Rev. Ruling 56-98
Section 21, class 1(a) of the Regulations relating to the Labeling and Advertising of Distilled Spirits, issued pursuant to the Federal Alcohol Administration Act, prescribes the standards of identity for vodka. It provides, in part, that if any flavoring material is added to the distillate it shall be designated "flavored vodka" and may be further classified with the name of the flavoring material used. Held, the use of sugar not exceeding two-tenths of one per cent and a trace amount of citric acid in the production of vodka would not materially affect the taste or change its basic character. Therefore, a product containing such ingredients within the limitations stated may be designated and labeled as vodka. However, if any flavoring ingredients are used, the product must be designated and labeled as "flavored vodka." The addition of any material to the vodka, including sugar or citric acid, will result in taxable rectification through compounding.
27 U.S.C. 205; 27 CFR 5.21 (27 CFR 5.22)