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Thread: TTB to Eliminate Bond Requirement for Small Breweries/Brewpubs

  1. #1
    Join Date
    Feb 2013
    Location
    Littleton, CO
    Posts
    46

    TTB to Eliminate Bond Requirement for Small Breweries/Brewpubs

    [From TTB Website]

    ELIMINATION OF BOND REQUIREMENT FOR SMALL BREWERIES/BREWPUBS, DISTILLED SPIRIT PLANTS, AND WINERIES

    Starting 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, we do not expect any application received before January 1, 2017, to be processed before that date.

    To streamline the application process, we 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, we will process your application so that you can operate without a bond upon approval, and we will return any bond-related materials to you when we 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, we will work with you to determine if a bond will be required, and if not, we will return all bond-related materials to you.

    To learn more about the elimination of bonds for small taxpayers, as well as how we will handle existing TTB-permitted entities affected by the bond elimination, read TTB Guidance 2016-4.

    Starting 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.

    ______

    Daniel Christopherson of Brew.law is a beer and trademark attorney at Christopherson Brew Law. He is an avid craft beer enthusiast who helps new and established breweries develop their business models, comply with the TTB and FDA, and protect their intellectual property.

    Dan Christopherson, Beer Lawyer
    Christopherson Brew Law
    6638 W. Ottawa Ave, Suite 220-3, Littleton, CO 80128
    720-515-8773 (phone) | dan@brew.law | www.brew.law
    Last edited by Brew Law; 12-02-2018 at 10:13 AM.

  2. #2
    Join Date
    Sep 2009
    Posts
    14
    Nice!

    I'm guessing they will be returning any cash bonds to those who fall into this category?

  3. #3
    Join Date
    Mar 2016
    Location
    Shorewood, IL.
    Posts
    1
    I just submitted my TTB paperwork the first week of 2017. However, I purchased a surety bond in December thinking it was a requirement. Gonna call the bond company tomorrow. Wondering why they would even issue me a bond knowing that it wouldn't be required as I won't be surpassing the $50,000 tax liability as a startup. Has anyone had any experience with this issue.

    Thanks,
    Jamie
    www.willcountybrew.com
    jamiea@willcountybrew.com


    Quote Originally Posted by dcbrewlaw View Post
    [From TTB Website]

    ELIMINATION OF BOND REQUIREMENT FOR SMALL BREWERIES/BREWPUBS, DISTILLED SPIRIT PLANTS, AND WINERIES

    Starting 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, we do not expect any application received before January 1, 2017, to be processed before that date.

    To streamline the application process, we 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, we will process your application so that you can operate without a bond upon approval, and we will return any bond-related materials to you when we 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, we will work with you to determine if a bond will be required, and if not, we will return all bond-related materials to you.

    To learn more about the elimination of bonds for small taxpayers, as well as how we will handle existing TTB-permitted entities affected by the bond elimination, read TTB Guidance 2016-4.

    Starting 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.

    ______

    Daniel Christopherson of DCBrewLaw.com is a beer and trademark attorney at Lehrman Beverage Law. He is an avid craft beer enthusiast who helps new and established breweries develop their business models, comply with the TTB and FDA, and protect their intellectual property.

    dan.christopherson@bevlaw.com
    202-449-3739 x708

  4. #4
    Join Date
    Sep 2009
    Posts
    14
    Here's the info I received from TTB. We posted cash bonds for both brewery and winery permits that we hold. Not sure how it works if you posted a bond thru a 3rd party.

    You have two cash bonds, one for the brewery and one for the winery. You will need to go into Permits Online and file two amended applications, one for the brewery and one for the winery. Go to your original applications and under amendments you would select the amendment NOBN. Once filed we will have to verify there are no taxes owed and then we will refund your cash bonds.

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