26 USC 5173 - Bonds

U.S Code last checked for updates: Nov 22, 2024

§ 5173.

Bonds

(a)

Operations at, and withdrawals from, distilled spirits plant must be covered by bond

(1)

Operations

(2)

Withdrawals

(b)

Operations bonds

The bond required by paragraph (1) of subsection (a) shall meet the requirements of paragraph (1), (2), or (3) of this subsection:

(1)

One plant bond

(2)

Adjacent wine cellar bond

(3)

Area bond

The bond covers operations at 2 or more distilled spirits plants (and adjacent bonded wine cellars) which—

(A)

are located in the same geographical area (as designated in regulations prescribed by the Secretary), and

(B)

are operated by the same person (or, in the case of a corporation, by such corporation and its controlled subsidiaries).

(c)

Withdrawal bonds

(d)

Unit bonds

(e)

Terms and conditions

(1)

In general

Any bond furnished under this section shall be conditioned that the person furnishing the bond—

(A)

will faithfully comply with all provisions of law and regulations relating to the activities covered by such bond, and

(B)

will pay—

(i)

all taxes imposed by this chapter, and

(ii)

all penalties incurred by, or fines imposed on, such person for violation of any such provision.

(2)

Other terms and conditions

(f)

Amount

(1)

In general

(2)

Maximum and minimum amount

(g)

Total amount available

(h)

Special rules

For purposes of this section—

(1)

Withdrawal bonds

In the case of any bond furnished under this section which covers withdrawals but not operations—

(A)

such bond shall be in addition to the operations bond, and

(B)

if distilled spirits are withdrawn under such bond, the operations bond shall no longer cover liability for payment of the tax on the spirits withdrawn.

(2)

Adjacent wine cellars

(A)

Requirements

No wine cellar shall be treated as being adjacent to a distilled spirits plant unless—

(i)

such distilled spirits plant is qualified under this subchapter for the production of distilled spirits, and

(ii)

such wine cellar and the distilled spirits plant are operated by the same person (or, in the case of a corporation, by such corporation and its controlled subsidiaries).

(B)

Bond in lieu of wine cellar bond

(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1349; amended Pub. L. 91–659, § 4, Jan. 8, 1971, 84 Stat. 1966; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 96–39, title VIII, § 805(c), July 26, 1979, 93 Stat. 276; Pub. L. 114–113, div. Q, title III, § 332(b)(2)(A), Dec. 18, 2015, 129 Stat. 3105.)

cite as: 26 USC 5173