New Tax Filing Changes for Wineries Coming in 2017
As we reported on late last year, the Fiscal Year 2016 Omnibus Appropriations Bill several provisions that impacted the wine industry. One of the provisions will drastically change how many small wineries will file their federal excise tax.
Currently alcohol producers liable for not more than $50,000 per year in federal excise taxes to file and pay such taxes on a monthly basis. The new law allows for those wineries to now file and pay their taxes on a quarterly basis, rather than by month. Additionally, those producers liable for not more than $1,000 per year may pay taxes annually, rather than quarterly. The provision also exempts such producers from IRS bonding requirements.
What that means is that wineries that are liable for $50,000 or less in federal excise taxes will be exempt from the requirement to file a bond covering operations or withdrawals of wines for non-industrial use. This will be a saving of $1,000 per year for most American wineries. TTB is in the process of writing the new regulations for both of these tax provisions and they will be implemented on January 1, 2017.
WineAmerica worked to secure passage of the Omnibus Appropriations Bill which included this provision, as well as the increased funding for the label approval program at TTB. This is just one example of the work that WineAmerica does in Washington, DC that benefits the entire American wine industry.
Reach out to Michael Kaiser, Director of Public Affairs here at WineAmerica with any questions. email@example.com
WineAmerica is the national voice the American wine industry. Based in Washington, D.C., WineAmerica represents wineries in 43 states and leads a coalition of state and regional wine and grape associations. As an industry leader, WineAmerica encourages the dynamic growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy.