Well then the guys at the LHBS are really trusting, because they don't try to hide it at all that they're selling it as alcohol distillation. Or maybe none of us in there looked like we were affiliated with law enforcement.
A quick google search implies that federal law prohibits distilling beverages for consumption, but Missouri state laws allow it. So yeah, illegal.
So @Huck1460 you are just a Missouri resident hoping to make some fuel additive? Maybe you have a flex-fuel vehicle and a shortage of gas stations that offer E85 in your area?