How to Avoid Tax Penalties on Complimentary Hotel Breakfasts
By Mark Feldstein
When is a free meal not really free? When a New York State hotel is offering a complimentary breakfast to its guests.
While complimentary breakfasts are free – in a sense – to your guests, if your hotel is audited, you could get a tax bill. And the tax penalties for months – or years – of presumed “tax-free” food can add up.
New York sales tax and occupancy tax returns are, in most circumstances, subject to audit for up to three years, longer if fraud is suspected....
