27 CFR §20.203

1. (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. (1)When an inventory is taken,
   2. (2)At the time a container is emptied, or
   3. (3)Immediately upon the discovery of any loss due to casualty, theft or other unusual causes.
2. (b)Claims. A claim for allowance of specially denatured spirits will be filed as prescribed in § 20.205, in the following circumstances:
   1. (1)If the quantity lost during the annual accounting period (§ 20.263(c)) exceeds one percent of the quantity to be accounted for during that period, and is more than 50 gallons; or,
   2. (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.