27 C.F.R. Subpart H—Payment of Special Tax
Title 27 - Alcohol, Tobacco Products and Firearms
(a) Previous rates. Prior to January 1, 1988, the special (occupational) taxes imposed on dealers in liquors and beer were as follows: (1) Annual (tax year) rates: (2) Monthly (calendar month) rates: (b) General—(1) Current rates. Effective January 1, 1988, special (occupational) taxes are imposed on dealers in liquors and beer at the following rates: (2) Rate during suspension period. During the suspension period described in §31.21(b), the special (occupational) tax rate for all dealers in liquor or beer is zero. (Sec. 201, Pub. L. 85–859, 72 Stat. 1340, 1343; sec. 1905, Pub. L. 94–455, 90 Stat. 1819 (26 U.S.C. 5111, 5121)) [T.D. ATF–271, 53 FR 17552, May 17, 1988; 54 FR 11866, Mar. 22, 1989. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62251, Oct. 31, 2005] Except during the suspension period described in §31.21(b), special taxes shall be paid on or before July 1 of each year, or before engaging in business. During the suspension period when no tax is due, dealers must register by filing the special tax return, Form 5630.5, before commencement of business and on or before July 1 of each year thereafter. (72 Stat. 1346; 26 U.S.C. 5142) [T.D. TTB–36, 70 FR 62251, Oct. 31, 2005] (a) General. In the case of a person engaged in a business subject to special tax during the month of July, the special tax liability shall be reckoned for the entire tax year beginning July 1 and ending June 30 following. Where business is commenced subsequent to July, the liability shall be reckoned proportionately from the first day of the month in which the liability to a special tax commenced to June 30 following. For example, a person commencing business in August is liable to special tax for 11 months, or eleven-twelfths of the annual tax. (b) Transition rule. A taxpayer who was engaged in a business on January 1, 1988, for which a special (occupational) tax was paid for a taxable period which began before January 1, 1988, and included that date, shall pay an increased special tax for the period January 1, 1988, through June 30, 1988. The increased tax shall not exceed one-half the excess (if any) of (1) the rate of special tax in effect on January 1, 1988, over (2) the rate of such tax in effect on December 31, 1987. The increased special tax shall be paid on or before April 1, 1988. (72 Stat. 1346; 26 U.S.C. 5142) [25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–48, 44 FR 55843, Sept. 28, 1979; T.D. ATF–271, 53 FR 17554, May 17, 1988. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005] Every person who intends to engage in a business subject to special tax under the provisions of this part shall, on or before the date such business is commenced, file a special tax return, Form 5630.5, with payment of applicable tax; and every taxpayer who continues into a new tax year a business subject to special tax under the provisions of this part shall file a Form 5630.5 with applicable tax on or before July 1 of the new tax year. A taxpayer subject to special tax (or required to register during the suspension period described in §31.21(b)) for the same period at two or more locations shall file one special tax return, Form 5630.5, prepared as provided in §31.106, with payment of applicable tax to cover all such locations. If the return and applicable tax are received in the mail and the U.S. postmark on the cover shows that it was deposited in the mail in the United States within the time prescribed for filing in an envelope or other appropriate wrapper which was properly addressed with postage prepaid, the return shall be considered as timely filed. If the postmark is not legible, the sender has the burden of proving the date when the postmark was made. When registered mail is used the date of registration shall be accepted as the postmark date. (68A Stat. 732 as amended, 749 as amended (26 U.S.C. 6011, 6071); sec. 201, Pub. L. 85–859, 72 Stat. 1346 as amended (26 U.S.C. 5142)) [T.D. ATF–70, 45 FR 33979, May 21, 1980, as amended by T.D. ATF–251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62251, Oct. 31, 2005] Form 5630.5 with remittance of applicable tax shall be filed with TTB in accordance with the instructions on the form. [T.D. ATF–251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62251, Oct. 31, 2005] Payment of special tax shall be made in cash, or by check or money order payable to Alcohol and Tobacco Tax and Trade Bureau. If a check or money order so tendered is not honored when presented for payment, the person who tendered such check or money order shall remain liable for the payment of the special tax, and for all penalties and additions, to the same extent as if the check or money order had not been tendered. In addition, unless the person who tendered the check or money order can show that such check or money order was issued in good faith, and with reasonable cause to believe that it would be duly paid, there shall be paid as penalty an amount equal to 1 percent of the amount of the check or money order, except that if the amount of the check or money order is less than $500, the penalty shall be $5, or the amount of the check or money order, whichever is lesser. (68A Stat. 777, 826; 26 U.S.C. 6311, 6657) [25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005]
Title 27: Alcohol, Tobacco and Firearms
PART 31—ALCOHOL BEVERAGE DEALERS
Subpart H—Payment of Special Tax
§ 31.101 Special tax rates.
§ 31.102 Date special tax is due.
§ 31.103 Computation of special tax.
Filing Return and Payment of Special Tax
§ 31.104 Time for filing return.
§ 31.104a Place for filing return.
§ 31.105 Method of payment.
Special Tax Return, Form 5630.5
§ 31.106 Special tax returns.
(a) General. Special tax shall be paid by return, and the filing of a return is required for registration purposes even though no tax is due during the suspension period described in §31.21(b). 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.
(b) Preparation of TTB Form 5630.5. All of the information called for on TBF 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 §31.106a).
(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(es) of special tax to which the taxpayer is subject or to which the return relates during the suspension period described in §31.21(b).
(6) Ownership and control information: That is, 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 ATF, and if the information previously provided is still current.
(c) Multiple locations and/or classes of tax. A taxpayer subject to special tax, or required to register during the suspension period described in §31.21(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, TTB 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 TTB 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 §31.21(b). The original of the list shall be filed with TTB 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 §31.237.
(26 U.S.C. 6011, 6151, 7011)
[T.D. ATF–271, 53 FR 17552, May 17, 1988. Redesignated and amended by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62251, Oct. 31, 2005]
§ 31.106a Employer identification number.
(a) Requirement. 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, including amended returns, filed under this subpart. Failure of the taxpayer to include the employer identification number may result in the imposition of the penalty specified in §70.113 of this chapter.
(b) Application for employer identification number. Each taxpayer who files a special tax return, who has not already been assigned an employer identification number, shall file IRS Form SS–4 to apply for one. The taxpayer shall apply for and be assigned only one employer identification number, regardless of the number of places of business for which the taxpayer is required to file a special tax return. The employer identification number shall be applied for no later than 7 days after the filing of the taxpayer's first special tax return. IRS Form SS–4 may be obtained from the director of an IRS service center or from any IRS district director.
(c) Preparation and filing of IRS Form SS–4. The taxpayer shall prepare and file IRS Form SS–4, together with any supplementary statement, in accordance with the instructions on the form or issued in respect to it.
(26 U.S.C. 6109)
[T.D. ATF–271, 53 FR 17553, May 17, 1988; as amended by T.D. ATF–301, 55 FR 47657, Nov. 14, 1990. Redesignated by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005]
§ 31.107 Execution of Form 5630.5.
The return of an individual proprietor shall be signed by the proprietor; the return of a partnership shall be signed by a member of the firm; and the return of a corporation shall be signed by a duly authorized officer thereof: Provided, That any individual, partnership, or corporation may appoint an agent to sign in his behalf. In each case, the person signing the return shall designate his capacity as “individual owner,” “member of firm,” “agent,” “attorney-in-fact” 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 dealer by reason of death, insolvency, or other circumstances, shall indicate the fiduciary capacity in which they act. Returns signed by persons, as agents or attorneys-in-fact, will not be accepted unless, in each instance, the principal named on the return has executed a power of attorney authorizing such person to sign the return, and such power of attorney is filed with the TTB officer with whom the Form 5630.5 is required to be filed. Form 11 shall be verified by a written declaration that the return has been executed under the penalties of perjury.
(68A Stat. 748, 749; 26 U.S.C. 6061, 6065)
[T.D. 7008, 34 FR 3665, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF–251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005]
§ 31.109 Penalty for failure to file return or to pay tax.
(a) Failure to file return. Except during the suspension period described in §31.21(b), any person required by this part to file a return on Form 5630.5 who fails to file the return on or before the last date prescribed in §31.104 shall pay, as an addition to the tax, a delinquency penalty, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The delinquency penalty for failure to file the return on or before the last date prescribed shall be 5 percent of the amount required to be shown as tax on the return if the failure is for not more than one month; with an additional 5 percent for each additional month or fraction thereof during which such delinquency continues, but not more than 25 percent in the aggregate. During the suspension period, a failure to file a return may result in a penalty under 26 U.S.C. 5603(b).
(b) Failure to pay tax. Any person who files a return on Form 5630.5 under the provisions of this part and who fails to pay the amount shown as tax on the return on or before the date prescribed in §31.104 for payment of such tax, shall pay, as an addition to the tax, a penalty, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The penalty for failure to pay the tax on or before the date prescribed for payment shall be 0.5 percent of the amount shown as tax on the return if the failure is not more than one month; with an additional 0.5 percent for each additional month or fraction thereof during which the failure continues, but not exceeding 25 percent in the aggregate.
(c) Limitations. With respect to any return on Form 5630.5, the amount of the addition under paragraph (a) of this section shall be reduced by the amount of the addition under paragraph (b) of this section for any month to which an addition to tax applies under both paragraphs (a) and (b) of this section. If the amount of tax required to be shown as tax on the return is less than the amount shown as tax on such return, the penalties prescribed in paragraphs (a) and (b) of this section shall be applied by substituting such lower amount.
(68A Stat. 821, as amended; 26 U.S.C. 6651)
[T.D. 7110, 36 FR 8034, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. ATF–251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005; T.D. TTB–36, 70 FR 62251, Oct. 31, 2005]
§ 31.110 Interest on unpaid tax.
(a) General. Interest is due on unpaid special tax from the date the tax was required to be paid to the date paid. Interest shall be charged for each day at the rate prescribed by law in effect on that day.
(b) Adjusted interest rates. Adjusted interest rates are announced by the Commissioner of Internal Revenue not later than October 15 of any year, in accordance with variations in the prime interest rate during September of that year, as prescribed by 26 U.S.C. 6621(b). The appropriate TTB officer will provide information, when requested, regarding interest rates applicable to specific time periods.
(Sec. 7, Pub. L. 96–625, 88 Stat. 2114 as amended (26 U.S.C. 6621); 68A Stat. 817 (26 U.S.C. 6601))
[T.D. ATF–116, 47 FR 51571, Nov. 16, 1982. Redesignated and amended by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005]
Delinquent Returns
§ 31.111 Waiver of penalties.
In every case where a special tax return is not filed, or the tax is not paid, at the time prescribed in §31.104, the delinquency penalties specified in §31.109 for failure to file a return or for failure to pay the amount shown as tax on the return will be asserted and collected unless a reasonable cause for delay in filing the return or payment of the tax is clearly established. A dealer who believes the circumstances which delayed his filing of the return or payment of the tax are reasonable, and who desires to have the penalties waived, shall submit with his return a written statement under the penalties of perjury, affirmatively showing all of the circumstances alleged as reasonable causes for delay. If the appropriate TTB officer determines that the delinquency was due to a reasonable cause and not to willful neglect or gross negligence, the addition to the tax will not be assessed. If the taxpayer exercised ordinary business care and prudence and was nevertheless unable to file the return within the prescribed time, or if he made a satisfactory showing that he exercised ordinary business care and prudence in providing for payment of his tax liability and was nevertheless either unable to pay the tax or would have suffered an undue hardship if he had paid on the due date, then the delay is due to reasonable cause. Mere ignorance of the law will not be considered a reasonable cause.
(68A Stat. 821, as amended; 26 U.S.C. 6651)
[T.D. 7110, 36 FR 8034, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. TTB–25, 70 FR 19884, Apr. 15, 2005]
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