Changes to the federal tax code implemented at the beginning of the year could alleviate burdensome financial and bureaucratic rules for many craft beverage makers.
Under the new law, small craft brewers, cider makers and distillers generating less than $50,000 in tax liabilities are no longer required to pay bond requirements to the federal government. In the past, those craft beverage producers were required to pay upfront so the government could guarantee payment for the year if the business failed to pay its taxes.
“It was a guarantee that the federal government had the money if you disappeared in the middle of the night,” said Paul Gatza, director of the Brewers Association, a Boulder Colo.-based industry group. “They’ll still have to pay the taxes, but they won’t have to have the extra money on file with the government in perpetuity.” READ MORE…
