How to Qualify Restaurant Leads for Restaurant Tax Credit s: A Sales Rep's Guide
Learn the key qualification questions that help you identify high-value restaurant leads for Restaurant tax credit recovery. Discover which businesses qualify, what questions to ask, and how to estimate potential tax credits on the spot.
Quick Qualification Checklist
- ✓ Business has tipped employees (servers, bartenders, hosts)
- ✓ Been in business 2+ years (retroactive credits available for up to 3 prior tax years)
- ✓ Typical claim value: $40,000+ in recovered credits (varies by business size and years in operation)
- ✓ Commission: 15% for reps, 10% for ISO organizations (default rates, may vary)
The 5 Essential Qualification Questions
1. "Do you have tipped employees?"
This is your first filter. Restaurant tax credits only apply to businesses with tipped employees like servers, bartenders, hosts, or bussers. The credit is available under IRC Section 45B and is claimed on IRS Form 8846.
Qualifies:
- Full-service restaurants
- Bars and taverns
- Cafes with table service
- Sports bars with servers
Doesn't Qualify:
- Fast food (no table service)
- Retail stores
- Manufacturing businesses
2. "How long have you been in business?"
Retroactive credits are available for businesses that have been operating for 2+ years. The longer they've been in business, the more years of credits they can recover. Generally, businesses can amend returns for up to 3 prior tax years (see IRS Topic 308 for amended return filing periods).
Pro Tip: Use the in-claim FICA estimate calculator to show them potential recovery amounts instantly. Businesses open 5+ years often see $50,000+ in recoverable credits (actual amounts vary based on tip wages and employee count).
3. "How many tipped employees do you typically have?"
More tipped employees = higher potential credit recovery. This helps you estimate claim value on the spot.
4. "Do you have W-2s and tax returns from the past few years?"
Document availability is crucial. If they have organized records, the process moves faster. If not, explain how our magic link document portal makes it easy.
5. "What's your biggest concern about this process?"
This open-ended question helps you address objections early and build trust. Common concerns include fees, time commitment, and complexity.
Using the In-Claim Calculator
Once you've qualified a lead, use the platform's FICA estimate calculator to show them real numbers:
- Create the claim in the platform (or use the onboarding wizard)
- Navigate to the claim's estimate page
- Enter their years in business, employee count, and tip wage estimates
- Show them the estimated credit recovery amount
- Highlight the net amount after fees (transparency builds trust)
Remember: Typical restaurants recover $40,000+ in retroactive tax credits, though actual amounts vary significantly based on business size, years in operation, and tip wages. Use this as a benchmark when qualifying leads.
Red Flags to Watch For
Red Flags to Watch For
- • Business is less than 2 years old (limited retroactive credits)
- • No tipped employees (doesn't qualify for Restaurant tax credits under IRC Section 45B)
- • Owner is unresponsive or difficult to reach (will slow down document collection)
- • Missing tax records (may indicate compliance issues)
Next Steps After Qualification
Once you've qualified a lead:
- Create the claim in your pipeline (stage: "lead" or "qualified")
- Use the onboarding wizard if the restaurant owner is present - it auto-creates their account and sends verification
- Generate a document portal link to make document collection easy
- Set a follow-up reminder if they need time to gather documents
- Move to "proposal" stage once you've shown them the estimate
Sources & References
- • IRS Form 8846 Instructions - Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips
- • IRS Form 8846 - Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips
- • IRS: Tips - Reporting and Withholding
- • IRS Topic 308 - Amended Returns - Information about filing amended returns and time limits
- • 26 U.S.C. § 45B - Credit for portion of employer social security taxes paid with respect to employee cash tips
- Note: Statistics and recovery amounts mentioned are typical values based on industry experience and may vary significantly based on individual business circumstances, years in operation, employee count, and actual tip wages reported.