Eligibility
Taxpayers who reasonably expect to be liable for not more than $50,000 (quarterly) or $1,000 (annually) in alcohol excise taxes for the calendar year.
Frequently Asked Questions
Who is eligible for the Quarterly or Annual Excise Tax Deferral?
Taxpayers who reasonably expect to be liable for not more than $50,000 (quarterly) or $1,000 (annually) in alcohol excise taxes for the calendar year.
How does the Quarterly or Annual Excise Tax Deferral work?
Allows smaller taxpayers to pay excise taxes quarterly (if liability is <$50k) or annually (if liability is <$1k) rather than semimonthly.
What law authorizes the Quarterly or Annual Excise Tax Deferral?
The Quarterly or Annual Excise Tax Deferral is authorized under IRC §5061(d)(4) of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §5061
Source: Internal Revenue Code, Title 26, United States Code
§ 5061. Method of collecting tax(a) Collection by returnThe taxes on distilled spirits, wines, and beer shall be collected on the basis of a return. The Secretary shall, by regulation, prescribe the period or event for which such return shall be filed, the time for filing such return, the information to be shown in such return, and the time for payment of such tax.
(b) ExceptionsNotwithstanding the provisions of subsection (a), any taxes imposed on, or amounts to be paid or collected in respect of, distilled spirits, wines, and beer under—(1) section 5001(a)(4), (5), or (6),
(2) section 5006(c) or (d),
(3) section 5041(f),
(4) section 5043(a)(3),
(5) section 5054(a)(3) or (4), or
(6) section 5505(a),
shall be immediately due and payable at the time provided by such provisions (or if no specific time for payment is provided, at the time the event referred to in such provision occurs). Such taxes and amounts shall be assessed and collected by the Secretary on the basis of the information available to him in the same manner as taxes payable by return but with respect to which no return has been filed.
(c) Import dutiesThe internal revenue taxes imposed by this part shall be in addition to any import duties unless such duties are specifically designated as being in lieu of internal revenue tax.
(d) Time for collecting tax on distilled spirits, wines, and beer(1) In generalExcept as otherwise provided in this subsection, in the case of distilled spirits, wines, and beer to which this part applies (other than subsection (b) of this section) which are withdrawn under bond for deferred payment of tax, the last day for payment of such tax shall be the 14th day after the last day of the semimonthly period during which the withdrawal occurs.
(2) Imported articlesIn the case of distilled spirits, wines, and beer which are imported into the United States (other than in bulk containers)—(A) In generalThe last day for payment of tax shall be the 14th day after the last day of the semimonthly period during which the article is entered into the customs territory of the United States.
(B) Special rule for entry for warehousingExcept as provided in subparagraph (D), in the case of an entry for warehousing, the last day for payment of tax shall not be later than the 14th day after the last day of the semimonthly period during which the article is removed from the 1st such warehouse.
(C) Foreign trade zonesExcept as provided in subparagraph (D) and in regulations prescribed by the Secretary, articles brought into a foreign trade zone shall, notwithstanding any other provision of law, be treated for purposes of this subsection as if such zone were a single customs warehouse.
(D) Exception for articles destined for exportSubparagraphs (B) and (C) shall not apply to any article which is shown to the satisfaction of the Secretary to be destined for export.
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