TTB’s use of an offer in compromise for tax liability issues
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TTB’s use of an offer in compromise for tax liability issues

On Behalf of | Dec 14, 2022 | Alcoholic Beverage Law |

The Alcohol and Tobacco Tax and Trade Bureau (TTB) oversees much of the alcoholic beverage industry, including tax and compliance issues. Ensuring industry members are paying their taxes in a timely manner is a key part of what the TTB does, and it can be helpful for industry members to know the penalties for falling out of compliance with these matters.

In such cases, the TTB can reach out to these industry members to determine what should be done. For instance, a Pittsburgh distillery was recently accused of several violations, including failing to file tax returns and conducting unauthorized plant operations over a four-year period. These violations amounted to nearly $100,000 owed by the distillery.

What happened as a result? Here’s how the TTB took action:

Submitting an offer in compromise

What the TTB did in this case was to issue an offer in compromise, or an OIC. This offer was for the distillery to pay just over $61,000, or about two-thirds of the total amount that was actually owed. Moreover, since even this one-time payment could be impossible for some businesses, the offer proposed paying off the total amount in monthly installments over the course of one year. In the end, the distillery was able to accept the offer, pay less than what was owed and spread those payments out, a satisfactory solution for all involved. 

What are your options in a situation like this?

Finding yourself and your business in a situation like this can feel impossible. There is a lot of money on the line, the federal government is involved and you may be concerned about the future of your business. But, as you can see, there are many different options to be explored. Carefully consider all of the legal options you have with an experienced alcoholic beverage law attorney to determine the best course of action.