Texas Comptroller Affirms Mixed Beverage Gross Receipts Tax, Sales Tax, Penalty Assessed Against Club Operator

The Texas Comptroller of Public Accounts Dec. 5, 2022 adopted an Administrative Law Judge’s (ALJ) recommendation to affirm excise and sales and use tax assessments. Taxpayer held a mixed beverage permit and operated a night club. The Tax Division (staff) audited Taxpayer’s business and assessed mixed beverage gross receipts and sales taxes, penalties, and interest. Taxpayer requested a redetermination and a penalty and interest waiver. The ALJ found that: 1) Taxpayer’s point-of-sale reports didn’t support a reduction of its purchases in the depletion analysis; 2) Taxpayer didn’t provide source records showing opening or closing inventory; 3) Taxpayer didn’t demonstrate reasonable ...