---
kind: "section"
citation: "27 C.F.R. § 20.203"
title: "27"
number: "20.203"
heading: "Losses on premises."
url: "https://uscodex.org/cfr/27/20.203"
---

# §20.203. Losses on premises.

- (a) **Recording of losses.** A permittee shall determine and record, in the records prescribed by subpart P of this part, the quantity of specially denatured spirits or recovered alcohol lost on premises:
  - (1) When an inventory is taken,
  - (2) At the time a container is emptied, or
  - (3) **Immediately upon the discovery of any loss due to casualty, theft or other unusual causes.**
- (b) **Claims.** A claim for allowance of specially denatured spirits will be filed as prescribed in [§ 20.205](/cfr/27/20.205.md), in the following circumstances:
  - (1) If the quantity lost during the annual accounting period ([§ 20.263(c)](/cfr/27/20.263.md?p=c)) exceeds one percent of the quantity to be accounted for during that period, and is more than 50 gallons; or,
  - (2) If the loss was due to theft or unlawful use or removal, the permittee shall file a claim for allowance of losses regardless of the quantity involved.

## Notes

### Amendments

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]

### Authority

Authority: 26 U.S.C. 5001, 5206, 5214, 5271-5275, 5311, 5552, 5555, 5607, 6065, 6109, 7805.

### Source

Source: T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, unless otherwise noted.

### Amendments

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. TTB-140, 81 FR 59456, Aug. 30, 2016]