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Federal Alcohol Tax Surety Bonds / TTB Surety Bonds
What is an Alcohol Tax Bond / TTB Bond?
Alcohol Tax Bonds and TTB Bonds are umbrella terms that refer to a multitude of different surety bonds that are required on the federal level for licensure to conduct business in the sale, manufacture, or warehousing of alcohol and tobacco products. The various surety bonds required are the Tobacco Bonds (Form 5200.26), the Brewer’s Bond (Form 5130.22), the Wine Bond (5120.36), and the Distilled Spirits Bond (5110.56). TTB is short for Alcohol and Tobacco Tax and Trade Bureau.
Alcohol Tax/TTB Bonds are individually underwritten so the cost can vary and is primarily dependent on the credit score of the applicant and the required surety bond amount; sometimes, personal financials may be required depending on the bond amount and credit standing. Customers with good credit scores (generally 680 or higher) could qualify for a rate as low as 1% of the bond amount. Of course, we can typically handle all credit types — from excellent to poor — as such those terms vary.
The security bond amount specific to each applicant is determined differently for each type of license in accordance with Title 27 Code of Federal Regulations, Chapter 1. In general the amount is equal to a percentage of the business's tax liability over a certain period of time. The TTB has a toll free phone number, 877-882-3277, that may be used for any questions regarding this matter. It is best to check with the Bureau to ensure the correct bond amount is being used to cover your business appropriately.
Alcohol Tax/TTB Bonds are in place to ensure the United States receives payment of all taxes, including penalties and interest, for which the principal (business) becomes liable under 26 U.S.C. Chapter 51 and Chapter 52.
The U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau (TTB), administers the licenses and requires a surety bond in pursuant to Title 26 U.S. Code, Chapter 51 and Chapter 52. The Obligee on all four bond forms is the United States.
Distilled Spirits Bonds, Wine Bonds, and Tobacco Bonds are continuous and run in full force from the effective date. These surety bonds will be renewed and billed for on an annual basis. It is likely that variations on business volume each year will require a different bond amount than the prior year.
Brewer’s Bonds are continuous and run in full force for four years from the effective date. The surety bond may be continued in force for additional, successive periods of four years with the issuance of a Brewer’s Bond Continuation Certificate (Form 5130.23).
Contact The ProSure Group. As surety bond experts in business over 23 years in Florida, The ProSure Group has issued hundreds of bonds of this type and has partnerships with more than 30 different surety companies. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.
If you don't see the bond you're looking for give us a call at (800) 480-3883 and speak to one of our many Federal Alcohol Tax Surety Bonds/TTB Surety Bonds Experts!
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Obligee
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Tax
Federal Alcohol Tax Surety Bonds/TTB Surety Bonds
U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau