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Title 26 — Internal Revenue CodeRelease 119-73

§5354 Bond

Title 26 › Subtitle Subtitle E— - Alcohol, Tobacco, and Certain Other Excise Taxes › Chapter CHAPTER 51— - DISTILLED SPIRITS, WINES, AND BEER › Subchapter Subchapter F— - Bonded and Taxpaid Wine Premises › Part PART I— - ESTABLISHMENT › § 5354

Last updated Apr 6, 2026|Official source

Summary

A bonded wine cellar must have a bond in the form, on the terms, and with enough security the Secretary’s rules require. The bond amount must be at least the tax on any wine or spirits held or moving at one time, after applying the credit in section 5041(c), but never less than $1,000 or more than $50,000. If that tax exceeds $250,000, the bond may be up to $100,000. If delaying tax payment creates extra liability, the Secretary can make the owner file an extra bond to protect the revenue. The bond covers liability for transactions whether they happened on the owner’s premises or off them.

Full Legal Text

Title 26, §5354

Internal Revenue Code — Source: USLM XML via OLRC

The bond for a bonded wine cellar shall be in such form, on such conditions, and with such adequate surety, as regulations issued by the Secretary shall prescribe, and shall be in a penal sum not less than the tax on any wine or distilled spirits possessed or in transit at any one time (taking into account the appropriate amount of credit with respect to such wine under section 5041(c)), but not less than $1,000 nor more than $50,000; except that where the tax on such wine and on such distilled spirits exceeds $250,000, the penal sum of the bond shall be not more than $100,000. Where additional liability arises as a result of deferral of payment of tax payable on any return, the Secretary may require the proprietor to file a supplemental bond in such amount as may be necessary to protect the revenue. The liability of any person on any such bond shall apply whether the transaction or operation on which the liability of the proprietor is based occurred on or off the proprietor’s premises.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5354, act Aug. 16, 1954, ch. 736, 68A Stat. 663, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85–859.

Amendments

1996—Pub. L. 104–188 inserted “(taking into account the appropriate amount of credit with respect to such wine under section 5041(c))” after “any one time”. 1984—Pub. L. 98–369 substituted “distilled spirits” for “wine spirits” in two places. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 1996 AmendmentAmendment by Pub. L. 104–188 effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, Pub. L. 101–508, title XI, to which such amendment relates, see section 1702(i) of Pub. L. 104–188, set out as a note under section 38 of this title.

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–369 effective July 18, 1984, see section 456(c) of Pub. L. 98–369, set out as an

Effective Date

note under section 5101 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 5354

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73