Home Illinois Bonds Illinois Financial Responsibility Direct Wine Shipper Surety Bonds

Illinois Financial Responsibility Direct Wine Shipper Surety Bond

Wine bottles in a crate ready to be shipped

The Illinois Department of Revenue, Alcohol, Tobacco and Fuel Division (the Department) regulates the collection of tax revenue for direct wine shippers, liquor distributors, liquor airlines, cigarette distributors, cigarette machine vendors, tobacco products distributors, motor fuel distributors, motor fuel suppliers and motor fuel receivers. Taxpayers that operate as direct wine shippers that sell wine to Illinois consumers are required to be licensed.

Obligee and Bond Conditions:

The obligee is the entity that requires the bond. The Illinois Department of Revenue requires a surety bond or an irrevocable letter of credit based on an amount that is two times the company’s average monthly liability or a minimum bond amount of $1,000 to a maximum bond amount of $100,000. A surety bond ensures payment of state taxes and compliance of state regulations and laws. Failure to pay the required taxes or comply or perform as required by state laws and regulations may result in a claim filed against the bond by the Department. If the Department files a claim against the surety bond, the owner (named as the principal on the bond form) will be responsible for repayment of the claimed amount if the claim is paid out by the surety.

The surety bond must be in place at the time the registration is applied for and during all business operations. The premium will renew on the bond on an annual basis. If the direct wine shipper business changes ownership, a replacement bond is required to fulfill the surety bond conditions. Failure to maintain the bond will result in penalties by the Department.

Surety Bond Requirements:

The original surety bond and power of attorney (provided by the issuing surety) will need to be submitted along with the registration to the Illinois Department of Revenue, Central Registration Division 3-222, PO Box 19039, Springfield, IL 62794-9039.

The surety bond will need to be an amount equal to two times the company’s average monthly liability. The minimum bond amount is $1,000 and may increase to a maximum of $20,000 based on the volume of liability.

License Requirements:

An application for licensing is available from the Illinois Liquor Control Commission (form IL 095-0634). Winery shippers will need to designate whether they are a first-class wine manufacturer or a second-class wine manufacturer, and based on the number of gallons manufactured annually or a limited or out-of-state shipper. The license registration also includes providing wholesaler name, trade-mark or brand name of product, geographical territory and time period.
A discount is available to direct wine shippers who choose to file and make payments electronically. (see form RL-750 Electronic Filing- Liquor Returns.

Applicants will need to submit Form RL-26-W Liquor Direct Wine Shipper Return by the 15h of each month of the following month.

Direct wine shippers accruing more than $20,000 annually are required to make tax payments by EFT (electronic funds transfer).

A discount is available to direct wine shippers who choose to file and make payments electronically. (see form RL-750 Electronic Filing- Liquor Returns.

How Much Will This Bond Cost?

The premium that you pay for an Illinois Financial Responsibility Direct Wine Shipper surety bond is dependent on credit and the bond amount required. Our rates start at $100 for bonds under $10,000, and 1% of the amount for bonds over $10,000. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

Wineries that are affiliated with a group producing more than 25,000 gallons annually or that produce less 25,000 gallons of wine per year and that do not sell more than 5,000 gallons to retail licensees can claim a self-distribution exemption.