New Hampshire Liquor Commission sales practices upheld by IRS ruling
March 26 – CONCORD – On Friday, the NH Department of Justice (DOJ) released a report based on a full and conclusive ruling from the Internal Revenue Service (IRS) reaffirming previous findings and fully exonerating the New Hampshire Liquor Commission ( NHLC) of false allegations related to its practices and procedures regarding High Volume Cash Sales (LCVS) over $10,000. NHLC fully supported the request for a formal ruling from the IRS, which ultimately concluded that NHLC and its employees are exempt from the reporting requirements related to the LVCS. The full DOJ report is available here https://www.doj.nh.gov/news/2022/documents/20220325-liquor-sales-report.pdf.
The IRS findings and DOJ report were in response to a February 3, 2018 “sting operation” orchestrated by former NH Executive Advisor Andru Volinsky and current SEA Chairman Richard Gulla and a subsequent letter of Volinsky, raising unsubstantiated accusations about NHLC’s sales practices and accepting money from “illegal trafficking, whether it be weapons, drugs or human beings.”
The IRS and DOJ found no credible evidence for the allegations, stating that NHLC personnel were properly trained and encouraged to follow existing well-defined policies and practices regarding LCVS.
Additionally, the State of New Hampshire has no legal obligation to enforce the laws of other states regarding the purchase and transportation of alcohol across borders and faces no legal exposure for failure to – compliance with this obligation.
The IRS ruling also reaffirmed that New Hampshire and federal laws do not impose any cash amount limits or require the reporting of LVCS above $10,000 – such transactions are entirely legal and may be accepted at NH Liquor & Wine Outlets.
The DOJ reprimanded the accusations and actions of Volinsky and Gulla, noting that there was “no credible evidence” that LVCS money came from illegal activities and that the events that occurred “involved transgressions. serious” and constituted an “isolated and serious violation of NHLC policies and practices that were well known.”
The report further stated that Volinsky or Gulla made the decision not to contact NHLC leaders or law enforcement regarding what they claimed were violations of NHLC policies and federal law. and that their actions may have “jeopardized the functions of state government and law enforcement efforts and put not only themselves, but the public at risk.”
“This IRS decision and DOJ report puts a final and long-awaited end to an attempt to smear the reputation of one of the nation’s leading retailers and the states’ top performers in liquor control.” , said NHLC President Joseph Mollica. “As we have said from day one, NHLC has fulfilled its legal obligation to maximize revenue for New Hampshire taxpayers, which we have done for more than 85 years, generating more than $4 billion for the state. and delivering an unparalleled experience to tens of millions of customers across North America.We thank the IRS and DOJ for their efforts.