Posted on 02/07/2023 2:53:47 PM PST by Brilliant
The Internal Revenue Service (IRS) proposed a revenue procedure this week to crack down on the service industry's reporting of tips.
The Service Industry Tip Compliance Agreement (SITCA) program would be a voluntary tip reporting system in which the IRS and service industry companies cooperate, according to the announcement Monday. As part of the proposal, the IRS will give the public until early May to provide feedback on the program before implementing it.
"Those 87,000 new IRS agents that you were promised would only target the rich," tweeted Mike Palicz, federal affairs manager at Americans for Tax Reform. "They're coming after waitresses' tips now."
According to the IRS, the program would seek to "improve tip reporting compliance," reduce administrative burdens and provide more transparency and certainty to taxpayers.…
(Excerpt) Read more at foxnews.com ...
Reagan did something similar and got blasted by the left for it.
Interesting that only waiters, and not waitresses are affected.
I guess the IRS isn’t aware that most servers are tipped with credit and the amounts are added to their biweekly checks. Only about 20% of tips are cash and they already self-report those. Are they planning to frisk servers before they leave for the night now?
I only tip in cash. The recipient can report it or not, none of my business.
Heard the first income tax was sold on the idea “the only ones who’ll pay are the very rich.” Government quickly disposed of that lie.
And I thought the government has demanded what they assumed must have been the waitstaff income, even though it wasn’t.
As: how much money handled at the restaurant so “probably” they assume, tippers must have given this much. Even if not true.
From Turbotax:
Are servers taxed on assumed tips?
The simple answer is yes, the IRS treats tips as taxable income. If you earn tips, then you’re responsible for paying income, Social Security, and Medicare tax on that tip money.
This is why so many people now identify as LBGTQRSTUV... So they can keep their tips.
I’m only surprised they waited this long.
Hint: Nothing says you have to write anything in the “occupation” line. So far.
Anyone remember vehicle logs if you wanted to deduct mileage or actual transportation costs?
The pushback from small business (I owned one) was IMMENSE and it was DOA.
People only take these jobs for the tips.
Luke 2:12-13 — “Some tax collectors came to be baptized, and they asked him, ‘Teacher, what are we to do?’ Don’t collect more than is legal, he told them.”
Luke 3:10—
Even tax collectors came to be baptized and they said to him,
“Teacher, what should we do?”
He answered them,
“Stop collecting more than what is prescribed.”
Soldiers also asked him,
“And what is it that we should do?”
He told them,
“Do not practice extortion,
do not falsely accuse anyone,
and be satisfied with your wages.
Tax collectors were hated in biblical times and were regarded as sinners. They were worked for the Romans, so this made them traitors. People resented paying taxes to the foreigners who ruled over them. bbc.com
Nope. Biden did say he was going to tax the wealthy. Pay their fair share and all that.
The blind organ grinder with the monkey at the corner, next IRS audit target..... got to pay for Olena Zelenska’s next Paris shopping trip....
However, graft,corruption, and kick backs will remain un-taxed at the current rates...
I’ll make sure to take cash for tips when drinking and eating in the states from now on.
I saw that after I read the headline and posted immediately, per FR tradition.
They will guess how much they should have made in tips and then make the servers prove they didn’t make that much.
How much tax has Brandon paid on his China and Ukraine money?
One good reason to tip with cash and not on a card.
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