Federal Distilled Spirits Credit

Distilled Spirits Credit
2023 Form 8906
Form

8906

Department of the Treasury
Internal Revenue Service

2023

Attach to your tax return.
Go to www.irs.gov/Form8906 for the latest information.

Attachment
Sequence No. 150
Identifying number

Name(s) shown on return

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5

OMB No. 1545-1982

Distilled Spirits Credit

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 (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

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2
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4

0.14817

5

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.

Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments
For the latest information about developments related to Form
8906 and its instructions, such as legislation enacted after they
were published, go to www.irs.gov/Form8906.

Purpose of Form
Use Form 8906 to claim the distilled spirits credit. The credit is
part of the general business credit.
Partnerships and S corporations must file this form to claim
the credit. All other taxpayers are not required to complete or
file this form if their only source for this credit is a partnership or
S corporation. Instead, they can report this credit directly on line
1n in Part III of Form 3800, 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.

Specific Instructions
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.
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.

Line 4
Enter total distilled spirits credits from:
• Schedule K-1 (Form 1065), Partner’s Share of Income,
Deductions, Credits, etc., box 15 (code AL); and
• Schedule K-1 (Form 1120-S), Shareholder’s Share of Income,
Deductions, Credits, etc., box 13 (code AL).
Partnerships and S corporations report the above credits on
line 4. All other filers figuring a separate credit on earlier lines
also report the above credits on line 4. All others not using
earlier lines to figure a separate credit can report the above
credits directly on Form 3800, Part III, line 1n.
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 and business taxpayers filing this form is approved
under OMB control number 1545-0074 and 1545-0123 and is
included in the estimates shown in the instructions for their
individual and business 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 (2023)