Rev. Rul. 54-619

Advice has been requested whether a small quantity of citric acid or hydrochloric acid may be used in treating demineralized water for use in reduction of distilled spirits.

The reduction of distilled spirits with demineralized water treated with a small quantity of either citric acid or hydrochloric acid, in a ratio of approximately 1/2 pound of such acid to 1,000 gallons of water, would result in taxable rectification. Accordingly, demineralized water so treated with citric acid or hydrochloric acid may be used in products subject to the rectification tax. Formulae on Form 27-B Supplemental, `Formula and Process for Rectified Products,' must be filed for each product, showing the quantity of citric acid or hydrochloric acid, as the case may be, added to each 100 gallons of demineralized water to be used for reducing purposes.

The use of demineralized water so treated is not authorized for reduction of spirits to be bottled without rectification.