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As of January 1, 2017, if you are a TTB-permitted entity owing less than $50,000 in excise taxes in the previous year and expect to owe less than $50,000 in the current year on beer, distilled spirits, or wine, you will no longer be required to hold a bond.
Because the bond exemption does not go into effect until January 1, 2017, if you submit applications to operate breweries/brewpubs, distilled spirits plants, or wineries before that date, you must submit a bond with the application even if you expect to be eligible for the bond exemption when it goes into effect in 2017. Based on current processing times, TTB does not expect any application received before January 1, 2017, to be processed before that date.
To streamline the application process, TTB has added a new data field in Permits Online allowing you to indicate that you expect to owe less than $50,000 in excise taxes in 2017, and thus will be exempt from bond requirements. If you are confirmed to be eligible for the bond exemption, TTB will process your application so that you can operate without a bond upon approval, and they will return any bond-related materials to you when they take final action on the application.
If you applied to operate a brewery/brewpub, distilled spirits plant, or winery before the new field was added to Permits Online, but your application is not processed before January 1, 2017, TTB will work with you to determine if a bond will be required, and if not, they will return all bond-related materials to you.
To learn more about the elimination of bonds for small taxpayers, as well as how TTB will handle existing TTB-permitted entities affected by the bond elimination, read TTB Guidance 2016-4.
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