Tip reporting, FICA & restaurant tax exposure
Restaurant audit risk spans tip income, payroll, cash records, and cost of goods at once.
If your records have gaps, or your tip allocation method has never been reviewed, get a professional read now. We review your books, flag what an examiner would, and tell you what to fix first.
via Clutch
“They truly exceeded our expectations, and we'll definitely be working with them again in the future! The team impressed us with their professionalism, attention to detail, and thorough approach. They took the time to understand the business and provided clear insights that went beyond the typical audit findings.”
Petar Matakov
Finance Director, Modeshift Inc · Boston, MA
Why Owners Call Before the Notice Arrives
Most restaurant owners who call us are not in trouble yet. They heard something from a colleague, or their records have quietly gotten messier than they are comfortable with. That is the right time; by the time a notice arrives, the options narrow fast. The risk patterns are consistent across all 50 states, and most are visible long before an examiner shows up.
Where exposure builds
Where restaurant audit exposure builds
Tip reporting and Form 8027
Filing at the 8 percent threshold tells the IRS you ran the allocation. It does not make the records behind it clean, and the property is still fully auditable.
FICA tip assessments
The IRS can estimate a tip rate from traceable receipts and apply it across total sales, building a six-figure assessment without individual employee files.
Tip allocation method errors
Using the wrong allocation method for your structure, or applying it inconsistently, creates gaps that stand out immediately under examination.
POS-to-deposit gaps
A consistent gap between POS totals and bank deposits invites a sales tax review that can expand into a full employment tax audit.
Cash handling
Suppressed cash that funds off-the-books payroll is a pattern examiners know well, and the penalties layer fast.
Talk to a restaurant audit CPA
Already in an examination, or just want a read before one starts?
Reach out and we will walk you through your options in plain terms. No obligation, and handled by a professional.
What we review
What every restaurant audit review covers
Tip Reporting
Accuracy and Form 8027 obligations.
Cash and Sales
Cash handling documentation and sales reconciliation.
Payroll
Payroll records and FICA calculation methodology.
POS and Income
POS records, sales-to-expense ratios, and income reconstruction exposure.
Tip Program Status
SITCA eligibility and enrollment requirements.
Who a restaurant audit is for
A good fit if you:
- Run a restaurant or food and beverage establishment with more than 10 employees.
- Have records that have gotten messier than you are comfortable with.
- Have never had your tip allocation method reviewed.
- Received a notice, or want a read before one arrives.
Why a CPA firm
Why a restaurant audit needs a CPA firm
Examination-specific knowledge
An advisor or accounting platform records the numbers; we know what an examiner does with them.
Representation, not just records
We run from initial review through examination representation and resolution.
Built for defense
The goal is a financial record that does not require a defense, because it was structured correctly from the start.
Why choose Dimov Audit
Why owners bring restaurant work to Dimov Audit
Tip reporting and Form 8027 fluency, FICA assessment defense, and examination representation — backed by hundreds of audit and attestation engagements across every state.
500+
audit and attestation engagements
50
states served, nationwide coverage
8%
Form 8027 threshold — a trigger, not a safe harbor
CPA
examination representation and resolution
Scoping
What drives the cost of a restaurant audit
Restaurant audit work is priced by the engagement.
We size the work against your situation and give you a clear quote before you commit.
Contact
Connect with Dimov Audit
Our dedicated team is ready to assist you on your path to financial success.
211 E 43rd St Suite 628
New York, NY 10017
United States
Restaurant audit FAQs
Are your financials audit-ready?
Are Your Financials Audit-Ready?
At Dimov Audit, we pride ourselves in quick communication, accurate work, and seamless delivery.