{"id":4430,"date":"2023-09-06T13:30:00","date_gmt":"2023-09-06T13:30:00","guid":{"rendered":"https:\/\/fx5.com\/en-gb\/?p=4430"},"modified":"2023-09-07T07:04:53","modified_gmt":"2023-09-07T07:04:53","slug":"ttb-jail-4-famous-ttb-fines","status":"publish","type":"post","link":"https:\/\/fx5.com\/en-gb\/ttb-jail-4-famous-ttb-fines\/","title":{"rendered":"TTB &#8220;Jail&#8221; \u2013 4 Famous TTB Fines\u00a0"},"content":{"rendered":"\n<p>As a rule, the Alcohol &amp; Tobacco Tax &amp; Trade Bureau (TTB) would prefer to work with industry members to guide them into compliance, rather than levying large fines or shutting businesses down.&nbsp; In fact, TTB even has a Voluntary Disclosure program that can help you minimize business disruption and cost, should you find yourself in a non-compliant position.&nbsp;<\/p>\n\n\n\n<p>But if you break the law big enough, large TTB fines are levied and they can even prosecute individuals.\u00a0 Here\u2019s a few examples of these rarer but fascinating cases.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Pick a Lane\u00a0<\/h2>\n\n\n\n<p>In 2022, five men plead guilty to charges stemming from a North Carolina investigation of illicit liquor production.&nbsp; These individuals allegedly produced 9,000 gallons of moonshine from 2018-2020 and sold it across state lines and to law enforcement personnel.&nbsp; One of the accused is employed as the Master Distiller of a legitimate distillery, and the complaint alleges that this individual sold illicit liquor to undercover federal agents <em>in the parking lot<\/em> of the legal distillery.&nbsp; The same individual had been sentenced for violating federal liquor laws 50 years ago.&nbsp; See <a href=\"https:\/\/www.ttb.gov\/press\/press-release-fy-22-4\" target=\"_blank\" rel=\"noreferrer noopener\">TTB Press Release<\/a>, <a href=\"https:\/\/www.journalpatriot.com\/news\/5-sentenced-in-wilkes-moonshine-case\/article_d5c9a8b1-9372-518d-b555-16e771d90397.html\" target=\"_blank\" rel=\"noreferrer noopener\">News Article<\/a> &amp; <a href=\"https:\/\/www.pacermonitor.com\/public\/case\/41465711\/USA_v_Nance_et_al\" target=\"_blank\" rel=\"noreferrer noopener\">Federal Case<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. A Payment, By Any Other Name\u2026\u00a0\u00a0<\/h2>\n\n\n\n<p>Cutwater Spirits, which is owned by Anheuser-Busch, recently found themselves the subject of a $169,850 \u201coffer in compromise\u201d (OIC), settling violations that occurred in 2021-2022.&nbsp; The cause?&nbsp; Paying excise tax via paper check instead of electronic transfer.&nbsp; They paid their taxes correctly, on time and in full, but they did not use the payment method specified by <a href=\"https:\/\/www.law.cornell.edu\/cfr\/text\/27\/19.240\" target=\"_blank\" rel=\"noreferrer noopener\">27 CFR 19.240<\/a>.&nbsp; That regulation requires payors with over $5 million in annual liability to pay via electronic means.&nbsp; See <a href=\"https:\/\/www.ttb.gov\/images\/fo\/2023-offers-in-compromise-accepted\/Cutwater_Spirits_OIC_Redacted.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Offer in Compromise<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">3. LeVecke Me Out of It\u00a0<\/h2>\n\n\n\n<p>LeVecke Corporation, (in)famous producer of Kirkland Signature Vodka, found itself accused of a laundry list of excise and recordkeeping\/tax determination violations back in 2021.&nbsp; From miscalculating flavor credits to failing to file\/pay excise returns, this particular <a href=\"https:\/\/www.ttb.gov\/images\/pdfs\/fo-compromise\/2021\/levecke-oic_redacted.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Offer in Compromise<\/a> really runs the gamut and totals out at over $40 million in alleged unpaid excise tax.&nbsp;<\/p>\n\n\n\n<p>TTB examined LeVecke\u2019s books and concluded that there was some doubt as to LeVecke\u2019s ability to pay the full amount, and so the government settled for a \u201cmere\u201d $28 million to be paid over 6 years.\u00a0 By this author\u2019s quick math, they should have paid about $18.5 million out of the $28 million by now (September 2023).\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4. Sponsorship Gone Awry\u00a0<\/h2>\n\n\n\n<p>While <a href=\"https:\/\/www.ttb.gov\/images\/pdfs\/fo-compromise\/2020\/anheuser-busch-oic_redacted1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">this OIC involves a beer producer<\/a> instead of a spirits producer, the regulation that was allegedly violated applies to distilleries, too.\u00a0 In 2020, TTB accused Anheuser-Busch of violating \u201ctied house\u201d trade practice violations, stemming from their sponsorship of \u201cvarious entities in the sports and entertainment industries\u201d.\u00a0 A-B is accused of using certain tactics to increase share and exclude competition.\u00a0 Without admitting fault, A-B offered to put the accusations to bed with a $5 million lump sum payment, which the TTB accepted.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a rule, the Alcohol &amp; Tobacco Tax &amp; Trade Bureau (TTB) would prefer to work with industry members to guide them into compliance, rather than levying large fines or shutting businesses down.&nbsp; In fact, TTB even has a Voluntary Disclosure program that can help you minimize business disruption and cost, should you find yourself [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":3354,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_gallop_menu_shadow":false,"content-type":"","inline_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-4430","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized","8":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>TTB &quot;Jail&quot; \u2013 4 Famous TTB Fines\u00a0 - FIVE x 5\u00ae<\/title>\n<meta name=\"description\" content=\"If you break the law big enough, large TTB fines are levied and they can even prosecute individuals.\u00a0 Here\u2019s a few examples of these rarer but fascinating cases.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fx5.com\/en-gb\/ttb-jail-4-famous-ttb-fines\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TTB &quot;Jail&quot; 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