production operations are suspended as provided in § 19.292; (2) Report of Storage Operations, form TTB F 5110.11; (3) Report of Processing Operations, form TTB F 5110.28; and (4) Monthly Report of Processing (Denaturing) Operations, form TTB F 5110.43. (b) Reporting periods. Each proprietor must submit the reports specified in paragraph (a) of this section to the Director, National Revenue Center, not later than the 15th day following the last day of the reporting periods specified in this paragraph. A proprietor may submit reports in either paper format or electronically via TTB Pay.gov. The required reporting periods are as follows: (1) Monthly reporting periods. Except in cases where the proprietor must submit reports covering each calendar quarter or calendar year of operations under paragraphs (b)(2) or (b)(3) of this section, a proprietor must submit reports covering for each month of operations. (2) Quarterly reporting periods. A proprietor must submit reports covering each calendar quarter of operations if both of the following are true: (i) The proprietor files quarterly tax returns pursuant to § 19.235; and (ii) The proprietor’s liability for tax on spirits for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. (3) Annual reporting periods. A proprietor must submit reports covering for each calendar year of operations if both of the following are true: VerDate Sep<11>2014 18:07 Jan 03, 2017 Jkt 241001 (i) The proprietor files annual tax returns pursuant to § 19.235; and (ii) The proprietor’s liability for tax on spirits for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. (c) Loss of eligibility for quarterly or annual reporting—(1) General. If a proprietor is using a reporting period under paragraph (b)(2) or (b)(3) of this section but becomes required to use a more frequent reporting period due to changes in the proprietor’s return filing frequency or tax liability, the proprietor must: (i) File the appropriate report form or forms beginning with the first quarterly or monthly reporting period during which the proprietor became required to report in that period; and (ii) Concurrently file the appropriate report form or forms covering any previous quarters of the calendar year (in the case of a proprietor who was previously authorized to submit reports annually) or any previous months of the calendar quarter (in the case of a proprietor who was previously authorized to submit reports quarterly). (2) Required statement. When filing the first quarterly or monthly report form or forms described in paragraph (c)(1)(i) of this section, a proprietor must state on the form or forms that the proprietor is increasing the frequency of its reporting and henceforth will submit quarterly or monthly reports, as applicable. The proprietor must then continue to file the appropriate form or forms for each subsequent quarter or month of that calendar year. (d) More frequent reporting required by TTB. The appropriate TTB officer may at any time require a proprietor who is reporting quarterly or annually to report more frequently if there is a jeopardy to the revenue. PART 24—WINE 7. The authority citation for part 24 continues to read as follows: ■ Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 5044, 5061, 5062, 5121, 5122–5124, 5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364– 5373, 5381–5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306. 8. [The proposed amendatory instructions and the proposed regulatory text for part 24 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. ■ PO 00000 Frm 00053 Fmt 4702 Sfmt 4702 PART 25—BEER 9. The authority citation for part 25 continues to read as follows: ■ Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 5051–5054, 5056, 5061, 5121, 5122–5124, 5222, 5401–5403, 5411–5417, 5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065, 6091, 6109, 6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676, 6806, 7342, 7606, 7805; 31 U.S.C. 9301, 9303–9308. 10. [With the addition of the amendatory instructions and proposed regulatory text set forth below, the proposed amendatory instructions and the proposed regulatory text for part 25 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. ■ 11. Section 25.297 is revised to read as follows: ■ § 25.297 Report of Operations, Form 5130.9 or Form 5130.26. (a) Monthly report of operations. Except as provided in paragraph (b) or (c) of this section, each brewer must prepare and submit a monthly report of brewery operations on Form 5130.9. (b) Quarterly report of operations. A brewer must file quarterly Form 5130.9 or Form 5130.26 (or any successor forms) if both of the following are true: (1) The brewer files quarterly tax returns pursuant to § 25.164; and (2) The brewer’s liability for tax on beer for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. (c) Annual report of operations. A brewer must file annual Form 5130.9 or Form 5130.26 (or any successor forms) if both of the following are true: (1) The brewer files annual tax returns pursuant to § 25.164; and (2) The brewer’s liability for tax on beer for which taxes have not been paid does not exceed $50,000 at any time during the calendar year. (d) Loss of eligibility for quarterly or annual reporting—(1) General. If a brewer using a reporting period under paragraph (b) or (c) of this section becomes required to use a more frequent reporting period, the brewer must: (i) File the appropriate report form beginning with the first quarterly or monthly period during which the brewer became required to use that period; and (ii) Concurrently file the appropriate report form or forms covering any previous quarters of the calendar year (in the case of a brewer who was previously authorized to submit reports annually) or any previous months of the E:\FR\FM\04JAP1.SGM 04JAP1 Federal Register / Vol. 82, No. 2 / Wednesday, January 4, 2017 / Proposed Rules calendar quarter (in the case of a brewer who was previously authorized to submit reports quarterly). (2) Required statement. When filing the first quarterly or monthly report described in paragraph (d)(1)(i) of this section, a brewer must state on the form that it is increasing the frequency of its reporting and henceforth will submit quarterly or monthly reports, as applicable. The brewer must then continue to file the appropriate form for each subsequent quarter or month of that calendar year. (e) More frequent reporting required by TTB. The appropriate TTB officer may at any time require a brewer who is filing Form 5130.9 or Form 5130.26 quarterly or annually to file such reports more frequently if there is a jeopardy to the revenue. (f) Submission and retention. The brewer may submit reports in either paper format or electronically via TTB Pay.gov. The brewer must retain a copy of Form 5130.9 or Form 5130.26 (or any successor form) in either paper or electronic format as part of the brewery records. PART 26—LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS 12. The authority citation for part 26 is revised to read as follows: ■ Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 5051, 5061, 5111– 5114, 5121, 5122–5124, 5131–5132, 5207, 5232, 5271, 5275, 5301, 5314, 5555, 6001, 6109, 6301, 6302, 6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303, 9304, 9306. 13. [The proposed amendatory instructions and the proposed regulatory text for part 26 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. ■ PART 27—IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER mstockstill on DSK3G9T082PROD with PROPOSALS 15. [The proposed amendatory instructions and the proposed regulatory text for part 27 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject Jkt 241001 Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 5007, 5008, 5041, 5051, 5054, 5061, 5121, 5122, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6109, 6302, 7805; 27 U.S.C. 203, 205; 44 U.S.C. 3504(h). 17. [The proposed amendatory instructions and the proposed regulatory text for part 28 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. ■ PART 30—GAUGING MANUAL 18. The authority citation for part 30 continues to read as follows: ■ Authority: 26 U.S.C. 7805. 19. [The proposed amendatory instructions and the proposed regulatory text for part 30 are the same as the amendatory instructions and the amendatory regulatory text set forth in the temporary rule on this subject published in the Rules and Regulations section of this issue of the Federal Register]. ■ Signed: December 21, 2016. Mary G. Ryan, Acting Administrator. Approved: December 22, 2016. Timothy E. Skud, Deputy Assistant Secretary. (Tax, Trade, and Tariff Policy). [FR Doc. 2016–31415 Filed 1–3–17; 8:45 am] BILLING CODE 4810–31–P DEPARTMENT OF HOMELAND SECURITY [Docket No. USCG–2016–0561] Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 5051, 5054, 5061, 5121, 5122–5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6109, 6302, 7805. 18:07 Jan 03, 2017 16. The authority citation for part 28 is revised to read as follows: ■ 33 CFR Part 117 14. The authority citation for part 27 is revised to read as follows: VerDate Sep<11>2014 PART 28—EXPORTATION OF ALCOHOL Coast Guard ■ ■ published in the Rules and Regulations section of this issue of the Federal Register]. RIN 1625–AA09 Drawbridge Operation Regulation; Upper Mississippi River, IA Coast Guard, DHS. Notice of proposed rulemaking. AGENCY: ACTION: The Coast Guard proposes to change the operating schedule that governs the draws of all bridges between Lock and Dam No. 14, mile 493.3, and SUMMARY: PO 00000 Frm 00054 Fmt 4702 Sfmt 4702 787 Lock and Dam No. 10, mile 615.1, on the Upper Mississippi River by adding a 24-hour notice requirement for openings during the winter season. This proposed rule would allow the drawbridges to remain in the closed-tonavigation position for extended periods allowing the owners of the drawbridges to perform preventive maintenance that is essential to the safe operation of the drawbridges. This proposed rule would allow for flexibility in beginning these special operating schedules each year based on the arrival of winter weather. DATES: Comments and related material must reach the Coast Guard on or before March 6, 2017. ADDRESSES: You may submit comments identified by docket number USCG– 2016–0561 using Federal eRulemaking Portal at http://www.regulations.gov. See the ‘‘Public Participation and Request for Comments’’ portion of the SUPPLEMENTARY INFORMATION section below for instructions on submitting comments. FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed rule, call or email Eric A. Washburn, Bridge Administrator, Western Rivers, Coast Guard; telephone 314–269–2378, email Eric.Washburn@uscg.mil. SUPPLEMENTARY INFORMATION: I. Table of Abbreviations CFR Code of Federal Regulations DHS Department of Homeland Security E.O. Executive Order FR Federal Register NPRM Notice of proposed rulemaking SNPRM Supplemental notice of proposed rulemaking Pub. L. Public Law § Section U.S.C. United States Code II. Background, Purpose and Legal Basis For 7 years the Coast Guard has issued temporary deviations requiring 24 hours advance notice to open for the three drawbridges between Lock and Dam No. 14, mile 493.3, and Lock and Dam No. 10, mile 615.1, on the Upper Mississippi River. The temporary deviations allowed the bridge owners to perform preventive maintenance during the winter season when there is less impact on navigation. Most recently, the temporary deviations for 2015 were published in the Federal Register in December, 2015 as follows: ‘‘Drawbridge Operation Regulation; Upper Mississippi River, Clinton, IA’’ and ‘‘Drawbridge Operation Regulation; Upper Mississippi River, Dubuque, IA’’ both published on December 4, 2015 (80 FR 75811); and ‘‘Drawbridge Operation Regulation; Upper Mississippi River, E:\FR\FM\04JAP1.SGM 04JAP1
[Pages 780-787]
[FR Doc No: 2016-31415]
[Docket No. TTB-2016-0013; Notice No. 167; Re: T.D. TTB-146]
Changes to Certain Alcohol-Related Regulations Governing Bond
Requirements and Tax Return Filing Periods
ACTION: Notice of proposed rulemaking; cross-reference to temporary
SUMMARY: In a temporary rule published elsewhere in this issue of the
Federal Register, the Alcohol and Tobacco Tax and Trade Bureau (TTB) is
amending its regulations relating to excise taxes imposed on distilled
spirits, wines, and beer to implement certain changes made to the
Internal Revenue Code of 1986 (IRC) by the Protecting Americans from
Tax Hikes Act of 2015 (PATH Act). The temporary rule implements section
332 of the PATH Act, which amends the IRC to remove bond requirements
and change tax return due dates for certain eligible excise taxpayers.
In this document, TTB proposes to adopt the regulations in the
temporary rule as a permanent regulatory change. The text of the
regulations in the temporary rule serves as the text of the proposed
regulations. This document also proposes to amend the regulations
governing the submission of reports by certain eligible excise
taxpayers. In this document, TTB is soliciting comments on the
amendments adopted in the temporary rule and the amendments proposed in
this notice of proposed rulemaking.
DATES: Comments must be received on or before March 6, 2017.
following addresses. Comments submitted by other methods, including
email, will not be accepted.
comment form for this document as posted within Docket No. TTB-2016-
0013 at ``Regulations.gov,'' the Federal e-rulemaking portal);
20005. See the Public Participation section of this document for
specific instructions and requirements for submitting comments, and for
You may view copies of this document, the temporary rule, selected
supporting materials, and any comments TTB receives about this proposal
at https://www.regulations.gov within Docket No. TTB-2016-0013. A
direct link to this docket is posted on the TTB Web site at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under Notice No. 167.
You also may view copies of this document, the temporary rule, all
related supporting materials, and any comments TTB receives about this
Street NW., Washington, DC 20005. Please call 202-453-2270 to make an
document, contact Ben Birkhill, Regulations and Rulings Division,
Alcohol and Tobacco Tax and Trade Bureau (202-453-2265).
provisions in chapter 51 of the Internal Revenue Code of 1986, as
amended (IRC), pertaining to the taxation of distilled spirits, wines,
and beer (see title 26 of the United States Code (U.S.C.), chapter 51
(26 U.S.C. chapter 51)). TTB also regulates distilled spirits, wines,
and malt beverages pursuant to the Federal Alcohol Administration Act
(FAA Act). TTB administers the provisions of the IRC and FAA Act, and
their implementing regulations, pursuant to section 1111(d) of the
Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). The
Secretary has delegated various authorities through Treasury Department
Order 120-01, dated December 10, 2013 (superseding Treasury Department
Order 120-01, dated January 24, 2003), to the TTB Administrator to
perform the functions and duties in administration and enforcement of
Sections 5001, 5041, and 5051 of the IRC (26 U.S.C. 5001, 5041, and
5051) impose tax on distilled spirits, wines, and beer produced in or
imported into the United States. Generally, taxes are determined (i.e.,
become due for payment) when they are removed from qualified facilities
in the United States or imported as provided in sections 5006, 5043,
and 5054 of the IRC (26 U.S.C. 5006, 5043, and 5054). Section 5061 of
the IRC (26 U.S.C. 5061) governs the collection of tax due on distilled
spirits, wines, and beer, including the time periods and due dates for
paying such taxes by return. Under some circumstances, the IRC
authorizes the removal of distilled spirits, wines, and beer from
facilities in the United States without paying the excise taxes imposed
on such products. For example, the IRC does not require payment of tax
for certain transfers between qualified facilities in the United States
as provided in sections 5212, 5362(b), and 5414 of the IRC (26 U.S.C.
5212, 5362(b), and 5414).
The PATH Act and the Temporary Rule
Consolidated Appropriations Act, 2016 (Public Law 114-113). Division Q
of this Act is titled the Protecting Americans from Tax Hikes Act of
2015 (PATH Act). Section 332 of the PATH Act amends the IRC to change
tax return due dates and remove bond requirements for certain eligible
taxpayers who pay excise taxes on distilled spirits, wines, and beer.
With respect to tax return due dates, section 332 amends section
5061(d) of the IRC to authorize a new annual return period for deferred
payment of excise tax, in addition to the preexisting quarterly and
semimonthly deferred payment periods authorized under that section.
Deferred payment of tax refers to payment using one of these three
return periods prescribed under the IRC rather than payment immediately
each time the tax becomes due. As described above, taxes on distilled
spirits, wines, and beer generally become due when the products are
removed from qualified facilities in the United States or imported into
the United States. To be eligible to use the annual or quarterly return
periods, the taxpayer must reasonably expect to be liable for not more
than $1,000 in excise taxes, in the case of annual returns, or $50,000
in excise taxes, in the case of quarterly returns, for the calendar
year and must have been liable for not more than these respective
quantities in the preceding calendar year. Since these $1,000 and
$50,000 ceilings are based on liability for payment of taxes by return
under section 5061 of the IRC, they do not include liability for taxes
imposed but not necessarily due, such as liability associated with
taxes imposed on distilled spirits, wines, and beer produced in or
imported into the United States that have not been removed from
qualified facilities on payment or determination of tax.
Section 332 of the PATH Act also amends several provisions of the
IRC to remove bond requirements for certain taxpayers who are eligible
to pay taxes on distilled spirits, wines, and beer using quarterly or
annual return periods and who pay taxes on a deferred basis. Under
section 332, these taxpayers are exempt from bond requirements with
respect to distilled spirits and wine only to the extent those products
are for nonindustrial use. The amended provisions relating to this bond
exemption are sections 5173, 5351, 5401, and 5551 of the IRC.
In a temporary rule published elsewhere in this issue of the
Federal Register, TTB is amending the
[[Page 782]]
regulations in chapter I of title 27 of the Code of Federal Regulations
(27 CFR) to implement section 332 of the PATH Act and to make several
technical amendments to update certain bond-related provisions. The
temporary rule amends regulations in 27 CFR parts 18, 19, 24, 25, 26,
27, 28, and 30. These amendments include incorporating the new annual
return period into the regulations, clarifying the circumstances under
which taxpayers are eligible for the bond exemption, and adding new
provisions governing qualification and loss of eligibility for the bond
exemption. The preamble of the temporary rule explains the proposed
regulations in more detail, and this notice solicits comments on the
amendments adopted in the temporary rule. The text of the regulations
in the temporary rule serves as the text of the proposed regulations
for purposes of this document.
In this document, TTB is also proposing to amend the regulations
governing reporting requirements for distilled spirits plants (DSPs)
and brewers in order to reduce unnecessary regulatory burden on some
industry members who pay taxes using annual or quarterly return
periods. TTB is also soliciting comments on whether to amend current
reporting requirements for bonded wine cellars (including bonded
wineries). These reporting provisions help protect the revenue by
requiring regulated parties to submit information to TTB relating to
their operations that are subject to regulation under the IRC. This
section discusses current reporting requirements for these industry
members and the proposed regulatory amendments.
The regulations in 27 CFR parts 19, 24, and 25 govern the
operations of DSPs, bonded wine cellars, and breweries in the United
States. Under 27 CFR 19.632, DSP proprietors must submit to TTB certain
monthly reports of operations. These reports are TTB Form 5110.40
(Monthly Report of Production Operations), TTB Form 5110.11 (Monthly
Report of Storage Operations), TTB Form 5110.28 (Monthly Report of
Processing Operations), and TTB Form 5110.43 (Monthly Report of
Processing (Denaturing) Operations). Under the current regulations,
DSPs may not file required reports less frequently than monthly.
Under 27 CFR 24.300(g), bonded wine cellars must generally file
reports on a monthly basis using TTB Form 5120.17 (Report of Wine
Premises Operations), but they may file reports quarterly or annually
if they meet the criteria to do so. To be eligible to file reports on a
quarterly basis, the proprietor must be filing quarterly tax returns,
and the proprietor must not expect the sum of the bulk and bottled wine
to be accounted for in all tax classes to exceed 60,000 gallons for any
one quarter during the calendar year when adding up certain wine on the
proprietor's premises. The wine that must be taken into account for
this purpose is wine on hand at the beginning of the month, bulk wine
produced by fermentation, sweetening, blending, amelioration or
addition of wine spirits, bulk wine bottled, bulk and bottled wine
received in bond, taxpaid wine returned to bond, bottled wine dumped to
bulk, inventory gains, and any activity written in the untitled lines
of the report which increases the amount of wine to be accounted for.
The wines that must be taken into account for this purpose are wines on
which taxes are imposed but not necessarily due, since the wines are
not reported as withdrawn on payment or determination of tax. To be
eligible to file reports on an annual basis, the proprietor must be
filing annual tax returns, and the proprietor must not expect the sum
of the bulk and bottled wine to be accounted for in all tax classes to
exceed 20,000 gallons for any one month during the calendar year when
adding up certain wine on the proprietor's premises. The wine that must
be taken into account for this purpose is the same as the wine that
must be taken into account for purposes of determining eligibility for
Under 27 CFR 25.297, each brewer must file a monthly report using
TTB Form 5130.9 (Brewer's Report of Operations), unless the brewer is
required to file reports on a quarterly basis. A brewer must file
quarterly reports using TTB Form 5130.26 (Quarterly Brewer's Report of
Operations) or TTB Form 5130.9 if the brewer was liable for not more
than $50,000 in taxes with respect to beer in the preceding calendar
year and reasonably expects to be liable for not more than $50,000 in
such taxes during the current calendar year. As referenced above, a
brewer who meets these $50,000 ceilings is eligible to pay taxes
quarterly under section 5061 of the IRC. Since these $50,000 ceilings
are based on liability for payment of taxes by return under section
5061 of the IRC, they do not include liability for taxes imposed but
not necessarily due.
Proposed Amendments and Solicitation of Comments
TTB is proposing to amend the reporting regulations applicable to
DSPs and brewers, and TTB is soliciting comments on whether to amend
the reporting regulations for bonded wine cellars. TTB proposes to
amend the regulations to authorize new quarterly and annual reporting
periods for certain DSPs, to authorize a new annual reporting period
for certain brewers, and to change the existing quarterly reporting
requirements for brewers. As discussed further below, the proposed
criteria for quarterly and annual reporting by DSPs and brewers are
modeled in part on the current criteria for quarterly and annual
reporting by bonded wine cellars, with some modifications. TTB is
soliciting comment on whether these modified criteria should be adopted
for DSPs and brewers. TTB is also requesting comment on whether it
should instead adopt criteria for quarterly and annual reporting by
DSPs and brewers that resemble the requirements used for such reporting
by bonded wine cellars (i.e., by taking into account the sum of certain
products listed on specific lines of proprietors' reports). In
addition, TTB is soliciting comment on whether it should amend the
current requirements for quarterly and annual reporting by bonded wine
cellars so that the requirements are consistent with the proposed
modified criteria for quarterly and annual reporting by DSPs and
Under the proposed amendments to Sec. Sec.  19.632 and 25.297, DSPs
and brewers must report monthly unless they are required to report
quarterly or annually. Under the proposed amendments, DSPs and brewers
must report quarterly for a calendar year if they file quarterly tax
returns for that calendar year and if their liability for taxes on
alcohol for which taxes have not been paid does not exceed $50,000 at
any time during that calendar year. For purposes of the latter
criterion, liability for taxes that have not been paid includes
liability for taxes determined but not yet paid and liability for taxes
imposed but not necessarily due for payment. Under the proposed
amendments, DSPs and brewers must report annually if they file annual
tax returns and if their liability for taxes on alcohol for which taxes
have not been paid does not exceed $50,000 at any time during the
calendar year. The purpose of these eligibility criteria is to reduce
reporting burdens on taxpayers whose tax payments do not exceed the
ceilings described above for paying taxes quarterly or annually and
whose liability for taxes that have not been paid does not exceed
$50,000. As discussed below, both types of liability are relevant for
determining required reporting frequency for revenue protection
The proposed criteria for quarterly and annual reporting in amended
Sec. Sec.  19.632 and 25.297 are modeled in part on the current
criteria for quarterly and annual reporting by bonded wine cellars,
which are based on both the frequency with which the proprietor pays
taxes by return and the proprietor's liability for alcohol on which
taxes have not been paid. Both factors are relevant for determining
required reporting frequency because they relate to the proprietor's
overall tax liability under the IRC. Generally, more frequent reporting
is necessary for a proprietor who has greater tax liability because TTB
needs more detailed information regarding the proprietor's operations
for revenue protection purposes. More frequent reporting is necessary
for proprietors who use more frequent return periods for paying tax
because such proprietors generally have greater liability for taxes due
for payment. In addition, since a proprietor's liability for taxes
imposed but not necessarily due also raises revenue risks, this type of
tax liability must also be taken into account for determining
appropriate reporting frequency.
With respect to return periods, TTB believes it is appropriate to
require that DSPs and brewers pay taxes on an annual or quarterly basis
to be eligible to report on an annual or quarterly basis, respectively.
This requirement under proposed Sec. Sec.  19.632 and 25.297 is
consistent with current reporting requirements for bonded wine cellars
under Sec.  24.300(g). With respect to liability for taxes imposed but
not necessarily due, TTB has determined that the proposed $50,000
maximum discussed above for DSPs and brewers reporting quarterly and
annually is necessary for revenue protection purposes. The $50,000
limit ensures that DSPs and brewers reporting quarterly or annually who
pay excise taxes using quarterly or annual return periods do not engage
in operations that involve significant tax liability for which the IRC
does not require payment of tax, such as certain transfers of alcohol
between qualified facilities in the United States (see sections 5212,
5362(b), and 5414 of the IRC). Since DSPs and brewers who report
quarterly or annually meet the tax payment ceilings for the use of
quarterly or annual return periods, TTB has determined that this
$50,000 limit on taxes imposed but not necessarily due is appropriate
for both quarterly and annual reporters. Quarterly and annual reporters
will be subject to different tax payment ceilings based on the tax
return period they use, and the $50,000 limit is simply intended to
ensure that neither category of reporters engages in operations that
involve significant tax liability for which the IRC does not require
The $50,000 maximum for DSPs and brewers under proposed Sec. Sec.
19.632 and 25.297 is different from current quarterly and annual
reporting requirements for bonded wine cellars. Under Sec.  24.300(g),
bonded wine cellars must not expect the sum of the bulk and bottled
wine to be accounted for in all tax classes to exceed 60,000 gallons
for any one quarter (in the case of quarterly reporting) or 20,000
gallons for any one month (in the case of annual reporting) when adding
up certain wine on the proprietor's premises as described above.
Because section 5041 of the IRC imposes several different tax rates on
wine, the tax liability associated with these quantities may or may not
exceed $50,000, depending on the circumstances. TTB is soliciting
comment on whether there are wine-specific reasons for retaining the
60,000-gallon and 20,000-gallon limits in the regulations and whether
it would instead be appropriate for consistency purposes to amend Sec.
24.300(g) to incorporate the same $50,000 maximum that TTB is proposing
for DSPs and brewers under Sec. Sec.  19.632 and 25.297.
Finally, TTB is also requesting comment on whether it should amend
Sec.  24.300(g) to require (rather than simply allow) the use of
quarterly and annual reporting periods for bonded wine cellars who meet
the criteria to use them. Under the current regulations, such
proprietors may choose to submit reports monthly even though they are
eligible to report less frequently. TTB believes that requiring less
frequent reporting for eligible proprietors would reduce reporting
burdens on proprietors and would reduce report processing burdens on
TTB. TTB is therefore soliciting comment on whether there are wine-
specific reasons for continuing to allow the voluntary use of quarterly
or annual reporting periods for bonded wine cellars that are eligible
regulations adopted in the temporary rule and the additional regulatory
amendments proposed in this document. In addition, TTB is requesting
comments whether it should amend the current requirements for quarterly
and annual reporting by bonded wine cellars so that the requirements
are consistent with the criteria proposed in this document for
quarterly and annual reporting by DSPs and brewers.
You may submit comments on this proposal by one of the following
comments via the online comment form posted with this proposed rule
within Docket No. TTB-2016-0013 on ``Regulations.gov,'' the Federal e-
rulemaking portal. A direct link to that docket is available on the TTB
Web site at https://www.ttb.gov/spirits/spirits-rulemaking.shtml.
Supplemental files may be attached to comments submitted via
Regulations.gov. For information on how to use Regulations.gov, visit
the site and click on the ``Help'' tab.
Mail: You may send comments via postal mail to the
proposed rule. Your comments must reference Notice No. 167 and include
your name and mailing address. Your comments also must be made in
English, be legible, and be written in language acceptable for public
disclosure. TTB does not acknowledge receipt of comments and considers
[[Page 784]]
determine whether to hold a public hearing.
TTB will post, and you may view, copies of this proposed rule, the
temporary rule, and any online or mailed comments received about this
proposal within Docket No. TTB-2016-0013 on the Federal e-rulemaking
portal. A direct link to that docket is available on the TTB Web site
at https://www.ttb.gov/regulations_laws/all_rulemaking.shtml under
Notice No. 167. You may also reach the relevant docket through the
Regulations.gov search page at https://www.regulations.gov. For
information on how to use Regulations.gov, click on the site's ``Help''
You may view copies of this proposed rule, the temporary rule, and
any electronic or mailed comments TTB receives about this proposal by
address or by telephone at 202-453-2270 to schedule an appointment or
TTB certifies that this proposed regulation, if adopted, will not
entities. The proposed amendments would reduce reporting requirements
for certain proprietors described in this document. The proposed rule,
if adopted, will not impose, or otherwise cause, a significant increase
in reporting, recordkeeping, or other compliance burdens on a
flexibility analysis is not required. Pursuant to 26 U.S.C. 7805(f),
TTB will submit the proposed regulations to the Chief Counsel for
Advocacy of the Small Business Administration for comment on the impact
of the proposed regulations on small businesses.
The six collections of information associated with the proposed
regulatory requirements discussed in this notice of proposed rulemaking
(including the regulatory requirements relating to wine reporting on
which TTB is seeking comment) have been previously reviewed and
with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) and
assigned control numbers 1513-0007, 1513-0039, 1513-0041, 1513-0047,
1513-0049, and 1513-0053. An agency may not conduct or sponsor, and a
The proposed regulatory text in 27 CFR 19.632 contains alterations
to the information collections currently approved under OMB control
numbers 1513-0039, 1513-0041, 1513-0047, and 1513-0049. These control
numbers cover, respectively, TTB Forms 5110.11, 5110.28, 5110.40, and
5110.43. If adopted, these revisions would provide for less frequent
reporting by certain DSPs. Under the current regulations, DSPs must
submit required reports on a monthly basis. Under the proposed
regulatory amendments, a DSP would report quarterly if they file
quarterly tax returns and would report annually if they file annual tax
returns as long as, in either case, the DSP's liability for taxes on
distilled spirits for which taxes have not been paid does not exceed
$50,000 at any time during the calendar year. Taking into account the
proposed regulatory amendments, TTB estimates the burden associated
with these information collections as follows:
1513-0039
Estimated number of respondents: 684 reporting monthly;
651 reporting quarterly; 424 reporting annually.
Estimated annual frequency of responses: 12 for monthly
reporting; 4 for quarterly reporting; 1 for annual reporting.
Estimated average annual total burden hours: 11,236.
1513-0041
Estimated number of respondents: 634 reporting monthly;
603 reporting quarterly; 392 reporting annually.
Estimated average annual total burden hours: 20,824.
1513-0047
Estimated number of respondents: 571 reporting monthly;
544 reporting quarterly; 354 reporting annually.
Estimated average annual total burden hours: 18,764.
1513-0049
Estimated number of respondents: 184 reporting monthly;
175 reporting quarterly; 114 reporting annually.
Estimated average annual total burden hours: 3,022.
The proposed regulatory text in 27 CFR 25.297 contains alterations
to the information collection currently approved under OMB control
number 1513-0007. This control number covers TTB Forms 5130.9 and
5130.26. If adopted, these revisions would provide for less frequent
reporting by certain brewers who file annual tax returns and would
continue to authorize quarterly reporting by certain brewers who file
quarterly tax returns. In the case of a brewer who reports quarterly or
annually, the brewer's liability for taxes on beer for which taxes have
not been paid must not exceed $50,000 at any time during the calendar
year. Taking into account the proposed regulatory amendments, TTB
estimates the burden associated with this information collection as
Estimated number of respondents: 1,344 reporting monthly;
2,998 reporting quarterly; 1,956 reporting annually.
Estimated average annual total burden hours: 22,557.
Finally, TTB is requesting comments on whether to amend Sec.
24.300(g) so that the reporting requirements for bonded wine cellars on
TTB Form 5120.17 are consistent with the proposed reporting
[[Page 785]]
requirements for DSPs and brewers. The reporting requirements in Sec.
24.300(g) are covered under OMB control number 1513-0053. Similar to
the proposed amendments for DSPs and brewers, the current reporting
provisions for bonded wine cellars require that the proprietor file tax
returns quarterly or annually to be eligible for quarterly or annual
reporting, respectively. In addition, the proprietor must not expect
the sum of the bulk and bottled wine to be accounted for in all tax
classes to exceed 60,000 gallons for any one quarter (in the case of
quarterly reporting) or 20,000 gallons for any one month (in the case
of annual reporting) when adding up certain wine on the proprietor's
premises. TTB is soliciting comment on whether to adopt the proposed
$50,000 limit described above for DSPs and brewers in lieu of the
20,000-gallon and 60,000-gallon limits in the current regulations. TTB
does not estimate that this change, if adopted, would result in changes
in reporting burden for proprietors. We are, however, reporting an
increase in the number of respondents to this collection to reflect the
current number of proprietors who file the form. TTB estimates the
burden associated with this information collection as follows:
Estimated number of respondents: 2,316 reporting monthly;
4,733 reporting quarterly; 4,467 reporting annually.
Estimated average annual total burden hours: 56,310.
Revisions of these six currently approved collections have been
submitted to OMB for review. Comments on the revisions should be sent
to OMB at Office of Management and Budget, Attention: Desk Officer for
the Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503 or by email to
OIRA_submissions@omb.eop.gov. A copy should also be sent to TTB by any
of the methods previously described. Comments on the information
collections should be submitted no later than March 6, 2017. Comments
are specifically requested concerning:
Whether the proposed revisions of the collections of
of the Alcohol and Tobacco Tax and Trade Bureau, including whether the
The accuracy of the estimated burdens associated with the
proposed revisions of the collections of information;
Ben Birkhill of the Regulations and Rulings Division drafted this
Alcohol and alcoholic beverages, Fruits, Reporting and
recordkeeping requirements, Spices and flavorings.
Electronic funds transfers, Excise taxes, Exports, Gasohol, Imports,
Labeling, Liquors, Packaging and containers, Puerto Rico, Reporting and
recordkeeping requirements, Research, Security measures, Spices and
flavorings, Stills, Surety bonds, Transportation, Vinegar, Virgin
Islands, Warehouses, Wine.
Administrative practice and procedure, Claims, Electronic funds
Beer, Claims, Electronic funds transfers, Excise taxes, Exports,
requirements, Research, Surety bonds.
Claims, Customs duties and inspection, Electronic funds transfers,
Excise taxes, Packaging and containers, Puerto Rico, Reporting and
recordkeeping requirements, Surety bonds, Virgin Islands, Warehouses.
Liquors, Scientific equipment.
CFR, chapter I, parts 18, 19, 24, 25, 26, 27, 28, and 30 as set forth
PART 18--PRODUCTION OF VOLATILE FRUIT-FLAVOR CONCENTRATE
Authority:  26 U.S.C. 5001, 5171-5173, 5178, 5179, 5203, 5351,
5354, 5356, 5511, 5552, 6065, 6109, 7805.
text for part 18 are the same as the amendatory instructions and the
Authority:  19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-
5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114,
5121-5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181,
4. [With the addition of the amendatory instructions and proposed
regulatory text set forth below, the
[[Page 786]]
proposed amendatory instructions and the proposed regulatory text for
part 19 are the same as the amendatory instructions and the amendatory
regulatory text set forth in the temporary rule on this subject
Sec.  19.147   [Amended]
5. In Sec.  19.147, paragraph (d) is amended by removing the word
``monthly''.
6. Section 19.632 is revised to read as follows:
Sec.  19.632  Submission of reports.
(a) General. Each proprietor must submit reports of its distilled
spirits plant operations to TTB in accordance with paragraph (b) of
this section. The proprietor must submit the original reports to TTB
and must retain a copy for its records. The required report forms are
(1) Report of Production Operations, form TTB F 5110.40, except
that no report is required when production operations are suspended as
provided in Sec.  19.292;
(2) Report of Storage Operations, form TTB F 5110.11;
(3) Report of Processing Operations, form TTB F 5110.28; and
(4) Monthly Report of Processing (Denaturing) Operations, form TTB
F 5110.43.
(b) Reporting periods. Each proprietor must submit the reports
specified in paragraph (a) of this section to the Director, National
Revenue Center, not later than the 15th day following the last day of
the reporting periods specified in this paragraph. A proprietor may
submit reports in either paper format or electronically via TTB
Pay.gov. The required reporting periods are as follows:
(1) Monthly reporting periods. Except in cases where the proprietor
must submit reports covering each calendar quarter or calendar year of
operations under paragraphs (b)(2) or (b)(3) of this section, a
proprietor must submit reports covering for each month of operations.
(2) Quarterly reporting periods. A proprietor must submit reports
covering each calendar quarter of operations if both of the following
(i) The proprietor files quarterly tax returns pursuant to Sec.
19.235; and
(ii) The proprietor's liability for tax on spirits for which taxes
(3) Annual reporting periods. A proprietor must submit reports
covering for each calendar year of operations if both of the following
(i) The proprietor files annual tax returns pursuant to Sec.
(c) Loss of eligibility for quarterly or annual reporting--(1)
General. If a proprietor is using a reporting period under paragraph
(b)(2) or (b)(3) of this section but becomes required to use a more
frequent reporting period due to changes in the proprietor's return
filing frequency or tax liability, the proprietor must:
(i) File the appropriate report form or forms beginning with the
first quarterly or monthly reporting period during which the proprietor
became required to report in that period; and
(ii) Concurrently file the appropriate report form or forms
covering any previous quarters of the calendar year (in the case of a
proprietor who was previously authorized to submit reports annually) or
any previous months of the calendar quarter (in the case of a
proprietor who was previously authorized to submit reports quarterly).
(2) Required statement. When filing the first quarterly or monthly
report form or forms described in paragraph (c)(1)(i) of this section,
a proprietor must state on the form or forms that the proprietor is
increasing the frequency of its reporting and henceforth will submit
quarterly or monthly reports, as applicable. The proprietor must then
continue to file the appropriate form or forms for each subsequent
quarter or month of that calendar year.
(d) More frequent reporting required by TTB. The appropriate TTB
officer may at any time require a proprietor who is reporting quarterly
or annually to report more frequently if there is a jeopardy to the
8. [The proposed amendatory instructions and the proposed regulatory
text for part 24 are the same as the amendatory instructions and the
Authority:  19 U.S.C. 81c; 26 U.S.C. 5002, 5051-5054, 5056,
5061, 5121, 5122-5124, 5222, 5401-5403, 5411-5417, 5551, 5552, 5555,
5556, 5671, 5673, 5684, 6011, 6061, 6065, 6091, 6109, 6151, 6301,
6302, 6311, 6313, 6402, 6651, 6656, 6676, 6806, 7342, 7606, 7805; 31
U.S.C. 9301, 9303-9308.
10. [With the addition of the amendatory instructions and proposed
regulatory text set forth below, the proposed amendatory instructions
and the proposed regulatory text for part 25 are the same as the
amendatory instructions and the amendatory regulatory text set forth in
the temporary rule on this subject published in the Rules and
Regulations section of this issue of the Federal Register].
11. Section 25.297 is revised to read as follows:
Sec.  25.297  Report of Operations, Form 5130.9 or Form 5130.26.
(a) Monthly report of operations. Except as provided in paragraph
(b) or (c) of this section, each brewer must prepare and submit a
monthly report of brewery operations on Form 5130.9.
(b) Quarterly report of operations. A brewer must file quarterly
Form 5130.9 or Form 5130.26 (or any successor forms) if both of the
(1) The brewer files quarterly tax returns pursuant to Sec.
25.164; and
(2) The brewer's liability for tax on beer for which taxes have not
been paid does not exceed $50,000 at any time during the calendar year.
(c) Annual report of operations. A brewer must file annual Form
5130.9 or Form 5130.26 (or any successor forms) if both of the
(1) The brewer files annual tax returns pursuant to Sec.  25.164;
(d) Loss of eligibility for quarterly or annual reporting--(1)
General. If a brewer using a reporting period under paragraph (b) or
(c) of this section becomes required to use a more frequent reporting
period, the brewer must:
(i) File the appropriate report form beginning with the first
quarterly or monthly period during which the brewer became required to
use that period; and
brewer who was previously authorized to submit reports annually) or any
previous months of the
[[Page 787]]
calendar quarter (in the case of a brewer who was previously authorized
to submit reports quarterly).
report described in paragraph (d)(1)(i) of this section, a brewer must
state on the form that it is increasing the frequency of its reporting
and henceforth will submit quarterly or monthly reports, as applicable.
The brewer must then continue to file the appropriate form for each
subsequent quarter or month of that calendar year.
(e) More frequent reporting required by TTB. The appropriate TTB
officer may at any time require a brewer who is filing Form 5130.9 or
Form 5130.26 quarterly or annually to file such reports more frequently
if there is a jeopardy to the revenue.
(f) Submission and retention. The brewer may submit reports in
either paper format or electronically via TTB Pay.gov. The brewer must
retain a copy of Form 5130.9 or Form 5130.26 (or any successor form) in
either paper or electronic format as part of the brewery records.
12. The authority citation for part 26 is revised to read as follows:
5271, 5275, 5301, 5314, 5555, 6001, 6109, 6301, 6302, 6804, 7101,
7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303,
13. [The proposed amendatory instructions and the proposed regulatory
text for part 26 are the same as the amendatory instructions and the
14. The authority citation for part 27 is revised to read as follows:
5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6109, 6302, 7805.
15. [The proposed amendatory instructions and the proposed regulatory
text for part 27 are the same as the amendatory instructions and the
PART 28--EXPORTATION OF ALCOHOL
16. The authority citation for part 28 is revised to read as follows:
Authority:  5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C.
5001, 5007, 5008, 5041, 5051, 5054, 5061, 5121, 5122, 5201, 5205,
5207, 5232, 5273, 5301, 5313, 5555, 6109, 6302, 7805; 27 U.S.C. 203,
205; 44 U.S.C. 3504(h).
17. [The proposed amendatory instructions and the proposed regulatory
text for part 28 are the same as the amendatory instructions and the
PART 30--GAUGING MANUAL
18. The authority citation for part 30 continues to read as follows:
19. [The proposed amendatory instructions and the proposed regulatory
text for part 30 are the same as the amendatory instructions and the
Signed: December 21, 2016.
[FR Doc. 2016-31415 Filed 1-3-17; 8:45 am]