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One of the many advantages of working with FIVE x 5 Solutions is that we’re tapped in to what’s happening in the world of distilling. During our usual monitoring, we’ve noticed an uptick in enforcement actions by the TTB as more distilleries are experiencing a TTB audit. With pandemic restrictions easing, it makes sense that Treasury Agents are getting back into the swing of things.
What do you need to know? Well, there’s no single answer to that question, but audits typically center around operations, product integrity and record-keeping.
Regulators may ask to see your gauging equipment, and they often take sample bottles for the purpose of testing the proof and/or fill height. Sometimes, they will want to audit your physical inventory, and they’ll often compare the equipment and processes on your DSP Permit to the ones at your facility. These are just a few of the possibilities.
The TTB recently published a presentation from an industry conference entitled “What to Expect in a TTB Product Integrity Investigation,” which has a great overview of what they are looking at during a TTB audit.
When it comes to your record-keeping requirements, that’s where DISTILL x 5 and Whiskey Systems have you covered. Our software was built out of the Code of Federal Regulations and, when used correctly, will provide you with all of the digital records that might be requested during a TTB audit. They’re all stored in our secure cloud, regularly backed up, and you have access to 5 years of past records – more than enough to meet the 3-year retention that the TTB requires.
Are you confused, or even worried? Don’t be! We have lots of resources to help:
- Our Consulting wing has years of experience and has helped clients defend against audits. Did you know you can get 20 minutes on the phone with our Lead Consultant for free and with no obligation? Click here to book now!
- FIVE x 5 Tax & Reporting Webinar
Tyler Derheim is Fx5’s in-house consultant, using his expertise to help distilleries of all sizes make it easier to make great things. Tyler first entered the regulated beverage industry in 2010, when he started working harvest and crush at a midsize winery in Slovenia. After returning to California in 2017 he joined a startup DSP, with responsibilities for formulation, production, compliance, lab services, and more. In 18 months, he led the DSP from mason jars and buckets to tankers and trailers, then moved into a freelance consulting role, helping distilleries of all sizes with every aspect of production, operations, and compliance. A long-time Fx5 user, Tyler brings a wealth of experience unmatched in the industry.
