Mixed Beverage Tax (Liquor Tax) Audit Statistics

-“Tax Due” Audits Rise to 61% of all Audit Conducted. Almost 2 out of 3 Audits are tax due.

-“Average Tax Due” Assessed is $51,447 – Not including penalties and interest

Fiscal Year Total No Tax Due Audits Total Tax Due Audits Total Assessed Amount for Tax Due Audits Ave Tax Due Amt
FY2008 288 284 $12,048,877.00 $42,425.62
FY2009 253 272 $10,633,260.00 $39,092.87
FY2010 220 255 $12,314,994.00 $48,294.09
FY2011 244 259 $13,179,747.00 $50,887.05
FY2012 285 224 $8,674,052.00 $38,723.45
FY2013 135 211 $10,855,513.50 $51,447.93
Total 1425 1505 $67,706,443.50 $44,987.67

Related Sources:
“Estimated” Sales Tax Audit
A Practical Guide to HB 3572
An Open Letter to All Mixed Beverage Permit Holders in the State of Texas
Audit Division and the Fraud Penalty

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Texas Mixed Beverage Sales Tax Report Forms for 2014

Provided below is the link to the Texas Comptroller’s website where you will be able to download the new Mixed Beverage Sales Tax Reporting Form for 2014.

Remember, this form is IN ADDITION TO the Mixed Beverage Report and the Sales and Use Tax Reports. It does NOT REPLACE any prior reports.

For expert audit representation, call Texas Tax Group today at 1-855-892-8348 and let our experienced team of 15 Former Texas Comptroller State Tax Auditors handle your mixed beverage sales tax audit.

Texas Comptroller Helpful Link:
Texas Mixed Beverage Tax Forms

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A Practical Guide to HB 3572

The 83rd Legislative Session passed House Bill 3572, which impacts all Mixed Beverage Tax permit holders in the state. It increases the overall tax rate paid to the state to 14.95%. The law takes effect beginning on January 1, 2014. This law does the following things:

1) It reduces the Mixed Beverage Gross Receipts Tax rate from the current 14% to 6.7%.
2) It creates a new tax known as the Mixed Beverage Sales Tax (MBST). The rate of this tax is 8.25%. However, this tax is NOT the same as the current Sales Tax and needs to be accounted for and reported separately.
3) You will need to choose how to account and report this new tax: Tax Included or Separate line item showing the tax.
4) It increases your reporting responsibilities.
5) It increases your documentation responsibilities. (more…)

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Mixed Beverage Gross Receipts Tax

Mixed Beverage Gross Receipts Tax Rate Lowered; New Mixed Beverage Sales Tax Imposed

House Bill 3572, effective Jan. 1, 2014, lowers the mixed beverage gross receipts tax rate from 14 percent to 6.7 percent. The bill also imposes an 8.25 percent mixed beverage sales tax.

Mixed beverage gross receipts tax is imposed on the mixed beverage permittee and will be administered the same as before but at a lower rate. In addition, a mixed beverage permittee will collect an 8.25 percent tax on each mixed beverage sold, prepared or served. The new sales tax is also due on ice and each nonalcoholic beverage sold, prepared or served to be mixed with an alcoholic beverage and consumed on the permitted premises. (more…)

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An Open Letter to All Mixed Beverage Permit Holders in the State of Texas

Beginning October 1, 2012, Audit Division of the Comptroller’s Office very quietly and without notice changed their policy related to Mixed Beverage audits. The policy change almost guarantees that if you are selected for audit, you will be assessed a liability.

No matter how good the records, internal controls or adherence to the law, any Mixed Beverage audit is by its very nature an estimation. Since the inception of the tax in the 1970’s, the estimation procedure has employed the depletion methodology. In an effort to be fair and in recognition that any estimation is imperfect, first the TABC and currently the Audit Division of the Comptroller’s Office used to compare what the taxpayer reported to the amount they estimated the taxpayer “should have” reported. If a taxpayer with good records had reported within 7.5% of what the auditor estimated, no liability was assessed. If the taxpayer had bad records, the “close enough” amount was 5%. (more…)

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