Offer in Compromise of Liability Incurred under the Federal Alcohol Administration Act

To regulate interstate and foreign commerce in alcohol beverages, the Federal Alcohol Administration Act (FAA Act; 27 U.S.C. 201 et seq.) requires certain industry members to obtain basic permits from the Secretary of the Treasury, and it prohibits unfair trade practices and deceptive advertising and labeling of alcohol beverages. Under the FAA Act at 27 U.S.C. 207, violations of the Act are subject to civil and criminal penalties, but the Secretary also is authorized to accept monetary compromise for such alleged violations. Under that authority, the TTB regulations allow a proponent or their agent to submit a monetary offer in compromise to resolve alleged FAA Act violations using form TTB F 5640.2. The form identifies the alleged violation(s) and violator(s), amount of the compromise offer, and the reason(s) why TTB should accept the offer. TTB uses the information to evaluate the adequacy of the compromise offer in relation to the alleged violation(s) of the FAA Act and to determine if it should accept the offer or pursue civil penalties or criminal prosecution against the alleged violator.

The latest form for Offer in Compromise of Liability Incurred under the Federal Alcohol Administration Act expires 2022-01-31 and can be found here.