"Dog3" wrote:
> "<RJ>" wrote:
> > I'm not a business tax expert, but
> >
> > it would seem that
> > if the service charge is a mandatory fee,
> > then it would be taxable income to the business.
> >
> > And if the business isn't reporting it.......
> >
> >
> > If the "service charge" is a tip,
> > then its payment should be optional.
> >
> > How do you legally enforce payment of a tip ?
> >
> > <rj>
>
> Theft of services.

But if it's a gratuity, it's not a theft of services.

The customers are being robbed, not the business.