As of January 1, 2017, if you are the proprietor of a brewery, distilled spirits plant, or winery owing not more than $50,000 in excise taxes in the previous year, and you expect to owe not more than $50,000 in excise taxes in the current year on beer, distilled spirits, or wine, you may no longer be required to hold a bond.
An existing bond must remain in place until TTB approves an updated brewer’s notice for each eligible brewer.
The TTB brewer’s notice form and Permits Online have been updated to reflect the fact that eligible brewers can inform TTB that they are exempt from the bonding requirement. The actual process follows:
A brewer that meets the eligibility requirements (federal excise tax of less than $50,000 in the prior year and not expected to exceed that in the current year) to operate without a bond in 2017 must complete a new brewer’s notice and check a box on Line 17 of the form, which asks the brewer to verify eligibility. The brewer must use Permits Online to submit the updated notice electronically if they have a Permits Online account (or the paper forms if the brewer has an old brewer’s notice and never transferred to Permits Online).
Note: Brewers must be in compliance with tax payments, tax returns, and operational reports. If they are not in compliance, their notice will be disapproved.
TTB must then approve the updated notice.
Once TTB approval is received via Permits Online or through the mail, the brewer can inform its surety company that it is no longer required to maintain the bond. The surety company policy will dictate how any reserve or excess premium is returned to the brewer.
The refund of Cash Bonds will be processed with the approved Brewer’s Notice.
Please see TTB Bond and Filing Changes Home Page for more details.