On February 8, Hot Air posted an article about the Biden administration’s plan to crack down on unreported tips.
The article reports:
Remember when we were told that the army of new IRS agents Biden wants to hire was only going to go after billionaires? Good times. If that’s 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’s case it may come to that if he can’t get 10 million more people to sign up for Twitter Blue.) As it turns out, the Tax Man is launching a new program to crack down on tips received by wait staff in the food and beverage industry. That’s right. The IRS thinks that waiters and waitresses are pocketing too much money in gratuities, and Uncle Sam plans on getting his piece of the action. (Fox News).
The Internal Revenue Service (IRS) proposed a revenue procedure this week cracking down on service industry’s reporting of tips.
The so-called 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…” Mike Palicz, the federal affairs manager at Americans for Tax Reform, tweeted. “They’re coming after waitresses’ tips now.”
The article concludes:
The whole concept of an “income tax” is based on the compensation a person is paid by their employer. The wait staff’s tips shouldn’t be taxed at all because the patrons are not their employers and are under no obligation to tip them. It’s really more of a gift given in appreciation for good service.
But that probably won’t stop the IRS from doing this. And it’s 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. I tend to be a bit of an exorbitant tipper (at least according to my wife) but regular customers who tip well generally wind up getting much better service in my experience. And I enjoy the looks on the faces of hard-working servers when they find some twenty-dollar bills that they can just stick in their pockets waiting for them. As far as I’m concerned, owners of bars and restaurants should tell the IRS to keep its nose out of their employees’ tips.
At some point, I wish the government would realize that what people earn is theirs and the government actually has no right to any of it. If the spending habits of our government were a bit more sane, some of us might not mind paying the ridiculous taxes that we pay. Right now–in
America–taxpayers pay more money to the government than the Midievil surfs did to the lords of the manor. That is not acceptable.