Texas Mixed Beverage Sales Tax – Here are some interesting case studies
- Case 1– The ALJ upheld the assessment of mixed beverage taxes against a taxpayer, finding no error in the assessment, which was based on a pour test conducted at the taxpayer’s establishment, corresponding sales receipts, a price sheet, and vendor-reported purchases. The taxpayer failed to provide any evidence to dispute the assessment. Additionally, the ALJ sustained a 50% penalty, as the audit revealed an error rate of approximately 86%, and the taxpayer did not present a credible explanation for the underreporting.
- Case 2 – The ALJ affirmed the assessment of mixed beverage gross receipts tax and mixed beverage sales tax, relying on the taxpayer’s sales records and reported tax filings. Since the taxpayer did not provide evidence of any errors in the assessment, the decision stood. A 50% additional penalty was also upheld, as the taxpayer’s overall error rate exceeded 50% for each assessment and no reasonable explanation for the underreporting was provided.
- Case 3 – The ALJ confirmed the assessment of mixed beverage taxes and sales and use taxes against a restaurant and full-service bar. The taxpayer did not provide records to challenge the audit’s accuracy. Additionally, a 50% penalty was upheld, as the audit found an error rate of 61.87% in the mixed beverage gross receipts tax and 58.3% in the mixed beverage sales tax, with no valid justification for the discrepancies.
Texas Mixed Beverage Sales Tax
