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The Massachusetts Meals Tax and other tax problems restaurant owners face

The Massachusetts Meals Tax is just one of the many tax problems restaurant owners have to face…

As a restaurant owner in Massachusetts, you are twice more likely to get into IRS problems than other business owners. This is because the IRS imposes several federal and state taxes such as the Massachusetts Meals Tax. If you do not remain compliant, the situation might lead to more unpleasant consequences like a meals tax audit, and land you in a situation where you need help with IRS debt.

The Massachusetts Meals Tax rate is 6.25% on every meal sold by restaurants. Additionally, the tax nexus demands that the vendor be fully registered with the Massachusetts Department of Revenue, must file their returns properly, and settle their back taxes to avoid the likelihood of a tax audit.

Tax problems facing restaurant owners in Massachusetts

With higher chances of getting into tax debt problems, one in two restaurant owners will find themselves in need of tax debt relief at some point in their business.

The tax nexus makes it a necessity for restaurant owners to keep up-to-date records of their gross receipts for both taxable and non-taxable sales. It is also necessary to report all sales on a monthly sales tax return with the sale of alcoholic drinks itemized separately.

This presents a series of tax problems for restaurant owners, who also run cash transactions. Since you run the risk of getting records mixed up, keeping up with tax debt for many restaurant owners is a daunting task.

This is why many restaurant owners run into problems with unsettled IRS back taxes and IRS debt, leading to sales use tax audits, meals tax audits, and many more unpleasant consequences.

What puts you at a greater chance of a Massachusetts Meals Tax audit?

The greatest factor that puts you at risk of a tax audit is underreporting. Once the IRS or DOR suspects that you are underreporting your revenue, they give you their full attention.

Many times, underreporting may be an oversight. It may be difficult keeping abreast with all the transactions and receipts that are involved; this is only more reason why you need to consult with a tax help center like ours.

A certified tax help center like ours can provide you with tax help and IRS tax relief solutions. We ensure that you get IRS debt relief through tax debt help, tax relief programs, State and local tax solutions, tax debt forgiveness, back taxes help, and IRS settlement. We offer an extensive sales and use tax process review that helps you avoid running the risk of sales use tax audits and meals tax audits. 

Do you need help with IRS debt?

We do not need to reiterate the horrors one could experience running into tax problems with the IRS. A meals tax audit could result in a sales tax liability which carries several other fines and penalties for non-compliance.  This is the lightest penalty you could hope for if your restaurant is found wanting by the IRS; other penalties may include criminal charges.

But you don’t have to worry about all of that. Consulting with a certified tax help center in Massachusetts like ours allows you to focus your effort solely on growing your business without having to worry about figures, taxes, tax problems. 

We at Souri, Gazda, & Co. will examine your business model, streamline your procedures, recommend a suitable method for filing for your returns, determine your business’s total tax liability, and help you negotiate effectively with the IRS.

Whether you are facing sales use tax audits, a meals tax audit, or you simply want to protect your restaurant operations, call us now at 866-485-7019 or fill out our contact form to schedule a consultation with an experienced tax attorney.


Internet subscribers, users, and online readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties, of any kind, under U.S. federal tax laws.