Are Commercial Vinegar Producers Regulated by TTB?
At recent conferences, we’ve been asked if TTB regulates vinegar producers. Yes, we do—under certain circumstances. Many vinegar production methods include a stage where alcohol has developed, but vinegar, with its distinctive sour taste, has not. We regulate commercial vinegar production when there is potential federal excise tax liability as beverage alcohol under 26 U.S.C. 5001, 5041, or 5051 at any stage of production, including on raw materials used to make the vinegar.
Find more information about TTB requirements to produce regulated types of finished vinegar in FAQ G7 and at TTB.gov.
TTB Accepts Offer in Compromise
 We have accepted an offer in compromise from Travis G. Heron, Gary C. Sanden d/b/a Seneca Manufacturing for failing to correctly calculate the constructive sales prices for large cigars and overstating allowable tax-free small cigarettes for employees. A constructive sales price must be calculated in accordance with 26 U.S.C. § 4216(b) when large cigars are sold at less than the fair market price in a transaction that is not at arm's length.
You may view all TTB administrative actions on TTB.gov.
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