Texas Comptroller Affirms Tax Division’s Assessment Finding Mixed Beverage Business Couldn’t Prove Tax Audit Erroneous

The Texas Comptroller of Public Accounts June 4 adopted the Administrative Law Judge’s (ALJ) recommendation affirming the Tax Division’s excise, sales and use tax assessments. The division initiated a mixed beverage gross receipts tax audit for Taxpayer, a corporation. It assessed a mixed beverage gross receipts tax and mixed beverage sales tax liabilities, plus a 10 percent late penalty, an additional 50 percent penalty for willful or fraudulent failure to pay tax, and interest. Taxpayer requested a redetermination and a waiver of penalty and interest contending that the division’s depletion calculations were based on incorrect data. The ALJ observed that: ...