A Call for Guidance: Tip Credit Uncertainty Burdens Vital NYC Restaurant Industry

By Kurt S. Kiess  |  March 11, 2015  |  Download PDF

Restaurant owners in New York City are left in the difficult position of interpreting the rules on the federal tip credit.  The New York City Department of Finance has not issued clear and definitive guidelines on how to treat the federal tip credit as it relates to New York City taxable income.  As a result, New York City restaurant owners may be paying tax on phantom income – not real income but rather paper income for which there is no cash to offset the tax burden.  The lack of clarity has created inconsistent reporting throughout the city, placing a burden on the New York City restaurant industry – an industry that is vital to the city’s economy.

This article, “A Call for Guidance:  Tip credit uncertainty burdens vital NYC restaurant industry”, was originally published in The Metropolitan Corporate Counsel, April 2015.

About Kurt S. Kiess

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Kurt S. Kiess, CPA, is a Partner at Marks Paneth LLP. He has a broad background in the audit and tax aspects of his profession. Mr. Kiess concentrates on serving clients in the real estate, retail, insurance and manufacturing industries. With a public accounting background spanning more than 30 years, Mr. Kiess was a Partner at Marks Shron & Company when it combined with Paneth, Haber and Zimmerman LLP to form today's firm. He has developed... READ MORE +

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