8906 Distilled Spirits Credit

Form

8906

Department of the Treasury
Internal Revenue Service

©

Attachment
Sequence No.

150

Identifying number

Total number of cases of distilled spirits (see instructions)
Average tax-financing cost per case
Multiply line 1 by line 2
Distilled spirits credit from partnerships and S corporations
Add lines 3 and 4. Partnerships and S corporations, report this amount on Schedule K; all
others, report this amount on Form 3800, line 1n

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2
3
4

0.29717

5

2. Multiply the result by a fraction, the numerator of which is
the stated proof of the lot and the denominator of which is 80.

Instructions
Section references are to the Internal Revenue Code.

3. The result is the number of cases in the lot.

Purpose of Form
Use Form 8906 to claim the distilled spirits credit. The credit is
part of the general business credit.
Taxpayers that are not partnerships or S corporations, and
whose only source of this credit is from those pass-through
entities, are not required to complete or file this form. Instead,
they can report this amount directly on line 1n of Form 3800.

How To Figure the Credit
Generally, the credit for the tax year is figured by multiplying
the number of cases of bottled distilled spirits purchased or
stored during the tax year by the average tax-financing cost
per case for the most recent calendar year ending before the
beginning of the tax year. See the instructions for line 1 below.

Line 1
If you are an eligible wholesaler, enter the number of cases of
distilled spirits that were bottled in the United States and
purchased by you during the tax year directly from the bottler
of the spirits. An eligible wholesaler is any person who holds a
permit under the Federal Alcohol Administration Act as a
wholesaler of distilled spirits and is not a state or political
subdivision thereof, or an agency of either.
If you are not an eligible wholesaler, but you are subject to
section 5005, enter the number of cases of bottled distilled
spirits which are stored in a warehouse operated by, or on
behalf of, a state or any political subdivision thereof, or an
agency of either, and for which title has not passed on an
unconditional sale basis.
For purposes of this line, a case consists of twelve 80-proof
750-milliliter bottles. For any lot of distilled spirits that does
not consist of cases of 80-proof 750-milliliter bottles, figure
the number of cases in the lot as follows.
1. Divide the number of liters in the lot by 9.

2008

Attach to your tax return.

Name(s) shown on return

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5

OMB No. 1545-1982

Distilled Spirits Credit

Example. You purchased a lot of ninety 500-milliliter bottles of
150-proof rum. The number of liters in the lot is 45 (0.5 liters x
90). Divide 45 by 9 and the result is 5. Multiply 5 by 150/80
(1.875). The result is 9.375, which is the number of cases in
the lot.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue laws
of the United States. You are required to give us the
information. We need it to ensure that you are complying with
these laws and to allow us to figure and collect the right
amount of tax.
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books
or records relating to a form or its instructions must be
retained as long as their contents may become material in the
administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden
for individual taxpayers filing this form is approved under OMB
control number 1545-0074 and is included in the estimates
shown in the instructions for their individual income tax return.
The estimated burden for all other taxpayers who file this form
is shown below.
Recordkeeping

1 hr., 25 min.

Learning about the law or the form

12 min.

Preparing and sending the form to the IRS

13 min.

If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. See the instructions for
the tax return with which this form is filed.

Cat. No. 37715M

Form

8906

(2008)