Say Goodbye to Automatic Gratuities

Say Goodbye to Automatic Gratuities

On June 20, 2012, the Internal Revenue Service (“IRS”) issued Revenue Ruling 2012-18 to clarify and update existing guidelines on taxation issues affecting the hospitality industry. In particular, the ruling helped clarify the distinction between tips and service charges: According to a previous ruling promulgated by the IRS (Rev. Rul. 59-252) and further clarified in … Continue reading »