Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 72-95

1972-1 C.B. 429

IRS Headnote

Wine spirits added to wine may be excluded when calculating the applicable percentages required to qualify a wine for purposes of vintage, appellation of origin, and varietal designation; Revenue Ruling 71-214 superseded.

Full Text

Rev. Rul. 72-95

The Internal Revenue Service has reconsidered the position stated in Revenue Ruling 71-214, C.B. 1971-1, 481, with respect to excluding the quantity of wine spirits used in wine spirits addition when calculating the applicable percentages required to qualify a wine under 27 CFR, Part 4, for purposes of vintage, appellation of origin, and varietal designation.

Generally, wines during cellar treatment are subjected to a number of blendings which make identification of the quantity of wine spirits originally added practically impossible and would require burdensome record keeping which is actually meaningless. Therefore, in view of the above, the conditions of  Revenue Ruling 71-214 are restated as follows: The amount of sugar, sugar-water solution, or liquid sugar used in the production of wine historically has been excluded from percentage calculation to qualify a wine under 27 CFR, Part 4, for purposes of vintage, appellation of origin, and varietal designation. On the basis of this rationale, it is held that during the initial production the quantity of wine spirits used in wine spirits addition is excluded when calculating the applicable percentages required to qualify a wine for purposes of vintage, appellation of origin, and varietal designation.

Revenue Ruling 71-214 is hereby superseded.