Permits Online Tutorials Part 1 Beer P3

For a surety bond, TTB Form 5130.22, Brewer's Bond or for a cash bond, TTB Form 5130.25, Brewer's Collateral Bond.
A bond is an insurance agreement pledging security for payment of taxes, including penalties and interest, for which you may become liable.

A brewery - brewpub must provide a bond if:

• Your tax liability for beer under one employer identification number (EIN) will exceed $50,000.00 this calendar year.
• Your tax liability for beer under one EIN exceeded $50,000.00 last calendar year.
• You will not pay excise taxes on a deferral basis (i.e., semi-monthly, quarterly or annually).

A variance request is letterhead notice (a statement written on company letterhead) requesting permission to use an alternate method or procedure in lieu of one outlined in the regulations. 

You will need to describe, in detail, the proposed alternate method or procedure and the existing regulation to which it relates. 

You must also provide “good cause” for your request, such as when changing circumstances create a need for a different approach. 

If two or more proprietors with different EINs will be operating at the same premises and sharing space and/or equipment, you must provide the following documents:

The host of an alternating proprietorship is required to submit:

• An alternating proprietorship agreement (a contract between the host and tenant).
• A  Change in Bond (Consent of Surety) form, which conveys consent to the periodic alternation of premises with the tenant brewer.   Note: If you are not required to obtain a bond, a Change in Bond (Consent of surety) form is not required either.

Suggested language is as follows: This consent extends the terms of the bond identified above to cover the operations as an alternating proprietorship between HOST at (list the brewery location – street, city, state, and zip) and TENANT, periodically suspending and resuming operations, in accordance with the procedures described in the Brewer’s Notice. 

• A variance request for an alternate method of operations from requirements of 27 CFR 25.23(a), to use brewery for other purposes. “Application to Use Brewery for Other Purposes”.
• A variance request for an alternate method of operation from the requirements of 27 CFR 25.78, “Request for Alternate Method of Operations- Change in Premises” to allow the use of brewery records as the record of extension and curtailment of brewery premises, in lieu of filing an amended brewer’s notice with each alternation of the brewery premises.

A tenant of an alternating proprietorship must supply the following:

• An alternating proprietorship agreement (a contract between the host and tenant).              
• A  Change in Bond (Consent of Surety) form, which conveys consent to the periodic alternation of premises with the host brewer.   Note:  If you are not required to obtain a bond, a Change in Bond (Consent of Surety) form is not required.

Suggested language is as follows: This consent extends the terms of the bond identified above to cover the operations as an alternating proprietorship between HOST at (list the brewery location – street, city, state, and zip) and TENANT, periodically suspending and resuming operations, in accordance with the procedures described in the Brewer’s Notice.

• A variance request for an alternate method of operation from the requirements of 27 CFR 25.300(a), “Retention and Preservation of Records - Place of Maintenance", only if the host of the alternating proprietorship, under power of attorney for the tenant, plans to prepare or store records on the premises of the host brewery.
• A variance request for an alternate method of operation from the requirements of 27 CFR 25.52, “Request for Alternate Method of Operations- Change in Premises” to allow the use of brewery records as the record of extension and curtailment of brewery premises, in lieu of filing an amended brewer’s notice with each alternation of the brewery premises.
• A variance request for an alternate method of operation to allow the establishment of an alternating proprietorship with the host brewer, “Notice of Alternation”.
• A business plan showing the development plans for the business.

When the same proprietor desires to alternate part of the premises to conduct another TTB- regulated business, such as a winery or distilled spirits plant, you must provide the following documents:

• A Change in Bond (Consent of Surety) form, Note:  If you are not required to obtain a bond, a Change in Bond (Consent of surety) form is not required either.
• Variance request from 27 CFR 25.81 (when alternating from a brewery to a winery) so that the brewery does not need to give notice each time the premises alternates.
• Variance request from 27 CFR 25.78 (when alternating the premises to a distilled spirits plant) so that the brewery does not need to give notice each time the premises alternates.
• Variance request from 27 CFR 25.23(a) to use brewery for another purpose.