Wineries Urged to File Timely Permit Amendments

Unreported or Untimely Changes in Ownership Could Put Craft Beverage Tax Credits at Risk

Wineries are reminded that failing to report changes in ownership or control through a permit amendment could result in significant enforcement action by the Alcohol and Tobacco Tax and Trade Bureau (TTB). As TTB recently reminded industry members, regulations require any change in ownership or control to be reported within 30 days.

Wine Institute has learned from TTB officials that the agency is taking the position that if a wine, beer or spirits producer fails to report a change in control or proprietorship in a timely manner, then the company is not entitled to the federal excise tax credits provided by the Craft Beverage Modernization Act (CBMA). Failing to report a change within 30 days could result in substantial tax assessments since the operating permit or registration will have expired. A winery must hold a valid permit or registration to be eligible for the excise tax credits.

If a winery has not filed its permit amendments in a timely fashion, it should consider making a voluntary disclosure under the TTB procedures outlined in Industry Circular 2004-5.  According to the Industry Circular, doing so could result in reduced penalties or other special considerations when and if TTB proposes administrative action.