My company has not previously claimed nonbeverage drawback. If we start claiming drawback now can we claim for past years usage of alcohol?
If you still have the necessary records to prepare the drawback claims and formulas for submission to the TTB and are able to support such claims with internal on-site records if inspected by the TTB, you can claim drawback for prior years usage of taxpaid spirits. Due to the statute of limitation no claim can be paid more than 6 years after the quarter in which the nonbeverage products were manufactured. You must determine if it is economically worthwhile to file because late-filing penalties for claims and formulas for the prior years will be deducted from the amount of drawback allowed. (I’ve prepared and filed back-years of claims for clients who decided to start claiming drawback but also wanted drawback from prior years usage of spirits.
