Travia's Inc., and Mellion

¶ 1. Taxpayers are owners and operators of an S-corporation known as Travia’s Inc., a small bar and grill in Hinesburg, Vermont. They appealed the Department of Taxes’ (DOT) assessment of meals tax and alcoholic beverage tax for the audit years 2006, 2007, and 2008, and corporate income and personal income tax for the audit years 2005, 2006, and 2007. Following a hearing at the Department, the Commissioner of Taxes affirmed the Department’s assessments. Pursuant to 32 V.S.A. § 9275, taxpayers appealed the Commissioner’s determination to the civil division, which affirmed the assessment…