27 C.F.R. Subpart C—Special Tax
Title 27 - Alcohol, Tobacco Products and Firearms
(a) General. Except as otherwise provided in paragraph (b) of this section, each person who uses taxpaid distilled spirits in the manufacture or production of nonbeverage products shall pay special tax as specified in §17.22 in order to be eligible to receive drawback on the spirits so used. Special tax shall be paid for each tax year during which spirits were used in the manufacture of a product covered by a drawback claim. If a claim is filed covering taxpaid distilled spirits used during the preceding tax year, and special tax has not been paid for the preceding tax year, then special tax for the preceding tax year shall be paid. Regardless of the portion of a tax year covered by a claim, the full annual special tax shall be paid. The manufacturer is not required to pay the special tax if drawback is not claimed. (b) Suspension of tax. During the period from July 1, 2005, through June 30, 2008, the rate of the tax described in paragraph (a) of this section is zero. Accordingly, payment of the tax is not a prerequisite for claiming drawback on spirits used during that period. However, the drawback claimant still must register by filing the special tax return on Form 5630.5 during the suspension period even though the amount of tax due is zero. [T.D. ATF–379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB–36, 70 FR 62241, Oct. 31, 2005] Effective January 1, 1988, the rate of special tax is $500 per tax year for all persons claiming drawback on distilled spirits used in the manufacture or production of nonbeverage products, except that the tax rate is zero during the suspension period described in §17.21(b). [T.D. ATF–379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB–36, 70 FR 62241, Oct. 31, 2005] Subject to §17.21(b), a separate special tax shall be paid for each place where distilled spirits are used in the manufacture or production of nonbeverage products, except for any such place in a tax year for which no claim is filed, or no drawback is paid, on spirits used at that place. [T.D. ATF–379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB–36, 70 FR 62241, Oct. 31, 2005] (a) General. Special tax may be paid in advance of actual use of distilled spirits. Special tax shall be paid before a claimant may receive drawback. Special tax may be paid without penalty under 26 U.S.C. 5134(c) at any time prior to completion of final action on the claim. (b) Suspension of tax. The rate of special tax is zero during the period from July 1, 2005, through June 30, 2008 (see §17.21(b)). During this period, the registration requirement continues. The drawback claimant must register by filing a special tax return, Form 5630.5. The claimant may register without penalty under 26 U.S.C. 5134(c) at any time prior to completion of final action on the first claim submitted for each tax year. [T.D. ATF–379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB–36, 70 FR 62241, Oct. 31, 2005] Special tax shall be paid by return. The prescribed return is TTB Form 5630.5, Special Tax Registration and Return. Special tax returns, with payment of tax, shall be filed with TTB in accordance with instructions on the form, and the filing of a return is required for registration purposes even though no tax is due during the suspension period described in §17.21(b). (26 U.S.C. 609l, 6151) [T.D. ATF–379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB–36, 70 FR 62241, Oct. 31, 2005] (a) General. All of the information called for on Form 5630.5 shall be provided, including: (1) The true name of the taxpayer. (2) The trade name(s) (if any) of the business(es) subject to special tax. (3) The employer identification number (see §§17.41–43). (4) The exact location of the place of business, by name and number of building or street, or if these do not exist, by some description in addition to the post office address. In the case of one return for two or more locations, the address to be shown shall be the taxpayer's principal place of business (or principal office, in the case of a corporate taxpayer). (5) The class of special tax to which the taxpayer is subject or to which the return relates during the suspension period described in §17.21(b). (6) Ownership and control information: The name, position, and residence address of every owner of the business and of every person having power to control its management and policies with respect to the activity subject to special tax. “Owner of the business” shall include every partner if the taxpayer is a partnership, and every person owning 10% or more of its stock if the taxpayer is a corporation. However, the ownership and control information required by this paragraph need not be stated if the same information has been previously provided to TTB, and if the information previously provided is still current. (b) Multiple locations. A taxpayer subject to special tax, or required to register during the suspension period described in §17.21(b), for the same period at more than one location or for more than one class of tax shall— (1) File one special tax return, Form 5630.5, with payment of applicable tax, to cover all such locations and classes of tax; and (2) Prepare, in duplicate, a list identified with the taxpayer's name, address (as shown on the Form 5630.5), employer identification number, and period covered by the return. The list shall show, by States, the name, address, and tax class of each location for which special tax is being paid, or for which registration is being made during the suspension period described in §17.21(b). The original of the list shall be filed in accordance with instructions on the return, and the copy shall be retained at the taxpayer's principal place of business (or principal office, in the case of a corporate taxpayer) for the period specified in §17.170. (26 U.S.C. 6011, 7011) [T.D. ATF–379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB–36, 70 FR 62241, Oct. 31, 2005] The return of an individual proprietor shall be signed by the proprietor; the return of a partnership shall be signed by a general partner; and the return of a corporation shall be signed by a corporate officer. All signatures must be original; photocopies are not acceptable. In each case, the person signing the return shall designate his or her capacity, as “individual owner,” “member of partnership,” or, in the case of a corporation, the title of the officer. Receivers, trustees, assignees, executors, administrators, and other legal representatives who continue the business of a bankrupt, insolvent, deceased person, etc., shall indicate the fiduciary capacity in which they act. TTB Forms 5630.5 shall contain or be verified by a written declaration that the return is made under the penalties of perjury. (68A Stat. 749 (26 U.S.C. 6065))
Title 27: Alcohol, Tobacco and Firearms
PART 17—DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN MANUFACTURING NONBEVERAGE PRODUCTS
Subpart C—Special Tax
§ 17.21 Payment of special tax.
§ 17.22 Rate of special tax.
§ 17.23 Special tax for each place of business.
§ 17.24 Time for payment of special tax.
Special Tax Returns
§ 17.31 Filing of return and payment of special tax.
§ 17.32 Completion of TTB Form 5630.5.
§ 17.33 Signature on returns, TTB Form 5630.5.
§ 17.34 Verification of returns.
Employer Identification Number
§ 17.41 Requirement for employer identification number.
The employer identification number (defined in 26 CFR 301.7701–12) of the taxpayer who has been assigned such a number shall be shown on each special tax return (TTB Form 5630.5), including amended returns filed under this subpart. Failure of the taxpayer to include the employer identification number on Form 5630.5 may result in assertion and collection of the penalty specified in §70.113 of this chapter.
(Secs. 1(a), (b), Pub. L. 87–397, 75 Stat. 828 (26 U.S.C. 6109, 6723))
§ 17.42 Application for employer identification number.
(a) An employer identification number is assigned pursuant to application on IRS Form SS–4, Application for Employer Identification Number, filed by the taxpayer. Form SS–4 may be obtained from any office of the Internal Revenue Service.
(b) Each taxpayer who files a return on TTB Form 5630.5 shall make application on IRS Form SS–4 for an employer identification number, unless he or she has already been assigned such a number or made application for one. The application on Form SS–4 shall be filed on or before the seventh day after the date on which the first return on Form 5630.5 is filed.
(c) Each taxpayer shall make application for and shall be assigned only one employer identification number, regardless of the number of places of business for which the taxpayer is required to file Form 5630.5.
(Sec. 1(a), Pub. L. 87–397, 75 Stat. 828 (26 U.S.C. 6109))
§ 17.43 Preparation and filing of Form SS–4.
The taxpayer shall prepare and file the application on IRS Form SS–4, together with any supplementary statement, in accordance with instructions on the form or issued in respect to it.
(Sec. 1(a), Pub. L. 87–397, 75 Stat. 828 (26 U.S.C. 6109))
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