Understanding the Report of Wine Premises Operations: A Guide for Wineries

Ken Mejorada
December 3, 2024

Navigating the regulatory landscape of the wine industry can feel overwhelming, especially when it comes to compliance reporting. The Report of Wine Premises Operations (Form TTB F 5120.17) is a key requirement for wineries and bonded wine premises. But what is it, and why is it so important? This article will break it all down, so you can handle this responsibility with ease.

What Is the Report of Wine Premises Operations?

The Report of Wine Premises Operations is a federally mandated form required by the Alcohol and Tobacco Tax and Trade Bureau (TTB). It’s used to track activities at any facility that produces, stores, or processes wine under a federal permit.

This report is vital for ensuring compliance with federal excise tax laws and maintaining operational transparency. From production to storage, every stage of your wine’s lifecycle must be accounted for, making this report a cornerstone of compliance for wineries.

Who Is Required to File?

If you operate a winery, bonded wine cellar, or custom crush facility under a federal permit, this report is mandatory. It applies to operations of all sizes, from small artisanal wineries to large commercial producers.

How Often Do You Need to File?

The filing frequency for the Report of Wine Premises Operations depends on the size and scope of your operations:

Monthly Reporting

Larger wineries with high production volumes are typically required to file monthly. Reports are due by the 15th day after the close of each month.

Quarterly Reporting

Medium-sized operations may qualify for quarterly filing, with reports due on the 15th day following the end of each calendar quarter.

Annual Reporting

Small wineries or facilities with minimal activity may file annually, with the report due by January 15 for the preceding year.

Breaking Down the Report: What’s Included?

The Report of Wine Premises Operations can feel complex at first, but it becomes manageable once you understand its main sections.

Production Activities

This section captures all wine produced during the reporting period. You’ll need to specify the type of wine, such as still, sparkling, or dessert wine, along with the total quantities produced.

Storage and Inventory

Tracking your wine storage is just as important as tracking production. This section includes details about wine in bonded storage, wine received from other facilities, and adjustments for any gains or losses.

Removals and Transfers

Here, you’ll document all wine removed from your premises. This includes tax-paid removals and tax-exempt shipments, such as wine destined for export. Transfers between bonded premises also need to be recorded.

Losses

Any wine lost during production, storage, or transfer must be reported. Losses can occur naturally, such as evaporation, or due to accidents like breakage.

Why Is This Report So Important?

Filing the Report of Wine Premises Operations isn’t just about following the rules—it’s about safeguarding your business. Accurate and timely reporting helps you:

  • Avoid Penalties: Late or inaccurate reports can result in fines, permit suspensions, or other legal issues.
  • Ensure Compliance: Demonstrating adherence to federal regulations keeps your operation in good standing with the TTB.
  • Streamline Taxation: The report ensures excise taxes are calculated and paid correctly, avoiding future disputes.

Tips for Staying Compliant

Filing this report can be streamlined with a few proactive strategies.

Maintain Detailed Records

Accurate record-keeping is your best ally. Keep clear, updated logs of all production, storage, transfers, and removals.

Invest in Technology

Winery management software can automate data collection and reporting, reducing the risk of errors and saving valuable time.

Stay on Schedule

Missing deadlines is one of the most common compliance pitfalls. Set calendar reminders or alarms to stay ahead of filing dates.

Consult Experts When Needed

If you’re ever unsure about the details, reach out to a compliance expert or the TTB for clarification. It’s better to ask questions than to risk filing incorrectly.

Avoid Common Filing Mistakes

Mistakes on your report can lead to delays, penalties, or audits. Here are a few to watch out for:

  • Misreporting production or removal numbers
  • Forgetting to account for losses, even minor ones
  • Confusing tax-paid and tax-exempt removals
  • Missing deadlines or filing inconsistently

By staying vigilant and detail-oriented, you can avoid these issues and keep your operation running smoothly.

Final Thoughts

The Report of Wine Premises Operations is a necessary part of running a federally permitted wine business, but it doesn’t have to be overwhelming. With the right processes in place—detailed record-keeping, automation tools, and a clear understanding of the requirements—you can handle it with confidence and ease.

At BrewPlanner, we’re here to help you simplify compliance and focus on what you love most: crafting exceptional wines. Explore our resources to learn more about navigating the regulatory side of the wine business.

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