Posted on 02/12/2023 11:33:39 AM PST by E. Pluribus Unum
A coming crackdown on $1.6 billion in unreported tips will continue the IRS' long and ugly history of targeting low-income Americans.
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.
Of course, workers who earn more than $20 in monthly tips are already required to report their tips to their employers, and those tips are supposed to be included in tax data sent to the IRS.
But a lot of that money never finds its way into the government's hands. As part of the announcement on Monday, the IRS highlighted a 2018 Treasury Inspector General report that estimated $1.66 billion in tips went unreported during the 2016 tax year.
The IRS' proposal "streamlines both compliance with and enforcement of tip reporting requirements by eliminating employee participation," according to the notice published this week. Translation: We'll make sure the government gets its cut of those tips by simply removing workers from the transaction whenever possible.
(Excerpt) Read more at reason.com ...
I only tip cash
I sure hope the IRS agents are required to buy their own ammunition. I’d hate to get shot with a bullet purchased with a fellow taxpayer’s dollars.
Wasn’t Sandy Ocasio guilty of stealing from the tip bar when she was a barmaid?
I have gotten a bit lazy this year, and put the tips on the credit card bill. But from now on I will tip in cash only. As I have done through my life.
She was ENTITLED to that money.
𝘞𝘢𝘴𝘯’𝘵 𝘚𝘢𝘯𝘥𝘺 𝘖𝘤𝘢𝘴𝘪𝘰 𝘨𝘶𝘪𝘭𝘵𝘺 𝘰𝘧 𝘴𝘵𝘦𝘢𝘭𝘪𝘯𝘨 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦 𝘵𝘪𝘱 𝘣𝘢𝘳 𝘸𝘩𝘦𝘯 𝘴𝘩𝘦 𝘸𝘢𝘴 𝘢 𝘣𝘢𝘳𝘮𝘢𝘪𝘥?
I wouldn’t be surprised if she called up the IRS and suggested it.
Some poor schlub works hard waiting tables, and the IRS is there for its pound of flesh.
Come And Take It
From my cold, dead apron you commies. Go get a real job.
$1.6B in tip income and what is the expected average tax rate should they be able to capture %100 of this? Maybe %10? These are low income unskilled people for the most part.
So all this bother and screwing up people’s lives for a measly $160M in revenue?
It it ridiculous.
I also tip the waitresses at the local CCP weather balloon buffet. Good solid food and you can pick/choose exactly what you want to eat. So if it is greasy stuff, I pass by and get the fish and other items. Salads with lots of expensive tomatoes. Roast duck sometimes and chicken. Peking ravioli (pork filled). Can I trust the beef there? I don’t eat it. Though I have eaten lots of Chinese style spare ribs there, and am still alive.
Not paying taxes on the tips is stealing from the government. Now, we seem to have an emerging standard in certain areas where if you steal < $1000 at a time, the government looks the other way and you get a freebie. Therefore, on a given shift, if the taxes on your tips are less than $1000, the IRS should just look the other way. It’s only fair. Just my humble opinion.
I tip 10% on a credit card. This creates an auditable transaction so no guesses need to be made. Then I leave the balance in cash.
Not paying me interest on the overage of taxes I pay during the year is theft.
I would like to have that on a tee shirt.
Stop making sense!
Millionaires, billionaires, and corporations that evade their obligations give money to the democrats, and so they will NOT be targeted by the corrupt irs. Why do you think they give all that money?
The ordinary people is what biden hates. Beat them into submission. Make their lives miserable. How DARE THEY WORK! If you don’t work but get money from the government, the irs has no interest in you at all.
The government is corrupt.
I don’t tip on the taxes added to my bill, and I don’t want my “gift” to the wait person taxed...
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