{"id":1839958,"date":"2023-02-08T12:34:52","date_gmt":"2023-02-08T17:34:52","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1839958"},"modified":"2023-02-08T12:39:32","modified_gmt":"2023-02-08T17:39:32","slug":"irs-gearing-up-to-crack-down-on-tips","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/irs-gearing-up-to-crack-down-on-tips\/","title":{"rendered":"IRS Gearing Up to Crack Down on Tips"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Firs-gearing-up-to-crack-down-on-tips%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1839958&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/02\/f6e9a174-6f30-4517-b433-7f8bae43509c-1052x615-1.jpg\" class=\"ff-og-image-inserted\" alt=\"image\"   style=\"display:none\"><\/div>\n<p>Remember the time Biden claimed that the new IRS agent army he was looking to recruit would only target billionaires? <em>It&#8217;s good times<\/em>. If that\u2019s the case, somebody should check to see if Bill Gates and Elon Musk have taken some side gigs slinging hash at a diner somewhere. (Of course, in Musk\u2019s case <a href=\"https:\/\/finance.yahoo.com\/news\/elon-musk-still-needs-10-171500991.html\" target=\"_blank\" rel=\"noopener\">It may be possible.<\/a> if he can\u2019t get 10 million more people to sign up for Twitter Blue.) It turns out that the Tax Man is launching an entirely new program. <a href=\"https:\/\/www.foxnews.com\/politics\/bidens-irs-plans-crack-down-waiters-tips\" target=\"_blank\" rel=\"noopener\">Take a hard look at tips<\/a> Staff in the food and drink industry. That\u2019s right. According to the IRS, waiters are taking in too much money as gratuities. Uncle Sam is determined to get his share of the action. (Fox News)<\/p>\n<blockquote>\n<p>The\u00a0<a id=\"reader.external-link.num-0\" href=\"https:\/\/www.foxnews.com\/politics\/irs-targeted-poorest-taxpayers-millionaires-went-unscathed-2022-report\" target=\"_blank\" rel=\"noopener noreferrer\">Internal Revenue Service<\/a>\u00a0proposed a revenue procedure this week cracking down on service industry\u2019s reporting of tips.<\/p>\n<p>According to Monday&#8217;s announcement, the so-called Service Industry Tip Compliance Agreement program (SITCA), would be a voluntary tip reporting mechanism in which the IRS and service sector companies collaborate. The proposal includes the following:\u00a0<a id=\"reader.external-link.num-1\" href=\"https:\/\/www.foxbusiness.com\/category\/irs\" target=\"_blank\" rel=\"noopener noreferrer\">The IRS will provide the public with information<\/a>\u00a0You have until May 1st to give feedback before the program is implemented.<\/p>\n<p>\u201cThose 87,000 new IRS agents that you were promised would only target the rich\u2026\u201d Mike Palicz is the federal affairs manager for Americans for Tax Reform. \u201cThey\u2019re coming after waitresses\u2019 tips now.\u201d<\/p>\n<\/blockquote>\n<p>The IRS isn\u2019t even trying to deny this. They actually put it there <a href=\"https:\/\/www.irs.gov\/newsroom\/irs-introduces-new-service-industry-tip-reporting-program\" target=\"_blank\" rel=\"noopener\">You can find it right here<\/a>.<\/p>\n<p>This is, for the time at least, what the agency calls a &#8220;research and development&#8221; \u201cvoluntary reporting system.\u201d But, how long are you going to expect anything to do the IRS for? \u201cvoluntary?\u201d If you take a closer look at the details, it sounds quite sinister. They\u2019re describing something that results in the \u201cmonitoring of employer compliance based on actual annual tip revenue and charge tip data from an employer\u2019s point-of-sale system.\u201d<\/p>\n<p>So it sounds like the IRS would basically be hosing up cash register data and counting all of the charges that are tallied as tips above and beyond the customer\u2019s actual bill. They\u2019re also offering assurances that they aren\u2019t going to be coming after the employers. You can forget about it. They\u2019re just going to make sure that the wait staff is faithfully listing all of their tips on their tax forms.<\/p>\n<p>Since I can recall, this question has been a source of contention. This issue has never been resolved by the courts. The old belief was that tips were given out by customers depending on the quality of food and service they received. Long ago, it was believed that waiters and waitresses were paid less than other workers. The law actually allows waitstaff owners to pay them. <a href=\"https:\/\/webapps.dol.gov\/elaws\/faq\/esa\/flsa\/002.htm\/\" target=\"_blank\" rel=\"noopener\">You can earn as low as $2.13 an hr<\/a> If the tip and base pay add up to the minimum federal wage. The best servers will be able to make up the difference by serving tips and earning more per hour than the federal minimum wage.<\/p>\n<p>The entire concept of an \u201cincome tax\u201d The compensation received by an employee is the basis of their salary. The wait staff\u2019s tips shouldn\u2019t be taxed at all because the patrons are not their employers and are under no obligation to tip them. It\u2019s really more of a gift given in appreciation for good service.<\/p>\n<p>But that probably won\u2019t stop the IRS from doing this. And it\u2019s policies like these that have made me develop a habit of always tipping in cash when we dine out, even if we pay for the meal with a debit card. My wife says I am a bit too generous with my tipping, but my experience shows that regular customers who tip well tend to get better service. It&#8217;s a pleasure to see the smiles on hardworking servers&#8217; faces when they discover twenty-dollar bills they can put in their pockets and wait for them. As far as I\u2019m concerned, owners of bars and restaurants should tell the IRS to keep its nose out of their employees\u2019 tips.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Remember the time Biden claimed that the new IRS agent army he was looking to recruit would only target billionaires? It&#8217;s good times. If that\u2019s the case, somebody should check to see if Bill Gates and Elon Musk have taken some side gigs slinging hash at a diner somewhere. (Of course, in Musk\u2019s case It &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1839961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[7271,17769,8362,8464],"class_list":["post-1839958","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-crack","tag-gearing","tag-irs","tag-tips"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1839958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1839958"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1839958\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1839961"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1839958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1839958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1839958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}