LBD-10 - How to Properly Close LBD Account when Closing 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 the last 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 by either:
    • selling it back to your wholesalers;
    • keeping it – you will need to file for and pay use tax on any liquor kept; or
    • destroying 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.

Reference: Tenn. Code Ann. § 57-4-303

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