Federal and state tax reclassification (US)

This feature was added in vintrace version 7.4.4

Due to the difference in federal and state tax classes, vintrace has introduced changes to help you track your bulk and bottled wines by adding a gap class of 14 to 16% . We’ve automatically converted the Not more than 16% tax class to Not more than 14% and 14-16% tax classes.

Wines that have a tax class of 14 to 16% in vintrace are included in the Not over 16% class in the Federal tax report, and in the 14 to 21% class in the State tax report.

Product Overview tax class

The Tax class in Product overview shows the Federal tax class.

Click the Tax information icon to view Federal and State tax class for the wine.

Stock Item Overview tax class

The Stock Item Overview shows both the Federal and State tax classes.

Federal and state tax reclassification

We’ve made it easy for you to reclassify those wines that are in the Not more than 16% tax class to the 14 to 16% tax class through the new tax class reclassification form.

To access the tax class re-classification form, click the Federal & state tax reclassification link on the right side of the vintrace desktop under the logo.

In the menu, there are separate links for reclassifying your bulk wine and bottled wine (if you have inventory module turned on).

Reclassifying bulk wine as 14 to 16% tax class

Wines that were in the Not over 16% and 16 to 21% tax classes and have a recent alcohol between 14% and 16% have been pre-selected for you, and you can easily select any wines that don’t have a recent alcohol but should be moved to the 14 to 16% tax class.

In the example below, we want to change the tax class of the 11CHBLRR-DEMO wine batch that has an alcohol metric of 14.65% from the Not over 16% tax class to the 14 to 16% tax class. Select the Start date you want to set on the reclassify action and the Operator.

Note: Wines that have left the system since January 1, 2018, that is, bulk dispatched or packaged, are displayed as a separate line entry in the list.

  1. Click the Vessel link of each wine to open the Product Overview screen for the wine.In the example, the 11CHBLRR-DEMO wine in vessel T40-01 is currently classified as Not over 16% tax class.

    If you look at the history of the wine, there was a declare wine tax event on January 1, 2018. This was the first tax reclassification done to update the tax class to the new Not over 16% for the TTB tax reform changes.

    Looking at the Historic Revision of the packaged 11CHBLRR-DEMO wine, it had a tax class of  Not over 16% and history shows that it was packaged on January 6, 2018.

  2. Click Reclassify in the Federal & State tax reclassification form to confirm the tax class change to 14 to 16%.
  3. After the reclassification, go the Product Overview of the wine and click on the TTB information icon to view the Federal and State tax classes. Wines that are in the 14 to 16% vintrace tax class are classified under Not over 16% in Federal tax reporting and under 14 to 21% tax class in the State tax reporting.

    Viewing the wine’s history shows that a treatment has been applied to the wine to change the tax class and the operation date is January 1, 2018.

    When you view the packaged 11CHBLRR-DEMO wine, the Federal and State tax classes have been updated and the tax event of the packaging has also been updated.

  4. There is no tax class change reflected in Section A – Not over 16% column (a) of the January 2018 TTB 5120.17 form because wines that are in the 14 to 16% vintrace tax class belong to the Not over 16% for Federal tax class reporting. However, for the State Government Tax Class Report, there is a tax class change from Not over 14% to 14 to 21% because wines that are in the 14 to 16% vintrace tax class belong to the 14 to 21% for State tax class reporting.For more information on the State Government Tax Class Report, click here.

 

Reclassifying bottled wine

On the Federal & State tax class reclassification – Bottled wine form, bottled wines that were in the Not over 16% and 16 to 21% tax classes but have an alcohol content of 14% to 16% have been pre-selected. Select the Start date of the reclassification.

In the example below, we want to change the tax class of stock item 11CH-CASE from Not over 16% to 14 to 16%.

  1. Click Code to open the Stock Item Overview screen of the bottled wine. In our example, 11CH-CASE currently has a Federal tax class of Not over 16% and a State tax class of Not over 14%.

    The History tab of the stock item shows that there are two stock actions that triggered a tax event since January 1, 2018.

  2. Click Reclassify in the Federal and State tax reclassification – Bottled wine form to confirm the tax class change.
  3. Open the Stock Item Overview screen, to view the updated tax classes.

    The tax events that occurred after January 1, 2018 have also been updated.

  4. There is no tax class change reflected in Section B – Not over 16% column (a) of the January 2018 TTB 5120.17 form because bottled stock that are in the 14 to 16% vintrace tax class belong to the Not over 16% for Federal tax class reporting. However, for the State Government Tax Class Report, there is a tax class change from Not over 14% to 14 to 21% because bottled that are in the 14 to 16% vintrace tax class belong to the 14 to 21% for State tax class reporting.For more information on the State Government Tax Class Report, click here.

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