Publication Title (Abbreviation)
Given Nevada's heavy concentration of businesses in which employees are tipped, lawyers here may be more than usually interested in a recent decision by the United States Supreme Court. On June 17, 2002, the Court decided United States v. Fior D'ltalia, Inc. By 6 to 3, the Court held that the IRS may use an “aggregate estimation” method to determine employers’ liability for Social Security (FICA) taxes imposed on their employees’ tip income. The decision is an important development in a controversy of long duration, but it is not the end of that controversy. This article provides background, describes the Court's decision, and discusses the administrative and legislative aftermath.
© 2002 Steve R. Johnson
Steve R. Johnson,
Employer Tax Liability for Employees' Tips: Fior D'Italia, 10
Available at: http://ir.law.fsu.edu/articles/276