Do you remember Biden promising not to add any taxes to those that make less than $400,000 per year?
Do you remember when I laughed about it and told you it was not true?
Well, I hate to say it, but I told you so.
Get the Waiters
Waiters in this country make very little per hour, surviving on tips.
I would wager to say that 80 to 90 percent of the people cracking open beers and dropping hot plates in front of us are, for the most part, barely scraping by.
It used to be that as long as you claimed seven to 10 percent of your sales as tips, you were good to go.
Now, however, Biden is going to have the IRS target servers to make sure they squeeze every penny out of them that they can.
The IRS is looking to really ramp up the Service Industry Tip Compliance Agreement (SITCA) program.
The call it “voluntary,” but I assure you that it will be a disaster for service industry professionals, especially for the diner worker that is barely getting by.
Mike Palicz, the federal affairs manager at Americans for Tax Reform, tweeted, “Those 87,000 new IRS agents that you were promised would only target the rich… They’re coming after waitresses’ tips now.”
The IRS responded, “This is not a proposal for the auditing of servers.”
Oh, but it is, and it will be pretty easy for them to put into play, but I will get more into that in a few seconds.
The statement continued, “Yesterday’s action was a proposal for comment – not a rule – based on over a decade of feedback from restaurants and other businesses seeking the increased flexibility for their overall tax compliance on tips.
“This proposal is not in effect and is intended to welcome further conversation from all interested parties before any rule is put into place.”
The IRS will only have to look at workers in locations, compare hours, then compare tips.
If the numbers are off, meaning workers with the relatively same hours but far differing tip amounts, they will launch an audit.
Palicz added, “There’s no reason they’d be issuing guidance on how to crack down on this if it was only going to end up being voluntary.
“Ultimately, the goal is to go and grab as much revenue as possible and from whoever they can.
“All of this in the backdrop of — they told us they’re not going to be coming after people earning $400,000 or less.
“Well, here’s a new IRS rule that’s focused on bringing in tips from waitresses.
“That’s what they’re focused on doing, that’s what they’re putting new rules on.”