Industry Circular

Number: 70-16
Date: May 14, 1970

Department of the Treasury
Internal Revenue Service
Alcohol, Tobacco, and Firearms Division
Washington, D.C. 20224

DETERMINING WINE GALLONS OF HIGH SOLIDS SPIRITS

Proprietors of distilled spirits plants and others concerned:

The purpose of this industry circular is to advise you of Revenue Ruling 70-209 which was published in the Internal Revenue Bulletin for April 27, 1970. This revenue ruling reads substantially as follows:

Advice has been requested as to the method to be used in determining the wine gallons per pound of spirits containing in excess of 400 milligrams but not more than 600 milligrams of solids per 100 milliliters of liquid.

While regulations in 26 CFR 186.41 and 186.43 provide procedures for determining the quantity of spirits, they do not contain specific procedures for determining the wine gallons of spirits containing in excess of 400 milligrams but not more than 600 milligrams of solids per 100 milliliters of liquid.

It has been determined that the proper method of ascertaining the total wine gallons of spirits containing solids Within the range specified above is to:

(1) ascertain the apparent proof by correcting the hydrometer reading for temperature by means of Table No. 1 of the Gauging Manual,

(2) use the resulting apparent proof figure and Table No. 4 of the Gauging Manual to find the wine gallon equivalent per pound of spirits, and

(3) multiply the wine gallon figure by the number of pounds of spirits. The proof gallons would then be determined by multiplying the wine gallons by the true proof of the spirits.

Inquiries concerning this circular should refer to its number and be addressed to your Assistant Regional Commissioner, Alcohol, Tobacco and Firearms.

Harold Serr,

Director Alcohol, Tobacco and Firearms Division