Tax Class Statement Required on Hard Cider Labels

ICR 201704-1513-001

OMB: 1513-0138

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2016-12-07
IC Document Collections
IC ID
Document
Title
Status
224686
New
ICR Details
1513-0138 201704-1513-001
Historical Active 201612-1513-010
TREAS/TTB PATH (Cider) 1/3
Tax Class Statement Required on Hard Cider Labels
New collection (Request for a new OMB Control Number)   No
Regular
Approved without change 04/13/2017
Retrieve Notice of Action (NOA) 04/13/2017
  Inventory as of this Action Requested Previously Approved
04/30/2020 36 Months From Approved
777 0 0
777 0 0
0 0 0

In response to Section 335, of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act; Division Q of Pub. Law 114–113), which, effective January 1, 2017, amends the Internal Revenue Code to modify the definition of wines eligible for the hard cider tax rate of $0.226 per wine gallon, TTB is issuing a temporary rule (and a concurrent notice of proposed rulemaking) titled “Implementation of Statutory Amendments Requiring the Modification of the Definition of Hard Cider.” The temporary rule will amend § 24.257 by requiring a tax class statement on labels of wine claiming the hard cider tax rate provided for in 26 U.S.C. 5041(b)(6). Specifically, the new information collection in new section § 24.257(a)(4)(v) will require that industry members who remove wine on which the hard cider tax rate applies place a specific statement, “Tax class 5041(b)(6),” on containers of such wine, in order to adequately identify the applicable tax rate. For imported wines claiming the hard cider tax rate, a new § 27.59(b) will cross-reference the tax class statement labeling requirement contained in amended § 24.257. TTB has determined that this new information collection regarding the tax class statement is necessary to protect the revenue and demonstrate compliance with the statutory requirements regarding products eligible for the hard cider tax rate. The tax class statement ensures the proper identification of the content of the wine container, protects the Federal government’s revenue interest prior to removal of the wine from bonded premises, and identifies the wine at the time of its removal from bond coverage in order to ensure that the correct Federal excise tax will be collected. TTB believes that this label statement is the simplest and clearest way to identify such products in order to avoid confusion with other, higher-rate tax classes of wine. This regulatory amendment does not require any other changes to label statements that industry members use or may wish to use to identify their products.

US Code: 26 USC 5041 Name of Law: Internal Revenue Code
   US Code: 26 USC 5386(b) Name of Law: Internal Revenue Code
  
PL: Pub.L. 114 - 113 335 (Div. Q) Name of Law: PATH Act

1513-AC30 Final or interim final rulemaking 82 FR 7653 01/23/2017

No

1
IC Title Form No. Form Name
Tax Class Statement Required on Hard Cider Labels

  Total Approved Previously Approved Change Due to New Statute Change Due to Agency Discretion Change Due to Adjustment in Estimate Change Due to Potential Violation of the PRA
Annual Number of Responses 777 0 777 0 0 0
Annual Time Burden (Hours) 777 0 777 0 0 0
Annual Cost Burden (Dollars) 0 0 0 0 0 0
No
No
TTB is revising 27 CFR 24.257(a)(4), by requiring the placement of the tax class statement “Tax class 5041(b)(6)” on containers of wine that are eligible for the hard cider tax rate. This requirement will be cross-reference for imported products in new 27 CFR 27.59(b). In addition, TTB believes that there would be a one-time burden of one hour for wines that are eligible for the hard cider tax rate to come into compliance with this information collection, but that the continued compliance burden will be negligible. (This is a new collection; therefore, there are no adjustments.)

$0
No
No
No
No
No
Uncollected
Kara Fontaine 202 453-2103 kara.fontaine@ttb.gov

  No

On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
 
 
 
 
 
 
 
    (i) Why the information is being collected;
    (ii) Use of information;
    (iii) Burden estimate;
    (iv) Nature of response (voluntary, required for a benefit, or mandatory);
    (v) Nature and extent of confidentiality; and
    (vi) Need to display currently valid OMB control number;
 
 
 
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
12/29/2016


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