The IRS plans to target food servers' tips

President Joe Biden promised that taxes would only go up on those making over $400,000 annually.

Do restaurant servers make over $400,000?

Los Angeles’ KTLA reports, “The Internal Revenue Service wants to do a better job of monitoring, and presumably taxing, tips in the service industry.

How many waiters and waitresses are making more than $400K per year Mr. President? IRS proposes new reporting program for tips in the service industry: “to improve tip reporting compliance” https://t.co/D2MZucZRLy

— Thomas Massie (@RepThomasMassie) February 9, 2023

The U.S. Treasury Department and IRS on Monday introduced the Service Industry Tip Compliance Agreement (SITCA), which the agency says would be a ‘voluntary’ program involving restaurants, bars, food delivery and other businesses where workers earn money from tips…

Aspects of SITCA include monitoring how much revenue is generated through tips and annual reporting by employers…

Many service industry workers rely on tips as a large source of income since they typically earn less than minimum wage as an hourly rate.”

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