This week, the Alcohol and Tobacco Tax and Trade Bureau (TTB) released new guidance (TTB G 2020-4) about tax-free withdrawals of distilled spirits under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and extending approval of the exemptions announced in TTB’s earlier hand sanitizer guidance through December 31, 2020. What this means for you:
DSPs may withdraw distilled spirits, with or without denaturants, tax-free for use in hand sanitizer that is produced and distributed consistent with FDA guidance related to COVID-19.DSPs who produce hand sanitizer may withdraw the hand sanitizer tax-free under the CARES Act if it is produced and distributed in a manner consistent with FDA guidance related to COVID-19.The hand sanitizer guidance released on March 26 has been extended through December 31, 2020.
Be sure to review the full guidance from TTB (with FAQs) and how this may impact your business here.
For additional information on COVID-19 related resources and its impact on businesses, go here. As always, please feel free to contact firstname.lastname@example.org for any questions related to the impact of COVID-19 operations. Stay well and be safe!