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IRS Plans To Raid Workers' Tip Jars
Reason ^ | 2/10/2023 | Boehm

Posted on 03/16/2023 4:37:10 AM PDT by Phoenix8

When President Joe Biden signed the Inflation Reduction Act last year, the White House touted how the bill's $80 billion in new funding for the IRS would "make our tax code fairer by cracking down on millionaires, billionaires, and corporations that evade their obligations."

It now appears that some of those resources—and some of the coming crackdown on tax evasion—will, quite predictably, be aimed at individuals earning considerably less.

This week, the Treasury Department and IRS announced plans to overhaul existing programs that track tips earned by service sector workers. The new Service Industry Tip Compliance Agreement (SITCA) program will "take advantage of advancements in point-of-sale, time and attendance systems, and electronic payment settlement methods to improve tip reporting compliance," according to the IRS.

(Excerpt) Read more at reason.com ...


TOPICS: Society
KEYWORDS: biden; irs; liberals; taxation
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To: Phoenix8

One more reason to get rid of the IRS.

Support the FairTax. It’s the only way out of this mess.


21 posted on 03/16/2023 5:32:17 AM PDT by Dementon (You're unique! Just like everyone else!)
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To: Islander7

Better yet, pay cash for the entire bill.


22 posted on 03/16/2023 5:32:58 AM PDT by Fresh Wind (Trump: "I am Batman!")
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To: Phoenix8

Last time I ate out, a 15% tip wasn’t even offered, it was 20%, 25%, or 30%. So I did the easiest thing, took the 20% number and divided it in half. Close enough, I guess.


23 posted on 03/16/2023 5:41:38 AM PDT by BobL
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To: Bernard

If only the IRS went after drug dealers and coyotes

/\

Heard mike Lindell say the irs is auditing him now.

( watch CONgress
pass a My Pillow tax.)


24 posted on 03/16/2023 5:44:49 AM PDT by cuz1961 (USCGR Veteran )
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To: Phoenix8
Biden is going to start taxing the working poor

It's about damn' time someone did. They haven't been paying their FAIR SHARE for decades, and have been mooching off those of us who've been subsidizing them through "tax credits" and other b.s.

I'm tired of paying for the moochers.

Either everyone has skin in the game and pulls their own weight to make this country successful or we're lost.

25 posted on 03/16/2023 5:45:06 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: Lonesome in Massachussets
Always tip in cash. Make sure the waitress shares with the bartender and busboy, but not with the IRS.

That does not work anymore. If the IRS determines the average tips based on the sales reported by the restaurant, then it will investigate wait staff for not reporting their cash tips.

For example, if the restaurant had sales revenue of $1 million for the year, the IRS determines that the employees should have reported about $150,000 in tips (15%). If the employees who worked during the year there did not report a total near this amount, then the IRS will look at each employee's tax returns to see who reported properly and who did not.

26 posted on 03/16/2023 5:47:41 AM PDT by Erik Latranyi (This is the end of the Republic....because we could not keep it.)
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To: Phoenix8

Democrats are elitists.


27 posted on 03/16/2023 5:50:52 AM PDT by popdonnelly (All the enormous crimes in history have been committed by governments.)
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To: Phoenix8

The working poor aad the poor in general need to pay their fair share


28 posted on 03/16/2023 5:54:50 AM PDT by bert ( (KWE. NP. N.C. +12) Juneteenth is inequality day )
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To: Lonesome in Massachussets

When I operated my own business it was expected that I report and pay taxes on my income. I don’t really understand why this mindset is not applied to folks working for tips.

People should not pay a penny more than the law states; but a poor waitress has the same obligation as a small business owner.


29 posted on 03/16/2023 5:56:59 AM PDT by Vermont Lt
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To: Phoenix8

I can see where this is going. Confrontations with everyday hard working Americans. This is not going to end well for anyone.


30 posted on 03/16/2023 5:57:10 AM PDT by spincaster
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To: Lonesome in Massachussets

Since we no longer go out to eat, I only have to tip my Beautician, And do it in Cash. She is well worth the $40 a month to was and dry my waist lenghth haie, the Small Rotator tear is spared pain.


31 posted on 03/16/2023 6:06:44 AM PDT by GailA (Constitution vs evil Treasonous political Apparatchiks, Constitutional Conservative.)
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To: usconservative

Fair enough but your statement is a little ironic to me.

The welfare class will continue to get everything free as well as the
Refugees and Immigrants … they won’t be pulling their weight.
Rich still won’t be hurt…

So I think it’s crap Biden lied in his campaign and after and in fact will tax middle and low.

I’m just tired of the working poor being downtrodden, they actually work for us yet have miserable lives (often). I would have a lot more sympathy for the way you see it if we let the welfare class struggle as much as the working poor.

But yes I agree in principle with what you said.


32 posted on 03/16/2023 6:14:28 AM PDT by Phoenix8
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To: Rebel_Ace

It will work until its a liberal worker who will then post the receipt to some social media complaining of only receiving a buck but won’t say a word about the cash.


33 posted on 03/16/2023 6:16:24 AM PDT by grcuster
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To: Phoenix8
But yes I agree in principle with what you said.

You may not like how I said it, however the principle I stated is clear: Either everyone has skin in the game for the success of this country, or the country is lost.

Ben Franklin said it best: “when the people find they can vote themselves money, that will herald the end of the republic.”

Your argument isn't with me, it's with one of our Founding Fathers.

34 posted on 03/16/2023 6:24:23 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: Phoenix8
So I think it’s crap Biden lied in his campaign and after and in fact will tax middle and low.

What?! A politician lied? Color me shocked.

35 posted on 03/16/2023 6:25:01 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: jdietz

My daughter worked as a waitress where all tips were split evenly. At first she argued that everyone would work equally as hard. Then found out that was not the case. A good lesson.


36 posted on 03/16/2023 6:25:24 AM PDT by albie
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To: Phoenix8

Tips have always been required to be claimed as income.


37 posted on 03/16/2023 6:29:39 AM PDT by EBH (America Blackmailed, The True Story of the World War...Coming Soon)
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To: Phoenix8

"I mean I’m very sorry the government taxes their tips. That’s f_____d up. That ain’t my fault. I mean it would appear that waitresses are one of the many groups the government f___ in the a__ on a regular basis."

38 posted on 03/16/2023 6:32:36 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: Phoenix8

Simple, do not tip. If you plan on adding to the bill via credit card cross through the tip line and add a gift line. Per IRS you can gift $15,000 per annum to an individual tax free.


39 posted on 03/16/2023 6:43:47 AM PDT by Slingwing
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To: Phoenix8

From the article:

“So here’s a tip: Use cash to thank a service worker whenever possible.”

Uh, that’s income.


40 posted on 03/16/2023 6:52:47 AM PDT by avenir ("They sang His praise...they soon forgot His works")
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