In life, only death and taxes are certain, and this holds especially true in the alcohol beverage industry. The federal government has established a detailed regulatory framework to ensure it collects its share from every barrel of beer sold, down to the nearest second decimal place. Central to this system are the reporting requirements for brewers and breweries.
Once you’ve obtained your brewer’s permit with the Alcohol and Tobacco Tax and Trade Bureau (“TTB“), paying taxes and filing the necessary reports become critical. There are two main types of filings: operational reports and excise tax reports.
As a brewer, you must maintain daily records of your operations. These records must be kept at the brewery and be available for TTB inspection during business hours. They should be preserved for at least three years from the date of the transaction or the last required entry, whichever is later.
How often should you file the operational report for your brewery?
The frequency of submitting the TTB’s “Brewer’s Report of Operations” depends on your brewery’s beer excise tax liability from the previous or current year.
- Quarterly Filing: If your brewery owed $50,000 or less in beer excise taxes in the previous calendar year and expects to owe no more than $50,000 in the current year, you must submit the report quarterly along with your excise tax returns. Use TTB F 5130.26 or TTB F 5130.9 to help prepare filings that will be submitted through Pay.gov.
- Monthly Filing: If your brewery owed more than $50,000 in beer excise taxes the previous year or expects to owe more than $50,000 in the current year, you must submit the report monthly and file excise tax returns semi-monthly. For monthly filing, use TTB F 5130.9 to help prepare filings that will be submitted through Pay.gov.
Note that there is not an option to report annually for operational reports.
Your brewery must meticulously record additions and removals from inventory, including:
- Beer produced by fermentation
- Addition of water and other liquids
- Beer returned to the brewery
- Beer removed for consumption and sale
- Beer consumed on premises
- Laboratory samples
- Beer destroyed
How often should you file the excise tax report for your brewery?
The frequency of excise tax filings also depends on your brewery’s annual federal excise tax liability. There are two types of excise tax returns: quarterly and semi-monthly. Brewers who file monthly operational reports must file semi-monthly tax returns.
Both quarterly and semi-monthly tax returns are filed via Pay.gov.
- Annual Tax Returns: If your brewery was liable for $1,000 in federal beer excise taxes or less during the preceding calendar year and reasonably expect to be liable for not more than $1,000 during the current calendar year filed, you may file the federal excise return on an annual basis.
- Quarterly Tax Returns: If your brewery owed $50,000 or less in beer excise taxes in the previous calendar year and expects to owe no more than $50,000 in the current year, you may file quarterly tax returns.
- Semi-Monthly Tax Returns: If your brewery does not meet the $50,000 threshold, you must file on a semi-monthly basis. Unless prepaid, beer removed for taxable purposes must also be reported and paid semi-monthly through Pay.gov. Note that semi-monthly excise tax reporting is more frequent than monthly operational reporting.
When are quarterly or annual reports due?
Quarterly or annual reports are typically due no later than 14 days after the close of the return period. If the 14th day falls on a Saturday, Sunday, or legal holiday, the return is due on the immediately preceding business day.
When are semi-monthly reports due?
Semi-monthly tax reports cover two periods: the 1st to the 15th, and the 16th to the end of the month. These reports are generally due no later than 14 days after the close of each period. If the 14th day falls on a Saturday, Sunday, or legal holiday, the return is due on the immediately preceding business day.
How can Lindsey Zahn P.C. help with TTB reporting?
Lindsey Zahn P.C. can provide invaluable assistance with brewery operational reports and excise tax filings, ensuring your business remains compliant with all regulatory requirements. Here’s how we can help:
Brewery Operational Reports:
- Record-Keeping Guidance: We’ll help you establish and maintain accurate daily records of operations.
- Preparation & Submission: We can assist in overseeing in the preparation and timely submission of the TTB’s “Brewer’s Report of Operations.”
- Compliance Checks: Regular reviews and audits of your records to ensure they are in compliance with TTB regulations and ready for inspection at any time.
Excise Tax Filings:
- Tax Liability Assessment: We’ll help you determine your brewery’s excise tax liability to decide whether you should file quarterly or semi-monthly tax returns.
- Filing Assistance: Our firm will help oversee the preparation and submission of TTB excise tax forms.
- Ongoing Support: Continuous support and advice to help you stay on top of tax obligations and avoid potential penalties.
Let Lindsey Zahn P.C. handle the complexities of operational reporting and excise tax filings, so you can focus on what you do best – brewing great beer. Contact us today to learn more at info@zahnlawpc.com or 929-924-6529.