• Texas Alcoholic Beverage Commission - Theft and Damaged Inventory Reporting

  • Texas Alcoholic Beverage Commission - Theft and Damaged Inventory Reporting

    Businesses across Texas have seen acts of looting perpetrated against them, suffering from both damages to property and goods stolen from stores. Many package stores and some convenience stores have been the victims of such looting. The Texas Alcoholic Beverage Commission (TABC) recognizes the significant negative impact this looting and stolen property can have to the businesses and the business's record keeping with regard to alcohol. TABC is being proactive on this issue and attempting to aid businesses that sell alcohol to deal with such problems in these difficult times. Below please find TABC suggestions and helpful links on these matters.

    -Matt Burgin, Director of Government Relations

     

    Retailers
     
    When products from a retailer’s alcoholic beverage inventory are stolen or damaged, this can raise several questions about what to do next. TABC is providing the following guidance to help retailers navigate this challenge.
     
    Following the process below may provide:
    • Audit risk mitigation: Documenting theft and damage shows auditors why you are missing product.
    • Enforcement risk mitigation: If bottles stolen from your business are later sold illegally, this documentation helps protect you from being linked to the unauthorized sales.
    • Possible credit law relief: Filing the document helps you make the case for credit law relief. TABC will not penalize retailers that fail to make timely payments for products purchased on credit from May 15-31 if the retailer subsequently experienced product theft or damages to their inventory that causes a failure to timely remit payment.
     
    Step 1: Document the Theft and/or Damage to Your Inventory
     
     
    Step 2: File a Retail Inventory Theft and Damage Report With TABC
     
    This report will ask you to provide TABC with:
    • Your business’s contact information.
    • Your license or permit number.
    • The date and description of the event that resulted in theft and/or damage to your inventory.
    • A description of the event’s effect on your business and inventory.
    • Copies of the police report you filed and your inventory indicating the stolen and/or damaged products.
    • Any instances of which you’re aware of people attempting to illegally sell your stolen inventory products in the consumer market.
     
    Submit this report and the copies of the police report and your inventory to your local TABC office. If you’re claiming a tax credit, make sure to also include your Application for Destruction of Alcoholic Beverages.
     
    Wholesalers
     
    Tax Credits for Damaged Product
    • If you plan to destroy damaged product and would like to seek a tax credit, fill out the Application for Destruction of Alcoholic Beverages form and submit it to your local TABC office.
    • If a retailer is having trouble paying for product purchased on credit because of theft or damage, ask the retailer to follow the above process and contact your local TABC office.
    • If theft or damage has happened directly at your business, follow the above process used by retailers.