CountySeat Posted February 27, 2014 Share Posted February 27, 2014 We are working on profit/loss projections and wanted to make sure we understand exactly when the federal excise taxes are due. Example: We finish a spirit run, proof it down to 125 and fill a 53 gallon barrel. The excise tax on that 53 gallon barrel will be approximately $894.38. If we plan to aged the spirit for four years, when do we pay the tax. My understanding is that we don't have to pay the tax on that barrel until we remove the spirit from the bonded premises which would leave two possibilities: 1. We bottle within the bonded premises and don't have to pay the tax until the spirit (now labeled and in bottles) is removed from the bonded premises (i.e. to be sold). OR 2. We bottle outside the bonded premises in which case the tax must be paid when the aged spirit is removed from the bonded premises (i.e. to be bottled). Is this accurate? We want to be sure because it will affect how we plan to age the spirit. Thanks. Link to comment Share on other sites More sharing options...
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