The Internal Revenue Service is taking a closer look at how waiters are reporting their tips.
Specifically, the IRS is proposing a way to keep an accurate account of taxable tips. Officials are asking for public comment on a voluntary tip reporting program between the tax agency and employers in service industries. However, political analyst Debbie Georgatos is concerned, calling this an IRS crackdown.
“Unreported tips by waiters and waitresses is not going to amount [to much]. They’re not going to really get a lot more tax revenue paid to the government,” Georgatos said.
Conservatives have been critical of the IRS since the announcement of an additional 87,000 agents. IRS officials insist there is no crackdown, just a proposed change in the way tips are reported.