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It is a failure to collect on behalf of the government the applicable alcoholic beverage taxes.

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Q: What federal law is moonshine a violation of?
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Moonshine is illegal in every state. You can buy a product they say is moonshine in liquor stores, but it's not anywhere near the alcohol percentage of real moonshine.


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While there are several companies who DO possess a federal tax stamp to legally distill and sell a product they call "Moonshine" the production of 'homemade,' untaxed alcohol for consumption is illegal in the US by federal law.


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Is it illegal to make moonshine in a US state?

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Depending on the severity of the violation, the repercussions of violating Federal tax law can range from a small fine, to prison time.