Say Goodbye to the IRS Restaurant Audit
A kindler, gentler IRS? Possibly.
The Internal Revenue Service has announced it will no longer audit restaurants as long as establishments comply with the tax laws associated with tip reporting, regardless if wait persons actually are cheating on their own reporting of tips.
In exchange, the IRS says it will target the wait persons themselves, who must report any tips received totaling over $20 a month. The losses are staggering, according to industry sources. For example, the restaurant industry reports revenues of $250 billion, and only $7 billion in tips were reported last year.
This effort is the latest in a series of tactics by the IRS to provide taxpayer relief.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.