WWW.ARTISANSPIRITMAG.COM 69 presumed by the TTB to be missing product, and the tax
portion of the report must match
TOTAL figures on Lines 26 and
an
in Part I, a bulk accounting for liquids, especially when volume is temperature sensitive, will result in a net gain or loss during a given period when products are being
the report on page 1, the amount
entered in Line 2 is broken out in
the categories listed in Part IV on
page 2 of the report, with the total
entered on Line 67 in column (b)
matching the entry in Line 2.
6
reports,
where
the
starting
report are basic account style as
an
INVENTORY SHORTAGE,
products are shown on line 45
finished
Lines 3 through for
Any
Parts I and II of the Processing
unaccounted
volume in the containers/cases.
LOSS
monthly Processing report.
rarely
simplicity,
industrial
and
used or used for
are
For
on Line 44.
based upon marked proof and
on Lines 25 and 46,
END OF MONTH, from the previous
RECORDED
as an event-driven
packages, where the amounts are
accounts
ON HAND
II
allowed and reported
and such may be
in the bonded storage,
for finished goods in bottles or
Part
would
documented casualty
finished spirits that was reported
However,
tanks or smaller bulk containers.
ON HAND FIRST OF MONTH, would
reflect the inventories of bulk and
entered into and removed from
The entries on Lines 1 and 27,
goods
be from a known and
finished
Return filed. A “loss” of
B of the next Excise Tax
balance
summary information in Part I of Typically,
adjustment in Schedule
line 24 and GAINS on Line 7 would
CFR 19.343. In addition to the report.
amount as an increasing
LOSSES on
two parts of the report.
specified in the regulations at 27
the
is expected to be paid on this
the 47 for the lower portion of these
a “dump and batch record” as
30. An inventory shortage is
on Line
spirits “dumped” to processing on
as
on Lines 8 and 31 for the upper
shown
Part I of the report, which represents
of bulk spirits
INVENTORY OVERAGE
is
or unexplained additional product
is
ending inventory. The TOTAL figures
additions,
compared to reductions plus the
plus
into the
inventory,
Processing account on Line 2 of
RECEIVED
This report reflects the quantities
MONTHLY REPORT OF PROCESSING OPERATIONS, TTB F 5110.28
cases, or bulk packages filled, held in bond, and shipped either taxpaid or without payment of tax.
Further, the Processing report provides in Part II and IV an accounting for finished goods in bottles/
entering, leaving and remaining in the Processing account, as reflected in Parts I and IV of the report.
Processing report, which reflects a monthly summary of bulk quantities of distilled spirits products
n the last article, the TTB Storage monthly report was presented. The current topic is the DSP
I
This is the third in a series of articles providing a focused look at the Federal regulatory requirements for filing reports of operations and excise tax returns and payments.
WRITTEN BY JIM MCCOY
MONTHLY REPORT of PROCESSING OPERATIONS TTB FORM 5110.28
DSP Federal Reporting