Annual Compliance Checklist for Wineries
You've worked hard to establish your winery and build a unique brand, so protecting your investment is essential. Understanding your responsibilities shields your winery against sanctions while ensuring smooth operations year-round. This comprehensive winery compliance checklist includes all the obligations you must fulfill to keep your winery in good standing.
Federal Compliance Requirements
The Alcohol and Tobacco Tax and Trade Bureau (TTB) manages winery compliance at the federal level. You must submit regular reports, excise tax returns, and wine label information to keep your winery compliant. Let's explore TTB compliance requirements in more detail.
TTB Filings
All wineries are liable to submit Reports of Wine Premises Operations. Complete your report by filling out TTB Form 5120.17. It asks for information such as the amount of wine you produced during the reporting period and inventory losses.
The deadline to submit your Report of Wine Premises Operations depends on how often you file your federal excise tax returns and the size of your inventory:
Report Frequency Qualifying Criteria Submission Deadline
Annually Your wine inventory never January 15th, following the
exceeds 20,000 gallons, end of the calendar year
AND you file annual federal
excise tax returns
Quarterly Your wine inventory never January 15th, following the
exceeds 60,000 gallons, end of the calendar year
AND you file quarterly
excise tax returns
Monthly Your wine inventory never January 15th, following the
exceeds 60,000 gallons, of each calendar month
AND you file quarterly
excise tax returns
You can submit your reports online via your Pay.gov account or mail your completed form to:
TTB National Revenue Center
550 Main Street
Room 8970
Cincinnati
OH 45202
Excise Tax Payments
Wineries must file federal excise tax returns and pay tax to the TTB. Complete your return by filling out TTB Form 5000.24sm. Generally, you should file semi-monthly returns unless you qualify for a different tax period.
You can file a quarterly federal excise tax return if you paid less than $50,000 in federal excise tax in the previous calendar year and don't expect to owe more than $50,000 in the current year. File annually if your last tax bill was less than $1,000 or you're a new winery and don't expect to pay more than $1,000 in the current year.
The tax periods for federal excise tax are:
Filing Schedule Tax Period
Annual Calendar year
Quarterly Calendar quarter
Semi-monthly The first to the 15th day and the 16th to
the last day of each calendar month
You have 14 days after the tax period concludes to submit semi-monthly or quarterly returns and pay any tax owed. Annual returns are due 30 days after the end of the calendar year. You can submit your return and pay federal excise tax through your Pay.gov account or by mailing it to the TTB National Revenue Center.
Label Approval
Before bottling and selling a wine to consumers, you must obtain a Certificate of Label Approval from the TTB. To apply, create a COLAs Online account and submit your label for approval via the customer portal.
Your wine label must include certain information, including your brand name and alcohol content. Before submission, check your labels against the TTB's Checklist of Mandatory Label Information to ensure they comply with TTB rules.
State Compliance Requirements
A state-based winery compliance checklist helps you meet state-specific requirements, such as tax returns and activity reports. Here are the requirements for California, Oregon, and Washington wineries:
California Compliance Tasks
The California Department of Tax and Fee Administration (CDTFA) collects state excise taxes from winegrowers and blenders. Unless the Administration determines that you qualify to file annually or quarterly based on your previous tax returns, you must submit a Winegrower Tax Return and a Wine Imported to California (if you import wines) schedule monthly.
Submit your returns and pay your tax no later than the 15th day after the end of the calendar month through your CDTFA Online Services account.
Additionally, you must complete a Sales and Use tax report. Complete a monthly report unless the CDTFA says you qualify for quarterly or annual returns. The deadlines are:
January 31st, following the completed calendar year if you file annually
Last day of the following calendar month if you file monthly
The due dates for quarterly returns vary from month to month. The CDTFA publishes a sales and use tax filing schedule to help you stay on top of deadlines. Submit your return and pay any tax due through the CDTFA Online Services portal.
The California Department of Food and Agriculture (CDFA) requires wineries to complete a Grape Crush Report by downloading a Grape Crush Workbook from the CDFA Grape Crush Survey webpage. The deadline is January 10th, following the end of the crop year season. Return your survey to grapecrush@cdfta.ca.gov.
Oregon Compliance Tasks
You must pay Privilege Tax to the Oregon Liquor and Cannabis Commission (OLCC) for any wine you make or import. File a monthly privilege tax statement unless you qualify for annual returns. You may file annually if:
You didn't owe privilege tax in the previous calendar year and don't expect to owe any for the current year, OR
You're a new winery and don't expect to owe privilege tax for the current year
The due date is the 20th day following the end of the current month for monthly returns or January 20th if you file annually. File your returns and make payments via the Oregon Privilege Tax Online (OPTO) service.
You may also be liable to pay the Oregon Wine Board Tax. The Board calculates this tax based on several factors, including any grapes you use to make wine and wine sold to consumers. File your Oregon Wine Board Tax return by December 31st during the current tax year via your OPTO account.
Wineries must renew their liquor licenses with the OLCC every year. The renewal schedule varies depending on your winery's district, but the OLCC will mail you the renewal application forms about two months before your current license expires.
Washington State Compliance Tasks
The Washington State Liquor and Cannabis Board (LCB) handles winery compliance in Washington. Your winery must submit monthly Beer and Wine Tax returns to the Board.
As deadlines vary month to month, the LCB provides a list of due dates on its Beer and Wine Tax FAQ page. You can submit your Beer and Wine Tax return through the LCB website. Alternatively, download and complete form LIQ-744 and mail your return to:
Washington State Liquor and Cannabis Board
Financial Division/Tax and Fee Unit
P.O. Box 3724
Seattle WA 98124-3724
You must renew your Washington liquor license every year, and the Board will notify you when it's time for renewal. Renew your license online through the Department of Revenue website or return the form sent to you by the Board to:
State of Washington
Business Licensing Service
P.O. Box 9034
Olympia, WA 98507-9034
Local Compliance Requirements
Your local government may set further winery regulations. While local requirements vary, adding the following tasks to your winery compliance checklist can help you meet obligations.
Local Permits and Licenses
Whether you need local winery permits depends on your jurisdiction's rules. While many jurisdictions only require state and federal licenses, they may object to renewing your liquor license in certain circumstances.
To avoid issues with your local government, familiarize yourself with local laws and ensure your winery complies. Joining your local winemaker's society can help you learn about environmental and zoning regulations from experienced professionals.
Health and Safety Inspections
The FDA inspects wineries to ensure they follow best food safety practices and may collaborate with local agencies. Inspections can happen without notice, so you should train your staff in proper food hygiene practices and keep your winery in a safe, sanitary condition. Inspect your premises regularly and document staff training sessions to demonstrate compliance.
Zoning and Environmental Compliance
Depending on the rules in your area, your local government may require you to comply with zoning and environmental laws to protect traffic systems, populations, and environments. For instance, California's Sustainable Groundwater Management Act (SGMA) requires wineries and other businesses in medium- and high-risk basins to follow rules to prevent subsidence and other environmental concerns.
Financial and Operational Compliance
Robust systems make completing annual reports easier and help keep your winery running smoothly year-round. The following annual compliance tasks help prevent sanctions and keep operations flowing.
Annual Financial Audits
The IRS and TTB may conduct audits to verify the accuracy of your operational and excise tax reports. If an agency discovers inaccuracies, you may receive fines and penalties.
Hiring a reputable private auditor to check your accounts annually is the most effective way to ensure compliance. Your auditor will scour your financial records, allowing you to rectify issues before an official audit.
Bookkeeping and Record-Keeping
As a winery operator, you're responsible for keeping accurate records to support the information provided in your tax returns and operational reports. To avoid compliance issues, familiarize yourself with the legal record-keeping requirements for wineries laid out in the Code of Federal Regulations.
You can simplify bookkeeping and accounting by working with a company that offers winery compliance services. You should choose a provider with specific expertise in the wine industry.
Inventory Management
An accurate inventory is essential for fulfilling legal reporting responsibilities and pricing wines correctly. Your inventory should include all the wine, materials, and ingredients.
Many wineries find specialized inventory software helpful for tracking their stock. These programs simplify tasks, such as data input, and allow you to gain insights by tracking key metrics.
Employee Training and Compliance
As an employer, you're responsible for training your workers to help them perform safely and competently. Some training programs are mandatory for compliance, but they also improve safety and protect the integrity of your products.
Compliance Training Programs
Mandatory training varies from state to state. However, you should aim to train your employees in the following areas:
Pesticide Safety Training
First Aid Training
Machinery-Specific Training
OSHA-Compliant Health and Safety Training
Alcohol Service Training
Food Safety Training
Delivering these training programs helps keep workers and the public safe and prevents wine contamination. You can determine state-specific requirements by consulting your state government's website.
Certifications and Renewals
You'll likely need to obtain alcohol server certifications to ensure your servers and managers comply with alcohol service laws. Most states require servers to complete an approved course and pass an exam.
The rules in your state determine how often you need to renew your employees' certifications. In California, for example, the Responsible Beverage Certification (RBC) lasts three years.
Ongoing Education
Providing ongoing training helps enhance your employee's skills and minimizes the risk of injuries and health and safety problems. The law says you should provide OSHA-compliant health and safety retraining at least once a year to meet your responsibilities as an employer.
Maintaining Compliance for Winery Success
Maintaining compliance by fulfilling your federal, state, and local responsibilities is essential to running a successful winery. This annual winery compliance checklist can help you keep up with your obligations to avoid fines and other penalties. For more information, check out other winery compliance-related articles from the Balanced Business Group or contact us for personalized support.
