Code of Federal Regulations (Last Updated: July 5, 2024) |
Title 27 - Alcohol, Tobacco Products and Firearms |
Chapter I - Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury |
SubChapter A - Alcohol |
Part 19 - Distilled Spirits Plants |
Subpart I - Distilled Spirits Taxes |
Requirements for Filing Tax Returns |
§ 19.235 - Deferred payment return periods - annual, quarterly, and semimonthly.
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§ 19.235 Deferred payment return periods - annual, quarterly, and semimonthly.
(a) Two Three types of return periods. The IRC provides for two three different return periods for those taxpayers who pay their taxes on a deferred basis: Quarterly Annual, quarterly, and semimonthly. Small taxpayers that Taxpayers who meet certain criteria are eligible to use annual or quarterly return periods and pay their taxes on a an annual or quarterly basis . Larger as provided in paragraphs (b) and (c) of this section, respectively. Other taxpayers must use semimonthly return periods and pay their taxes on a semimonthly basis as provided in paragraph (e) of this section.
(b) Quarterly return period. Effective January 1, 2006, a taxpayer that Annual return period. Subject to paragraph (d) of this section, a taxpayer who reasonably expects to be liable for not more than $1,000 in taxes with respect to distilled spirits imposed by 26 U.S.C. 5001 and 7652 for the current calendar year, and that was liable for not more than $1,000 in such taxes in the preceding calendar year, may choose to use an annual return period. However, the taxpayer may not use the annual return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $1,000, and any tax which has not been paid on that date will be due on the 14th day after the last day of the quarterly or semimonthly period in which that date occurs. A taxpayer may choose to use either quarterly or semimonthly return periods as authorized under paragraph (c) or (e) of this section.
(c) Quarterly return period. Except as provided in paragraph (b) of this section and subject to paragraph (d) of this section, a taxpayer who reasonably expects to be liable for not more than $50,000 in taxes with respect to distilled spirits imposed by 26 U.S.C. 5001 and 7652 for the current calendar year, and that was liable for not more than $50,000 in such taxes in the preceding calendar year, may choose to use a quarterly return period. However, the taxpayer may not use the quarterly return period procedure for any portion of the calendar year following the first date on which the aggregate amount of tax due from the taxpayer during the calendar year exceeds $50,000, and any tax which has not been paid on that date will be due on the 14th day after the last day of the semimonthly period in which that date occurs.
procedure under(d) Additional rules for annual and quarterly return periods. The following additional rules apply to the annual and quarterly return period
quarterlyprocedures under paragraphs (b) and (c) of this section:
(1) A taxpayer with multiple locations must combine the distilled spirits tax liability for all locations to determine eligibility for the
procedurereturn
thatprocedures;
(2) A taxpayer
quarterlywho has both domestic operations and import transactions must combine the distilled spirits tax liability on the domestic operations and the imports to determine eligibility for the
procedurereturn
quarterlyprocedures;
(3) The controlled group rules of 26 U.S.C. 5061(e), which concern treatment of controlled groups as one taxpayer, do not apply for purposes of determining eligibility for the
procedurereturn
thatprocedures. However, a taxpayer
quarterlywho is eligible for the
procedurereturn
file quarterly returns in theprocedures, and that is a member of a controlled group that owes $5 million or more in distilled spirits excise taxes per year, is required to pay taxes by electronic fund transfer (EFT). Quarterly payments via EFT must be transmitted in accordance with section 5061(e);
(4) A new taxpayer is eligible to
filing quarterly exceeds $50,000 in tax liabilityuse the return procedures the first year of business simply if the taxpayer reasonably expects to be liable for not more than $1,000, in the case of the annual return procedure, or $50,000, in the case of the quarterly return procedure, in distilled spirits taxes during that calendar year; and
(5) If a taxpayer
and therefore must revert to the semimonthly return procedurebecomes ineligible to use a return procedure described in paragraph (b) or (c) of this section because the taxpayer's liability exceeds $1,000 or $50,000, respectively, during a taxable year
quarterly payments, that taxpayer may resume
(cusing that return procedure only after a full calendar year has passed during which the taxpayer's liability did not exceed $1,000 or $50,000 as the case may be.
A taxpayer may not use an annual or quarterly return procedure during any calendar year in which the taxpayer reasonably expects to be liable for more than $1,000, in the case of the annual return procedure, or $50,000, in the case of the quarterly return procedure, in distilled spirits taxes.
that(e) Semimonthly return period. Except in the case of a taxpayer
paragraphwho qualifies for, and chooses to use, annual or quarterly return periods as provided in
paragraphs (b) or (c) of this section, all other taxpayers must use semimonthly return periods for deferred payment of tax. The semimonthly return periods will run from the 1st day through the 15th day of each month, and from the 16th day through the last day of each month, except as otherwise provided in § 19.237.
d(
f) Definitions. For purposes of this section, the following terms have the meanings indicated:
Reasonably expects. When used with reference to a taxpayer, reasonably expects means that there is no existing or anticipated circumstances known to the taxpayer (such as an increase in production capacity) that would cause the taxpayer's tax liability to exceed the prescribed limit.
Taxpayer. A taxpayer is an individual, corporation, partnership, or other entity that is assigned a single Employer Identification Number (EIN) as defined in 26 CFR 301.7702.12.
[T.D. TTB–146, 82 FR 1122, Jan. 4, 2017]