26 USC § 5354 - Bond

---
identifier: "/us/usc/t26/s5354"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 5354 - Bond"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "5354"
section_name: "Bond"
chapter_number: 51
chapter_name: "DISTILLED SPIRITS, WINES, AND BEER"
subchapter_number: "F"
subchapter_name: "Bonded and Taxpaid Wine Premises"
part_number: "I"
part_name: "ESTABLISHMENT"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1379; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title IV, § 455(c), July 18, 1984, 98 Stat. 823; Pub. L. 104–188, title I, § 1702(b)(7), Aug. 20, 1996, 110 Stat. 1869.)"
---


# § 5354. Bond

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.

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**Source Credit**: (Added Pub. L. 85–859, title II, § 201, Sept. 2, 1958, 72 Stat. 1379; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title IV, § 455(c), July 18, 1984, 98 Stat. 823; Pub. L. 104–188, title I, § 1702(b)(7), Aug. 20, 1996, 110 Stat. 1869.)

## Editorial Notes

### Prior Provisions

A prior section 5354, , , consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by .

### Amendments

1996— inserted “(taking into account the appropriate amount of credit with respect to such wine under section 5041(c))” after “any one time”.

1984— substituted “distilled spirits” for “wine spirits” in two places.

1976— struck out “or his delegate” after “Secretary” wherever appearing.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1996 Amendment

Amendment by  effective, except as otherwise expressly provided, as if included in the provision of the Revenue Reconciliation Act of 1990, , to which such amendment relates, see , set out as a note under .

### Effective Date of 1984 Amendment

Amendment by  effective , see , set out as an Effective Date note under .