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The government targets those who cannot defend themselves.
Data from the IRS shows the agency mainly targets low-income people — but also some millionaires and billionaires.
In January, Speaker McCarthy dropped the gavel and said “promises were made” as the Republican-controlled House approved his first bill to defund 87,000 IRS agents.
🚨 House Republicans Vote Unanimously to Eliminate Democrats’ Army of 87,000 IRS Agents 🚨
This is our first task in the new Congress, because government should work for you, not against you.
Promises have been given. Promises are kept.
— Kevin McCarthy (@SpeakerMcCarthy) January 10, 2023
Trending: LIVE NOW: Here’s President Trump’s Response to Joe Biden’s State of the Union Address – Video
On Monday, the Internal Revenue Service (IRS) announced new regulations for a voluntary tip-reporting scheme between the government and employers in entertainment, hospitality, housekeeping and various other service industries.
“This guidance contains a notice of proposed revenue procedure establishing the Service Industry Advisory Compliance Agreement (SITCA) program,” according to the IRS notice.
“SITCA is a voluntary advisory reporting program between the Internal Revenue Service and employers in the service industry (except the gaming industry) designed to increase tax compliance through the use of contracts instead of traditional audit techniques.”
The new, voluntary program replaces the Tip Rate Determination Agreement (TRDA), the Tip Reporting Alternative Commitment (TRAC), and the Employer Designed TRAC (EmTRAC).
According to the IRS notice, Americans have until May 7, 2023 to weigh in on the proposed program and can submit in one of two ways:
- Mail. Send paper submissions to CC:PA:LPD:PR (Notice 2023-13), Room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044.
- electronically. Submit electronic submissions through the federal eRulemaking portal at www.regulations.gov (reference the IRS and Notice 2023-13) by following the online instructions for submitting comments. Once submitted to the Federal Rulemaking Portal, comments cannot be edited or withdrawn. Commenters are strongly encouraged to submit public comments electronically. The Treasury Department and the IRS will publish any comment submitted electronically for public availability and, as practicable on paper, into its public docket.
Those 87,000 new IRS agents who promised you would only target the rich…
They are now following the waitresses’ suggestions: “Monitor employer compliance based on actual annual tip revenue and charge tip data from employer’s point-of-sale system.”https://t.co/WAvh0t2cNN
— Mike Palicz (@Mike_Palicz) February 7, 2023
Fox News reported:
According to the IRS, the program seeks to “improve end reporting compliance,” reduce administrative burdens and provide greater transparency and certainty to taxpayers.
Among the program’s features, the agency lists “monitoring of employer compliance based on actual annual tip revenue and charging tip data from the employer’s point-of-sale system and allowance for adjustments in tipping practices from year to year.”
Participating employers provide the IRS with annual reports, are protected from liability related to “rules defining tips as part of employees’ wages,” and “have the flexibility to implement internal tip reporting procedures consistent with the section,” it says. The tax law requires employees to report tips to their employers.”
“If it’s going to end spontaneously there’s no reason for them to provide guidance on how to crack this,” Palickz told Fox News Digital in an interview. “Ultimately, the goal is to get as much revenue as possible and from whoever they can.”
“With all of this background — they told us that people who make $400,000 or less are not going to come in later,” he continued. “Well, here’s a new IRS rule focused on bringing in tips from waitresses. That’s what they’re focused on doing, they’re setting new rules for it.
More from the IRS:
This notice sets forth a proposed revenue procedure establishing the Service Industry Advisory Compliance Agreement (SITCA) program, a voluntary advisory reporting program offered by the Internal Revenue Service (IRS) to employers in the service industry (except gaming industry employers).1. The SITCA program is intended to replace the Tip Reporting Alternative Commitment (TRAC) program and the Tip Rate Determination Agreement (TRDA) program, as well as the Employer-Designed Tip Reporting Program (EmTRAC). The proposed revenue mechanism provides that upon termination of the TRAC, TRDA, and EmTRAC programs, employers with existing advisory reporting contracts in those programs will have a transition period during which their existing contracts will remain in effect. The transition period ends upon (1) the employer’s acceptance into the SITCA program, (2) an IRS determination that the employer is not in compliance with TRAC, TRDA, or EmTRAC agreement terms, or (3) termination. For the first calendar year beginning after the date of publication of the final revenue procedure in the Internal Revenue Bulletin. The IRS is issuing this guidance in proposed form to provide an opportunity for public comment.
The proposed revenue mechanism sets forth requirements for employers to participate in the SITCA program. An eligible employer called a “service industry employer” is generally an employer (other than a gaming industry employer) that (1) is in a service industry where employees perform services for customers and those services generate sales subject to customer tipping, (2) has at least one covered establishment, and (3) has completed three Consistent with federal, state, and local tax laws for the calendar years prior to the filing date of the application (back period), plus the following calendar quarters through the end of any calendar quarters in which the service industry employer’s application is pending during some or all of the quarter. 4 Upon acceptance, the service industry employer SITCA These requirements must continue to be met to continue participating in the program.
The proposed revenue process also sets forth the requirements for each covered establishment to participate in the SITCA program. Under section 6053(a) an establishment involving tipped employees that utilizes a technology-based time and attendance system must have one to report tips. Each Covered Establishment must also use a POS system to record all sales subject to tipping and accept the same forms of electronic payment for tips as that POS system does for sales. The IRS will accept employers and covered establishments into the SITCA program that meet the eligibility criteria if the IRS determines, in its sole discretion, that acceptance is justified by the facts and circumstances and is in the interest of good tax administration.
