Due to COVID-19 business disruptions craft breweries are facing, the Alcohol and Tobacco Tax and Trade Burearu (TTB) is waiving the requirement that brewers submit a Notice of Intent to TTB to destroy taxpaid beer in the marketplace, which also alleviates the 12-day waiting period required under TTB regulations. This waiver extends through July 1, 2020.
“We’ve received a number of questions from industry members regarding available options for unmerchantable taxpaid beer that is currently in the marketplace or at a wholesaler,” the TTB noted in an email. “The disposal of beer that is not returned to the brewer is considered a destruction off brewery premises and is authorized under existing regulations.”
This includes beer in kegs that may be destroyed by a wholesaler on the brewer’s behalf, as well as the transfer of taxpaid beer to a distilled spirits plant, which the distillery may use in the production of hand sanitizer.
If you paid tax already on a beer that’s about to be destroyed off premises, you may be refunded or credited without interest. If you haven’t, you are relieved of the tax liability. Oh, and that goes for transferring beer to a distillery for hand sanitizer production as well.
For more info, check out the new Beer Destruction FAQs on the TTB’s site.