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Service industry employers, from restaurants and bars to salons, spas, casinos, hospitality groups and beyond, rely on the FICA Tip Credit to offset labor costs and reinvest in their businesses. But these claims are also among the IRS’s most frequently audited. An audit doesn’t mean your filing was wrong; it’s often just a routine IRS review. Still, even a routine audit can cost thousands in legal fees and pull focus from your day-to-day operations.
Harbor Shield delivers trusted audit protection for FICA Tip Credit claims. Our contractual guarantee covers your legal defense costs, connects you with seasoned tax attorneys and ensures full compliance support with no hidden fees. With Harbor Shield, service industry businesses can claim confidently and stay protected through the entire IRS audit window.
Harbor Shield transforms that risk into predictable, affordable audit coverage
for restaurants, bars and other groups.
The IRS often reviews FICA Tip Credit claims, particularly in businesses where cash transactions are common. Harbor Shield ensures that if your filing is selected, your defense costs are fully covered.
Without coverage, legal fees can run into tens of thousands.
IRS scrutiny of payroll and tip reporting makes audits stressful and time-consuming.
Up to $20,000 per occurrence in defense costs per covered claim.
Direct access to attorneys experienced in restaurant and hospitality
audits.
Audit-ready documentation and tip reporting checks.
Applies to IRS and state audits tied to FICA Tip Credit filings.
Fixed-cost pricing, structured at about 5% of covered risk.
From family-owned trattorias to bustling brewpubs, restaurants and bars rely on the FICA Tip Credit to recover labor costs. These businesses are also among the IRS’s most common audit targets. With Harbor Shield, owners protect their refunds from unexpected legal costs, keeping credits in their pocket instead of going to defense attorneys.
Large hospitality operators
process millions in reported tips each year across dining, gaming and guest services. One audit can impact hundreds of employees and wipe out years of credits. Harbor Shield provides scalable audit coverage for multilocation and multi state portfolios, giving CFOs and HR teams confidence that credits are secure, regardless of the footprint.
Thanks to new legislation, beauty and wellness industries can now access the FICA Tip Credit. From local salons to multilocation spas, Harbor Shield ensures these growing businesses stay compliant while defending their credits if the IRS comes calling.
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Through bundles like BuyPEO Tip+Tax Advantage, even solo stylists, rideshare drivers and wellness professionals can unlock the FICA Tip Credit for the first time. Harbor Shield coverage ensures those newly accessible credits are defended, creating value for both gig workers and the platforms that support them.
There’s no such thing as “audit insurance” for tax credits. Harbor Shield is the first solution of its kind, a contractual guarantee that covers the real costs of defending your credit if the IRS reviews your filing. Unlike traditional E&O insurance (which only protects the preparer if they make a mistake), Harbor Shield protects you, the employer, from day one across credits like ERC, FICA Tip, R&D and more.
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Covers up to $20,000 per occurrence in legal defense costs.
Provides direct access to seasoned tax attorneys with proven IRS audit defense experience.
Designed for the entire service industry. From restaurants and hospitality to salons, spas, casinos and more.
Fixed-cost coverage with no hidden exclusions or surprise legal bills.
Coverage is issued as a contractual guarantee, not as insurance.
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It’s an IRS credit that refunds a portion of the employer’s share of Social Security and Medicare
taxes paid on reported tips. For many restaurants and bars, this adds up to thousands in savings
each year.
Because they involve payroll, tips and compliance with IRS reporting rules, the credit is a frequent target of audits across many industries. Restaurants, bars and cafés are the most common, but hospitality groups, casinos, resorts, salons, spas, wellness businesses and even gig worker platforms are now eligible and audited increasingly. The IRS reviews these claims closely to ensure proper tip reporting and employer compliance, which makes routine audits very likely, even when filings are accurate and complete.
Harbor Shield activates immediately. You’ll be connected with an IRS audit attorney while Harbor Shield covers their invoices up to your defense limit.
Yes. FICA Tip Credit coverage can be bundled with BuoyPEO for 1099 access or with the CHAMP Plan for tax-free healthcare savings, expanding both refunds and benefits for employers and workers.
IRS audits are routine. Legal bills don’t have to be. Harbor Shield gives you protection, monitoring and expert defense for ERC, R&D, MEC and FICA Tip credits.
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