The Biden administration is trying to ruin ordinary working Americans.
They are using the power of the IRS to crack down on working-class people.
Now they are going after waitresses to harass them and investigate them.
When the Biden administration expanded the IRS with 87,000 new agents, they assured the American people it was only to go after wealthy fat cats who were cheating on their taxes.
Of course, that was a lie. And now the truth about that program is being exposed.
Those 87,000 new agents weren’t hired to go after wealthy fat cats at all. They were hired to go after the little guy and try to squeeze as much money out as possible.
Waiters and waitresses make most of their money in tips. Technically speaking, they are supposed to pay taxes on those tips. However, in reality, when those tips are given in cash, they frequently don’t report the exact amount that they were given.
Technically that is against the law. But in the same way that very few cops will pull someone over for going 70 MPH in a 65 MPH zone, the government for a long time has elected not to crack down on low-paid wait staff to extract taxes out of their cash tips.
That is all changing now under Joe Biden, though. He wants those poor waiters and waitresses to pay up, or else.
According to Fox News, “The Internal Revenue Service (IRS) proposed a revenue procedure this week to crack down on the service industry’s reporting of tips.”
“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.”
The IRS wants restaurants to track their employees and rat them out when they don’t pay the exact amount of taxes they owe on their tips.
This could lead to wait staff being sent to prison for underpaying their taxes on the tips they receive in cash.
One of the features the IRS lists as part of the program is “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.”
So not only is the IRS going after the wait staff to extract taxes out of their tip money, they are also threatening the restaurants if they don’t comply.
Mike Palicz, the federal affairs manager at Americans for Tax Reform, had this to say: “Those 87,000 new IRS agents that you were promised would only target the rich…They’re coming after waitresses’ tips now.”
If this goes into effect, it will be a disaster for the restaurant industry. Very few people will want to become waiters or waitresses if they are going to be under constant threat of audits from the IRS.
And restaurants themselves will have to deal with constant threats and bullying from the IRS.
Joe Biden’s IRS is singlehandedly ruining the restaurant industry.