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 ...
And did she declare tip income on her tax returns?
Even notice the crooked, demented smile on Mao Tse Tung’s face? He wrote poetry too. While deflowering a few thousand 14 year old virgins in his lifetime. This very nasty sexual degeneracy has been written about in Mao’s biographies during the last 15 years.
When you are worshiped like a god. A communist god. This is how you get to traumatize young girl’s lives. Meanwhile, look at what women in Western nations bitch and moan and sue about. Such as some man touching them on a mutually drunken evening.
Yes, wrong is right, right is wrong.
But otherwise you make an excellent point. :)
This reminds me of Las Vegas in the late 1980’s. We lived there for a couple years. Every night for a while we would see teams on tv of G-men kicking in the doors of small apartments to confiscate tip jars belonging to casino employees…..dealers, waitresses, bartenders, valets, etc. You know, the rich guys. It was awful to see. It was actually the first time I ever heard the term “Jack-booted thugs.” Faces covered with ski masks type things, all dressed in black. For effect.
How more racist, misogynistic, homophobic can these guys be?
And he probably wrote off the cost of the paint, brushes, canvas and models on his taxes!
True enough, most of the staff (NOT ME) didn't declare even half of what was earned, mostly 'cause we were in a great college town and the cash and tips poured into our tiny, fun, rockin' little lttle joint, no matter.
Eventually even the owners (I can only guess) were shaving their own taxable income, and eventually eventually we all just stopped keeping count.
What a sniveling little scumbag this "Big Gay" Is. I mean guy.
How long until they want to rob the red kettles of the Salvation Army? Totally depraved.
Huh. We weren’t associated with the gaming industry. I didn’t know about things like not reporting income from tips. I just assumed everyone was poor and being abused just from images the government wanted us to see.
Fast forward 30+ years and it all seems the same.
So wouldn’t that make all art done by an unknown artist worth 500,000 for tax purposes? Like unrealized capital gains?
I’d like to see a badge (sort of like flair) on the waiter’s or waitresses’ clothing, to indicate if that person votes for democrats or republicans. That would help me decide about how much to tip, and whether it should be in cash or a reportable transaction on the credit card.
Lolszz and salutations. You really are a mountain climber when you can get photos of the mountain sheep at elevations. Your mind is clear.
It’s about time the wait-staff paid their fair share, with penalties and fees it ought pay the debt off in no time.
Way to go Uncle Joe.
>> I don’t tip on the taxes added to my bill ...
We had one of your kind in our “lunch after church” gang. It took a long time to figure out why the waitresses all avoided our group like the plague.
“I have gotten a bit lazy this year, and put the tips on the credit card bill.”
Last week, Tyrus on Gutfeld show said what they do is write a $1.00 tip on the credit card, and then hand cash to the waiter.
Next are kids piggy banks.
“...make our tax code fairer by cracking down on millionaires, billionaires, and corporations that evade their obligations.”
Last I checked tax evasion was a crime. Either arrest them or STFU you POS.
The rich can afford tax accountants and attorneys. They have the luxury of planning their life around tax avoidance.
The poor do not.
Result: When IRS goes after rich they get very little of a big pot. When they go after the poor, it is like a turkey shoot up close.
How many IRS agents are promoted for the number of times they
“won” over a taxpayer and not over the ratio of cost to collect?
So all the waiters and waitresses, bartenders, valets, cabbies, Uber and Lyft drivers and anyone else who gets tips is supposed to keep a running journal of their tips? FOAD!
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