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James Niekamp

Your TTB Audit is Over. What Happens Next?


Being audited by the TTB can be a stressful experience for those in the alcohol industry. However, depending on the findings of a TTB audit, the process may be far from over.


Although every case is different and fact-specific, the general rule is that once TTB concludes its fieldwork portion of the audit, the TTB investigators or auditors will typically hold a closing conference with the industry member to discuss findings and recommendations moving forward.


After the closing conference, an industry member can expect to receive a formal management letter identifying the audit results. The letter might include tax adjustments, compliance violations, internal control weaknesses, and whether administrative permit action will be recommended by the auditor.


In the event that adverse actions are proposed, the industry member may be invited to provide a written response explaining the compliance failures and how it plans to correct issues going forward.


A written response generally must be submitted within 14 days of receiving a management letter from TTB. In the response, the industry member may outline corrective actions taken to fix the violations identified by TTB, as well as provide a response to each of the violations identified during the audit including any mitigating circumstances.


If you have questions regarding a TTB management letter you received and are interested in a consultation on TTB audit matters, we recommend consulting with attorneys experienced with TTB audits.

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