[Federal Register: November 21, 2007 (Volume 72, Number 224)]
[Rules and Regulations]
[Page 65452-65456]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21no07-7]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 24
[T.D. TTB-64; Re: T.D. ATF-390 and ATF Notice No. 852]
RIN 1513-AA05
Small Domestic Producer Wine Tax Credit--Implementation of Public
Law 104-188, Section 1702, Amendments Related to the Revenue
Reconciliation Act of 1990 (96R-028T)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule (Treasury decision).
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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau is adopting as a
final rule, with some clarifying or editorial changes, the temporary
regulations concerning transfer of the small domestic producer wine tax
credit and computation of the wine bond that were adopted in response
to the Small Business Job Protection Act of 1996.
EFFECTIVE DATE: November 21, 2007.
FOR FURTHER INFORMATION CONTACT: Marjorie D. Ruhf, Regulations and
Rulings Division, 1310 G Street, NW., Washington, DC 20220; (202) 927-
8202; or Marjorie.Ruhf@ttb.gov.
SUPPLEMENTARY INFORMATION:
Background
The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible
for administering the provisions of Chapter 51 of the Internal Revenue
Code of 1986 (IRC), including promulgating regulations pursuant to
Chapter 51 pertaining to Federal excise taxes on alcohol beverage
products. Section 5041 of the IRC (26 U.S.C. 5041) imposes a tax on
wines in bond in, produced in, or imported into, the United States.
Section 5041(c) allows a credit against the tax for small domestic wine
producers. The regulations implementing this credit were promulgated in
part 24 of the TTB regulations (27 CFR part 24). Prior to January 24,
2003, our predecessor Agency, the Bureau of Alcohol, Tobacco and
Firearms (ATF), administered the regulations in part 24.
History of the Small Domestic Producer Wine Tax Credit
The Revenue Reconciliation Act of 1990
The Revenue Reconciliation Act of 1990 (the RRA), Title XI of
Public Law 101-508, 104 Stat. 1388-400, was enacted on November 5,
1990. Section 11201 of the RRA increased by 90 cents per wine gallon
the rate of tax on still wines and artificially carbonated wines
removed from bonded premises or Customs custody on or after January 1,
1991. The law did not increase the tax rate on champagne and other
sparkling wine.
Section 11201 also provided a credit of up to 90 cents per wine
gallon for small domestic wine producers on the first 100,000 gallons
of wine (other than champagne and other sparkling wine) removed for
consumption or sale during a calendar year. This credit could be taken
by a bonded wine premises proprietor who produced not more than 250,000
gallons of wine in a given calendar year. The provisions of section
11201 separated the activities of production and removal in such a way
that eligibility for the credit was based on removal of wine by an
eligible small producer and was not conditioned on the producer
actually producing the wine removed. Thus, a proprietor who produced
less than 250,000 gallons of wine a year could take the small domestic
producer wine tax credit on wine purchased and received in bond as long
as the wine was within the first 100,000 gallons of wine removed from
the small producer's bonded premises during the calendar year.
Under the RRA, small wine producers were eligible to take the small
producer wine tax credit only on wine removed for consumption or sale
by that producer. If the producer transferred wine in bond to another
bonded wine premises (for example, a bonded wine cellar used as a
warehouse) for storage pending subsequent removal by the warehouse,
then the producer could not claim a credit on that wine, since the
producer had not removed the wine for consumption or sale. If the
warehouse did not produce wine at all, or produced more than 250,000
gallons of wine, then the warehouse was not eligible for the small
producer wine tax credit. Even if the warehouse produced wine and was
eligible for credit in its own right, its eligibility was limited to
the first 100,000 gallons removed during the year. In order to receive
the credit, some small wineries began to taxpay their wines at the time
of removal and store the wines in a taxpaid status rather than transfer
them in bond.
The Small Business Job Protection Act of 1996
Section 1702 of the Small Business Job Protection Act of 1996 (the
SBJPA), Public Law 104-188, 110 Stat. 1755, enacted on August 20, 1996,
included an amendment to the small domestic wine producer tax credit
provision in section 5041(c). The SBJPA amendment allowed the tax
credit authorized under section 5041(c) to be taken by ``transferees in
bond'' such as bonded wine cellars used as warehouses on behalf of
their small producer customers. As a result of this amendment, section
5041(c) now provides that if wine produced by any person would be
eligible for the small producer credit if removed by the producer, and
if wine produced by that person is transferred in bond to another
person (the transferee) who removes the wine during the calendar year
and is liable for the tax on the wine, then the transferee (and not the
producer) will be allowed to take the small producer credit under
certain circumstances. The producer of the wine must hold title to the
wine at the time of its removal and must provide to the transferee such
information as is necessary to properly determine the transferee's
credit under section 5041(c)(6). The statutory language thus limits the
application of
[[Page 65453]]
the credit to transferees in bond receiving wine from the actual
producer of the wine in question and not from a subsequent owner who
may also be a small producer.
In addition to the transfer of credit provisions, the SBJPA
included an amendment to the bond computation rules in 26 U.S.C. 5354,
which allowed the small domestic producer wine tax credit to be taken
into account when calculating the penal sum of the bond.
The SBJPA provided that the amendments made by section 1702 took
effect as if they had been included in the provisions of the RRA to
which the amendment related. Accordingly, the amendments made to the
small domestic producer wine tax credit provisions under the SBJPA were
retroactive to January 1, 1991.
The Taxpayer Relief Act of 1997
The Taxpayer Relief Act of 1997 (the TRA), Public Law 105-34, 111
Stat. 788, was enacted on August 5, 1997. Section 908 of the TRA added
to section 5041 a new wine tax class, ``hard cider,'' imposed a $0.226
rate of tax on hard cider, and provided for a reduced amount of the
small domestic producer wine tax credit ($0.056) applicable to the hard
cider tax rate. These provisions applied to hard cider removed from
bond on or after October 1, 1997.
Rulemaking Actions
In response to these three statutory changes, ATF took the
following regulatory actions.
On December 11, 1990, ATF published T.D. ATF-307 (55 FR 52732), a
final rule effective January 1, 1991, to implement a number of changes
related to the RRA. Among other changes, T.D. ATF-307 added two new
sections to 27 CFR part 24. New Sec. 24.278 implemented the wine tax
credit for small domestic producers. New Sec. 24.279 set forth the
procedure for making adjustments to tax returns as a result of improper
application of the tax credit. ATF did not request comments prior to
issuing this final rule.
On June 2, 1997, ATF published at 62 FR 29663 a temporary rule,
T.D. ATF-390, to amend Sec. Sec. 24.148, 24.278, and 24.279 (27 CFR
24.148, 24.278, and 24.279) to implement the SBJPA statutory changes.
In the temporary rule, ATF also incorporated in Sec. 24.278(a) the
provisions of ATF Ruling 92-1 (A.T.F. Q.B. 1992-3, 55), which held that
the small producer wine tax credit is available only to eligible
proprietors engaged in the business of producing wine. On the same day,
ATF published a Notice of Proposed Rulemaking, Notice No. 852 (62 FR
29681), inviting comments on this temporary rule. The one comment that
ATF received on this temporary rule is discussed below.
On August 21, 1998, ATF published at 63 FR 44779 another temporary
rule, T.D. ATF-398, to implement the hard cider tax rate and several
other provisions of the TRA. This temporary rule amended Sec. 24.278
to reflect a new rate for the small domestic producer wine tax credit
on hard cider. On the same day, ATF published a Notice of Proposed
Rulemaking, Notice No. 859 (63 FR 44819), inviting comments on that
temporary rule. For various reasons unrelated to the amendment of the
credit provision in Sec. 24.278, ATF extended the comment period,
postponed the labeling compliance date, and solicited comments on
alternative labeling rules. The T.D. ATF-398 amendment to Sec. 24.278
was adopted as a final rule without any change by T.D. ATF-470 (66 FR
68938) on November 26, 2001.
Discussion of Comment Received in Response to T.D. ATF-390
As previously stated, ATF received only one comment in response to
the temporary rule implementing the SBJPA statutory changes. Kenwood
Vineyards commented that the provisions of the temporary rule placed
the burden of ``recordkeeping, reporting, compliance and cash flow'' on
the transferee in bond and suggested that the small producer should pay
the tax, subject to any appropriate credit, on its own return when the
transferee removes the wine. TTB cannot adopt this suggestion because
under 26 U.S.C. 5043, when wine is transferred in bond as authorized by
26 U.S.C. 5362(b), the liability for payment of the tax becomes the
liability of the transferee at the time of removal of the wine from the
transferor's premises. The law provides that liability for paying the
tax transfers to the transferee when the wine is transferred in bond
and that the transferor is relieved of liability. TTB cannot by
regulation alter who is liable to pay the tax.
Adoption of Final Rule
Based on the legislative and rulemaking history outlined above, TTB
has determined that the temporary regulations published in T.D. ATF-390
should be adopted as a final rule with minor corrections and
clarifications as discussed below.
In Sec. 24.148, we are making two corrections in the table:
1. In the first column (Bond), we are updating the form number of
the Wine Bond to read TTB F 5120.36.
2. In the second column (Basis), we are revising paragraph (1).
Prior to the amendment by T.D. ATF-390, the first sentence of paragraph
(1), which sets out the basis for calculating the bond coverage, read,
in pertinent part, ``tax on all wine or spirits possessed, in transit
or unaccounted for at any one time * * *.'' This wording was based on
that of the underlying statute, 26 U.S.C. 5354, which reads, in
pertinent part, ``tax on any wine or distilled spirits possessed or in
transit at any one time * * *.'' In T.D. ATF-390, we inadvertently
omitted the word ``possessed.'' We are correcting that omission by
restoring the word ``possessed'' to mirror the statute. We are also
subdividing paragraph (1) to separate the two maximum penal sum
amounts.
In Sec. 24.278, we are making the following changes and
corrections:
1. In paragraph (b)(2)(ii), we are substituting the phrase ``tax
imposed by 26 U.S.C. 5041'' for the words ``tax imposed by this
section.'' The latter wording reflects the precise statutory language,
which is inapposite in the context of the regulatory text.
2. We are retaining, in paragraphs (d)(1) and (d)(2), the
references to hard cider adopted in T.D. ATF-470, as previously
discussed.
3. At the end of paragraph (e)(2), we are adding a sentence to
clarify that sparkling wine, which is not eligible for credit, does not
count as a removal against the 100,000 gallon limitation. This reflects
the longstanding position of TTB and ATF.
4. In Sec. 24.278(g), we are adding a reference to section
5041(c)(5) of the IRC to clarify the statutory basis for the language
setting forth the requirements with regard to deductions under Subtitle
A of the IRC.
In Sec. 24.279(a), we are adding a reference to the statutory
conditions for imposition of penalties under section 6662 of the IRC.
The added language clarifies circumstances in which TTB would require
the inclusion of these penalties as part of the adjustment for excess
credit taken during a calendar year.
Finally, we are making some plain language and other editorial
changes to Sec. Sec. 24.148, 24.278, and 24.279 to enhance their
clarity and readability without substantively affecting the texts, and
we have added the Office of Management and Budget (OMB) control number
to Sec. 24.148 and updated the OMB control numbers for Sec. Sec.
24.278 and 24.279 as noted in the Paperwork Reduction Act discussion in
this preamble.
[[Page 65454]]
Inapplicability of Delayed Effective Date Requirement
Pursuant to the provisions of 5 U.S.C. 553(d)(1) and (d)(3), we are
issuing these regulations without a delayed effective date. These final
regulations recognize an exemption within the meaning of section
553(d)(1) because they implement a 1996 statutory amendment expanding
the scope of the small domestic producer wine tax credit in order to
cover removals by transferees in bond under specified circumstances.
Furthermore, TTB has determined that good cause exists to provide
wineries with immediate guidance on their utilization of this credit in
accordance with section 553(d)(3).
Regulatory Flexibility Act
Pursuant to the requirements of the Regulatory Flexibility Act (5
U.S.C. chapter 6), we certify that these regulations will not have a
significant economic impact on a substantial number of small entities.
Any revenue effects of this rulemaking on small businesses flow
directly from the underlying statute. Likewise, any secondary or
incidental effects, and any reporting, recordkeeping, or other
compliance burdens flow directly from the statute. Accordingly, a
regulatory flexibility analysis is not required. Pursuant to 26 U.S.C.
7805(f), the temporary regulation was submitted to the Chief Counsel
for Advocacy of the Small Business Administration for comment on its
impact on small business, and we received no comments.
Executive Order 12866
It has been determined that this rule is not a significant
regulatory action as defined by Executive Order 12866. Therefore, a
regulatory assessment is not required.
Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995, no persons are required
to respond to a collection of information unless it displays a valid
Office of Management and Budget (OMB) control number. The collections
of information in the regulations contained in this final rule have
been previously reviewed and approved by OMB in accordance with the
Paperwork Reduction Act of 1995 (44 U.S.C. 3504(h)) under control
numbers 1512-0058, 1512-0540, and 1512-0492, originally issued to ATF.
When TTB took over the administration of the wine tax, these control
numbers were changed by OMB to 1513-0009, 1513-0104, and 1513-0088,
respectively. Although sections of the regulations covered by these
approvals are amended for clarity, this final rule imposes no new or
revised collection of information, and does not change the reporting or
recordkeeping burden.
Drafting Information
Marjorie Ruhf of the Regulations and Rulings Division, Alcohol and
Tobacco Tax and Trade Bureau, drafted this document.
List of Subjects in 27 CFR Part 24
Administrative practice and procedure, Authority delegations,
Claims, Electronic fund transfers, Excise taxes, Exports, Food
additives, Fruit juices, Labeling, Liquors, Packaging and containers,
Reporting and recordkeeping requirements, Research, Scientific
equipment, Spices and flavoring, Surety bonds, Taxpaid wine bottling
house, Transportation, Vinegar, Warehouses, Wine.
Amendments to the Regulations
0
Accordingly, for the reasons set forth in the preamble, the temporary
rule amending 27 CFR part 24, which was published on June 2, 1997, at
62 FR 29663, is adopted as a final rule with the changes as discussed
above and set forth below.
PART 24--WINE
0
1. The authority citation for part 24 continues to read as follows:
Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042,
5044, 5061, 5062, 5081, 5111-5113, 5121, 5122, 5142, 5143, 5148,
5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362,
5364-5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662,
5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7011, 7302,
7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304,
9306.
0
2. Section 24.148 is revised to read as follows:
Sec. 24.148 Penal sums of bonds.
The penal sums of bonds prescribed in this part are as follows:
----------------------------------------------------------------------------------------------------------------
Penal sum
Bond Basis -------------------------------
Minimum Maximum
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(a) Wine Bond, TTB F 5120.36............... (1) Wine operations coverage. (i) $1,000 $50,000
Not less than the tax on all wine
or spirits possessed, in transit,
or unaccounted for at any one
time, taking into account the
appropriate small producer wine
tax credit.
(ii) Where the liability exceeds .............. 100,000
$250,000.
(2) Tax deferral coverage. Where 500 250,000
the unpaid tax amounts to more
than $500, not less than the
amount of tax which, at any one
time, has been determined but not
paid. Exception: $1,000 of the
wine operations coverage may be
allocated to cover the amount of
tax which, at any one time, has
been determined but not paid, if
the total operations coverage is
$2,000 or more.
(b) Wine Vinegar Plant Bond, TTB F 5510.2.. Not less than the tax on all wine 1,000 100,000
on hand, in transit, or
unaccounted for at any one time.
----------------------------------------------------------------------------------------------------------------
\*\ The proprietor of bonded wine premises who operates an adjacent or contiguous wine vinegar plant with a wine
bond that does not cover the operation may file a consent of surety to extend the terms of the wine bond in
lieu of filing a wine vinegar plant bond.
(26 U.S.C. 5354, 5362)
(Approved by the Office of Management and Budget under control number
1513-0009)
0
3. Section 24.278 is revised to read as follows:
Sec. 24.278 Tax credit for certain small domestic producers.
(a) General. A person who produces not more than 250,000 gallons of
wine during the calendar year may take a credit against any tax imposed
by Title 26 of the United States Code (other than Chapters 2, 21, and
22), in an amount computed in accordance with paragraph (d) of this
section, on the first 100,000 gallons of wine (other than champagne and
other sparkling wine) removed during that year for consumption or sale.
This credit applies only to wine that has been produced at a qualified
bonded wine premises in the United
[[Page 65455]]
States. The small domestic wine producer tax credit is available only
to eligible proprietors engaged in the business of producing wine. A
proprietor who has a basic permit to produce wine but does not produce
wine during a calendar year may not take the small producer wine tax
credit on wine removed during that calendar year. A proprietor who has
obtained a new wine producer basic permit may not take the small
producer wine tax credit on wine removed until the proprietor has
produced wine. ``Production'' of wine includes those activities
described in paragraph (e)(1) of this section.
(b) Special rules relating to eligibility for wine credit--(1)
Controlled groups. For purposes of this section and Sec. 24.279, the
term ``person'' includes a controlled group of corporations, as defined
in 26 U.S.C. 1563(a), except that the phrase ``more than 50 percent''
must be substituted for the phrase ``at least 80 percent'' wherever it
appears. Also, the rules for a ``controlled group of corporations''
apply in a similar fashion to groups that include partnerships and/or
sole proprietorships. Production and removals of all members of a
controlled group are treated as if they were the production and
removals of a single taxpayer for the purpose of determining what
credit a person may use.
(2) Credit for transferees in bond. A person other than the
eligible small producer (hereafter in this paragraph referred to as the
``transferee'') may take the credit under paragraph (a) of this section
that would be allowed to that producer if the wine removed by the
transferee had been removed by the producer on that date, under the
following conditions:
(i) Wine produced by any person would be eligible for any credit
under this section if removed by that person during the calendar year;
(ii) Wine produced by that person is removed during that calendar
year by the transferee to whom that wine was transferred in bond and
who is liable for the tax imposed by 26 U.S.C. 5041 with respect to
that wine;
(iii) That producer holds title to that wine at the time of its
removal and provides to the transferee such information as is necessary
to properly determine the transferee's credit under this paragraph; and
(iv) At the time of taxable removal, the producer provides to the
transferee, in writing (each retaining a copy with the record of
taxpaid removal from bond pursuant to Sec. 24.310), the following
information:
(A) The names of the producer and transferee;
(B) The quantity and tax class of the wines to be shipped;
(C) The date of removal from bond for consumption or sale;
(D) A confirmation that the producer is eligible for credit, with
the credit rate to which the wines are entitled; and
(E) A confirmation that the subject shipment is within the first
100,000 gallons of eligible wine removed by (or on behalf of) the
producer for the calendar year.
(c) Time for determining and allowing credit. The credit referred
to in paragraph (a) of this section will be determined at the same time
as the tax is determined under 26 U.S.C. 5041(a), and will be allowable
at the time any tax described in paragraph (a) of this section is
payable. The credit allowable by this section is treated as if it
constitutes a reduction in the rate of the tax.
(d) Computation of credit. The credit which may be taken on the
first 100,000 gallons of wine (other than champagne and other sparkling
wine) removed for consumption or sale by an eligible person during a
calendar year is computed as follows:
(1) For persons who produce 150,000 gallons or less of wine during
the calendar year, the credit is $0.90 per gallon for wine ($0.056 for
hard cider);
(2) For persons who produce more than 150,000 gallons but not more
than 250,000 gallons during the calendar year, the credit is reduced by
1 percent for every 1,000 gallons produced in excess of 150,000
gallons. For example, the credit that would be taken by a person who
produced 160,500 gallons of wine and hard cider during a calendar year
would be reduced by 10 percent, for a net credit against the tax of
$0.81 per gallon for wine or $0.0504 for hard cider, as long as the
wine or hard cider was among the first 100,000 gallons removed for
consumption or sale during the calendar year.
(e) Definitions--(1) Production. For purposes of determining if a
person's production of wine is within the 250,000 gallon limit,
production includes, in addition to wine produced by fermentation, any
increase in the volume of wine due to the winery operations of
amelioration, wine spirits addition, sweetening, or production of
formula wine. Production of champagne and other sparkling wines is
included for purposes of determining whether total production of a
winery exceeds 250,000 gallons. Production includes all wine produced
at qualified bonded wine premises within the United States and wine
produced outside the United States by the same person.
(2) Removals. For purposes of determining if a person's removals
are within the 100,000 gallon limit, removals include wine that the
person removed from all qualified bonded wine premises within the
United States. Wine removed by a transferee in bond under paragraph
(b)(2) of this section must be counted against the 100,000 gallon limit
of the small producer who owns that wine, and not against the limit of
the transferee in bond if the transferee is also a small producer.
Champagne and other sparkling wines, which are not eligible for credit,
do not count as removals against the 100,000 gallon limit.
(f) Preparation of tax return. A person who is eligible for the
credit must show the amount of wine tax before credit on the Excise Tax
Return, TTB F 5000.24, and must enter the quantity of wine subject to
the credit and the applicable credit rate as the explanation for an
adjusting entry in Schedule B of the return for each tax period. Where
a person does not use the credit authorized by this section to directly
reduce the rate of Federal excise tax on wine, that person must report
on TTB F 5000.24 where the credit will be, or has been, applied. Where
a transferee in bond takes credit on behalf of one or more small
producers, the transferee must show in Schedule B of the return the
name of each producer, each producer's credit rate, and the total
credit taken on behalf of each producer during the tax return period.
(g) Denial of deduction. Pursuant to 26 U.S.C. 5041(c)(5), any
deduction under 26 U.S.C. subtitle A with respect to any tax against
which the credit is allowed under paragraph (a) of this section must
only be for the amount of the tax as reduced by the credit.
(h) Exception to credit. The appropriate TTB officer will deny any
tax credit taken under paragraph (a) of this section where it is
determined that the allowance of the credit would benefit a person who
would otherwise fail to qualify for the use of the credit. (26 U.S.C.
5041(c).)
(Approved by the Office of Management and Budget under control
number 1513-0104)
0
4. Section 24.279 is revised to read as follows:
Sec. 24.279 Tax adjustments related to wine credit.
(a) Increasing adjustments. Persons who produce more wine than the
amount used in computation of the credit, or who lose eligibility by
not producing during a calendar year, must make increasing tax
adjustments. Where an increasing adjustment to a person's
[[Page 65456]]
tax return is necessary as a result of an incorrect credit rate claimed
pursuant to Sec. 24.278, that person must make the adjustment on the
Excise Tax Return, TTB F 5000.24, no later than the return period in
which production (or the production of the controlled group of which
the person is a member) exceeds the amount used in computation of the
credit. If the adjustment is due to failure to produce, the person must
make the adjustment no later than the last return period of the
calendar year. The adjustment is the difference between the credit
taken for prior return periods in that year and the appropriate credit
for those return periods. The person must make tax adjustments for all
bonded wine premises where excess credits were taken against tax that
year, and must include interest payable. In the case of a person who
continued to deduct credit after reaching the 100,000 gallon maximum
during the calendar year, that person must make an adjustment in the
full amount of excess credit taken and must include interest payable
under 26 U.S.C. 6601 from the date on which the excess credit was
taken. In addition, the person must include the penalty payable under
26 U.S.C. 6662 if the appropriate TTB officer determines that the
underpayment was due to negligence or disregard of rules or regulations
and advises the person to include the penalty as part of the
adjustment. The appropriate TTB officer will provide information, when
requested, regarding interest rates applicable to specific time periods
and regarding any applicable penalties. In the case of a controlled
group of bonded wine premises that took excess credits, all member
proprietors who took incorrect credits must make tax adjustments as
determined in this section. In the case of a small producer who
instructed a transferee in bond to take credit as authorized by Sec.
24.278(b)(2), and subsequently determines that the credit was less or
not applicable, that producer must immediately inform the transferee in
bond, in writing, of the correct credit information. The transferee
must make any increasing adjustment on its next tax return based on
revised credit information given by the producer or a TTB officer.
(b) Decreasing adjustments. Where a person fails to deduct the
credit or deducts less than the appropriate credit provided for by
Sec. 24.278 during the calendar year, the person may file a claim for
refund of excess tax paid. The claim must be filed in accordance with
Sec. 24.69. In the case of wine removed on behalf of a small producer
by a transferee in bond, if the transferee in bond was instructed to
deduct credit and failed to deduct credit or deducted less than the
appropriate credit and was later reimbursed for the tax by that
producer, the transferee may file the claim. The provisions of 26
U.S.C. 6423 and 27 CFR part 70, subpart F, will apply, and the producer
and transferee in bond must show that the conditions of Sec.
24.278(b)(2) were met. (26 U.S.C. 5041(c))
(Approved by the Office of Management and Budget under control
number 1513-0088)
Signed: August 24, 2007.
John J. Manfreda,
Administrator.
Approved: November 5, 2007.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. E7-22698 Filed 11-20-07; 8:45 am]
BILLING CODE 4810-31-P