The IRS Owes Your Restaurant Money. Most Owners Never Collect It.
If your staff earns tips — whether you run a restaurant, bar, nightclub, or hotel — you've been paying a federal tax the IRS is required to return to you, dollar for dollar. We've helped hospitality businesses recover $33,000–$121,000+ per year, and claim up to 3 years retroactively.
$250M+ in credits recovered for 10,000+ businesses across all 50 states.
STEP 1: Watch This 2-Minute Overview
Why This Credit Exists
This Isn't a Loophole. Congress Wrote This Credit for You.
Section 45B of the IRS tax code was intentionally created to offset the payroll burden on businesses employing tipped workers. It's not a gray area, not aggressive tax planning — it's a permanent credit that's been on the books for decades. Most owners never claim it because their payroll company doesn't file it, and their CPA isn't specialized enough to catch it. That's the gap we fill.
The Basics
What You're Missing — And Why
Most restaurant and bar owners don't realize they're eligible for this substantial federal tax credit. Here's what you need to know.
What It Is
A dollar-for-dollar federal tax credit that reimburses employers for the FICA taxes (Social Security + Medicare) paid on employee tip income above the federal minimum wage. This is not a deduction — it directly reduces what you owe the IRS.
Who It's For
Restaurants, bars, hotels, nightclubs, catering companies, coffee shops, and any hospitality business where employees receive and report tips. If your staff gets tipped, you almost certainly qualify.
How Much You Could Recover
7.65% of all qualifying tip income above minimum wage — per year, for up to 3 prior years. For a restaurant with 30–50 tipped employees, that typically means $33,000–$121,000+ annually.
Most businesses have 2–3 unclaimed years sitting in the IRS system right now. That retroactive window closes as each tax year ages out. The calculator below estimates your total in 60 seconds.
Step 2: Get Your Estimate
Find Out What Your Business Qualifies For
Enter your basic payroll info below. No documents needed — we'll give you a real estimate in 60 seconds and email you the full breakdown.
1. Your Business2. Calculating3. Your Estimate
Step 1 of 3 — Your Business
Estimate Your FICA Tip Credit
Answer a few quick questions to see how much your business may be owed under IRS Section 45B. Takes less than 60 seconds.
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No Upfront Cost
Results in 60 Seconds
IRS-Backed Credit
Analyzing your tip payroll exposure…
Calculating IRS Section 45B credit — please wait
Estimate Ready
Your Estimated FICA Tip Credit Refund
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3-Year Lookback Estimate · IRS Section 45B
A full breakdown has been sent to your email — check your inbox.
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Qualification
Does Your Business Qualify?
Most hospitality businesses do — and most have never been told.
Business Type
You operate a food, beverage, or hospitality business
Tipping is customary for your service
Employees receive tips directly from customers
Employee & Payroll Requirements
Workers are W-2 employees (not independent contractors)
Employees report tip income to you as the employer
You pay FICA taxes on those reported tips
Combined wages + tips exceed the federal minimum wage
Documentation — We Handle This For You
Forms 941 on file (or we pull transcripts directly from the IRS)
Business tax returns for qualifying years
Tip income records or payroll reports
Qualifying Business Types
Full-Service Restaurants
Bars & Nightclubs
Hotels & Resorts
Catering Companies
Coffee Shops & Cafes
Other Qualifying Hospitality
Not sure if you qualify? The calculator above gives you an answer in 60 seconds — no documents required.
We do the work. You stay focused on running your business. Here's exactly what happens from start to finish — and why our approach is different.
STEP 01
We Audit Your Eligibility
Before we collect a single document from you, we pull your IRS transcripts directly. We check whether you've previously claimed this credit, confirm your eligibility, and identify exactly which credit years are available. If there's nothing to recover, we tell you immediately — at no cost to you.
STEP 02
We Collect Your Tax Documents
Once eligibility is confirmed, we work with you to gather the required payroll and tax records needed for a thorough, accurate calculation. We tell you exactly what we need — no fishing expeditions, no unnecessary requests. Most clients find this step far simpler than they expected.
STEP 03
We Build Your Credit File
Our team prepares the full Section 45B documentation package — IRS Form 8846, supporting payroll data, and all required attachments. The same caliber of filing used by Fortune 500 hospitality groups, applied to your business.
STEP 04
You Review & Sign
We walk you through exactly what you're signing and why. No blind paperwork. You'll understand the claim before it goes anywhere near the IRS — and we answer every question before you commit to anything.
STEP 05
We File With the IRS
We submit your amended returns and handle all IRS correspondence from the moment of filing forward. You don't touch the IRS — we do. Every inquiry, every notice, every response goes through us.
STEP 06
We Monitor & Respond
IRS processing for amended returns typically takes several months — that timeline is controlled by the IRS, not us. We actively track your claim status and respond to any IRS inquiries on your behalf. You'll never wonder where things stand.
STEP 07
Your Credit Is Applied
Once the IRS approves your claim, your credit is applied against your tax liability or refunded directly to your business. Our fee is a percentage of what we recover — disclosed upfront before you commit. You pay nothing until you receive your money. No recovery, no fee.
Typical Recovery Range
$33K–$121K+
Per year · Up to 3 years retroactive No upfront cost · Contingency-based
IRS processing timelines are controlled by the IRS, not us. What we control is the quality of your filing and how fast we move on our end. Most of our clients find the process far less disruptive than they expected.
Why Hundreds of Restaurant Owners Choose Build&Fund
Industry Specialists, Not Generalists
We focus exclusively on federal tax credits for hospitality and food service businesses. We've processed $250M+ in business credits. This isn't a side service for us — it's all we do. Your CPA handles your books. We handle the credits they're missing.
We Handle Everything — End to End
From eligibility review to IRS filing to post-filing monitoring and IRS correspondence — we manage the entire process. Your CPA doesn't need to do a thing. We coordinate directly with your payroll provider. You stay focused on your restaurant.
Contingency-Based — You Pay Nothing Upfront
Our fee is a percentage of the credit we secure — disclosed upfront, before you commit. If we don't recover money for you, you don't owe us anything. No retainers, no hourly fees, no risk. We only win when you win.
Filed Correctly. Defensible If Ever Questioned.
Every claim we file is built for IRS scrutiny. Proper Form 8846 preparation, full supporting documentation, and compliance-first methodology — so you never have to worry about what happens if the IRS has questions. Audit-ready from day one.
$250M+
In Credits Recovered
10,000+
Businesses Helped
50
States Covered
3 Years
Max Retroactive Window
Proof
Real Restaurants. Real Refunds.
These are actual credits recovered for food and beverage businesses — businesses just like yours.
Results shown reflect actual credits recovered across our programs. Individual results vary based on payroll size, tip volume, and years claimed.*
Client Stories
What Restaurant Owners Say After Working With Us
“
We recovered over $45,000 in a tax refund we didn't even know we were eligible for. The process was incredibly simple on our end. Just a few pieces of info and their team did it all.
$45,000 Recovered
“
We'd been missing out on this credit for years. They helped us claim retroactively and secured over $60,000 in credits. The whole process was handled — I barely had to lift a finger.
$60,000+ Recovered
“
I was skeptical at first — I'd never heard of this credit before. Build&Fund walked me through everything, filed it, and handled the IRS side completely. Game-changer for our cash flow.
Funds Applied to Tax Liability
Questions
Frequently Asked Questions
Everything you need to know about the FICA Tip Credit
The FICA Tip Credit (IRS Code Section 45B) is a dollar-for-dollar federal tax credit that reimburses employers for the Social Security and Medicare taxes paid on employee tips above the federal minimum wage. This is not a deduction — it directly reduces your tax bill. It was intentionally written into the tax code to offset the payroll burden on businesses with tipped employees.
Our team moves fast on our end — eligibility review, documentation, and filing typically happen within a few weeks of engagement. IRS processing for amended returns takes several months, as that timeline is controlled by the IRS. We actively monitor your claim and handle all IRS correspondence throughout. You'll be kept informed at every stage.
The credit equals 7.65% of qualifying tip income above the federal minimum wage. For a restaurant with 30–50 tipped employees, that typically means $33,000–$121,000+ per year. You can also claim retroactively for up to 3 prior tax years — meaning many businesses have substantial unclaimed credits already in the system.
None. We work on a contingency basis — our fee is a percentage of the credit we recover for you, disclosed upfront before you commit. If we don't recover money, you pay nothing. No retainers, no hourly billing, no surprises.
Yes. You can file amended returns for up to 3 prior tax years. If you've never claimed this credit before, you may be owed a significant lump-sum refund. We specialize in maximizing retroactive claims — it's often the largest single recovery we make for new clients.
No — when filed correctly. Section 45B is an established, permanent IRS credit. The key is proper documentation and accurate calculation. Every claim we file is audit-ready and defensible. Our methodology is built around IRS compliance from the first step.
Unused FICA Tip Credits can be carried forward to offset future tax years, subject to IRS rules. Even businesses with lower current-year tax liability can benefit — either through the carryforward or by applying the credit against future liability. We'll identify the best strategy for your specific situation.
Most payroll providers don't calculate or file this credit as part of their standard service, and many CPAs aren't specialized in tax credit recovery. The FICA Tip Credit requires specific expertise in hospitality payroll, tip reporting rules, and IRS Form 8846 — a combination most generalist firms don't maintain. That's the gap we fill.
Your Employees Are Generating a Federal Tax Credit Right Now. Are You Collecting It?
Every year you don't claim is a year the IRS keeps money that belongs to your business. The retroactive window is limited. The calculator takes 2 minutes.
