TTB Federal Alcohol Sales Tax

What is a Alcohol Tax (Federal TTB) Wine, Brewer, or Distiller Spirit Bond

The Alcohol and Tobacco Tax and Trade Bureau (TTB) requires that professionals who sell manufacture, or distribute alcohol products including winemakers, brewer, and distillers who are liable for more than $50,000 in excise taxes imposed on distilled spirits, wine, and beer during the previous calendar year.

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.

This bond is also known by the following names:

Alcohol beverage control bonds
Brewer's bonds
Liquor bonds
Liquor license bonds
Mal beverage license bonds
on-premise beer bonds
wine bonds

Note that 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.

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Who Needs an Alcohol Tax (Federal TTB) Winemaker, Distilled Spirit, Brewer Bond

There are two factors that determine whether you need the alcohol tax bond.

1. Are you in the manufacturing, distribution or warehousing of alcohol products including winemakers, brewer, and distillers

2. Are you or your company liable for more than 50,000 in excise taxes for your alcohol business.

If the answer to both questions above is yes, then you will need a alcohol tax bond (federal TTB) Winemaker, Distileld Spirit, Brewer Bond

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To know for sure whether you need a bond or not, please use the requirement document tool by TTB online: https://www.ttb.gov/ponl/permits-online-required-documents

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How does a an Alcohol Tax Bond (TTB Federal) Work?

The Alcohol TTB Bond is a 3-party agreement among the following three parties

The principal of the bond is the alcohol company requesting the bond
The obligee is the Alcohol and Tobacco Tax and Trade Bureau
The surety is the insurance company backing up the bond with a financial guarantee

The Alcohol TTB tax is used as a protection for the obligee in case your business does not pay sales taxes by the deadline set by TTB. In this case, the obligee can make a claim against the bond and the surety company will pay the obligee. However, ultimately, the principal is still liable to recover the claim amount to the surety company

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How much is an Alcohol Tax (Federal TTB) Winemaker, Distilled Spirit, Brewer Bond

The cost of your bond depends on mainly two factors

The bond amount
Your credit score

The bond amount is typically determined by your annual sales tax liability. The surety bond amounts vary and the bonds are prepared on specific forms as required by the Alcohol and Tobacco Tax and Trade Bureau. In order to get an accurate premium quote, please first confirm with the Bureau the bond amount needed for your situation.

Your credit score will affect premium % of the total bond amount. The better your credit score and financial situation, the lower the premium %. This % is set by the surety company.

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How to Get an Alcohol Tax (Federal TTB) Winemaker, Distilled Spirit, Brewer Bond

You can get started now by filling out a 2-minute form and you can receive your bond within a day. Alternatively, you can call us at 512-856-7739 and get started with your bonding process.

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