Marianna Dyson Comments on Reclassification of Automatic Gratuities as Service Charges on The Willis Report

The Willis Report
Fox Business News Channel
12.31.13Marianna Dyson commented on the Internal Revenue Service's (IRS) new enforcement initiative to re-characterize automatic gratuities to restaurant workers as service charges. "I think it signals a real shift in the IRS's enforcement strategy right now," Dyson said, adding that the initiative is "part of an overall enforcement regime designed to get employees – tipped employees – to report more of their tip income." However, the results could have significant financial implications. "It could be very expensive for employers who are hit with these payroll tax assessments. And guess what? The employees have already paid the taxes and there's really very little chance that the employer would get an abatement for any of these payments."
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