CONCORD – On Friday, the NH Department of Justice (DOJ) issued a report based on a comprehensive and conclusive Internal Revenue Service (IRS) ruling reaffirming previous findings and fully exonerating the New Hampshire Liquor Commission (NHLC) from false allegations related to its practices and procedures regarding large volume cash sales (LVCS) over $10,000. NHLC fully supported the request for a formal IRS ruling, which ultimately concluded that NHLC and its employees are exempt from reporting requirements related to 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 Councilor Andru Volinsky and current SEA President Richard Gulla and a subsequent letter from Volinsky, raising unfounded accusations about NHLC’s sales practices and accepting money made from “illegal trafficking, whether in guns, drugs or humans.”

The IRS and DOJ found no credible evidence of the allegations, stating NHLC’s staff were appropriately trained and encouraged to follow existing well-defined policies and practices regarding LVCS.

Further, the State of New Hampshire is under no legal obligation to enforce laws of other states regarding the purchase and transportation of alcohol across borders and faces no legal exposure for the failure to do so.

The IRS ruling also reaffirmed that New Hampshire and federal laws do not impose any limit on the amount of cash, or require reporting of LVCS above $10,000 – such transactions are entirely lawful and may be accepted at NH Liquor & Wine Outlets.

The DOJ issued a rebuke of the accusations and actions of Volinsky and Gulla, noting there was “no credible evidence” that money from LVCS came from illegal activity and the events that transpired “involved serious transgressions” 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 leadership or law enforcement over what they purported to be violations of NHLC policies and federal law and their actions may have “imperiled state government functions and law enforcement efforts and put not only themselves but the public at risk.”

“This IRS ruling and DOJ report provide a long-anticipated and definitive end to an attempt to smear the reputation of one of the nation’s leading retailers and most successful beverage alcohol control states,” said NHLC Chairman Joseph Mollica. “As we said from day-one, NHLC followed its statutory obligation to maximize revenue for the taxpayers of New Hampshire, which we have done for over 85 years, generating more than $4 billion for the State and providing an unrivaled experience for tens of millions of customers from across North America. We thank the IRS and DOJ for their efforts.”