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Message
IRS introduces new service industry tip reporting program
Posted on 2/7/23 at 4:56 pm
Posted on 2/7/23 at 4:56 pm
Sounds benevolent.
LINK
quote:
WASHINGTON — The Treasury Department and Internal Revenue Service today issued Notice 2023-13, which contains a proposed revenue procedure that would establish the Service Industry Tip Compliance Agreement (SITCA) program, a voluntary tip reporting program between the IRS and employers in various service industries. The IRS is issuing this guidance in proposed form to provide an opportunity for public comment.
The proposed SITCA program 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 proposed program would also decrease taxpayer and IRS administrative burdens and provide more transparency and certainty to taxpayers. The proposed program includes several features:
The monitoring of employer compliance based on actual annual tip revenue and charge tip data from an employer's point-of-sale system, and allowance for adjustments in tipping practices from year to year.
Participating employers demonstrate compliance with the program requirements by submitting an annual report after the close of the calendar year, which reduces the need for compliance reviews by the IRS.
Participating employers receive protection from liability under the rules that define tips as part of an employee's pay for calendar years in which they remain compliant with program requirements.
Participating employers have flexibility to implement employee tip reporting policies that are best suited for their employees and their business model in accordance with the section of the tax law that requires employees to report tips to their employers.
The intent of the SITCA program is to serve as the sole tip reporting compliance program for employers in various service industries and would replace the following programs:
Tip Rate Determination Agreement (TRDA)
Tip Reporting Alternative Commitment (TRAC)
Employer designed TRAC (EmTRAC)
The IRS is continuing to explore opportunities within the gaming industry and, as such, this program does not impact the existing Gaming Industry Tip Compliance Agreement (GITCA) program.
The proposed revenue procedure provides that for employers with any of these existing agreements, such agreements would remain in effect until the earlier of:
The employer's acceptance into the SITCA program;
An IRS determination that the employer is noncompliant with the terms of their TRDA, TRAC or EmTRAC agreement; or
The end of the first full calendar year after the final revenue procedure is published in the Internal Revenue Bulletin.
Anyone interested in providing feedback to the proposed SITCA program should follow the instructions in the notice and reply by May 7, 2023.
LINK
19
Posted on 2/7/23 at 4:57 pm to GumboPot
Where can I put Teedy on the list?
Posted on 2/7/23 at 4:58 pm to GumboPot
Waitresses from Cracker Barrel and Waffle House organizing a protest yet?
Posted on 2/7/23 at 5:01 pm to GumboPot
quote:
Sounds benevolent
There's nothing benevolent about Servers and their tips. Tip sheets are the biggest joke in the Restaurant industry.
Posted on 2/7/23 at 5:02 pm to dakarx
This is going to go over like a lead balloon. Part of the appeal of doing service industry jobs for tips are to avoid paying taxes as much as possible.
Posted on 2/7/23 at 5:03 pm to GumboPot
Not in the industry, but if the IRS thinks I would give one flying frick about people not claiming tips, they're dead wrong.
Posted on 2/7/23 at 5:04 pm to OchoDedos
quote:
There's nothing benevolent about Servers and their tips. Tip sheets are the biggest joke in the Restaurant industry.
That was a sarcastic comment toward the IRS and this proposal. Not service industry workers and their tips.
Posted on 2/7/23 at 5:07 pm to GumboPot
So much for taxing the rich! 
Posted on 2/7/23 at 5:08 pm to GumboPot
quote:
That was a sarcastic comment toward the IRS and this proposal. Not service industry workers and their tips.
So was mine.
Posted on 2/7/23 at 5:09 pm to L5ut1g3r
quote:
So much for taxing the rich!
The IRS is nickel and diming bus boys, waiters, hotel maids, and Starbucks baristas. Man they seem desperate.
Posted on 2/7/23 at 5:10 pm to GumboPot
quote:
This is going to go over like a lead balloon. Part of the appeal of doing service industry jobs for tips are to avoid paying taxes as much as possible.
Outside of very few places, all CC tips have been automatically included in paychecks for quite some time. You're never going to find anyone claiming cash outside of those trying to establish income numbers for credit reasons, so I don't really understand the effective change.
Recently, for a little over a year, I worked for a private club up here as a bartender/bev director and we got an automatic 22% gratuity on every item. Every bit of that showed on my check and there was no way out of escaping tax liability.
Posted on 2/7/23 at 5:13 pm to LSUSkip
quote:Yep. ask the middle aged woman that gets paid $2 an hour to clean tables at the golden corral after a party of 25 with babies and kids throwing fudge syrup and cotton candy...
Not in the industry, but if the IRS thinks I would give one flying frick about people not claiming tips, they're dead wrong.
If they mind having their 1 dollar tips get taxed to death.
This
quote:Is a convoluted snitch program only a democrat could think up. As if the IRS should scrutinize Mabel's tips from the Golden Corral-they want you to.
Tip Rate Determination Agreement (TRDA)
Tip Reporting Alternative Commitment (TRAC)
Employer designed TRAC (EmTRAC)
What about the one waitress once in a lifetime that gets a $500 tip from John Travolta to buy her kids food? Biden wants his 10%.
This post was edited on 2/7/23 at 5:17 pm
Posted on 2/7/23 at 5:13 pm to HempHead
quote:
Outside of very few places, all CC tips have been automatically included in paychecks for quite some time. You're never going to find anyone claiming cash outside of those trying to establish income numbers for credit reasons, so I don't really understand the effective change.
Man times have changed. I bartended and waited tables through college and it was mostly cash. But that was during the late 80s and very early 90s. No one declared their cash.
Posted on 2/7/23 at 5:15 pm to GumboPot
Even for places that cash you out at the end of the night, there is simply no way to avoid taxes on anything that has been put in to a POS, unless you're doing some really shady shite.
Posted on 2/7/23 at 5:17 pm to cajunangelle
quote:
Is a convoluted snitch program only a democrat could think up. As if the IRS should scrutinize Mabel's tips from the Golden Corral-they want you to.
If congress would simply get rid of the hedge fund manager carried interest tax loophole like Trump has been suggesting forever they would generate a million times more tax revenue than badgering service industry workers.
Posted on 2/7/23 at 5:34 pm to GumboPot
quote:
The IRS is nickel and diming bus boys, waiters, hotel maids, and Starbucks baristas. Man they seem desperate.
Or like communist
Posted on 2/7/23 at 5:38 pm to CamdenTiger
Mushroom? ;)
Posted on 2/7/23 at 5:40 pm to GumboPot
This will be deemed to be racists in no time at all.
This post was edited on 2/7/23 at 5:41 pm
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