bulk losses of spirits

[Guest mrwhisky]

Howdy all

I have a total loss of 160 proof gallons of gns. I cant find the regulation or form to file or if I need to. 80 of it was from a gaugeing of a tote of gns.

What todo next??

Me whisky

[FIVE x 5 Consulting]

Hi,

The appropriate path forward depends on the liquid account where the loss took place (production, storage or processing) as well as the particular circumstances of the loss.

Regulation is here: https://www.law.cornell.edu/cfr/text/27/19.462

You may need to report the loss to TTB and you may need to pay taxes on the loss.

You are looking at 160 * $2.70 = $432 in potential tax liability.  I usually advise my clients to weigh the time/hassle of trying to get that amount waived vs just paying it and moving on.  If financially feasible, I would probably advise reporting as a loss and paying the excise tax on it - out of an abundance of caution.

Grab a free 20-minute consultation if you'd like to discuss further.

Cheers!

[Ryan_W]

Google search TTB F56208. Should be a PDF form that comes up as the first link.

Fill this out as a remission of tax and mail it to the National Revenue Center.

You can file the claim under 27 CFR 19.263.

 

We had to do this after a storage loss from a damaged tank. They should mail it back to you in a couple weeks or so with their decision based on what caused the loss. 

Hope this helps.

Ryan