July 1, 2002 Is The Deadline For Paying
Beverage Alcohol Federal Special Occupational Taxes

Washington, DC - The Bureau of Alcohol, Tobacco and Firearms (ATF) reminds retailers and wholesalers of beverage alcohol of the approaching due date for filing a registration and return and for paying their Federal special occupational tax for Tax Year 2003.

Special taxes are due July 1 each year from retailers and wholesalers of liquor, wine and beer products (including 3.2% beer, wine coolers, beer coolers, and prepared cocktails). The tax applies to all types of retail and wholesale sales, including package sales, by-the-drink sales, and sales for on-site and off-site consumption. Among the businesses that may be subject to the tax as retailers are bars, restaurants, grocery stores, convenience stores, snack bars, caterers, florists, limousine services, bowling alleys, golf courses, pool halls, bingo halls, fraternal organizations, and other businesses that sell or serve these products for a fee.

Businesses must pay this tax even if there is no direct fee for the beverages served, such as when drinks are provided only to customers who pay a general fee for other services. This situation often applies to limousine services, florists, airport lounges, clubs, and similar operations.

Businesses must pay this tax annually. Retailers must pay $250 and wholesalers $500 for each place of business at which alcohol beverages are sold or served. ATF reminds taxpayers that it is in their interest to pay the taxes on time. Interest and penalties are added to any delinquent payments.

Renewal registration and return forms will be mailed beginning in May. If any business that is liable for the tax does not receive the forms by mid-June, it should call the nearest ATF field office. Taxpayers should complete the forms and mail them, along with a check or money order, by July 1 to the ATF address listed on the instruction sheet accompanying the forms.

ATTENTION NON-ATF PUBLICATION EDITORS: You are authorized within this news release to further print this information in organizational magazines, periodicals, and newsletters without additional approval from ATF.

For further information, contact ATF's Office of Liaison and Public Information at (202) 927-8500, or visit ATF's web site at www.atf.treas.gov.