II 

Calendar No. 38 

114TH CONGRESS 

1ST SESSION S. 904 

[Report No. 114–15] 

To amend the Internal Revenue Code of 1986 to remove bond requirements 

and extend filing periods for certain taxpayers with limited excise tax liability. 

IN THE SENATE OF THE UNITED STATES 

APRIL 14, 2015 

Mr. HATCH, from the Committee on Finance, reported the following original 

bill; which was read twice and placed on the calendar 

A BILL 

To amend the Internal Revenue Code of 1986 to remove 

bond requirements and extend filing periods for certain 

taxpayers with limited excise tax liability. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Craft Beverage Bond 

5 Simplification Act of 2015’’. 


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1 SEC. 2. REMOVAL OF BOND REQUIREMENTS AND EXTEND2 ING FILING PERIODS FOR CERTAIN TAX3 PAYERS WITH LIMITED EXCISE TAX LIABIL4 ITY. 

5 (a) FILING REQUIREMENTS.—Paragraph (4) of sec6 tion 5061(d) of the Internal Revenue Code of 1986 is 

7 amended— 

8 (1) in subparagraph (A)— 

9 (A) by striking ‘‘In the case of’’ and in10 serting the following: 

11 ‘‘(i) MORE THAN $1,000 AND NOT

12 MORE THAN $50,000 IN TAXES.—Except as 

13 provided in clause (ii), in the case of’’, 

14 (B) by striking ‘‘under bond for deferred 

15 payment’’, and 

16 (C) by adding at the end the following new 

17 clause: 

18 ‘‘(ii) NOT MORE THAN $1,000 IN

19 TAXES.—In the case of any taxpayer who 

20 reasonably expects to be liable for not 

21 more than $1,000 in taxes imposed with 

22 respect to distilled spirits, wines, and beer 

23 under subparts A, C, and D and section 

24 7652 for the calendar year and who was 

25 liable for not more than $1,000 in such 

26 taxes in the preceding calendar year, the 


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1 last day for the payment of tax on with2 drawals, removals, and entries (and arti3 cles brought into the United States from 

4 Puerto Rico) shall be the 14th day after 

5 the last day of the calendar year.’’, and 

6 (2) in subparagraph (B)— 

7 (A) by striking ‘‘Subparagraph (A)’’ and 

8 inserting the following: 

9 ‘‘(i) EXCEEDS $50,000 LIMIT.—Sub10 paragraph (A)(i)’’, and 

11 (B) by adding at the end the following new 

12 clause: 

13 ‘‘(ii) EXCEEDS $1,000 LIMIT.—Sub14 paragraph (A)(ii) shall not apply to any 

15 taxpayer for any portion of the calendar 

16 year following the first date on which the 

17 aggregate amount of tax due under sub18 parts A, C, and D and section 7652 from 

19 such taxpayer during such calendar year 

20 exceeds $1,000, and any tax under such 

21 subparts which has not been paid on such 

22 date shall be due on the 14th day after the 

23 last day of the calendar quarter in which 

24 such date occurs.’’. 

25 (b) BOND REQUIREMENTS.— 


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1 (1) IN GENERAL.—Section 5551 of such Code 

2 is amended— 

3 (A) in subsection (a), by striking ‘‘No indi4 vidual’’ and inserting ‘‘Except as provided 

5 under subsection (d), no individual’’, and 

6 (B) by adding at the end the following new 

7 subsection: 

8 ‘‘(d) REMOVAL OF BOND REQUIREMENTS.— 

9 ‘‘(1) IN GENERAL.—During any period to which 

10 subparagraph (A) of section 5061(d)(4) applies to a 

11 taxpayer (determined after application of subpara12 graph (B) thereof), such taxpayer shall not be re13 quired to furnish any bond covering operations or 

14 withdrawals of distilled spirits, wines, or beer. 

15 ‘‘(2) SATISFACTION OF BOND REQUIRE16 MENTS.—Any taxpayer for any period described in 

17 paragraph (1) shall be treated as if sufficient bond 

18 has been furnished for purposes of covering oper19 ations and withdrawals of distilled spirits, wines, or 

20 beer for purposes of any requirements relating to 

21 bonds under this chapter.’’. 

22 (2) CONFORMING AMENDMENTS.— 

23 (A) BONDS FOR DISTILLED SPIRITS

24 PLANTS.—Section 5173(a) of such Code is 

25 amended— 


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1 (i) in paragraph (1), by striking ‘‘No 

2 person’’ and inserting ‘‘Except as provided 

3 under section 5551(d), no person’’, and 

4 (ii) in paragraph (2), by striking ‘‘No 

5 distilled spirits’’ and inserting ‘‘Except as 

6 provided under section 5551(d), no dis7 tilled spirits’’. 

8 (B) BONDED WINE CELLARS.—Section 

9 5351 of such Code is amended— 

10 (i) by striking ‘‘Any person’’ and in11 serting the following: 

12 ‘‘(a) IN GENERAL.—Any person’’, 

13 (ii) by inserting ‘‘, except as provided 

14 under section 5551(d),’’ before ‘‘file bond’’, 

15 (iii) by striking ‘‘Such premises shall’’ 

16 and all that follows through the period, 

17 and 

18 (iv) by adding at the end the following 

19 new subsection: 

20 ‘‘(b) DEFINITIONS.—For purposes of this chapter— 

21 ‘‘(1) BONDED WINE CELLAR.—The term ‘bond22 ed wine cellar’ means any premises described in sub23 section (a), including any such premises established 

24 by a taxpayer described in section 5551(d). 


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1 ‘‘(2) BONDED WINERY.—At the discretion of 

2 the Secretary, any bonded wine cellar that engages 

3 in production operations may be designated as a 

4 ‘bonded winery’.’’. 

5 (C) BONDS FOR BREWERIES.—Section 

6 5401 of such Code is amended by adding at the 

7 end the following new subsection: 

8 ‘‘(c) EXCEPTION FROM BOND REQUIREMENTS FOR

9 CERTAIN BREWERIES.—Subsection (b) shall not apply to 

10 any taxpayer for any period described in section 

11 5551(d).’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall take effect on the date that is 90 days 

14 after the date of the enactment of this Act. 


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Calendar No. 38 

114TH CONGRESS 

1ST SESSION S. 904 

[Report No. 114–15] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

liability. ods for certain taxpayers with limited excise tax remove bond requirements and extend filing periAPRIL 14, 2015 

Read twice and placed on the calendar 


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