Unaccounted-for beer

Definition

Beer gone from the brewery with no removal behind it, and the tax stands until the loss is proved.

Why It Matters

Taxable removals names what the excise is paid on and treats the gap between production and removals as working capital. Beer that leaves inventory without being a removal is taxed anyway unless the brewer proves the loss, in writing, on learning of it. Theft is the worst case, because the tax is collected unless the brewer shows the theft happened before removal and without negligence by anyone in the chain. A claim filed more than six months after the loss is not allowed at all. So a brewery with loose tank-to-package reconciliation carries an excise liability nobody has invoiced. Read two years of federal brewer's reports against the production records, and ask which losses were written to the bureau and which claims were filed, with dates.