The restaurant industry accounts for more than $600 billion in sales and employs over 12 million taxpayers. Often the first job for many of America’s youth, and accounting for more than 27% of the industry’s employees, the restaurant and food service industry employed nearly one half of all adults at one time or another.
Businesses within the industry are diverse from small family owned restaurants to large franchised establishments with a range of tax issues across accounting methods, credits, and deductions. In addition, the restaurant industry is often associated with a unique payment system for tips. This focus center provides news and information regarding the tax issues specific to the restaurant industry.
The Internal Revenue Service issued Revenue Ruling 2012-18 answering a number of questions regarding tip income and employment taxes. Employers must pay Federal Insurance Contributions Act (FICA) taxes that includes social security and MedicareRead More »
The U.S. Tax Court recently held that twelve McDonald’s franchise owners were not attempting to avoid taxes by purchasing shares in an S Corporation and were allowed a deduction for $2,969,000. In the lateRead More »
Top Takeaways 1: Vendor allowances paid after or with a purchase are treated as reduction of the purchase price Restaurant owners and suppliers frequently make these special arrangements that typically extend beyond a singleRead More »
Top Takeaways 1: Can Deduct Restaurant Supplies Smallwares in the Year Purchased If you are a restaurant or tavern owner, you may want to consider taking advantage of a new IRS procedure which allowsRead More »