The Alcohol and Tobacco Tax and Trade Bureau says it has withdrawn the label approval of "Palcohol."
Each serving comes in a small pouch.
ABC News Chief Health and Medical Editor Richard Besser, M.D., says it's like Kool-Aid for adults because you just add water to the powder.
"The company said that initially they would be marketing packets that were rum, vodka, mixed drinks like Cosmopolitans, Mojitos, Kamikazes. It's not clear why the government reversed this but, there are big issues. I think this would be probably the worst thing that can happen for underage drinking since the fake ID," Besser said.
The maker of "Palcohol" says the problem is a discrepancy in the fill level of the powder in each bag.
Subsequent questions emailed to Tom Hogue, a representative of the agency, were not immediately answered. But in an email message, Palcohol's parent company Lipsmark said it will resubmit the labels for approval.
"We don't have an expected approval date as label approval can vary widely," the message said.
The Associated Press contributed to this story.
