The Internal Revenue Service is moving ahead with a proposal to crack down on service industry tip reporting in an effort the agency said would provide 'certainty to taxpayers.'
"This is not a proposal for the auditing of servers," an IRS official told Fox News Digital."Yesterday’s action was a proposal for comment – not a rule – based on over a decade of feedback from restaurants and other businesses seeking the increased flexibility for their overall tax compliance on tips."
It also states that participating employers would provide the IRS with annual reports, would receive protection from liability related to"rules that define tips as part of an employee's pay" and would have the flexibility to implant internal tip reporting procedures"in accordance with the section of the tax law that requires employees to report tips to their employers.
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