Daily Tax Report: State

Texas Comptroller Affirms Fraud Penalty for Underreporting Mixed Beverage Excise, Sales Tax

July 10, 2020, 5:00 AM

The Texas Comptroller of Public Accounts May 29 adopted the Administrative Law Judge’s (ALJ) recommendation affirming sales and use and excise tax assessments against Taxpayer. The Tax Division (staff) audited Taxpayer’s bar for mixed beverage gross receipts tax and mixed beverage sales tax. The auditor administered a pour test, and on finding certain reporting discrepancies, completed the assessments, including tax, penalties, and interest. Taxpayer requested redetermination. The staff agreed to certain amendments in the audits but denied further adjustments. Taxpayer protested, contending further adjustments were warranted due to employee theft, and Taxpayer wasn’t liable for a fraud penalty. The ALJ...

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