im a sole proprietorship liquor store , i want my wife to get a new tax id and take over the business with a new name, how do i do this?

It's going to be a hassle because you'll need to change the license too. Technically, you'll have to sell her the business. In today's litigious society, the new business should, at the very least, be a LLC. You should talk to an attorney about how to switch everything in the easiest and least expensive manner. A mistake could come back to haunt you.

Sounds like she’s milking you dry

Yes it can be done.

You must use a lawyer or she will not be able to keep the liquor license...and then ...if the store closes because it cannot sell liquor....you are screwed.

Consult a lawyer and your tax person.

The transferring of liquor licenses can be a tricky job and it varies greatly by state and city.

Where I live, a restaurant was shut down years ago after it was sold because the old and new owners didn't follow proper procedures.

Also near me, in the past year, someone was charged the tax crimes by the state. He had a tendency to not pay all of his sale taxes that he collected and he tried getting new licenses in employee's and relative's names. He is looking at a rather long prison term.

Since the sole proprietorship is going to file on Sch C which is then going to flow through to the joint 1040...

What's the point?

Sure, it can be done. If you don't know how to do it and can't figure it out on your own then you need to hire an attorney to help you.

sell her the business through a lawyer.