Reg. 455.1. - Gratuities related to restaurant activity.

Latest version.

Gratuities charged by or collected by persons subject to the tax imposed by section 455 may be excluded from gross income if:
(1)

Such charge is separately stated upon the bill, invoice, etc. provided the customer, and such amounts are maintained separately in the books and records of the taxpayer; and

(2)

Such gratuities are distributed in total to employees of the taxpayer in addition to customary and regular wages.

                    
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