[Federal Register Volume 76, Number 233 (Monday, December 5, 2011)]
[Proposed Rules]
[Pages 75836-75840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-31142]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 19

[Docket No. TTB-2011-0010; Notice No. 124]
RIN 1513-AB89


Revisions to Distilled Spirits Plant Operations Reports and 
Regulations

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Notice of proposed rulemaking; solicitation of comments.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to 
replace the current four report forms used by distilled spirits plants 
to report their operations with two new report forms that would be 
submitted on a monthly or quarterly basis. This proposal would 
streamline the reporting process and would result in savings for the 
industry and for TTB by significantly reducing the number of reports 
that must be completed and filed by industry members and processed by 
TTB.

DATES: TTB must receive your written comments on or before February 3, 
2012.

ADDRESSES: You may send comments on this notice to one of the following 
addresses:
     http://www.regulations.gov: To submit comments via the 
Internet, use the comment form for this notice as posted within Docket 
No. TTB-2011-0010 at ``Regulations.gov,'' the Federal e-rulemaking 
portal;
     Mail: Director, Regulations and Rulings Division, Alcohol 
and Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412.
     Hand Delivery/Courier in Lieu of Mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street NW., Suite 200-E, Washington, DC 
20005.
    See the Public Participation section of this notice for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing.
    You may view copies of this notice, the proposed two new report 
forms, and any comments TTB receives about this proposal within Docket 
No. TTB-2011-0010 at http://www.regulations.gov. A link to the 
Regulations.gov comment form for proposal is posted on the TTB Web site 
at http://www.ttb.gov/regulations_laws/all_rulemaking.shtml under 
Notice No. 124. You also may view copies of this notice, the proposed 
two new report forms, and any comments TTB receives about this proposal 
by appointment at the TTB Information Resource Center, 1310 G Street 
NW., Washington, DC 20220. Please call 202-453-2270 to make an 
appointment.

FOR FURTHER INFORMATION CONTACT: Rita D. Butler, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, at 202-453-
1039, extension 101, or [email protected].

SUPPLEMENTARY INFORMATION:

Background

Internal Revenue Code of 1986

    Chapter 51 of the Internal Revenue Code of 1986 (IRC), 26 U.S.C. 
chapter 51, contains excise tax and related provisions concerning 
distilled spirits, wines, and beer used for beverage purposes and 
distilled spirits used for nonbeverage purposes. Section 5001 of the 
IRC (26 U.S.C. 5001) imposes an excise tax on distilled spirits at a 
rate of $13.50 per proof gallon. Under section 5006(a) of the IRC (26 
U.S.C. 5006(a)) the excise tax on distilled spirits is generally 
determined at the time the distilled spirits are withdrawn from the 
bonded premises of a distilled spirits plant (DSP). However, section 
5214(a) of the IRC (26 U.S.C. 5214(a)), authorizes the withdrawal of 
distilled spirits for specified purposes free of tax or without payment 
of tax, subject to regulations prescribed by the Secretary of the 
Treasury (the Secretary).
    Within chapter 51 of the IRC, subchapter B sets forth qualification 
requirements for DSPs. Section 5171 (26 U.S.C. 5171) concerns the 
establishment of DSPs and provides: (1) In subsection (a), that 
operations as a distiller, warehouseman, or processor may be conducted 
only on the bonded premises of a DSP by a person who is qualified under 
subchapter B; (2) in subsection

[[Page 75837]]

(b), that a DSP may be established only by a person who intends to 
conduct at the DSP operations as a distiller, as a warehouseman, or as 
both; (3) in subsection (c), that each person shall, before commencing 
operations at a DSP, make application to the Secretary for, and receive 
notice of, the registration of the DSP; and (4) in subsection (d), that 
each person required to file an application for registration under 
subsection (c) whose distilled spirits operations are not required to 
be covered by a basic permit under the Federal Alcohol Administration 
Act (27 U.S.C. 203 and 204) shall, before commencing those operations, 
apply for and obtain a permit from the Secretary to engage in those 
operations (the terms of subsection (d) apply to persons who engage in 
operations involving distilled spirits for industrial, such as 
nonbeverage, use). Section 5181 contains special requirements for the 
establishment of DSPs solely for the purpose of producing, processing, 
and storing, and for using and distributing, distilled spirits to be 
used exclusively for fuel use; such DSPs are commonly referred to as 
alcohol fuel plants (AFPs).
    Section 5207 of the IRC (26 U.S.C. 5207) specifies the records that 
every DSP proprietor must keep, in a form and manner as prescribed by 
the Secretary by regulation. The required records relate to production, 
storage, denaturation, and processing activities, and may include other 
information regarding those or other activities as required by 
regulation. Section 5207 also provides that each person required to 
keep those records must provide reports containing information 
regarding his or her operations at the time and in the form and manner 
as the Secretary prescribes by regulation.
    The provisions of chapter 51 of the IRC, as well as the provisions 
of the Federal Alcohol Administration Act (FAA Act), are administered 
by TTB.

Regulations Pertaining to DSPs

    The regulations promulgated under the IRC concerning distilled 
spirits plants are contained in part 19 of title 27 of the Code of 
Federal Regulations (27 CFR part 19). Those regulations are also 
administered by TTB.
    Under the part 19 regulations, a person may establish a DSP either 
to produce (distill) spirits or to store (warehouse) spirits, or both, 
and a DSP so established may also process spirits. While a DSP may 
engage in all three operations, Sec.  19.72 provides, consistent with 
section 5171(b) of the IRC, that a person may not establish a DSP 
solely for the processing of spirits (which includes the denaturing of 
spirits). The part 19 regulations include, in subpart V, provisions 
regarding records and reports pertaining to DSP operations. Those 
provisions include Sec.  19.632, which sets forth requirements for 
completing and submitting monthly operations reports to TTB. This 
regulation requires the submission of four monthly operations reports 
on the following forms: TTB F 5110.40, Monthly Report of Production 
Operations; TTB F 5110.11, Monthly Report of Storage Operations; TTB F 
5110.28, Monthly Report of Processing Operations; and TTB F 5110.43, 
Monthly Report of Processing (Denaturing) Operations. Section 19.632 
further provides that the DSP proprietor must submit these monthly 
reports, either in paper format or electronically, not later than the 
15th day of the month following the close of the reporting period.
    Consistent with the instructions for completing TTB F 5110.11, a 
plant reporting storage operations may be required to file up to four 
monthly storage reports--for all domestic spirits, spirits from Puerto 
Rico, spirits from the U.S. Virgin Islands, and for all other imported 
spirits.

Need for Change

    TTB is proposing changes to the distilled spirits operations 
reporting requirements to improve TTB's ability to effectively monitor 
the operations of the distilled spirits industry, and to address the 
concerns and desires of the distilled spirits industry, particularly 
small distillers, for improved reporting requirements. TTB's proposed 
changes are the result of an internal review of the current reporting 
process and reflect changes within the distilled spirits industry. 
Under the current reporting process, each DSP may be required to submit 
as many as seven operational reports monthly. These include a 
production report, up to four storage reports, a processing report, and 
a denaturing report (if applicable). DSPs currently submit an average 
of 28.4 operational reports per year. TTB's review indicates that the 
number of operational reports currently being submitted to TTB is 
beyond what is necessary to effectively monitor the industry in order 
to adequately protect the revenue.
    Further, TTB has determined that the data it needs to monitor the 
industry could be more efficiently and effectively reported. For 
example, inventories currently may be accounted for in up to seven 
separate reports, depending on the operations of the DSP, and receipts 
of spirits in bond from outside the DSP are not distinguished from 
receipts of spirits transferred between accounts within the plant. In 
addition, some data currently being reported are not used or analyzed. 
Improvement to the current reporting system would allow TTB to better 
identify reporting errors and make it easier for TTB to reconcile the 
data with other submissions, such as excise tax returns. These changes 
would improve the efficiency of operations within TTB.
    Changes in the distilled spirits industry over the past three 
decades have resulted in the need for TTB to receive information and 
data that better reflect industry activities and that better reveal 
potential risks to the revenue. Particularly, changes resulting from 
the demand for alcohol for fuel use have dramatically expanded the 
number of plants in the industrial alcohol segment of the industry, and 
new ``craft'' or ``artisan'' distilling operations have greatly 
increased the number of small DSPs in the beverage alcohol segment of 
the industry.
    Additionally, TTB has observed a growing separation of the 
industrial alcohol and alcohol fuel industry from the beverage 
industry; however, current reporting is not sufficient to properly 
monitor these different types of DSP activities. For example, while a 
DSP may be permitted to use spirits for either beverage purposes under 
an FAA Act Basic Permit, or industrial purposes under an IRC Operating 
Permit, or both, current reports are insufficient for tracking spirits 
transferred in bond between permitted plants under subpart P of part 19 
of the TTB regulations. Additionally, while DSPs which hold both 
beverage and industrial permits are allowed to move spirits between the 
DSP's own beverage and industrial accounts, current reports do not 
sufficiently track the transfer of these spirits between internal 
accounts. As a result of recent audits and/or investigations, TTB found 
that a number of plants authorized to produce or warehouse industrial 
spirits had begun to market spirits into the beverage distilling and 
bottling industries. For example, TTB determined that one plant, 
qualified only as a producer of industrial spirits, was producing 
spirits for beverage use and shipping those spirits to a number of 
beverage alcohol bottlers. Under the current reporting system such 
transfers are difficult to identify, trace, and reconcile, making 
taxable and nontaxable removals difficult to distinguish. TTB believes 
that the current reporting process can be improved to better protect 
the revenue.

[[Page 75838]]

TTB Proposal

    TTB is proposing to require DSPs to submit up to two separate 
operations reports in place of the possible seven reports currently 
required. One report would cover operations involving distilled spirits 
for beverage use, and the other report would cover operations involving 
spirits for industrial use. DSPs would be required to complete one or 
both reports depending on the distilled spirits operations they are 
qualified to conduct under their TTB permit(s).
    TTB believes that its proposed changes to the current DSP 
operations reporting process would significantly reduce the reporting 
burden on industry members, result in greater efficiencies for TTB, and 
improve TTB's ability to monitor the distilled spirits industry and 
protect the revenue. TTB's analysis indicates that TTB can monitor the 
industry and protect the revenue by revising the information being 
reported in a more efficient format.
    TTB is also proposing to reduce the number of monthly operations 
reports submitted by industry members, by providing for quarterly 
reporting in lieu of monthly reporting for industry members that submit 
quarterly tax returns, and to realign the information being reported 
without adding any new recordkeeping or data reporting requirements.
    TTB is proposing to amend 27 CFR 19.632, which sets forth 
requirements for completing and submitting monthly operations reports 
to TTB, by replacing the current four report forms used by DSPs to 
report their operations with two proposed report forms that would be 
submitted on a monthly or quarterly basis. Specifically, TTB is 
proposing to separate the reporting of beverage alcohol operations from 
the reporting of industrial alcohol operations as described in greater 
detail below. This format change would result in limiting the number of 
required reports per month or per quarter to no more than two, and for 
many DSPs, the requirement may be only one report per month or per 
quarter.
    As mentioned above, TTB is also proposing to change the monthly 
reporting requirement to quarterly reporting for those industry members 
that file quarterly excise tax returns under Sec.  19.235. Section 
19.235 generally provides that a DSP proprietor may file quarterly tax 
returns if the proprietor was not liable for more than $50,000 in 
distilled spirits excise taxes in the preceding calendar year, and 
reasonably expects not to be liable for more than $50,000 in distilled 
spirits excise taxes for the current calendar year. TTB estimates that 
over 75 percent of registered DSPs qualify for quarterly excise tax 
payment and filing; under the proposed changes in this notice, these 
same DSPs would also file operations reports on a quarterly basis. If 
DSP proprietors eligible for quarterly excise tax payments and returns 
actually file quarterly operations reports instead of monthly 
operations reports, this would correspondingly reduce the reporting 
burden on these smaller DSP proprietors, as well as the administrative 
burden on TTB.

Current Forms Versus Proposed Forms

    TTB proposes to consolidate the information and data collected in 
four current forms (TTB F 5110.40, Monthly Report of Production 
Operations; TTB F 5110.11, Monthly Report of Storage Operations; TTB F 
5110.28, Monthly Report of Processing Operations; and TTB F 5110.43, 
Monthly Report of Processing (Denaturing) Operations) into two forms. 
The two proposed forms would be titled, TTB F 5110.77, Distilled 
Spirits Plant Operations Report--Beverage (Nonindustrial) Alcohol and 
TTB F 5110.78, Distilled Spirits Plant Operations Report--Industrial 
Alcohol.
    The proposed new forms would not require a DSP to report the level 
of detailed activity in the production, storage, and processing 
accounts that the current forms require. A DSP would be required to 
report the proof gallons of spirits in inventory at the plant as either 
produced, received, or removed during the reporting period.
Beverage Alcohol
    Part I of the proposed beverage (nonindustrial) alcohol report 
form, TTB F 5110.77, would show beginning and ending balances of 
inventory for the reporting period. The current forms show only the 
beginning balance of inventory. Part II of the proposed form would 
summarize all production and redistillation activities for the 
reporting period; this section corresponds to the current Monthly 
Report of Production Operations. Part III would total alcohol and 
spirits received, and Part IV would summarize all removals. Parts V and 
VI of the proposed form would document the receipts and removals in 
greater detail. Parts III-VI correspond to the current Monthly Report 
of Storage Operations and Monthly Report of Processing Operations. Part 
VII would document materials used in the production of spirits. The 
remaining parts of the proposed form, Parts VIII-X, would cover, 
respectively, receipts of distilled spirits for redistillation, 
receipts of wine, and receipts of flavors. Parts VII-X correspond to 
various sections of the current Monthly Report of Production 
Operations.
    Under the current reporting procedures for storage operations, 
separate monthly reports on TTB F 5110.11 are required for domestic, 
imported, Puerto Rican, and U.S. Virgin Islands spirits. Under this 
proposed regulatory change, separate monthly reports for storage 
operations based on the origin of the spirits would no longer be 
necessary.
Industrial Alcohol
    The proposed report form for industrial alcohol operations, TTB F 
5110.78, would document beginning and ending balances of inventory 
within Part I. Part II of the proposed form would cover all production 
and redistillation activities. Receipts and removals would be recorded 
under Parts III and IV of the proposed form, respectively, with 
additional details provided in Parts V and VI. Part VII of the proposed 
form would cover materials used in production. The remaining parts of 
the proposed form would show redistillation operations--relating to 
receipt and use of spirits, denatured spirits, and articles--(Part 
VIII), alcohol for fuel use operations (Part IX), and denatured alcohol 
operations (Part X). The proposed industrial alcohol form mainly 
corresponds to the current Monthly Report of Processing (Denaturing) 
Operations.
Beverage and Industrial Alcohol Operations at the Same Plant
    Under this regulatory proposal, DSPs conducting both beverage and 
industrial alcohol operations would be required to submit no more than 
two forms per month or per quarter, as described above, to report all 
activities.

Public Participation

Comments Sought

    TTB invites comments on this proposed rulemaking from all 
interested parties. Since TTB desires to implement these new reporting 
requirements as soon as possible, TTB is particularly interested in 
comments regarding the length of time that industry members would need 
in order to transition their business procedures to be able to comply 
with the proposed reporting requirements.
    Please submit your comments by the closing date shown above in this 
notice. All comments must reference Notice No. 124 and must include 
your name and mailing address. Your comments also must be made in 
English, be legible, and

[[Page 75839]]

be written in language acceptable for public disclosure. TTB does not 
acknowledge receipt of comments, and considers all comments as 
originals.

Submitting Comments

    You may submit comments on this notice by using one of the 
following three methods:
     Federal e-Rulemaking Portal: You may send comments via the 
online comment form associated with this notice in Docket No. TTB-2011-
0010 on ``Regulations.gov,'' the Federal e-rulemaking portal, at http://www.regulations.gov. A link to the Regulations.gov comment form for 
this proposal is available under Notice No. 124 on the TTB Web site at 
http://www.ttb.gov/regulations_laws/all_rulemaking.shtml. 
Supplemental files may be attached to comments submitted via 
Regulations.gov. For information on how to use Regulations.gov, click 
on the site's Help or FAQ tabs.
     U.S. Mail: You may send comments via postal mail to the 
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and 
Trade Bureau, P.O. Box 14412, Washington, DC 20044-4412.
     Hand Delivery/Courier: You may hand-carry your comments or 
have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau, 
1310 G Street NW., Suite 200-E, Washington, DC 20005.
    If you are commenting on behalf of an association, business, or 
other entity, your comment must include the entity's name as well as 
your name and position title. If you comment via Regulations.gov, 
please include the entity's name in the ``Organization'' blank of the 
comment form. If you comment via postal mail, please submit your 
entity's comment on letterhead.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine whether to hold a public hearing.

Confidentiality

    All submitted comments and attachments are part of the public 
record and are subject to public disclosure. Do not enclose any 
material in your comments that you consider to be confidential or that 
is inappropriate for public disclosure.

Public Disclosure

    On the Federal e-rulemaking portal, Regulations.gov, TTB will post, 
and the public may view, copies of this notice, copies of the two 
proposed forms, and any electronic or mailed comments TTB receives 
about this proposal. You may view the Regulations.gov docket containing 
this notice and the posted comments received on it through the 
Regulations.gov search page at http://www.regulations.gov.
    All posted comments will display the commenter's name, organization 
(if any), city, and State, and, in the case of mailed comments, all 
address information, including email addresses. TTB may omit voluminous 
attachments or material that TTB considers unsuitable for posting.
    You and other members of the public may view copies of this notice, 
copies of the two proposed forms, and any electronic or mailed comments 
TTB receives about this proposal by appointment at the TTB Information 
Resource Center, 1310 G Street NW., Washington, DC 20220. You may also 
obtain copies at 20 cents per 8.5- x 11-inch page. Contact TTB's 
information specialist at the above address or by telephone at 202-453-
2270 to schedule an appointment or to request copies of comments or 
other materials.

Regulatory Analysis and Notices

Executive Order 12866

    It has been determined that this proposed rule is not a significant 
regulatory action as defined in Executive Order 12866. Therefore, a 
regulatory assessment is not required.

Regulatory Flexibility Act

    Pursuant to the requirements of the Regulatory Flexibility Act (5 
U.S.C. Chapter 6) TTB certifies that this notice of proposed rulemaking 
will not have a significant economic impact on a substantial number of 
small entities. The changes being proposed do not create any additional 
requirements on small businesses and would only have the effect of 
lessening current reporting requirements. Accordingly, a regulatory 
flexibility analysis is not required.

Paperwork Reduction Act

    Currently, there are four collections of information approved by 
the Office of Management and Budget (OMB) that cover both recordkeeping 
and reporting of DSP operations. These collections of information, 
approved in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3504(h)), are associated with control numbers 1513-0047, 1513-
0039, 1513-0041, and 1513-0049. The specific regulatory section in this 
proposed rule that contains collections of information is 27 CFR 19.632 
and it concerns only reporting of DSP operations; TTB is not proposing 
to change the recordkeeping requirements currently associated with 
these four control numbers. Consistent with the proposed regulatory 
change, TTB intends to replace the four existing collections of 
information with two new collections of information: (1) Distilled 
Spirits Plant Operations Recordkeeping Requirements, and (2) Distilled 
Spirits Plant Operations Reporting Requirements. These two new 
collections of information have been submitted to OMB for approval. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a valid 
control number assigned by OMB.
    The proposed amendments to Sec.  19.632, which would affect only 
reporting requirements, would decrease the number of operational 
reports that DSP proprietors are required to submit to TTB. Currently, 
there are four types of reports that proprietors may be required to 
submit, and each of these reports must be submitted on a monthly basis. 
In place of these requirements, the proposed amendments would provide 
for proprietors to submit one or two reports on a monthly or quarterly 
basis. The proposed amendments would replace the four current reports 
with an industrial report and a beverage (nonindustrial) report. 
Proprietors that are qualified to conduct either industrial or beverage 
operations would only be required to complete one of the respective 
reports, while proprietors qualified to conduct both types of 
operations would be required to complete both reports. In addition, the 
proposed amendments would require proprietors to submit required 
reports quarterly, rather than monthly, if they pay excise taxes and 
file excise tax returns quarterly in accordance with 27 CFR 19.235.
    Based on the current number of permitted DSPs, TTB estimates that, 
as a result of the proposed regulatory amendments (and reflecting the 
estimated number of monthly and quarterly filers), the total annual 
burden for the distilled spirits operations reporting, for each report, 
will be as follows:
     Estimated total annual reporting burden: 8,592 hours.
     Estimated average annual burden hours per respondent: 
13.68 hours.
     Estimated number of respondents: 150 reporting monthly; 
478 reporting quarterly.
     Estimated annual frequency of responses: 12 for monthly 
reporting; 4 for quarterly reporting.
    Distilled spirits operations recordkeeping requirements would not

[[Page 75840]]

be changed as a result of the proposed regulatory amendments. TTB 
estimates that the total annual burden for distilled spirits operations 
recordkeeping, are as follows:
     Estimated total annual recordkeeping burden: 1 hour.
     Estimated number of respondents: 628.
     Estimated annual frequency of responses: 1.
    Comments on the two collections of information submitted to OMB 
should be sent to OMB to Office of Management and Budget, Attention: 
Desk Officer for the Department of the Treasury, Office of Information 
and Regulatory Affairs, Washington, DC 20503. A copy should also be 
sent to the Alcohol and Tobacco Tax and Trade Bureau by any of the 
methods previously described. Because OMB must complete its review of 
the collection of information between 30 and 60 days after publication, 
comments on the information collection should be submitted not later 
than January 4, 2012. Comments are specifically requested concerning:
     Whether the two collections of information submitted to 
OMB are necessary for the proper performance of the functions of the 
Alcohol and Tobacco Tax and Trade Bureau, including whether the 
information will have practical utility;
     The accuracy of the estimated burdens associated with the 
two collections of information submitted to OMB;
     How to enhance the quality, utility, and clarity of the 
information to be collected;
     How to minimize the burden of complying with the proposed 
revisions of the collections of information, including the application 
of automated collection techniques or other forms of information 
technology; and
     Estimates of capital or start-up costs and costs of 
operation, maintenance, and purchase of services to provide 
information.

Drafting Information

    Rita D. Butler of the Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, drafted this document.

List of Subjects in 27 CFR Part 19

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Authority delegations (Government agencies), Caribbean Basin 
initiative, Chemicals, Claims, Customs duties and inspection, 
Electronic funds transfers, Excise taxes, Exports, Gasohol, Imports, 
Labeling, Liquors, Packaging and containers, Puerto Rico, Reporting and 
recordkeeping requirements, Research, Security measures, Spices and 
flavorings, Stills, Surety bonds, Transportation, Vinegar, Virgin 
Islands, Warehouses, Wine.

Proposed Amendments to the Regulations

    For the reasons explained in the preamble, TTB proposes to amend 27 
CFR part 19 as set forth below:

PART 19--DISTILLED SPIRITS PLANTS

    1. The authority citation for part 19 continues to read as follows:

    Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006, 
5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114, 5121-
5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181, 
5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 
5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 
5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 
6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 
9304, 9306.


Sec.  19.624  [Amended]

    2. In the last sentence of Sec.  19.624(a), remove the word 
``monthly''.
    3. Section 19.632 is revised to read as follows:


Sec.  19.632  Submission of operations reports.

    (a) Except as otherwise provided in paragraph (b) of this section, 
for each distilled spirits plant registered under this part the 
proprietor must submit to the Director, National Revenue Center, 
reports of distilled spirits operations on the forms specified in this 
section on a monthly basis not later than the 15th day of the month 
following the close of the reporting period. Each report must be 
completed in accordance with the instructions on the applicable form 
and may be submitted either in paper format or electronically via TTB 
Pay.gov. The proprietor must submit the original reports to TTB and 
must retain a copy of each report for its records. The required report 
forms are as follows:
    (1) Distilled Spirits Plant Operations Report--Beverage 
(Nonindustrial) Alcohol, TTB F 5110.77, for any plant holding a basic 
permit issued under the Federal Alcohol Administration Act and part 1 
of this chapter or an operating permit issued under 26 U.S.C. 5171 and 
subpart D of this part that authorizes warehousing of spirits (without 
bottling) for nonindustrial use; and
    (2) Distilled Spirits Plant Operations Report--Industrial Alcohol, 
TTB F 5110.78, for any plant holding an operating permit issued under 
26 U.S.C. 5171 and subpart D of this part that authorizes distilling, 
warehousing, and processing (including denaturing), for industrial use, 
or the manufacture of articles.
    (b) In lieu of monthly reporting under paragraph (a) of this 
section, a proprietor that files quarterly tax returns pursuant to 
Sec.  19.235 must submit quarterly reports of operations. The four 
quarterly reporting periods and report due dates are as follows:

------------------------------------------------------------------------
                  Quarter                             Due date
------------------------------------------------------------------------
January, February, March..................  April 15.
April, May, June..........................  July 15.
July, August, September...................  October 15.
October, November, December...............  January 15.
------------------------------------------------------------------------


(26 U.S.C. 5207)

    Signed: July 15, 2011.
John J. Manfreda,
Administrator.
    Approved: July 26, 2011.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade and Tariff Policy).
[FR Doc. 2011-31142 Filed 12-2-11; 8:45 am]
BILLING CODE 4810-31-P