---
kind: "section"
citation: "27 C.F.R. § 22.123"
title: "27"
number: "22.123"
heading: "Losses on premises."
url: "https://uscodex.org/cfr/27/22.123"
---

# §22.123. Losses on premises.

- (a) **Recording of losses.** A permittee shall determine and record, in the records prescribed by subpart M of this part, the quantity of tax-free or recovered alcohol lost on premises—
  - (1) At the end of each semi-annual period when the inventory required by [§ 22.162](/cfr/27/22.162.md) is taken, or
  - (2) **Immediately upon the discovery of any loss due to casualty, theft or other unusual causes.**
- (b) **Claims.** A claim for allowances of losses of tax-free alcohol shall be filed as prescribed in [§ 22.125](/cfr/27/22.125.md), in the following circumstances—
  - (1) if the quantity lost during any semi-annual inventory period exceeds 1 percent of the quantity to be accounted for during that period, and is more than 10 proof gallons, or
  - (2) if the loss was due to theft or unlawful use or removal, the permittee shall file a claim for allowances of losses regardless of the quantity involved.

## Notes

### Authority

Authority: 26 U.S.C. 5001, 5121, 5123, 5206, 5214, 5271-5275, 5311, 5552, 5555, 6056, 6061, 6065, 6109, 6151, 6806, 7805; 31 U.S.C. 9304, 9306.

### Source

Source: T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, unless otherwise noted.