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TTB Form 5620.8, Claim – Alcohol, Tobacco and Firearms Taxes
Purpose
TTB Form 5620.8 main purpose is for businesses to file claims with the Alcohol and Tobacco Tax and Trade Bureau (TTB) for the payment (refund or allowance of credit) of Federal excise taxes paid on beverage alcohol or tobacco products lost, rendered unmarketable, or condemned by a duly authorized official under various circumstances, including where the President has declared a major disaster. Claims may also be filed for tax assessed or collected erroneously or excessively or for tax paid on spirits used in the manufacture of non-beverage products. These claims are filed by an Industry member to recoup excise taxes. Claims may also be filed for remission of tax relating to a loss or destruction on bonded premises.
All claims need to be signed by someone with signing authority (except Disaster Claims) and must be executed under the penalty of perjury clause.
Deadlines for Filing
For beer, wine or spirits; claims must be filed within 6 months of the date of return, loss, destruction or rendering unmerchantable.
Claims for tobacco products lost, destroyed or withdrawn from the market must also be filed within 6 months.
For a manufacturer of non-beverage products, TTB Form 5620.8 is required to be filed within 6 months (27 CFR 17.145) from the end of the quarter; in which the spirits were used to be considered timely.
A claim for overpayment of tax shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid.
Forward the original to:
Alcohol and Tobacco Tax and Trade Bureau
National Revenue Center
Room 8002 Federal Office Building
550 Main Street
Cincinnati, Ohio 45202
Before You Begin
The following is a list of all the materials and related information you should collect before beginning Form 5620.8.
- EIN number
- Registry/Permit number
- Calculation of tax amount being claimed
- A copy of the completed Form 5620.8 you submitted for the previous reporting period (MNBPs only)
- Documentation of inventories taken this quarter. Remember, your beginning inventory for this reporting period must agree with the ending inventory from the previous reporting period (MNBPs only)
- Documentation to provide sufficient support for adjustments
- Documentation to provide sufficient support for reported losses
- All documentation should include the information required in Title 27 of the Code of Federal Regulations. Please refer to Part 17 for Drawback on Taxpaid Spirits used in Manufacturing Non-Beverage Products, Part 19 for Distilled Spirits, Part 24 for Wine, Part 25 for Beer and Part 40 for Tobacco
Manufacturer of Non-Beverage Product (MNBP)
Do I need a permit?
Permits are not issued for the use of pure grain alcohol (ethyl alcohol) in the manufacturing of a nonbeverage product. You would pay SOT of $500 per year (cannot be pro-rated; however the payment of SOT is currently suspended for three years beginning 7/1/05 through 6/30/08 but a return must still be filed during this period.), file a formula (within 6 months from the end of the quarter in which the formula was manufactured or it will be considered a late filed formula and a penalty will be imposed) with our Laboratory, file either ATF Form 5100.1 (Signing Authority for Corporate and LLC Officials) or ATF Form 5000.8 (Power of Attorney) and file a claim with our office.
How do I file a claim?
File an SOT, file a formula with the lab, and file ATF Forms 2635 (5620.8), along with the supporting data ATF Form 5154.2 and signing authority. You have the option of filing either monthly or quarterly claims. If you wish to file a monthly claim, you will need to submit ATF Form 5154.3, Bond for Drawback.
How much will the bond need to be for if I decide to file monthly claims?
Your bond total will need to cover an entire quarter of claims (i.e. If your January claim is for $5,000, February claim is for $5,000, and March claim is for $5,000, your bond would need to be at least $15,000). Maximum Bond is $200,000 (per 27 CFR 22.144).
What is considered a quarter?
A quarter is every three months (Jan – March, April – June, July – Sept and Oct. – Dec.).
What is the excise tax rate of the alcohol?
The normal excise tax rate is $13.50 but can vary especially on rums. The drawback is based on the excise tax rate less $1.00 per 27 CFR 17.141.
What is an intermediate formula?
An intermediate formula is a formula that has been disapproved; however, it is used in the manufacturing of an approved formula. See 27 CFR, Section 17.126. The alcohol can be claimed on an intermediate formula once it has been used in the approved alcohol.
How long do I have to file a claim?
You would want to submit your claim within 6 months of the end of the quarter in which the alcohol is used or it will be considered late and a penalty will be given on your claim (per 27 CFR 22.145). NOTE: In no case will a claim be paid more than 6 years after the quarter in which the products were manufactured, due to the statute of limitations of 28 USC 2401.
What is a gain?
A gain is where you have more alcohol then was ordered and paid for. (i.e. You ordered and paid for a 55-gallon drum, however, when you weighed the alcohol into your inventory you discovered you have a 56-gallon drum. That 1 gallon would be a gain and you would need to report the gain and you would not be able to file drawback on the gain since you did not pay the excise tax on the gain.) per 27 CFR 17.167
What is a loss?
A loss is considered spillage, leakage, breakage or theft per 27 CFR 17.151.
What is considered a nonbeverage product?
There are 6 categories of MNBP – medicines, medicinal preparations, food products, flavors, flavoring extracts or perfume. These products must be unfit for beverage.
What is a Remission of Tax Claim?
A qualified permittee, manufacturer, or proprietor may file a claim for remission of tax on the quantity of distilled spirits, (including distilling material and denatured spirits) or tobacco products that were lost or destroyed while in bond, if the tax has not been paid or determined. Claim of this type may also be filed to cover untaxpaid beer lost in transit between breweries and untaxed paid wine removed for export, but lost while in transit to the point of export. Note: This type of claim may be filed only by the person liable for paying the tax.
What is an Abatement of Tax Claim?
A claim of abatement of tax on firearms, ammunition, distilled spirits, wines, beer, or tobacco products may be filed if the tax is assessed or has been assessed excessively and the taxpayer believes that the tax, or any portion of the tax, is not due.
What is a Refund or Credit of Tax Claim?
A claim may be filed by a taxpayer for an overpayment of any tax imposed by title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years of the time the tax was paid.
What is a Disaster Claim?
According to 26 USC Section 5064 and 27 CFR 70.603, a claim filed within 6 months of the disaster and claimant must prove he has not be indemnified by insurance or otherwise in respect to the tax. Must provide a copy of the insurance policy.
What is a Drawback Claim?
A manufacturer of nonbeverage products may file a claim for drawback on distilled spirits used in a TTB approved formula for use as a medicine, medicinal preparation, food product, flavor, flavor extract or any other TTB approved nonbeverage product. Formulas which are stated in the current revisions or editions of the United States Pharmacopoeia (U.S.P.), the National Formulary (N.F.), or the Homeopathic Pharmacopoeia of the United States (H.P.U.S.) are considered approved formulas.
Who can sign a claim?
Person with signing authority on file TTB on Form 5000.8, Power of Attorney or Form 5100.1, Signing Authority for Corporate and LLC Officials. Exception to this rule is if it is a disaster claim because most retailers do not have a permit with TTB.
Do I have to pay Special Occupation Tax prior to filing a claim?
You do not have to pay the Special Occupation Tax at this time (It has been suspended through 6/30/08); however, you must register every year by July 1 for the following tax year. If you are not registered, your claim could be denied or delayed.
Can I take a credit on my tax return for a claim filed?
Yes, if you filed an allowance for credit claim with TTB. You cannot take the credit until the claim is approved by TTB.
What are the uses of tax paid distilled spirits?
Uses of tax paid distilled spirits in the manufacturing of medicines, medicinal preparations, food products, flavors, flavoring extract, and perfumes.
Are we required to take a physical inventory?
Yes, claimants are required to take a physical inventory at the end of each quarter unless no production was made in a quarter (27 CFR 17.167).
Can claims be reopened?
No claim is reopened. Adjustment must be made on all future claims.
What is the drawback rate?
The drawback rate is $1.00 less than the effective tax rate on distilled spirits.
Are any other forms required to accompany the claim form?
All claimants must have Form 5154.2, Supporting Data attached to the claim.
Wine
What supporting documents are required for claims on wine lost or destroyed in bond?
These claims are supported by affidavits of persons having knowledge of the loss or destruction. If the claim was filed for tax on wine or spirits lost in transit, a copy of the carrier’s bill of lading must be provided.
Under what circumstances can unmerchantable wine be returned to bonded wine premises?
It may be returned for reconditioning, reformulation or destruction.
What information is required on a claim for unmerchantable wine returned to bonded wine premises?
The kind, volume, and tax class of wine; as to each tax class, the amount of tax previously paid or determined; and the date the wine was returned to bond (must be filed with TTB within 6 months after the date of the return.)
The claimant must also specify whether they have or will be indemnified or recompensed from insurance.When must a claim for allowance of loss on wine be filed?
A claim for allowance of loss for wine lost in transit, by fire or other casualty or any other extraordinary or unusual losses including theft, must be filed immediately.
Please mail the claim form to:
TTB-NRC
550 Main Street, Ste 8002
Cincinnati, OH 45202
What information must an allowance of loss on wine claim contain?
The original volume of wine which sustained the loss, the tax class, the quantity of wine lost, and the percentage of wine lost.
What is a Remission of Tax Claim?
A qualified permittee, manufacturer, or proprietor may file a claim for remission of tax on the quantity of distilled spirits, (including distilling material and denatured spirits) or tobacco products that were lost or destroyed while in bond, if the tax has not been paid or determined. Claim of this type may also be filed to cover untaxpaid beer lost in transit between breweries and untaxed paid wine removed for export, but lost while in transit to the point of export. Note: This type of claim may be filed only by the person liable for paying the tax.
What is an Abatement of Tax Claim?
A claim of abatement of tax on firearms, ammunition, distilled spirits, wines, beer, or tobacco products may be filed if the tax is assessed or has been assessed excessively and the taxpayer believes that the tax, or any portion of the tax, is not due.
What is a Refund or Credit of Tax Claim?
A claim may be filed by a taxpayer for an overpayment of any tax imposed by title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years of the time the tax was paid.
What is a Disaster Claim?
According to 26 USC Section 5064 and 27 CFR 70.603, a claim filed within 6 months of the disaster and claimant must prove he has not be indemnified by insurance or otherwise in respect to the tax. Must provide a copy of the insurance policy.
Who can sign a claim?
Person with signing authority on file TTB on Form 5000.8, Power of Attorney or Form 5100.1, Signing Authority for Corporate Officials. Exception to this rule is if it is a disaster claim because most retailers do not have a permit with TTB.
Do I have to pay Special Occupation Tax prior to filing a claim?
You do not have to pay the Special Occupation Tax at this time; however, you must register every year by July 1 for the following tax year. If you are not registered, your claim could be denied or delayed.
Can I take a credit on my tax return for a claim filed?
Yes, if you filed an allowance for credit claim with TTB. You cannot take the credit until the claim is approved by TTB.
Beer
Must I notify TTB when I have beer to be destroyed off premises?
Yes, a brewer must notify TTB when they wish to destroy taxpaid or tax determined beer at a location other than one of their breweries. The written notice must specify the date on which the beer is to be destroyed; this date must not be less than 12 days from the date the notice is mailed to TTB.
Is there a time limit on filing a claim for beer that has been destroyed?
Yes, claims for tax on beer destroyed must be filed within 6 months of the date of destruction.
Must I notify TTB when I have a loss of beer or possess unmerchantable beer?
Yes, a brewer who sustains a loss of beer before transfer of title of the beer to another person and who desires to adjust the tax on the excise tax return or file a claim for refund or relief from liability of tax, must, on learning of the loss of beer, immediately notify in writing the appropriate TTB officer of the nature, cause, and extent of the loss, and the place where the loss occurred. Statements of witnesses or other supporting documents must be furnished if available.
A brewer possessing unmerchantable beer who desires to adjust the tax return or to file a claim for refund or for relief from liability must notify in writing the appropriate TTB officer, of the circumstances by which the beer became unmerchantable, and must state why the beer cannot be salvaged.
May I return beer to the brewery prior to filing a notice of intention?
Yes, the brewer may bring beer onto the brewery premises prior to filing the notice. The brewer shall segregate the returned beer from all other beer at the brewery and clearly identify it as returned beer. The returned beer will be retained intact for inspection by a TTB officer until the notice has been filed and disposition authorized.
May I make an adjustment for tax on beer returned to the brewery?
Yes, a brewer may make an adjustment (without interest) on the excise tax return for taxpaid beer returned to the brewery, or voluntarily destroyed, lost, destroyed or rendered unmerchantable. If the beer is returned to a brewery other than from which removed, the adjustment is made on the tax return filed for the brewery to which the beer was returned. The adjustment may not be made prior to the return of beer to the brewery.
Beer has been in lost in transit between breweries of the same ownership. May I file a claim for the taxes?
Yes, a claim for remission shall be filed and submitted with Form 5130.9 of the receiving brewery for the reporting period in which the shipment was received. The claim must be filed within 6 months of the date of the loss.
What information must be shown on a remission claim for beer lost in transit?
The date of the shipment, the quantity of beer, the percent of loss, the specific cause of the loss, the nature of the loss, and information as to whether the claimant has been indemnified by insurance. For losses due to casualty or accident, a statement from the carrier or other persons having personal knowledge of the loss, if available.
What must I do when there is an emergency destruction such as a truck wreck, train wreck, etc.?
You must notify TTB immediately to request an emergency destruction and provide proof that the shipment is not covered by any insurance claim.
What is a Remission of Tax Claim?
A qualified permittee, manufacturer, or proprietor may file a claim for remission of tax on the quantity of distilled spirits, (including distilling material and denatured spirits) or tobacco products that were lost or destroyed while in bond, if the tax has not been paid or determined. Claim of this type may also be filed to cover untaxpaid beer lost in transit between breweries and untaxed paid wine removed for export, but lost while in transit to the point of export. Note: This type of claim may be filed only by the person liable for paying the tax.
What is an Abatement of Tax Claim?
A claim of abatement of tax on firearms, ammunition, distilled spirits, wines, beer, or tobacco products may be filed if the tax is assessed or has been assessed excessively and the taxpayer believes that the tax, or any portion of the tax, is not due.
What is a Refund or Credit of Tax Claim?
A claim may be filed by a taxpayer for an overpayment of any tax imposed by title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years of the time the tax was paid.
What is a Disaster Claim?
According to 26 USC Section 5064 and 27 CFR 70.603, a claim filed within 6 months of the disaster and claimant must prove he has not be indemnified by insurance or otherwise in respect to the tax. Must provide a copy of the insurance policy.
Who can sign a claim?
Person with signing authority on file TTB on Form 5000.8, Power of Attorney or Form 5100.1, Signing Authority for Corporate Officials. Exception to this rule is if it is a disaster claim because most retailers do not have a permit with TTB.
Do I have to pay Special Occupation Tax prior to filing a claim?
You do not have to pay the Special Occupation Tax at this time (It has been suspended through 6/30/08); however, you must register every year by July 1 for the following tax year. If you are not registered, your claim could be denied or delayed.
Can I take a credit on my tax return for a claim filed?
Yes, if you filed an allowance for credit claim with TTB. You cannot take the credit until the claim is approved by TTB.
Distilled Spirits
What is a Remission of Tax Claim?
A qualified permittee, manufacturer, or proprietor may file a claim for remission of tax on the quantity of distilled spirits, (including distilling material and denatured spirits) or tobacco products that were lost or destroyed while in bond, if the tax has not been paid or determined. Claim of this type may also be filed to cover untaxpaid beer lost in transit between breweries and untaxed paid wine removed for export, but lost while in transit to the point of export. Note: This type of claim may be filed only by the person liable for paying the tax.
What is a Return to Bond Claim?
The most common filed claim (27 CFR 19.681) is filed when tax paid spirits are returned to bond premises for one of the following; destruction, denaturation, redistillation, reconditioning, and rebottling.
What is an Abatement of Tax Claim?
A claim of abatement of tax on firearms, ammunition, distilled spirits, wines, beer, or tobacco products may be filed if the tax is assessed or has been assessed excessively and the taxpayer believes that the tax, or any portion of the tax, is not due.
What is a Refund or Credit of Tax Claim?
A claim may be filed by a taxpayer for an overpayment of any tax imposed by title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years of the time the tax was paid.
What is a Disaster Claim?
According to 26 USC Section 5064 and 27 CFR 70.603, a claim filed within 6 months of the disaster and claimant must prove he has not be indemnified by insurance or otherwise in respect to the tax. Must provide a copy of the insurance policy.
Who can sign a claim?
Person with signing authority on file TTB on Form 5000.8, Power of Attorney or Form 5100.1, Signing Authority for Corporate and LLC Officials. Exception to this rule is if it is a disaster claim because most retailers do not have a permit with TTB.
How would I calculate the amount of the claim?
Take the excise tax rate (usually $13.50 per proof gallons) and multiply it by the proof gallons.
Do I have to pay Special Occupation Tax prior to filing a claim?
You do not have to pay the Special Occupation Tax at this time (It has been suspended through 6/30/08); however, you must register every year by July 1 for the following tax year. If you are not registered, your claim could be denied or delayed.
I made an overpayment on my excise tax return. Can I recoup this?
Yes by filing a claim under 27 CFR 19.45 for refund or credit. Claimant cannot make an adjustment entry on the tax return until pending action on the claim has been taken by TTB.
The tanker that was transporting product on a transfer in bond has an accident and the product has been lost can I file a claim for the taxes?
Yes you would file a remission of tax claim covered under 27 CFR 19.41. You must supply the following information on your claim: Identification and location of the containers from which the spirits were lost, removed or destroyed, quantity of spirits, amount of tax, name, number and address from which withdrawn without payment of tax are removed for transfer in bond, date of the loss, name of the carrier, the name and address of the consignee. You would also want to supply the police report or other documentation to show the lost of the spirits. You will also want to supply a statement from the carrier that they are not reimbursing you the excise taxes on the spirits.
Can I take a credit on my tax return for a claim filed?
Yes, if you filed an allowance for credit claim with TTB. You cannot take the credit until the claim is approved by TTB.
If spirits are returned to a permit premises and will be resold can I file a claim on the spirits?
No, unless you are going to destroy, denature, redistill, recondition or rebottle the product prior to reselling it. If you are going to be doing one of these with the product then you can file a return to bond claim. All return to bond claims must supply the information required by 27 CFR 19.42 (quantity of spirits, amount of tax, name, address and plant number of the plant to which the spirits were returned, date of return and serial number of the gauge record on which the spirits were returned, or lot number for barrels of spirits.
Tobacco
What is a Remission of Tax Claim?
A qualified permittee, manufacturer, or proprietor may file a claim for remission of tax on the quantity of distilled spirits, (including distilling material and denatured spirits) or tobacco products that were lost or destroyed while in bond, if the tax has not been paid or determined. Claim of this type may also be filed to cover untaxpaid beer lost in transit between breweries and untaxed paid wine removed for export, but lost while in transit to the point of export. Note: This type of claim may be filed only by the person liable for paying the tax.
What is an Abatement of Tax Claim?
A claim of abatement of tax on firearms, ammunition, distilled spirits, wines, beer, or tobacco products may be filed if the tax is assessed or has been assessed excessively and the taxpayer believes that the tax, or any portion of the tax, is not due.
What is a Refund or Credit of Tax Claim?
A claim may be filed by a taxpayer for an overpayment of any tax imposed by title in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years of the time the tax was paid.
What is a Disaster Claim?
26 USC Section 5064 and 27CFR 70.603- A claim filed within 6 months of the disaster and claimant must prove he has not be indemnified by insurance or otherwise in respect to the tax. Must provide a copy of the insurance policy.
Who can sign a claim?
Person with signing authority on file TTB on Form 5000.8, Power of Attorney or Form 5100.1, Signing Authority for Corporate Officials. Exception to this rule is if it is a disaster claim because most retailers do not have a permit with TTB.
Do I have to pay Special Occupation Tax prior to filing a claim?
Yes, you must file & pay SOT in the amount of $1000 or $500 for the reduced rate.
Can I take a credit on my tax return for a claim filed?
Yes, if you filed an allowance for credit claim with TTB. You cannot take the credit until the claim is approved by TTB.
What is the meaning of, “Kind of Tax” as listed in Item 6 on the form?
If you overpaid on Federal Excise Tax or are claiming tax you paid on a product that was withdrawn from the market (for return to bond, destruction, reduction to material, etc.) you would enter “Excise Tax” in this field. For most Tobacco Manufacturing Plants, Excise Tax is the most common type of claim.
What is the statement that must be present on all claims?
The tax imposed on tobacco products by 26 USC or Chapter 52, as applicable, has been paid in respect to the articles covered by the claim, and that the products were lost, destroyed or withdrawn from market within 6 months proceeding the date the claim was filed, and shall be executed under the penalties of perjury
Why can’t an importer get a credit on future taxes?
Importers must pay all Federal Excise Tax to US Customs and Border Patrol (USCBP) upon release of tobacco products from Customs custody. USCBP determines the Importer’s tax liability and collects his tax, but does not report these collected taxes on TTB. On that same line, when TTB approves a claim for a tobacco importer, we cannot report this information to USCBP. An approved TTB credit on future Excise Tax can only be used on taxes paid to TTB.
What is the process for filing a claim on destroyed imported tobacco?
You must first file Form 5200.7 for prior authorization to destroy. After the destruction, you or an authorized TTB inspector must complete the reverse side to certify the quantity and method of destruction. You will the attach 5200.7 to you claim form, attach proof of payment of tax, and submit to TTB.
Can a small business combine returns of product and schedule to destroy them all at once?
It is permissible for you to hold customer returns until you have determined there is enough product to schedule a destruction. If you intended to file a claim for the tax that was paid, please bear in mind that you must still file Form 5200.7 with our office prior to any destruction, and you must retain all related entry summaries and proof of payment of tax to submit with the claim.
Are there any time restrictions of filing a claim on imported tobacco products?
To be considered timely, your claim must be postmarked within 6 months of the date we received your 5200.7, Schedule of Tobacco Products, Cigarette Papers or Tubes, withdrawn from the market.
My imported tobacco was stolen while in transit within the US. The tax was paid, can I file a claim?
Tobacco regulations that apply to importers of tobacco products specifically exclude theft as a basis for filing a claim on excise tax payment. Therefore, we can’t refund excise tax that was paid on the product. Importers seeking reimbursement for tax on stolen articles should refer to their insurance policy, or the policy of the transit company for relief (27 CFR 41.165).
Last updated: August 22, 2024