Tax Deferral Bond - Distilled Spirits (Puerto Rico)

Under the Internal Revenue Code (IRC) at 26 U.S.C. 7652, beverage distilled spirits, as well as nonbeverage products containing spirits subject to tax, produced in Puerto Rico and brought into the United States are subject to a tax equal to that imposed by the IRC on domestically produced spirits. That section also authorizes the Secretary of the Treasury (the Secretary) to prescribe regulations regarding the mode and time for the collection of such taxes. In addition, the IRC at 26 U.S.C. 7101 and 7102 authorizes the Secretary to issue regulations regarding bonds required under the IRC or its related regulations. Under those IRC authorities, the TTB regulations in 27 CFR part 26 allow respondents who ship taxable distilled spirits products produced in Puerto Rico to the United States to either pay the required tax prior to shipment or to file a bond to defer payment of the tax due until the submission of the respondent’s next excise tax return. The regulations require respondents who elect to defer tax payment on such shipments to file a bond on TTB F 5110.50 to guarantee payment of the taxes due in case of default. As such, the required information is necessary to protect the revenue.

The latest form for Tax Deferral Bond - Distilled Spirits (Puerto Rico) expires 2024-01-31 and can be found here.