The Federal Alcohol Administration Act (FAA Act) provides a wholesaler or importer’s basic permit automatically terminates unless TTB is notified of the sale of the business to a new person or entity, the business changes type (such as from a corporation to a LLC), a family member dies and the business is left to an heir, a change in general partners or a change of officers, directors or others who exercise managerial control.
In Industry Circular 2019-2, TTB says it “will exercise its enforcement discretion by not seeking civil or criminal penalties for continuing to operate while TTB reviews applications submitted in accordance with this program. . . . [and] will not seek to deny these applications on the sole basis that the industry member operated without a permit, provided the industry member otherwise operated in compliance with the statutes and regulations administered by TTB, and provided that the industry member (including any officers, directors, or principal interest holders) is not disqualified from obtaining a permit.”
The Temporary Voluntary Disclosure Program is available to wholesalers and importers of beer, wine, and spirits that hold a TTB permit only as a wholesaler and/or importer of alcohol beverages and no other TTB permit, notice, or registration. The program does not apply to changes in control or proprietorship violations already discovered by TTB, or to wholesalers or importers who have been notified of a TTB investigation or audit.