8906 Distilled Spirits Credit

2007 Form 8906, Distilled Spirits Credit
Purpose: This is the first circulated draft of the 2007 Form 8906 for your
review and comments. The major changes are listed below.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2006 Form 8906 is available at:
http://www.irs.gov/pub/irs-pdf/f8906.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and
publications are posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, fax, call, or mail any comments by June 11, 2007.
Mike Cyrus
Tax Forms and Publications
SE:W:CAR:MP:T:B:C
Email: Michael.R.Cyrus@irs.gov
Ph: 202.927.9545
Fax: 202.622.3262

Changes to the 2007 Form 8906
On the Form
1] The average tax-financing cost per case on Line 2 is recomputed as 0.27583.
(IRC sec. 5011; Rev. Rul. 2006-63 - table of int. rates for corp. overpmts.; Rev.
Proc. 95-17 - sec. 3 and table 18 @ 60 days)
2] The Form 3800 line reference on line 5 is changed from 1r to 1q.
3} The year is updated from 2006 to 2007 where necessary.
In the Instructions
1] The What’s New heading is removed but the paragraph is retained and
placed as the second paragraph under Purpose of Form and the Form 3800 line
reference in the paragraph is changed from 1r to 1q.

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INSTRUCTIONS TO PRINTERS
FORM 8906, PAGE 1 OF 2 (PAGE 2 IS BLANK)
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8906

Department of the Treasury
Internal Revenue Service

Name(s) shown on return

1
2
3
4
5

Action

Revised proofs
requested

2007

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0
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Attach to your tax return.

150

1
2
3
4

0.27583

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

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 1q of Form 3800.

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.

Attachment
Sequence No.

Identifying number

Use Form 8906 to claim the distilled spirits credit. The credit is
part of the general business credit.

How To Figure the Credit

OMB No. 1545-1982

Distilled Spirits Credit

Section references are to the Internal Revenue Code.

Purpose of Form

Signature

O.K. to print

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 1q.

Instructions

Date

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

Printed on Recycled Paper

Form

8906

(2007)