How to Avoid Tax Penalties on Complimentary Hotel Breakfasts

By Wiss, Posted in State & Local Tax Services

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... read more.

This website uses cookies in order to improve user experience. If you click the “Accept” button to the right or continue browsing this website, you will be giving your consent to our use of cookies as described in our Privacy Policy.