TTB Newsletter: August 14, 2009

In the TTB Newsletter, we compile the top TTB news of the week and other helpful information about the Bureau and the Federal alcohol and tobacco laws and regulations we enforce.

Please send any questions and/or comments to Susan Stewart Evans, Executive Liaison for Industry Matters (susan.stewart-evans@ttb.gov) and/or Frosty Chapman, State Liaison (forrest.chapman@ttb.gov).

TTB Newsletter Archives

DAVE ROYALTY ANNOUNCES RETIREMENT

Dave Royalty, District Director of our Western I District Office, Trade Investigations Division, has announced his retirement of October 2, 2009. Dave has 38 years of service with ATF and TTB. Please join us in wishing Dave a deserved and happy retirement by e-mailing him at dave.royalty@ttb.gov

EXPO 2009 UPDATE: SEE THE SLIDESHOW AND READ MORE ABOUT THE EXPO

Wow, were we impressed! With the recent economic instability we were unsure about attendance, but we are thrilled to announce that we had over 700 attendees at TTB Expo 2009! This far exceeded last year's attendance as well as our expectations.

We sincerely thank everyone who attended. Our hope is that you came away from this year's Expo knowing that TTB is committed to helping you understand and comply with the applicable laws and regulations that govern your operations.

We enjoyed the opportunity to meet and talk with so many of you and we encourage you to keep the lines of communication open. Contact us with your questions and concerns using the contact information we provided during the Expo.

Because there were those who couldn't make it to Expo 2009, we have made available some of the presentation information that was shared during the three-day event. Feel free to save or print the files for future reference.

NANO-BREWING ADVISORY

Nano-breweries, which we define as very small brewery operations, are springing up across the country. Nano brewing is a result of the steady appeal for craft-brewed beers and the beneficiary of the growing home brewing movement. We issue this advisory as a reminder that any beer produced for sale by home brewers is not exempt from Federal excise tax payment.

Section 5092 of the Internal Revenue Code of 1986 (IRC) defines a brewer as a person who brews beer or produces beer for sale. Section 5053(e) of the IRC provides an exemption from Federal excise tax payment for beer that is produced for personal or family use.

Pursuant to § 5053(e) any adult may, without payment of tax, produce beer for personal or family use and not for sale. The aggregate amount of beer exempt from tax under this subsection with respect to any household shall not exceed

For purposes of this subsection, the term "adult" means an individual who has attained 18 years of age, or the minimum age (if any) established by law applicable in the locality in which the household is situated at which beer may be sold to individuals, whichever is greater.

Persons who produce beer for sale, no matter how small the amount, must qualify as a brewer under the provisions of 26 U.S.C. 5401. In addition to paying the Federal excise tax on any beer that is removed from the brewery for consumption or sale, consumer packages must contain the government health warning statement (see 27 CFR part 16). Further, the labeling and advertising provisions of the Federal Alcohol Administration Act, which are found at 27 U.S.C 205, may apply and the regulations implementing that section of the law as they relate to malt beverages, are set forth in part 7 of the TTB regulations (27 CFR part 7), Labeling and Advertising of Malt Beverages.

If you have a question regarding whether your operation qualifies for the exemption as found in § 5053(e) or whether you need to complete the brewery qualification process pursuant to 26 U.S.C. 5401, please contact the TTB National Revenue Center at 1-877-882-3277 or e-mail at: ttbquestions@ttb.treas.gov.