Are You Overpaying Your Federal Excise Taxes?

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The Tax and Trade Bureau (TTB) has informed the Brewers Association (BA) that approximately 400 brewers who are eligible to pay at the recalibrated $3.50/barrel federal excise tax rate are still, in fact, paying at the $7.00/barrel rate.

Are YOU one of those missing out on significant tax savings that could be reinvested in your brewery, employees and community?

Background

As a result of legislation containing provisions from the BA-championed Craft Beverage Modernization and Tax Reform Act being signed into law in the closing days of 2017, a reduced rate became effective for a two-year period extending through 2019.  Specifically, the provisions provide for a reduced rate of $3.50/barrel (from $7.00/barrel) on the first 60,000 barrels for domestic brewers producing less than two million barrels annually.

The Way Forward

Because the TTB is prohibited from releasing information on individual breweries, we are unable to identify the specific breweries that may be overpaying.  If you think you may have overpaid your taxes, please take a moment to:

  1. Confirm your brewery’s eligibility for the reduced rate
  2. Review your past tax records
  3. Check out the TTB resources on these tax provisions (particularly General Tax Reform Q&A questions TR-G1, 3 and 7 and the Beer Tax Reform Q&A)
  4. Submit for a refund using TTB Form 5620.8

The BA will continue to work with TTB to find the most expeditious and least burdensome solution to this situation, but at this time TTB has confirmed that there is only one way for affected brewers to seek a refund of overpayment of tax on beer and that is by submitting the above form.  The BA worked hard for over a decade to help get this lower rate enacted and we want to make sure everyone who is eligible takes advantage of the lower rates.

If you find you’ve been overpaying, don’t delay taking action — avoid making future overpayments and submit your refund claim so that your money is returned as soon as possible.