Did You Recently Receive a TTB Registration Form?

May 11, 2005

This week, some users have received a registration form from the TTB. According to TTB representatives, this is part of the TTB's routine process of sending renewal forms. WineCommune has not recently been subpoenaed by or turned over any information to the TTB (or any other agency) about any of our users. While in early 2004 (over a year ago) the TTB subpoenaed us and compelled us to turn over information on some sellers, the TTB has not reapproached us and we have not provided them with any information since that time.

Below I have included information about that original subpoena.

According to the TTB, the form you are receiving is their routine annual renewal form. It is sent as a convenience. It is not a determination that you are required to register.

Further, according to the TTB you can notify them that you will not need the form in the future and can be asked to be removed from the list.

WineCommune is not able to provide legal or tax advice, but if you have questions about the notice you received, we urge you to contact the TTB or an attorney. You can contact Robin Paxton at the TTB at (513) 684-3529 directly for more information.

If you have any questions, please feel free to contact me directly.

Thank you.

Michael Stajer
WineCommune

Originally posted in August 2004:

A Note About the ATTB

Some WineCommune.com users have recently received a notice by the Alcohol and Tobacco Tax Trade Bureau (TTB) to pay an occupational tax in the amount of $250.00 for their sales of wine on the Internet. We are informed that there will be no fines or penalties associated with this tax, and these few sellers are only being asked to pay the current tax year. Most WineCommune users will not be affected, and the sellers that commonly pay this tax each year are wine retailers. But those few who did receive the notice that do not own wine shops and do not generally consider themselves to be in the business of selling wine, are understandably concerned.

The TTB has discretion for determining which sellers are subject to this tax, and we understand that TTB intends only to apply the tax to sellers who sell a substantial amount of wine in the current tax year. The TTB does not consider the activity of selling wine on the Internet to be illegal (provided you are in compliance with any applicable local, state and federal laws), but if you meet their criteria, they will seek to collect their federal tax mandate where they deem it applicable.

WineCommune received a subpoena from the TTB, and it was immediately reviewed by WineCommune's lawyers. Our lawyers informed us that we were required by law to provide the information sought to the TTB.

To the best of our knowledge, WineCommune is not under investigation by the TTB or any other government agency. In fact, the TTB informed us that WineCommune is in compliance with the laws and regulations under their jurisdiction. We want to be clear that WineCommune is not going out of business, and to the contrary, we are growing and expanding the services we offer to our valued users.

The TTB was primarily interested in the information relating to high volume sellers; however, the TTB also requested information about buyers who purchased a substantially high volume of wine. According to the TTB agents we dealt with, the reason for inquiring about high volume wine buyers was to determine if it is being re-sold elsewhere, as those people may also be subject to the $250.00 tax due to the re-sale.

WineCommune is not able to provide legal or tax advice, but if you have questions about the notice you received, we urge you to contact the TTB or an attorney. You can contact Robin Paxton at the TTB at (513) 684-3529 directly for more information.

WineCommune's growing success as the number one place on the Internet to access wine is in great part due to your participation.

Thank you.