[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1562 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1562
To amend the Internal Revenue Code of 1986 to reform taxation of
alcoholic beverages.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 11, 2015
Mr. Wyden introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to reform taxation of
alcoholic beverages.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; RULE OF CONSTRUCTION.
(a) Short Title.--This Act may be cited as the ``Craft Beverage
Modernization and Tax Reform Act of 2015''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents; rule of construction.
TITLE I--BONDING AND CAPITALIZATION REQUIREMENTS
Sec. 101. Removal of bond requirements and extending filing periods for
certain taxpayers with limited excise tax
liability.
Sec. 102. Production period for beer, wine, and distilled spirits.
TITLE II--BEER
Sec. 201. Reduced rate of excise tax on beer.
Sec. 202. Use of wholesome products suitable for human food consumption
in the production of fermented beverages.
Sec. 203. Simplification of rules regarding records, statements, and
returns.
Sec. 204. Transfer of beer between bonded facilities.
TITLE III--HARD CIDER
Sec. 301. Modification of definition of hard cider.
TITLE IV--WINE
Sec. 401. Reduced rate of excise tax on wine produced domestically by
certain qualifying producers.
Sec. 402. Adjustment of alcohol content level for application of excise
tax rates.
TITLE V--DISTILLED SPIRITS
Sec. 501. Reduced rate of excise tax on certain distilled spirits.
Sec. 502. Exemption of home distillery establishments from certain
taxation and bonding requirements.
TITLE VI--PROGRAM INTEGRITY AND EXCISE TAX ADMINISTRATION
Sec. 601. Program Integrity Cap Adjustment for the Alcohol and Tobacco
Tax and Trade Bureau.
Sec. 602. Increase information sharing to administer excise taxes.
(c) Rule of Construction.--Nothing in this Act, the amendments made
by this Act, or any regulation promulgated under this Act or the
amendments made by this Act, shall be construed to preempt, supersede,
or otherwise limit or restrict any State, local, or tribal law that
prohibits or regulates the production or sale of distilled spirits,
wine, or malt beverages.
TITLE I--BONDING AND CAPITALIZATION REQUIREMENTS
SEC. 101. REMOVAL OF BOND REQUIREMENTS AND EXTENDING FILING PERIODS FOR
CERTAIN TAXPAYERS WITH LIMITED EXCISE TAX LIABILITY.
(a) Filing Requirements.--Paragraph (4) of section 5061(d) of the
Internal Revenue Code of 1986 is amended--
(1) in subparagraph (A)--
(A) by striking ``In the case of'' and inserting
the following:
``(i) More than $1,000 and not more than
$50,000 in taxes.--Except as provided in clause
(ii), in the case of'',
(B) by striking ``under bond for deferred
payment'', and
(C) by adding at the end the following new clause:
``(ii) Not more than $1,000 in taxes.--In
the case of any taxpayer who reasonably expects
to be liable for not more than $1,000 in taxes
imposed with respect to distilled spirits,
wines, and beer under subparts A, C, and D and
section 7652 for the calendar year and who was
liable for not more than $1,000 in such taxes
in the preceding calendar year, the last day
for the payment of tax on withdrawals,
removals, and entries (and articles brought
into the United States from Puerto Rico) shall
be the 14th day after the last day of the
calendar year.'', and
(2) in subparagraph (B)--
(A) by striking ``Subparagraph (A)'' and inserting
the following:
``(i) Exceeds $50,000 limit.--Subparagraph
(A)(i)'', and
(B) by adding at the end the following new clause:
``(ii) Exceeds $1,000 limit.--Subparagraph
(A)(ii) shall not apply to any taxpayer for any
portion of the calendar year following the
first date on which the aggregate amount of tax
due under subparts A, C, and D and section 7652
from such taxpayer during such calendar year
exceeds $1,000, and any tax under such subparts
which has not been paid on such date shall be
due on the 14th day after the last day of the
calendar quarter in which such date occurs.''.
(b) Bond Requirements.--
(1) In general.--Section 5551 of such Code is amended--
(A) in subsection (a), by striking ``No
individual'' and inserting ``Except as provided under
subsection (d), no individual'', and
(B) by adding at the end the following new
subsection:
``(d) Removal of Bond Requirements.--
``(1) In general.--During any period to which subparagraph
(A) of section 5061(d)(4) applies to a taxpayer (determined
after application of subparagraph (B) thereof), such taxpayer
shall not be required to furnish any bond covering operations
or withdrawals of distilled spirits or wines for nonindustrial
use or of beer.
``(2) Satisfaction of bond requirements.--Any taxpayer for
any period described in paragraph (1) shall be treated as if
sufficient bond has been furnished for purposes of covering
operations and withdrawals of distilled spirits or wines for
nonindustrial use or of beer for purposes of any requirements
relating to bonds under this chapter.''.
(2) Conforming amendments.--
(A) Bonds for distilled spirits plants.--Section
5173(a) of such Code is amended--
(i) in paragraph (1), by striking ``No
person'' and inserting ``Except as provided
under section 5551(d), no person'', and
(ii) in paragraph (2), by striking ``No
distilled spirits'' and inserting ``Except as
provided under section 5551(d), no distilled
spirits''.
(B) Bonded wine cellars.--Section 5351 of such Code
is amended--
(i) by striking ``Any person'' and
inserting the following:
``(a) In General.--Any person'',
(ii) by inserting ``, except as provided
under section 5551(d),'' before ``file bond'',
(iii) by striking ``Such premises shall''
and all that follows through the period, and
(iv) by adding at the end the following new
subsection:
``(b) Definitions.--For purposes of this chapter--
``(1) Bonded wine cellar.--The term `bonded wine cellar'
means any premises described in subsection (a), including any
such premises established by a taxpayer described in section
5551(d).
``(2) Bonded winery.--At the discretion of the Secretary,
any bonded wine cellar that engages in production operations
may be designated as a `bonded winery'.''.
(C) Bonds for breweries.--Section 5401 of such Code
is amended by adding at the end the following new
subsection:
``(c) Exception From Bond Requirements for Certain Breweries.--
Subsection (b) shall not apply to any taxpayer for any period described
in section 5551(d).''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date that is 1 year after the date of the enactment of
this Act.
SEC. 102. PRODUCTION PERIOD FOR BEER, WINE, AND DISTILLED SPIRITS.
(a) In General.--Section 263A(f) of the Internal Revenue Code of
1986 is amended--
(1) by redesignating paragraph (4) as paragraph (5), and
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) Exemption for aging process of finished beer, wine,
and distilled spirits.--For purposes of this section, the
production period shall not include the aging period for--
``(A) beer (as defined in section 5052(a)),
``(B) wine (as described in section 5041(a)), or
``(C) distilled spirits (as defined in section
5002(a)(8)), except such spirits that are unfit for use
for beverage purposes.''.
(b) Conforming Amendment.--Paragraph (5)(B)(ii) of section 263A(f)
of the Internal Revenue Code of 1986, as redesignated by this section,
is amended by inserting ``except as provided in paragraph (4),'' before
``ending on the date''.
(c) Effective Date.--The amendments made by this section shall
apply to production periods beginning after December 31, 2016.
TITLE II--BEER
SEC. 201. REDUCED RATE OF EXCISE TAX ON BEER.
(a) In General.--Paragraph (1) of section 5051(a) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(1) In general.--
``(A) Imposition of tax.--A tax is hereby imposed
on all beer brewed or produced, and removed for
consumption or sale, within the United States, or
imported into the United States. Except as provided in
paragraph (2), the rate of such tax shall be--
``(i) $16 on the first 6,000,000 barrels of
beer which are removed during the calendar year
for consumption or sale by a brewer or imported
into the United States in such year by an
importer, and
``(ii) $18 on any barrels of beer to which
clause (i) does not apply.
``(B) Barrel.--For purposes of this section, a
barrel shall contain not more than 31 gallons of beer,
and any tax imposed under this section shall be applied
at a like rate for any other quantity or for fractional
parts of a barrel.''.
(b) Reduced Rate for Certain Domestic Production.--Subparagraph (A)
of section 5051(a)(2) of the Internal Revenue Code of 1986 is amended--
(1) in the heading, by striking ``$7'' and inserting
``$3.50'', and
(2) by striking ``$7'' and inserting ``$3.50''.
(c) Conforming Amendments.--Section 5051(a)(2)(B) of the Internal
Revenue Code of 1986 is amended by inserting ``the 6,000,000 barrel
quantity specified in paragraph (1)(A)(i) and'' before ``the 2,000,000
barrel quantity''.
(d) Effective Date.--The amendments made by this section shall
apply to beer removed during calendar years beginning after December
31, 2016.
SEC. 202. USE OF WHOLESOME PRODUCTS SUITABLE FOR HUMAN FOOD CONSUMPTION
IN THE PRODUCTION OF FERMENTED BEVERAGES.
(a) In General.--Not later than the date that is 1 year after the
date of the enactment of this Act, the Secretary of the Treasury or the
Secretary of the Treasury's delegate shall amend subpart F of part 25
of subchapter A of chapter I of title 27, Code of Federal Regulations
to ensure that, for purposes of such part, wholesome fruits,
vegetables, and spices suitable for human food consumption that are
generally recognized as safe for use in an alcoholic beverage and that
do not contain alcohol are generally recognized as a traditional
ingredient in the production of fermented beverages.
(b) Definition.--For purposes of this section, the term ``fruit''
means whole fruit, fruit juices, fruit puree, fruit extract, or fruit
concentrate.
(c) Rule of Construction.--Nothing in this section shall be
construed to revoke, prescribe, or limit any other exemptions from the
formula requirements under subpart F of part 25 of subchapter A of
chapter I of title 27, Code of Federal Regulations for any ingredient
that has been recognized before, on, or after the date of the enactment
of this Act as a traditional ingredient in the production of fermented
beverages.
SEC. 203. SIMPLIFICATION OF RULES REGARDING RECORDS, STATEMENTS, AND
RETURNS.
(a) In General.--Subsection (a) of section 5555 of the Internal
Revenue Code of 1986 is amended by adding at the end the following:
``The Secretary shall permit a person to employ a unified system for
any records, statements, and returns required to be kept, rendered, or
made under this section for any beer produced in the brewery for which
the tax imposed by section 5051 has been determined, including any beer
which has been removed for consumption on the premises of the
brewery.''.
(b) Effective Date.--The amendments made by this section shall
apply to any calendar quarters beginning more than 1 year after the
date of the enactment of this Act.
SEC. 204. TRANSFER OF BEER BETWEEN BONDED FACILITIES.
(a) In General.--Section 5414 of the Internal Revenue Code of 1986
is amended to read as follows:
``SEC. 5414. TRANSFER OF BEER BETWEEN BONDED FACILITIES.
``(a) In General.--Beer may be removed from one brewery to another
bonded brewery, without payment of tax, and may be mingled with beer at
the receiving brewery, subject to such conditions, including payment of
the tax, and in such containers, as the Secretary by regulations shall
prescribe, which shall include--
``(1) any removal from one brewery to another brewery
belonging to the same brewer,
``(2) any removal from a brewery owned by one corporation
to a brewery owned by another corporation when--
``(A) one such corporation owns the controlling
interest in the other such corporation, or
``(B) the controlling interest in each such
corporation is owned by the same person or persons, and
``(3) any removal from one brewery to another brewery
when--
``(A) the proprietors of transferring and receiving
premises are independent of each other and neither has
a proprietary interest, directly or indirectly, in the
business of the other, and
``(B) the transferor has divested itself of all
interest in the beer so transferred and the transferee
has accepted responsibility for payment of the tax.
``(b) Transfer of Liability for Tax.--For purposes of subsection
(a)(3), such relief from liability shall be effective from the time of
removal from the transferor's bonded premises, or from the time of
divestment of interest, whichever is later.''.
(b) Removal From Brewery by Pipeline.--Section 5412 of the Internal
Revenue Code of 1986 is amended by inserting ``pursuant to section 5414
or'' before ``by pipeline''.
(c) Effective Date.--The amendments made by this section shall
apply to any calendar quarters beginning more than 1 year after the
date of the enactment of this Act.
TITLE III--HARD CIDER
SEC. 301. MODIFICATION OF DEFINITION OF HARD CIDER.
(a) In General.--Section 5041 of the Internal Revenue Code of 1986
is amended--
(1) in paragraph (6) of subsection (b), by striking ``which
is a still wine'' and all that follows through ``alcohol by
volume'', and
(2) by adding at the end the following new subsection:
``(g) Hard Cider.--For purposes of subsection (b)(6), the term
`hard cider' means a wine--
``(1) containing not more than 0.64 gram of carbon dioxide
per hundred milliliters of wine, except that the Secretary may
by regulations prescribe such tolerances to this limitation as
may be reasonably necessary in good commercial practice,
``(2) which is derived primarily from--
``(A) apples, apple juice concentrate, pears, or
pear juice concentrate, and
``(B) water,
``(3) which contains no fruit product or fruit flavoring
other than apple or pear, and
``(4) which contains at least one-half of 1 percent and
less than 8.5 percent alcohol by volume.''.
(b) Effective Date.--The amendments made by this section shall
apply to hard cider removed during calendar years beginning after
December 31, 2016.
TITLE IV--WINE
SEC. 401. REDUCED RATE OF EXCISE TAX ON WINE PRODUCED DOMESTICALLY BY
CERTAIN QUALIFYING PRODUCERS.
(a) In General.--Section 5041(c) of the Internal Revenue Code of
1986 is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Allowance of credit.--
``(A) In general.--Except as provided in paragraph
(2), there shall be allowed as a credit against any tax
imposed by this title (other than chapters 2, 21, and
22) an amount equal to the sum of--
``(i) $1 per wine gallon on the first
30,000 wine gallons of wine, plus
``(ii) 90 cents per wine gallon on the
first 100,000 wine gallons of wine to which
clause (i) does not apply,
on wine gallons which are removed during such year for
consumption or sale and which have been produced at
qualified facilities in the United States.
``(B) Adjustment of credit for hard cider.--In the
case of wine described in subsection (b)(6),
subparagraph (A) of this paragraph shall be applied--
``(i) in clause (i) of such subparagraph,
by substituting `6.2 cents' for `$1', and
``(ii) in clause (ii) of such subparagraph,
by substituting `5.6 cents' for `90 cents'.
``(C) Denial of credit for champagne and other
sparkling wines.--This paragraph shall not apply to
wines described in subsection (b)(4).'',
(2) in paragraph (2)--
(A) by striking ``paragraph (1)'' and inserting
``clause (ii) of paragraph (1)(A)'', and
(B) by striking ``1,000 wine gallons of wine
produced in excess of 150,000 wine gallons'' and
inserting ``10,000 wine gallons of wine produced in
excess of 1,000,000 wine gallons'', and
(3) in paragraph (7)--
(A) in subparagraph (A), by striking ``this
subsection from benefiting any person who produces more
than 250,000 wine gallons'' and inserting ``paragraph
(1)(A)(ii) from benefitting any person who produces
more than 2,000,000 wine gallons'', and
(B) in subparagraph (B), by striking ``150,000 wine
gallons'' and inserting ``1,000,000 wine gallons''.
(b) Effective Date.--The amendments made by this section shall
apply to wine removed during calendar years beginning after December
31, 2016.
SEC. 402. ADJUSTMENT OF ALCOHOL CONTENT LEVEL FOR APPLICATION OF EXCISE
TAX RATES.
(a) In General.--Paragraphs (1) and (2) of section 5041(b) of the
Internal Revenue Code of 1986 are amended by striking ``14 percent''
each place it appears and inserting ``14.25 percent''.
(b) Effective Date.--The amendments made by this section shall
apply to wine removed during calendar years beginning after December
31, 2016.
TITLE V--DISTILLED SPIRITS
SEC. 501. REDUCED RATE OF EXCISE TAX ON CERTAIN DISTILLED SPIRITS.
(a) In General.--Section 5001 of the Internal Revenue Code of 1986
is amended by redesignating subsection (c) as subsection (d) and by
inserting after subsection (b) the following new subsection:
``(c) Reduced Rate.--
``(1) In general.--In the case of a distilled spirits
operation, the otherwise applicable tax rate under subsection
(a)(1) on the first 100,000 of proof gallons of distilled
spirits which are removed in the calendar year and which have
been distilled or processed by such operation at a qualified
facility in the United States shall be $2.70 per proof gallon.
``(2) Controlled groups.--
``(A) In general.--In the case of a controlled
group, the 100,000 proof gallon quantity specified in
paragraph (1) shall be applied to the controlled group.
``(B) Definition.--For purposes of subparagraph
(A), the term `controlled group' shall have the meaning
given such term by subsection (a) of section 1563,
except that--
``(i) `more than 50 percent' shall be
substituted for `at least 80 percent' each
place it appears in such subsection, and
``(ii) such determination shall be made
without regard to section 1563(b)(2)(C).
``(C) Rules for non-corporations.--Under
regulations prescribed by the Secretary, principles
similar to the principles of subparagraphs (A) and (B)
shall be applied to a group under common control where
one or more of the persons is not a corporation.
``(D) Single taxpayer.--Pursuant to rules issued by
the Secretary, any distilled spirits operation which
produces distilled spirits marketed under a similar
brand, license, franchise, or other arrangement shall
be treated as a single taxpayer for purposes of the
application of this paragraph.''.
(b) Conforming Amendment.--Section 7652(f)(2) of the Internal
Revenue Code of 1986 is amended by striking ``section 5001(a)'' and
inserting ``sections 5001(a)(1) and 5001(c)(1)''.
(c) Effective Date.--The amendments made by this section shall
apply to distilled spirits removed in calendar years beginning after
December 31, 2016.
SEC. 502. EXEMPTION OF HOME DISTILLERY ESTABLISHMENTS FROM CERTAIN
TAXATION AND BONDING REQUIREMENTS.
(a) In General.--Section 5001 of the Internal Revenue Code of 1986,
as amended by section 501, is amended by redesignating subsection (d)
as subsection (e), and by inserting after subsection (c) the following
new subsection:
``(d) Exemption for Distilled Spirits Produced at a Home Distillery
Establishment.--Subject to regulations prescribed by the Secretary, the
tax imposed by subsection (a) shall not apply to distilled spirits
produced at a home distillery establishment (as defined in section
5002(a)(16)).''.
(b) Definition of Home Distillery Establishment.--Section 5002(a)
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(16) Home distillery establishment.--
``(A) In general.--The term `home distillery
establishment' means an establishment that--
``(i) is located in the dwelling house of
the owner of such establishment or in any shed,
yard, enclosure, or other property connected
with such dwelling house, and
``(ii) produces distilled spirits solely
for personal or family use by the owner of such
establishment.
``(B) Personal or family use.--
``(i) In general.--A home distillery
establishment shall be treated as producing
distilled spirits for personal or family use
if--
``(I) any stills or distilling
apparatuses contained in such
establishment have a mash capacity of
not greater than 15.5 gallons,
``(II) such establishment produces
no more than--
``(aa) in the case of a
household with 1 adult, 24
proof gallons of distilled
spirits during the calendar
year, or
``(bb) in the case of a
household with 2 or more
adults, 48 proof gallons of
distilled spirits during the
calendar year, and
``(III) no distilled spirits
produced by such establishment are sold
to any person, or transferred to any
person (for payment or otherwise) for
sale by such person.
``(ii) Adult.--For purposes of this
paragraph, the term `adult' means an individual
who has attained 18 years of age, or the
minimum age (if any) established by law
applicable in the locality in which the
household is situated at which distilled
spirits may be sold to individuals, whichever
is greater.''.
(c) Exemption From Establishment Requirements.--Section 5171 of the
Internal Revenue Code of 1986 is amended--
(1) in subsection (a), by striking ``Except as otherwise
provided by law'' and inserting ``Except as provided by
subsection (e) or any other provision of law'', and
(2) by redesignating subsection (e) as subsection (f), and
by inserting after subsection (d) the following new subsection:
``(e) Exception for Home Distillery Establishment.--The
requirements of this section shall not apply in the case of a home
distillery establishment (as described in section 5002(a)(16)).''.
(d) Criminal Penalties.--Paragraph (6) of section 5601(a) of the
Internal Revenue Code of 1986 is amended by inserting ``or section
5171(e)'' after ``5178(a)(1)(C)''.
(e) Limitation on Sales for Personal or Family Use.--Section 5101
of such Code is amended--
(1) by redesignating subsection (b) as subsection (c), and
(2) by inserting after subsection (a) the following new
subsection:
``(b) Limitation on Sales for Home Distillery Establishments.--The
Secretary shall, pursuant to regulations, require that no still,
boiler, or other vessel with a mash capacity of greater than 15.5
gallons be sold or transferred to any person who intends to use such
still, boiler, or vessel solely as part of a home distillery
establishment (as described in section 5002(a)(16)).''.
(f) Effective Date.--The amendments made by this section shall take
effect on the date that is 1 year after the date of the enactment of
this Act.
TITLE VI--PROGRAM INTEGRITY AND EXCISE TAX ADMINISTRATION
SEC. 601. PROGRAM INTEGRITY CAP ADJUSTMENT FOR THE ALCOHOL AND TOBACCO
TAX AND TRADE BUREAU.
Section 251(b)(2) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 901(b)(2)) is amended by adding at the
end the following new subparagraphs:
``(E) Enforcement and compliance activities
conducted by the alcohol and tobacco tax and trade
bureau.--
``(i) In general.--If a bill or joint
resolution is enacted making appropriations for
a fiscal year to the Alcohol and Tobacco Tax
and Trade Bureau of not less than the first
amount specified in subclauses (I) through (VI)
of clause (ii) for tax activities for that
fiscal year, including tax compliance to
address the Federal tax gap (taxes owed but not
paid), and provides an additional appropriation
for tax activities, including tax compliance to
address the Federal tax gap, the adjustment
shall be the amount of the additional
appropriation, except that the adjustment shall
not exceed the second amount specified in that
subclause.
``(ii) Amounts specified.--The amounts
specified are--
``(I) for fiscal year 2016, an
appropriation of $101,000,000, and an
additional appropriation of $5,000,000;
``(II) for fiscal year 2017, an
appropriation of $103,000,000, and an
additional appropriation of $9,000,000;
``(III) for fiscal year 2018, an
appropriation of $106,000,000, and an
additional appropriation of
$14,000,000;
``(IV) for fiscal year 2019, an
appropriation of $108,000,000, and an
additional appropriation of
$18,000,000;
``(V) for fiscal year 2020, an
appropriation of $111,000,000, and an
additional appropriation of
$24,000,000; and
``(VI) for fiscal year 2021, an
appropriation of $113,000,000, and an
additional appropriation of
$24,000,000.
``(iii) Definitions.--As used in this
subparagraph--
``(I) the term `additional
appropriation for tax activities,
including tax compliance to address the
Federal tax gap' means new and
continuing investments in expanding and
improving the effectiveness and
efficiency of the overall tax
enforcement and compliance program of
the Alcohol and Tobacco Tax and Trade
Bureau and fully funding operational
support activities at the Alcohol and
Tobacco Tax and Trade Bureau; and
``(II) the term `new and continuing
investments' includes additional
resources for implementing new
authorities and for conducting
additional examinations and audits.
``(iv) Appropriation.--The first amount
specified in subclauses (I) through (VI) of
clause (ii) is the amount under the heading in
an appropriations Act for the Alcohol and
Tobacco Tax and Trade Bureau that is specified
to pay for the costs of tax activities,
including tax compliance to address the Federal
tax gap, and to pay for regulatory activities
that protect the public.
``(v) Additional amount.--The amounts
further specified in subclauses (I) through
(VI) of clause (ii) are the amounts under the
heading in an appropriations act for the
Alcohol and Tobacco Tax and Trade Bureau for
the amount of the additional appropriation for
tax activities, including tax compliance to
address the Federal tax gap.
``(F) Activities that protect the public conducted
by the alcohol and tobacco tax and trade bureau.--
``(i) In general.--If a bill or joint
resolution is enacted making appropriations for
a fiscal year to the Alcohol and Tobacco Tax
and Trade Bureau of not less than the first
amount specified in subclauses (I) through (VI)
of subparagraph (E)(ii) for tax activities for
that fiscal year, including tax compliance to
address the Federal tax gap (taxes owed but not
paid), and regulatory activities conducted by
the Alcohol and Tobacco Tax and Trade Bureau,
and making appropriations in the amount and for
the purpose of the adjustment in the second
amount specified in subclauses (I) through (VI)
of subparagraph (E)(ii), then the further
additional adjustment for that fiscal year
shall be the further additional appropriation
provided in that Act for regulatory activities
that protect the public for that fiscal year,
but shall not exceed $5,000,000 in additional
new budget authority.
``(ii) Definitions.--As used in this
subparagraph--
``(I) the term `regulatory
activities that protect the public'
means new budget authority for new and
continuing investments in expanding and
improving programs at the Alcohol and
Tobacco Tax and Trade Bureau, such as
regulating permitting, labeling,
advertising, distribution and trade of
alcohol and tobacco products; and
``(II) the term `further additional
new budget authority' means the amount
provided for a fiscal year in excess of
the first amount specified in
subclauses (I) through (VI) of
subparagraph (E)(ii) and the adjustment
in the second amount specified in
subclauses (I) through (VI) of
subparagraph (E)(ii), not to exceed
$5,000,000.''.
SEC. 602. INCREASE INFORMATION SHARING TO ADMINISTER EXCISE TAXES.
(a) In General.--Section 6103(o) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(3) Taxes imposed by section 4481.--Returns and return
information with respect to taxes imposed by section 4481 shall
be open to inspection by or disclosure to officers and
employees of United States Customs and Border Protection of the
Department of Homeland Security whose official duties require
such inspection or disclosure for purposes of administering
such section.''.
(b) Conforming Amendments.--Paragraph (4) of section 6103(p) of the
Internal Revenue Code of 1986 is amended by striking ``or (o)(1)(A)''
each place it appears and inserting ``, (o)(1)(A) or (o)(3)''.
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