Client Services / Alcohol Beverages & Products / Non-Beverage Alcohol

Non-Beverage Alcohol

In addition to its extensive alcohol beverage practice, our Alcohol Beverages and Products Group is experienced in the regulatory issues arising from the non-beverage use of alcohol.   Whether the alcohol is used as fuel, in manufacturing, for flavorings and foods, or in medical supplies and research, federal law and the laws of some states impose little-known tax, permit, bond and change of ownership requirements on companies handling alcohol.  Working in tandem with skilled alcohol beverage consultants on retainer with the Firm, our lawyers counsel non-beverage alcohol producers and users in the requirements of federal and state law.  Our team is experienced in responding to Alcohol & Tobacco Tax & Trade Bureau (TTB) audits and investigations, administering regulatory compliance audits and implementing corrective action based on the results of such audits. 

Representative Non-Beverage Alcohol Experience in the Alcohol Area

  • Defend a major industrial alcohol user facing numerous charges of violating federal regulations enforced by TTB, and potentially devastating tax assessments and penalties, including negotiation of a compromise with TTB permitting the client to continue operations and pay a small fraction of the assessed amounts.
  • Represent a major U.S. investment company in its acquisition of an alcohol fuel (ethanol) plant, including the voluntary disclosure of tax payment and reporting errors made by the plant’s prior owners.
  • Counsel a major chemical company acquiring an industrial alcohol distribution business, assisting in securing both federal and state licenses and permits. 
  • Advise a U.S. health care supplier on the federal and state law aspects of establishing itself as a national supplier of non-beverage alcohol to hospitals and laboratories.
  • Provide regulatory advice to a flavor manufacturer involved in litigation with one of its customers.
  • Assist a flavor and extract manufacturer in obtaining lower annual state tax assessments based on distinctions under state statutes.
  • Represent a major pharmaceutical company in a voluntary disclosure involving the misuse of non-tax-paid alcohol at manufacturing and research facilities, negotiating a favorable resolution and avoiding a significant tax liability and permit action.
  • Provide regulatory advice and audit services to facilitate an industrial alcohol manufacturer’s recycling operations for non-merchantable alcohol beverages and the recovery of federal excises taxes by its supplying manufacturers.

Contacts

Alcohol Beverages & Products Client Services

McDermott Will & Emery

McDermott Will and Emery