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  • Brewer's Report of Operations Question

    So I'm working on the Brewer's Report of Operations and had a question relating to "Beer returned to the brewery."

    It is my understanding that the "Beer removed for consumption or sale" line should be equal to the amount reported on the excise tax returns for the period of the BROP. If, however, one has beer returned to the brewery, you take that as an offset against beer sold in that period, so on the excise tax return, you report the net beer removed.

    Then on the BROP, if you have an entry on the "beer returned to brewery line," then it seems you need to report the total "beer removed for consumption or sale" to make the totals on the report equal. But then the amount reported on the "Beer removed for consumption or sale" line is higher than the amount reported on the excise tax returns by the amount returned to the brewery. Thus it might appear that one is under reporting their tax liability for the period.

    What is the correct way to do this? Am I missing something here?

    Thanks,

    Corey

  • #2
    I'm having the same problem right now. It is totally fucking up my ending inventory. The only thing I can figure is that if you deduct it from line 10, then you need to add it to line 11 or 15, but the instructions list specific circumstances for line 11 that don't include a tax credit and line 14 doesn't seem correct either. I sent an email to TTB help and haven't gotten a response yet. Let me know if you figure this out, I will post back if I get a response from TTB.

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    • #3
      Well I just spoke with a lady at the NRC and when I explained the situation, she was as confused as I was. The only thing she could figure was to use the "Adjustments decreasing amount due" line on the excise tax return, so that the "beer removed" amount on the BROO matches the tax liability on the excise tax returns.

      The only other thing I could figure was that when you have beer returned, the TTB auditors are aware that the "beer removed" line on the BROO will be higher than your tax liability by the amount of beer returned, but I really don't think that is correct.

      Surely someone out there has more experience with this than I do?

      Corey

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