720-DS-ELECT: Distilled Spirits Tax Credit Election (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Form 720-DS-ELECT records an entity’s distilled spirits tax credit election for 2024. It offers a choice between waiving accumulated credits for a nonrefundable, nontransferable credit and waiving future credits for a refundable credit on multiple taxes. The election is
Who files this form
The 2024 Form 720-DS-ELECT is for taxpayers making a distilled spirits tax credit election. It offers two choices:
- Waive accumulated tax credits and elect a nonrefundable, nontransferable credit for up to 25,000 barrels of distilled spirits in a bonded warehouse or premises for each taxable year.
- Waive all future tax credits allowed under this section and elect a refundable credit on multiple taxes as described in KRS 141.389(7).
The form does not state who is required to make an election.
What you'll need
Have the information requested on the form ready:
- Entity name, mailing address, and telephone number.
- Federal identification number.
- Kentucky Corporation/LLET account number, if applicable.
- Tax-year beginning and ending dates, if not using calendar year 2024.
- The signing member’s printed name, title, signature, and date.
- If using a paid preparer, the preparer’s signature, date, printed name or firm name, ID number, and email and/or telephone number.
The form does not list specific supporting documents to attach.
How to file
- Enter the entity’s identifying information and tax year. Check the change-of-name box if applicable.
- Check the box for the election you are making.
- Complete the member signature, printed name, title, and date fields.
- Complete the paid-preparer fields if applicable, including whether the Department of Revenue may discuss the return with the preparer.
- Mail the form to:
Kentucky Department of Revenue
Frankfort, KY 40619-0006
Common mistakes
- Overlooking that the election is irrevocable. The form states that an election binds both the taxpayer and the Department of Revenue and cannot be revoked.
- Overlooking what each choice gives up. The first choice waives accumulated tax credits. The second waives all future tax credits allowed under this section.
- Signing without reviewing the return. The signature declaration states, under penalties of perjury, that the return and any accompanying schedules and statements have been examined and are true, correct, and complete to the best of the signer’s knowledge and belief.
Questions people ask
Can I revoke the election later?
No. The form states that any election is irrevocable and binding on both the taxpayer and the Department of Revenue.
How is the nonrefundable credit calculated?
For up to 25,000 barrels of distilled spirits in a bonded warehouse or premises for each taxable year, the credit equals 100% of the tax assessed under KRS 132.160 and paid on time by the taxpayer under KRS 132.180. This choice requires waiving accumulated tax credits, and the credit is nontransferable.
What do I give up by choosing the refundable credit?
You waive all future tax credits allowed under this section. In exchange, the form allows a refundable tax credit on multiple taxes as described in KRS 141.389(7).
Can the Department of Revenue discuss the return with my preparer?
The form has YES and NO boxes for you to indicate whether the department may discuss the return with the preparer.
Where can I find more details about the election?
The form directs taxpayers to review KRS 141.389 at the Kentucky Legislature’s statutes page.