LBD-3 - Accounting for Spillage, Breakage, and Theft

Taxpayers may reduce inventory by the amount of alcoholic beverages lost due to theft, breakage or acts of nature, but proof of loss must be provided to the Department. To read more about what is necessary to show proof of loss, please read TENN. COMP. RULES & REGULATIONS 1320-4-2-.04(2).                 

Reference: Rule 1320-4-2.pdf