United States v. Fior D'Italia, Inc.

The Court holds that the Internal Revenue Service’s statutory authorization to make assessments for unpaid taxes is reasonably read to cover a restaurateur’s FICA taxes based on an aggregate estimate of all unreported employee tips. I believe that reading the statute so broadly saddles employers with a burden unintended by Congress, and I respectfully dissent.

I

Taxes on earned income imposed by the Federal Insurance Contributions Act (FICA) pay for employees’ benefits under the Social Security Act, 49 Stat. 622, as amended, 42 U. S. C. *253§401 et seq. (1994 ed. and Supp. V). In the simplest ease,…