TTB: Hundreds of Breweries Are Overpaying Federal Excise Tax
The Craft Beverage Modernization and Tax Reform Act, championed by the Brewers Association, became federal law at the end of 2017 after many years of advocacy. The CBMTRA provides for a reduced excise tax 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.
Earlier this month the Tax and Trade Bureau (TTB) 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 the breweries missing out on significant tax savings?
How to Find Out If You’re Overpaying
Federal law prohibits the TTB from releasing information on individual breweries, so there is no simple way to identify the specific breweries that may be overpaying. If you think you may have over payed your taxes, please take a moment to:
- Confirm your brewery’s eligibility for the reduced rate
- Review your past tax records
- 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)
- Submit for a refund using TTB Form 5620.8
The TTB has confirmed that submitting the above form is the only way for affected brewers to seek a refund of overpayment of tax on beer.
If you find you’ve been overpaying, we recommend CCBA members take immediate action by submitting your refund claim so that your money is returned as soon as possible.
