### Question
How does INFORMATION RETURNS define nonallocable receipts?


### Answer
Under *26 U.S.C. § 6053*, **nonallocable receipts** is defined as:

> receipts which are allocable to—


(A) carryout sales, or


(B) services with respect to which a service charge of 10 percent or more is added

#### Citation:
  - *26 U.S.C. § 6053*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 61-INFORMATION AND RETURNS > Subchapter A-Returns and Records > PART III-INFORMATION RETURNS > Subpart C-Information Regarding Wages Paid Employees**

