The Alcohol and Tobacco Tax and Trade Bureau (TTB) has accepted an “offer in compromise” from five alcohol beverage industry companies in the last few months for alleged tax violations. The amount of the compromise in these five cases ranged from $57,000 to $1.17 million.
A compromise is an agreement made between the TTB and an alleged violator in lieu of civil proceedings or criminal prosecution. The amount varies depending on the alleged violation.
The TTB generally considers offers in compromise for any violation of the laws and regulations it administers, and TTB will provide appropriate assistance to any person or business that wishes to make an Offer in Compromise.
27 CFR Part 71 also allows the TTB to suspend an industry member’s permit if the permit holder has willfully violated any condition of its basic permit. An industry member can agree to a stipulated suspension prior to the initiation of a formal hearing. If an informal resolution cannot be reached, the FAA Act allows for permit suspension after notice is given to the permit holder; a hearing is held; and, the agencies charges are upheld.
Industry members can elect to voluntarily surrender their permit in lieu of administrative action being taken against their permit. This usually occurs after the industry member has been issued an Order to Show Cause.
To see all TTB offers in compromise issued over the last year, go here.