[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR24.146]

[Page 619-620]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 24_WINE--Table of Contents
 
                 Subpart D_Establishment and Operations
 
Sec.  24.146  Bonds.

    (a) Wine bond. The proprietor shall give bond on TTB F 5120.36, Wine 
Bond, to cover the liability for excise taxes

[[Page 620]]

imposed by the Internal Revenue Code of 1986, on wines produced or 
received by the proprietor. This includes liability for special 
occupational taxes and penalties and interest. The bond will apply to 
wine, spirits, and volatile fruit-flavor concentrate, or other 
commodities subject to tax under 26 U.S.C. chapter 51, in transit to or 
on bonded wine premises, and to the operations of the bonded wine 
premises, whether the transaction or operation on which the proprietor's 
liability is based occurred on or off the proprietor's premises. The 
bond will provide that the proprietor shall faithfully comply with all 
provisions of law and regulation relating to activities covered by the 
bond. This bond has a tax obligation limit of $500 for wine removed from 
bonded wine premises on which the tax has been determined, but not paid, 
unless the total penal sum of the operations bond is $2,000 or more and 
the proprietor and the surety designate $1,000 of this amount as the 
obligation limit for wine on which the tax has been determined, but not 
paid.
    (b) Tax deferral bond. Where the proprietor removes wine from bonded 
wine premises for consumption or sale, after determination and before 
payment of tax, and the tax unpaid at any one time amounts to more than 
$500, the proprietor shall, in addition to any other bond required by 
this part, furnish a tax deferral bond on TTB F 5120.36, Wine Bond, to 
ensure payment of the tax on the wine. Under the conditions provided in 
paragraph (a) of this section, this amount may be changed to $1,000 by 
the terms of the bond or through a consent of surety between the 
proprietor and the surety. The tax deferral bond and the wine bond may 
be submitted on the same TTB F 5120.36.
    (c) Wine vinegar plant bond. The proprietor of a wine vinegar plant 
who withdraws wine from a bonded wine premises without payment of tax 
for use in the manufacture of vinegar shall file a bond on TTB F 5510.2, 
Bond Covering Removal to and Use of Wine at Vinegar Plant, to ensure the 
payment of the tax on the wine until such wine becomes vinegar. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended (26 
U.S.C. 5354, 5362))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19064, Apr. 12, 1993]