Fillable Form 8906 - Distilled Spirits Credit

8906

Distilled Spirits Credit

OMB No. 1545-1982

2017

Form

Attach to your tax return.

▶

Department of the Treasury

Attachment

Go to for the latest information.

150

▶

Internal Revenue Service

Sequence No.

Identifying number

Name(s) shown on return

Total number of cases of distilled spirits (see instructions) .

Average tax-financing cost per case .

0.11603

Multiply line 1 by line 2 .

Distilled spirits credit from partnerships and S corporations (see instructions)

Add lines 3 and 4. Partnerships and S corporations, report this amount on Schedule K. All others,

report this amount on Form 3800, Part III, line 1n .

General Instructions

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

Section references are to the Internal Revenue Code unless

90). Divide 45 by 9 and the result is 5. Multiply 5 by 150/80

otherwise noted.

(1.875). The result is 9.375, which is the number of cases in the

Future Developments

lot.

Line 4

For the latest information about developments related to Form

8906 and its instructions, such as legislation enacted after they

Enter total distilled spirits credits from:

were published, go to .

• Schedule K-1 (Form 1065), Partner's Share of Income,

Deductions, Credits, etc., box 15 (code P); and

Purpose of Form

• Schedule K-1 (Form 1120S), Shareholder's Share of Income,

Use Form 8906 to claim the distilled spirits credit. The credit is

Deductions, Credits, etc., box 13 (code P).

part of the general business credit.

Partnerships and S corporations report the above credits on line

Partnerships and S corporations must file this form to claim

4. All other filers figuring a separate credit on earlier lines also

the credit. All other taxpayers are not required to complete or

report the above credits on line 4. All others not using earlier

file this form if their only source for this credit is a partnership or

lines to figure a separate credit can report the above credits

S corporation. Instead, they can report this credit directly on line

directly on Form 3800, Part III, line 1n.

1n in Part III of Form 3800, General Business Credit.

How To Figure the Credit

Paperwork Reduction Act Notice. We ask for the information

on this form to carry out the Internal Revenue laws of the United

Generally, the credit for the tax year is figured by multiplying the

States. You are required to give us the information. We need it

number of cases of bottled distilled spirits purchased or stored

to ensure that you are complying with these laws and to allow

during the tax year by the average tax-financing cost per case

us to figure and collect the right amount of tax.

for the most recent calendar year ending before the beginning of

the tax year. See the instructions for line 1 below.

You are not required to provide the information requested on

a form that is subject to the Paperwork Reduction Act unless

Specific Instructions

the form displays a valid OMB control number. Books or

records relating to a form or its instructions must be retained as

Line 1

long as their contents may become material in the

If you are an eligible wholesaler, enter the number of cases of

administration of any Internal Revenue law. Generally, tax

distilled spirits that were bottled in the United States and

returns and return information are confidential, as required by

purchased by you during the tax year directly from the bottler of

section 6103.

the spirits. An eligible wholesaler is any person who holds a

The time needed to complete and file this form will vary

permit under the Federal Alcohol Administration Act as a

depending on individual circumstances. The estimated burden

wholesaler of distilled spirits and is not a state or political

for individual and business taxpayers filing this form is approved

subdivision thereof, or an agency of either.

under OMB control number 1545-0074 and 1545-0123 and is

If you are not an eligible wholesaler, but you are subject to

included in the estimates shown in the instructions for their

section 5005, enter the number of cases of bottled distilled

individual and business income tax return. The estimated

spirits which are stored in a warehouse operated by, or on

burden for all other taxpayers who file this form is shown below.

behalf of, a state or any political subdivision thereof, or an

Recordkeeping

. 1 hr., 25 min.

agency of either, and for which title has not passed on an

Learning about the law or the form .

. 12 min.

unconditional sale basis.

Preparing and sending the form to the IRS .

. 13 min.

For purposes of this line, a case consists of twelve 80-proof

750-milliliter bottles. For any lot of distilled spirits that does not

If you have comments concerning the accuracy of these time

consist of cases of 80-proof 750-milliliter bottles, figure the

estimates or suggestions for making this form simpler, we would

number of cases in the lot as follows.

be happy to hear from you. See the instructions for the tax

return with which this form is filed.

1. Divide the number of liters in the lot by 9.

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.

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

8906

Form

(2017)

Cat. No. 37715M

Form 8906 - Distilled Spirits Credit - 2017

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