Rep. Claudia Tenney, R-N.Y., on ‘preserving and protecting’ Social Security and a proposed IRS program to crackdown on tips.
As waiters and waitresses who live off tips could soon get served with new tax scrutiny, service industry workers alongside lawmakers are sounding off on the Internal Revenue Service’s (IRS) latest proposal under President Biden.
"This new ‘voluntary’ system is probably more to track smaller, family-owned establishments," Olivia Kerwin, waitress and full-time student in the West Palm Beach area, told Fox News Digital on Thursday, "which would suck if they use this to impose more taxes on these businesses that are already struggling to survive."
The IRS has opened itself up to public feedback regarding a proposed tip reporting system between the tax agency and employers in service called the Service Industry Tip Compliance Agreement (SITCA).
The program would be voluntary and is designed to "take advantage of advancements in point-of-sale, time and attendance systems, and electronic payment settlement methods to improve tip reporting compliance," the agency said in a statement on Monday.
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While reportedly replacing other tip reporting systems, according to the IRS, SITCA would monitor employer compliance based on annual tip revenue and charge tip data from an employer’s point-of-sale system.
EconomyComments Off on Biden’s IRS slammed over plan to dip into tip jars: ‘Already struggling to survive’