Section 1320-04-02-.06 - RECORDS OF LICENSEES(1) All licensees shall have available for use by all customers menus which clearly indicate the sales price of alcoholic beverages, both liquor and wine, and that the sales price includes the applicable rate of alcoholic beverage tax and sales tax.(2) All licensees shall keep and preserve adequate and complete records to determine any tax due on the sales of alcoholic beverages. Such records shall include at least the following:(a) A daily record of all sales which shall at least consist of daily cash register tapes and/or daily guest checks. Summary totals of sales will not be acceptable by the department for audit purposes unless supported by cash register tapes or guest checks for the corresponding sales activity period. Entries on guest checks evidencing sales of alcoholic beverages must not be commingled with entries evidencing sales of food, beer and other items. Entries evidencing sales of alcoholic beverages must either be made on a separate document or on the bottom or reverse of any guest check showing sales of other items. The document showing sales of alcoholic beverages must separate liquor and wine sales. If cash registers are used to record sales, alcoholic beverage sales must be keyed separately from sales of food, beer and other items. The sales of alcoholic beverages must further be keyed to identify liquor sales separate from wine sales. If the sales of liquor and wine, as shown by the books of the licensee, do not bear a markup over purchases approximately the same as the average markup shown by the price schedule, the commissioner will consider the books of the licensee insufficient to show the proper tax liability.(b) Receipts derived from alcoholic beverages sold at other than regular sales prices as posted with the department on the price schedule, i.e., happy hour sales, etc., must be clearly recorded on cash register tapes or guest checks showing each sale at other than regular prices during each particular period or activity. Where adequate records are not maintained by the licensee to substantiate sales at other than posted selling prices, the licensee shall be liable for tax on the total disposition as though all sales were made at regular prices.(c) A record of all merchandise purchased for resale, including all invoices, delivery tickets, bills of lading and copies of purchase orders. (The purchase date shall be considered to be the date of the purchase invoice issued to the licensee by a licensed wholesaler of alcoholic beverages.)(d) An itemized statement of inventory, by brand name, size, and dollar value of alcoholic beverages on hand the last day of each month. Upon written request, the commissioner may allow inventory statements to be maintained on a basis other than a calendar month basis if the accounting period of the licensee is other than a calendar month period.(3) Licensees shall retain all books and records provided for herein for a period of at least four years, unless earlier destruction is authorized by the commissioner. Where both guest checks (sales tickets) and cash register tapes are used concurrently to evidence sales of alcoholic beverages such guest checks may be destroyed 60 days following date of sale.(4) Books and records other than those specified in paragraph (3) may be used to determine tax liability if it is established to the satisfaction of the commissioner that such books and records accurately document the sales activity, including happy hour sales, in a manner such that tax liability can be properly determined.(5) The filing of false tax reports or the failure on the part of any licensee to file required reports or schedules or to maintain adequate and accurate records to account for the purchase and distribution of alcoholic beverages and by which the true tax liability may be established will be cause for the commissioner or his authorized representative to determine the tax liability of such licensee from whatever source of information may be available to him. An assessment made by the commissioner pursuant to this authority shall be binding as if made upon the sworn statement or tax report of the licensee liable for the payment of alcoholic beverage tax and any such assessment which is lawfully made against such licensee shall be presumed accurate unless adequate records are submitted evidencing otherwise.Tenn. Comp. R. & Regs. 1320-04-02-.06
Original rule certified by the Department of Revenue June 7, 1974. Amendment filed November 29, 1976; effective December 29, 1976. Amendment filed December 15, 1977; effective January 16, 1978. Amendment filed June 27, 1990; effective August 11, 1990.Authority: T.C.A. §§ 67-1-102 and 57-4-302.