OMB No. 1545-1982 Distilled Spirits Credit Form 8906

Department of the Treasury © Attach to your tax return.

Internal Revenue Service

Attachment

Sequence No. 150

Name(s) shown on return Identifying number

1

2 2

3

4

5

Form 8906 (2008)

Total number of cases of distilled spirits (see instructions) 

3 Multiply line 1 by line 2 

5 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

Cat. No. 37715M

Average tax-financing cost per case 

4

1

Distilled spirits credit from partnerships and S corporations 

Instructions

Section references are to the Internal Revenue Code.

Purpose of Form

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

part of the general business credit.

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.

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.

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.

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.

Recordkeeping 1 hr., 25 min.

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.

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.

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

0.29717

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.

2008