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OMB No. 1545-1982
Distilled Spirits Credit
Form 8906
Department of the Treasury Attach to your tax return. Attachment2023
Internal Revenue Service Go to www.irs.gov/Form8906 for the latest information. Sequence No. 150
Name(s) shown on return Identifying number
1 Total number of cases of distilled spirits (see instructions) . . . . . . . . . . . . . . 1
2 Average tax-financing cost per case . . . . . . . . . . . . . . . . . . . . . 2 0.14817
3 Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Distilled spirits credit from partnerships and S corporations (see instructions) . . . . . . . 4
5 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 . . . . . . . . . . . . . . . . . 5
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.
For the latest information about developments related to Form Line 4
8906 and its instructions, such as legislation enacted after they Enter total distilled spirits credits from:
were published, go to www.irs.gov/Form8906. • Schedule K-1 (Form 1065), Partner’s Share of Income,
Purpose of Form Deductions, Credits, etc., box 15 (code AL); and
Use Form 8906 to claim the distilled spirits credit. The credit is • Schedule K-1 (Form 1120-S), Shareholder’s Share of Income,
part of the general business credit. Deductions, Credits, etc., box 13 (code AL).
Partnerships and S corporations must file this form to claim Partnerships and S corporations report the above credits on
the credit. All other taxpayers are not required to complete or line 4. All other filers figuring a separate credit on earlier lines
file this form if their only source for this credit is a partnership or also report the above credits on line 4. All others not using
S corporation. Instead, they can report this credit directly on line earlier lines to figure a separate credit can report the above
1n in Part III of Form 3800, General Business Credit. credits directly on Form 3800, Part III, line 1n.
How To Figure the Credit Paperwork Reduction Act Notice.We ask for the information
Generally, the credit for the tax year is figured by multiplying the on this form to carry out the Internal Revenue laws of the United
number of cases of bottled distilled spirits purchased or stored States. You are required to give us the information. We need it
during the tax year by the average tax-financing cost per case to ensure that you are complying with these laws and to allow
for the most recent calendar year ending before the beginning us to figure and collect the right amount of tax.
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
Line 1 as 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 section 6103.
of 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
unconditional sale basis. Learning about the law or the form . . . . . . . 12 min.
For purposes of this line, a case consists of twelve 80-proof Preparing and sending the form to the IRS . . . . 13 min.
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
1. Divide the number of liters in the lot by 9. return with which this form is filed.
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.
Cat. No. 37715M Form 8906 (2023)
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