Any business that holds a liquor-by-the-drink license is required to conduct a monthly inventory. See TENN. COMP. RULES & REGULATIONS 1320-4-2-.06(2)(d).
This is not a new requirement. In order to maintain good internal controls, an inventory should be performed on a monthly basis. The Department has added a place for monthly inventory amounts to the liquor-by-the-drink tax return, not only to ensure compliance with the applicable regulations, but also to help taxpayers. A lack of inventory records is a primary reason for liquor-by-the-drink tax audit assessments.