Oscar Ramos, Tax Advisor

In my 25+ years as an accountant, I’ve found that meals tax is one of the biggest pitfalls for restaurants. Many businesses either charge the wrong amount or fail to collect it altogether. This tax, which is charged to customers, must be collected and remitted to the MA Department of Revenue (DOR). In recent years, I’ve seen a rise in DOR audits, and the penalties for noncompliance can be devastating—many businesses don’t survive them.

Common issues include using tax funds for operating expenses, improperly configured POS systems or cash registers, and not seeking professional guidance to stay compliant. Third-party platforms like DoorDash, Grubhub, and UberEats add to the complexity, as they often don’t integrate with POS systems, requiring extra work to calculate and report taxes accurately.

Small businesses should budget for professional accounting services just as they do for advertising and other operational costs. Without proper oversight, businesses risk substantial interest and penalties from the DOR. Additionally, any discrepancies found during a meals tax audit may be reported to the DOR’s income tax division and the IRS, potentially increasing taxable income and triggering further scrutiny.

Mass. officials seize restaurant in Holyoke mall due to unpaid taxes The eatery is known for its menu inspired by Caribbean, South American and African dishes. It originally opened its storefront in Holyoke Mall in 2021.

Wait… did you know the IRS considers obesity a disease? Here’s what that means for your taxes!

💡 Real Estate Agents, Investors, and Professionals: Don't Leave Money on the Table! 💡

Did you know that one of the biggest tax-saving deductions often goes unused simply because people aren’t keeping track of their business miles? For 2025, the IRS mileage rate is set at $0.70 per mile. That means every mile you drive for business—whether it's to show properties, meet with clients, or attend networking events—can add up to significant tax savings. 🚗💰

But here's the catch: If you’re not tracking your mileage, you’re likely missing out on thousands in deductions.

👉 Learn more here: The IRS Mileage Rate for 2025.

📱 Make tracking simple with the MileIQ app. It automatically logs your trips so you can focus on growing your business while capturing every tax deduction you’re entitled to.

💼 Tax planning is crucial, especially in real estate. If you’re looking for personalized advice on maximizing your deductions, let’s connect. I specialize in helping real estate agents, investors, and professionals like you keep more of what you earn!

The IRS Mileage Rate for 2025 | MileIQ Looking for the 2025 standard mileage rates? Find them here.