The Internal Revenue Service is investigating two customers of the New Hampshire Liquor Commission for potential tax fraud, dropping in on multiple commission locations last week to collect information, according to an internal email provided to the Monitor.
Agents for the federal agency visited “NHLC Outlets and Headquarters” last Wednesday in connection with the investigation, James Richards, administrator of Liquor Commission store operations, said in the email.
In the email, sent to all store managers and supervisors Friday, Richards said the agency is interested in the activities of two New York customers: Xiaojun Zheng of Bayside, N.Y., and Juncheng Chen of Flushing, N.Y. He asked that managers collect any documents and information relating to the two people – including transactions, voicemails, text messages, notes and emails – from 2014-18.
Richards asked the stores to collect and prepare the information by Wednesday, calling participation “a priority.”
“Of course we are fully supportive of the IRS in their investigation,” Richards said.
A liquor commission spokesman declined to comment on the investigation or the email.
Few details are known on the IRS investigation. A spokesperson for the agency confirmed that officials “were onsite to conduct official business” last Wednesday but did not provide further information.
But a press release from the New York State Department of Taxation and Finance said that Juncheng Chen was arrested in December for bringing 757 liters of liquor into the state with the apparent intention of selling it. Chen allegedly bought the alcohol at five different New Hampshire liquor outlets, the release said. A representative for the department was not immediately available by press time.
The liquor commission has attracted scrutiny in recent weeks after Executive Councilor Andru Volinsky, D-Concord, accused the state-run agency of turning a blind eye to bulk alcohol purchases from out-of-state customers that he said could violate tax laws. The agency has denied any improper practices. The attorney general’s office is currently investigating the allegations.
(Ethan DeWitt can be reached at edewitt@cmonitor.com, or on Twitter at @edewittNH.)