Texas Comptroller Finds Mixed Beverage Tax Assessments, Fraud Penalty, Proper

The Texas Comptroller of Public Accounts Oct. 16 adopted the Administrative Law Judge’s (ALJ) recommendation to affirm the Tax Division’s (staff) audit of Taxpayer, a bar operator, and to uphold a fraud penalty. Staff assessed Taxpayer for mixed beverage gross receipts tax and mixed beverage sales tax following an audit. Staff considered vendor purchase data, pour-test results to determine services per container, and daily summaries Taxpayer provided. Staff agreed to adjust Taxpayer’s pour size to make it more representative. The ALJ found that the fraud penalty for willful or fraudulent failure to pay tax was proper because: 1) gross underreporting ...