Rev. Rul. 65-136

Advice has been requested whether winemakers may use commercial liquid sugar or invert sugar syrup, in lieu of dry sugar, in a combined operation to reconstitute concertrated fruit juice to its original density and to adjust the Brix of the juice, in the production of fruit and berry wines under the provisions of 26 CFR 240.353 and 240.407, when the acid content of the juice is below five parts per thousand and amelioration of the juice is not authorized.

Section 5384(b)(2) of the Internal Revenue Code of 1954 provides that pure dry sugar may be used in the production of fruit and berry wines for the purpose of correcting natural deficiencies, and section 5382(b)(1) of the Code provides that concentrated juice reduced with water to its original density or to not less than 22 degrees Brix shall be deemed to be juice or must.

26 CFR 240.353 authorizes the dilution, with water, of concentrated juice to its original density or to not less than 22 degrees Brix if the original density was more than 22 degrees Brix or to not more than 22 degrees Brix if the original density was less than 22 degrees Brix. 26 CFR 240.407 authorizes the amelioration of juice prior to fermentation to a total solids content of not more than 25 degrees Brix.

Accordingly, it is held that a winemaker may add water and commercial liquid sugar or invert sugar syrup (in lieu of water and dry sugar) in a combined operation in the production of fruit and berry wines to reconstitute and ameliorate concentrated fruit juice. The water content of the liquid sugar shall be used in calculating the total amount of water needed to reconstitute the concentrated fruit juice, and shall be limited to that authorized for reconstitution of the concentrated juice under the provisions of 26 CFR 240.353. Moreover, the sugar content of the liquid sugar shall have a purity of not less than 95 percent calculated on a dry basis, and the quantity of sugar used shall not exceed the limitations of 26 CFR 240.407.