Tenn. Comp. R. & Regs. 0100-03-.20 - DONATIONS TO NONPROFIT ORGANIZATIONS

(1) Any licensee shall be permitted to make withdrawals from inventory for donations to any organization that has been recognized as exempt from federal taxes under § 501(c) of the Internal Revenue Code ( 26 U.S.C. § 501(c)) and that will serve or sell the donated products at a special occasion licensed event. A donation may occur before a qualified entity receives a special occasion license from the Commission.

(2) Donations made pursuant to this rule may be delivered by the licensee to the recipient organization or may be picked up by the recipient organization at the licensees's premises.

(3) Licensee's making donations under this rule shall maintain adequate records of the donation, including the amount donated, the FEIN of the recipient organization, and a copy of the letter from the IRS granting exempt status to such recipient organization received by the licensee from recipient organization. Upon request, licensees shall present documentation to the Commission of such withdrawals.

(4) Licensees making donations under this rule are responsible for paying all required state and federal taxes for the donated product. Failure to do so could lead to suspension, revocation, or a fine not to exceed the statutory maximum.

Notes

Tenn. Comp. R. & Regs. 0100-03-.20

Original rule certified June 7, 1974. Amendment by Public Chapter 261; effective July 1, 1983. Amendment filed May 10, 1983; effective August 15, 1983. Repeal filed March 10, 2010; effective May 8, 2010. Repeal and new rules filed January 25, 2019; to have become effective April 25, 2019. However, the Government Operations Committee filed a 60-day stay of the effective date of the rules; new effective date 6/24/2019.

Authority: T.C.A. §§ 57-131, 57-132, 57-1-209, 57-3-104, 57-3-303, 57-4-201, 57-701 through 57-707, 57-818, and Chapter 147, Public Acts of 2017.