⚠️ IRS Use Tax Exposure Alert
Most restaurants underreport use tax on equipment, supplies, and untaxed vendor purchases by $8,000–$40,000 per year.
The IRS and state revenue agencies can audit up to 3 years back, assessing 100% of the unpaid gap plus a
20% accuracy penalty plus compounding interest. Your current exposure is shown below.
File overdue periods immediately to stop penalty accumulation.
$0
Total Tax Gap
0
Overdue Periods
$0
Est. Penalty (20%)
$0
Total IRS Exposure
📊 Use Tax by Period
0 periods tracked
| Period | Total Purchases | Taxable Purchases | Tax Owed | Tax Paid | Gap | Status |
|---|
🧮 Penalty Calculator
Unpaid tax gap$0
Accuracy penalty (20%)$0
Est. interest (5% annual)$0
Total IRS Exposure
$0
📖 What is Use Tax?
Use tax applies when you buy equipment, supplies, or services from an out-of-state vendor who doesn't charge sales tax.
Common restaurant examples: kitchen equipment from Amazon, linens from out-of-state suppliers, imported specialty ingredients.
Most restaurants miss this. The IRS and state agencies audit use tax regularly. The average restaurant owes $8,000–$40,000/year.
How to fix it: Track all untaxed purchases monthly and file a use tax return with your state revenue department.