Code of Federal Regulations Title 27. Alcohol, Tobacco Products and Firearms § 27.19.230 Conditions requiring prepayment of taxes

(a) When the proprietor has not given TTB a withdrawal bond or a unit bond and the proprietor is not exempt from furnishing such bond under § 19.151(d);

(b) When the proprietor has posted a withdrawal or a unit bond, but has defaulted on any payment of tax under this section, and the tax payment remains in default. The proprietor must continue to prepay the tax until the appropriate TTB officer decides that allowing the proprietor to make deferred tax payments again will not jeopardize the revenue;

(c) When the proprietor receives a notice from the appropriate TTB officer that the tax must be prepaid. Such notice may be issued to the proprietor if—

(d) When the proprietor's withdrawal bond, or the withdrawal coverage under its unit bond, is for less than the maximum penal sum. This condition does not apply to a proprietor who is exempt from furnishing a bond under § 19.151(d). The proprietor must prepay the tax to the extent that a withdrawal would cause the outstanding tax liability to exceed the limits of coverage under the bond. See also § 19.231 if the bond is for less than the maximum penal sum.