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TTB Bond Requirements for Wine, Brewers, & Distilled Spirits

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Wine, brewers, and distilled spirits surety bonds are required by the federal government when taxes will exceed $50,000 or as a tax penalty. The bond guarantees that the payment of taxes collected on production of wine, beer and distilled spirits will be paid as required to the TTB.

Businesses with multiple locations or multiple alcohol production types will need to combine the tax liability for each of its locations to determine if taxes exceed $50,000.

In addition to the winery, brewer's and distilled spirits bonds, a tax deferral bond is required in Puerto Rico for beer, distilled spirits and wine.

Why Do I Need a Surety Bond?

Wine, brewer's and distilled spirits business owners have an obligation to pay all applicable alcohol taxes. If you (the Principal) were to fail to comply with the obligations set forth by the TTB, the TTB can enforce a surety bond requirement. In addition to the tax payment obligation, businesses generating more than $50,000 in tax liability are required to file a surety bond. In either case, the TTB can make a claim on the bond to recover any unpaid taxes or fines.

A surety bond is a legal contract between three entities. The three parties involved in a surety bond are:

  • The Principal- In the case of alcohol bonds, this is the business or individual producing beer, wine or distilled spirits.
  • The Obligee- The United States Department of the Treasury, Alcohol, Tobacco Tax and Trade Bureau (TTB).
  • The Surety- The insurance company that guarantees the bond.
  • New Business Information

    Even though a surety bond is generally not required for a new winery, distillery or brewery business, understanding the TTB process can still be challenging.

    The TTB has created an interactive tutorial to give you a better understanding of starting a new business that will be regulated by the TTB. Part of this process includes filing an application with the TTB and receiving approval before you can begin operations. Applications can be completed online or via paper applications at the TTB's website.

    Applications for new businesses

    When a Surety Bond is Required:

    When the TTB requires a surety bond, the appropriate bond form must be signed by you and then submitted to the TTB. SuretyGroup.com will ensure that you are provided with the correct form to send to the TTB. Examples of the forms include:

    TTB Forms
    Puerto Rico Tax Deferral Surety Bonds
    Brewer's Bond

    How Much Does This Bond Cost?

    The premium amount that you pay for an TTB Wine, Brewer's, Distilled Spirits or Tax Deferral Surety Bond is dependent on credit, and on the bond amount required. Premium rates start at 1% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

    Related Links:

    Read our blog, TTB Eliminates Surety Bond Requirement for Small Businesses
    Read our blog, How Do You Like Your Alcohol?
    Read our blog, Interesting and Strange Alcohol Laws Across the States
    West Virginia Wine Distributor and Supplier Bonds
    New York Liquor Bonds
    Puerto Rico Alcohol Beverage Tax Bond
    Tobacco Manufacturer Bonds
    Download an Application for a TTB Surety Bond

    More Surety Bond Questions?

    Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.

    DownloadApplication

    For a downloadable application