Yo, remember when we found out that Biden had added 87,000 new IRS agents and then the government responded by saying they were only there to crack down on the rich?
Well, congratulations service industry peeps, you're now part of the 1%.
Yup, we're now cracking down on tips made by poor people at restaurants.
Great job, IRS. Really proud of you.
Seriously, they're coming after tips.
Out of all things.
The 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…
According to the IRS, the program would seek to "improve tip reporting compliance," reduce administrative burdens and provide more transparency and certainty to taxpayers.
I have one question for the IRS: What was all that "going after billionaires" talk?
I'll quote the IRS so we can get it straight here:
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 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.
So you servers out there, it's time to get serious about counting your tips and entering them IN FULL every time you clock out. No more $8 in tips per hour, or whatever gets you to minimum compliance. You must now enter all 146 of those dollar bills into the system and pay up!
Everyone must pay their fair share!
Also, don't forget, if you won the pub fantasy football league you'll be monitored as well. Because the IRS will also be cracking down on your Venmo transactions.
The code change, approved by Democrats and signed by President Biden in March 2021, will require TPSOs like Venmo, PayPal, Etsy, AirBnB and more to send 1099-k forms to the IRS and to recipients of cash if their transactions exceed $600 annually. If a sports betting application like FanDuel or DraftKings uses these payment systems, you will face taxes there, though sports betting is already included under the current tax code.
Yeah, they're really going after the billionaires, aren't they?
I'm sure they have our best interest in mind here.
Right?
Right...
Well, I guess good luck to all you servers out there.
Your tips are now under the magnifying glass of our wonderfully tyrannical government.
Keep making that money!
We need as much as we can get!
One last thing before I go: