Microdistillery Tax Return Instructions

Enter the filing period, business name, and related information. Also enter the:

• Beginning inventory (should equal previous month’s ending inventory)
• Ending inventory
• Credits and other adjustments (go to Microdistillery Credit and Annual Production Report)

Enter the number of liters for each type of distilled spirits, the number of liters of low-alcohol dairy cocktails, and the total amount of bottles (do not include bottles containing less than 200ml), and the number of miniature bottles.

Enter returns on which you paid tax and issued a credit memo to the customer.

Enter customer returns on which you have not paid tax and any tax-exempt sales you returned to inventory during the period.

Enter any miscellaneous adjustments/corrections that increased your inventory.

Enter your tax-exempt:

• Sales to common carriers engaged in interstate transportation of passengers
• Sales to qualified approved military clubs
• Sales or transfers between Minnesota wholesalers
• Sales to a federal agency that the state of Minnesota is prohibited from taxing
• Sales to the established governing body of an Indian tribe

Enter all authorized breakage and supervised destruction.

Enter any miscellaneous adjustments, corrections, or transactions that decreased your inventory. Provide a description of the subtraction listed.

Microdistilleries are required to report the number of proof gallons they produce each calendar year. This information is due with your December return, which is due January 18. For more information, go to Microdistillery Credit and Annual Production Report.