330 West Hubbard Restaurant Corp. v. United States

MEMORANDUM OPINION AND ORDER

ASPEN, Chief Judge.

This case marks the fourth contest between the IRS and the restaurant industry over the collection of the FICA tax — the tax which funds our social security and medicare systems, see I.R.C. §§ 3101, 3111 — on tips earned by restaurant employees. In the first action, in Alabama, a restaurant prevailed, see Morrison Restaurants, Inc. v. United States, 918 F.Supp. 1506 (S.D.Ala.1996), but then lost on appeal, see Morrison Restaurants, Inc. v. United States, 118 F.3d 1526 (11th Cir.1997). In Florida, a restaurant again first prevailed, see Bubble…