What are the liquor-by-the-drink tax requirements for closing my business?

If you are a liquor-by-the-drink taxpayer who wants to close-out or sell your business, you must do the following things:

  • file a final return and pay any outstanding amount due within 15 days after the date of selling or quitting the business.
  • surrender your alcoholic beverage license to the Tennessee Alcoholic Beverage Commission.
  • determine what you will do with your remaining liquor:
    • sell it back to your wholesalers
    • keep it – you will need to file for and pay use tax on any liquor kept.
    • destroy it – if you choose this option, a Department of Revenue employee must be present – you will owe no tax on any liquor properly destroyed.
  • have the Department of Revenue come out to do an ending inventory.
  • get a tax clearance letter from the Department of Revenue.
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