Usual and Customary Business Records Relating to Denatured Spirits (TTB REC 5150/1)

Denatured distilled spirits, which generally are not subject to Federal excise tax, may be used for industrial purposes in the manufacture of nonbeverage products. To prevent diversion of denatured spirits to taxable beverage use, the Internal Revenue Code (IRC) at 26 U.S.C. 5271–5275 imposes a system of permits, bonds, recordkeeping, and reporting requirements on persons that procure or use such alcohol. Those IRC sections also authorize the Secretary of the Treasury to issue regulations regarding those matters. Under those IRC authorities, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations in 27 CFR part 20 require industrial alcohol users to keep certain usual and customary business records regarding the distribution, procurement, and use of denatured spirits. TTB uses the required records to account for denatured spirits and ensure compliance with statutory and regulatory requirements.

The latest form for Usual and Customary Business Records Relating to Denatured Spirits (TTB REC 5150/1) expires 2026-12-31 and can be found here.

Usual and Customary Business Records Relating to Denatured Spirits TTB REC 5150/1

Federal Enterprise Architecture: General Government - Taxation Management