27 C.F.R. § 24.279 Tax adjustments related to wine credit.
Title 27 - Alcohol, Tobacco Products and Firearms
(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 tax return is necessary as a result of an incorrect credit rate claimed pursuant to §24.278, such adjustment shall be made on 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, it shall be made 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 such return periods. The person shall make tax adjustments for all bonded wine premises where excessive credits were taken against tax that year, and shall 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, the adjustment is the full amount of excess credit taken, and shall include interest payable under 26 U.S.C. 6601 from the date on which the excess credit was taken, and may include the penalty payable under 26 U.S.C. 6662, at the discretion of the appropriate TTB officer. The appropriate TTB officer will provide information, when requested, regarding interest rates applicable to specific time periods, and any applicable penalties. In the case of a controlled group of bonded wine premises who took excess credits, all member proprietors who took incorrect credits shall 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 §24.278(b)(2), and subsequently determines the credit was less or not applicable, such producer shall immediately inform the transferee in bond, in writing, of the correct credit information. The transferee shall make any increasing adjustment on its next tax return based on revised credit information given by the producer or by an TTB officer. (b) Decreasing adjustments. Where a person fails to deduct the credit, or deducts less than the appropriate credit provided for by §24.278, during the calendar year, a claim may be filed for refund of tax excessively paid. Such claims will be filed in accordance with §24.69 of this part. 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 such producer, such 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 the conditions of §24.278(b)(2) were met. (26 U.S.C. 5041(c).) [T.D. ATF–390, 62 FR 29667, June 2, 1997, as amended by T.D. ATF–409, 64 FR 13683, Mar. 22, 1999]
Title 27: Alcohol, Tobacco and Firearms
PART 24—WINE
Subpart N—Removal, Return and Receipt of Wine
Taxpaid Removals
§ 24.279 Tax adjustments related to wine credit.
