Texas Comptroller Affirms Sales and Use, Mixed Beverage Tax Assessments Against Taxpayer’s Bar

The Texas Comptroller of Public Accounts Dec. 11, 2020 decided to adopt the Administrative Law Judge’s (ALJ) recommendation to affirm mixed beverage gross receipts tax and mixed beverage sales tax assessments against Taxpayer. The Tax Division (staff) audited Taxpayer’s bar and assessed additional tax, late penalties, interest, and 50 percent fraud penalty. Taxpayer requested redetermination, contending incorrect average prices, purchase data, serving sizes, allowances for secondary liquors, and allowances for complimentary drinks and spills. The staff agreed to only certain adjustments. Taxpayer appealed. The ALJ found: 1) Taxpayer failed to establish error in the audit; 2) late penalties were warranted ...