Texas Comptroller Upholds Sales, Mixed Beverage Tax Assessments Against Restaurant

The Texas Comptroller of Public Accounts upheld a sales and use tax audit and amended mixed beverage tax assessments against a restaurant with a full-service bar, and imputed the tax liability to the taxpayer’s sole managing member. The taxpayer challenged the assessments and argued that its records were lost due to fire. The Comptroller stated that the loss of documents, even when due to circumstances beyond taxpayer’s control, does not afford a basis for relief from an assessment. The Comptroller found the restaurant failed to provide complete documentation to support its claims. The restaurant’s overall error rate was 58.01 percent ...