Whether it be an examination by the Internal Revenue Service (IRS) or a state or local government, an audit of your books and records can undoubtedly bring unwanted anxiety, be a drain on resources, and in some cases, prove costly if your entity is found to be non-compliant. Restaurants are subject to many types of taxes, laws, and regulations therefore, it is critical that owners fully understand them and remain in compliance. To help keep your restaurant entity from running afoul of the laws and understand the top areas that are ripe for a potential examination, our DHW Retail Team discusses the topics that have historically been areas of interest for the IRS and state and local tax agencies when auditing restaurants and offers the following tips on how to remain compliant.
Cash Transactions