How should the reduced tax rates and credits be shown on the tax return, TTB Form 5000.24?
For beer and distilled spirits, the Act provides for reduced rates of tax for certain products removed during calendar years 2018 and 2019. Those rates should be used to calculate the tax due. The total tax due for distilled spirits should be shown on line 9 and the total tax due for beer should be shown on line 11.
For wine, the Act provides tax credits for certain products removed during the calendar years 2018 and 2019. The calculated tax due prior to accounting for the credit should be shown on line 10 and the credit should be calculated in Schedule B, with the resulting decreasing adjustment incorporated into line 20.
The Tax and Trade Bureau (TTB) has posted further information of interest to brewers as part of the continuing effort to provide guidance concerning the recently reduced excise tax rates. The new information follows and complete information is available on TTB’s Craft Beverage Modernization and Tax Reform page.