ALC-20 – Alcohol Inventory Sale or Transfer by Restaurants with Liquor Licenses

A restaurant that is closing may sell or transfer its inventory to another licensed establishment. 

If a restaurant is closing without transferring its inventory, the restaurant must request that the Department of Revenue complete a closing inventory prior to the close date. 

If the restaurant is selling or transferring its inventory, then the following requirements must be met prior to the completion of the inventory transfer or sale:

  • The seller must provide both the Alcoholic Beverage Commission and Department of Revenue with written notice at least 10 days prior to the sale or transfer of the inventory. The written notice must identify the person or entity receiving the inventory, the date of the sale or transfer, and the quantity, types, and brands of alcohol being sold or transferred.
  • Invoices and debts relating to the alcoholic beverages or wine sold or transferred must be paid in full prior to the sale or transfer.
  • The purchaser or transferee must be licensed prior to the completion of the sale or transfer.

The notice to the Department of Revenue to close a restaurant or close and transfer inventory may be sent by email to the Audit Division at

The alcohol transfer letter and alcohol inventory form are available here on the Department’s website.

References: Tenn. Code Ann. §§ 55-3-204, 57-3-803, and 57-4-101.

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