taxes « Tip20! – Waiter, Waitress, Bartender, Kitchen & Consumer

H.R. 1139: Tax Free Tips Act of 2011 Sponsored by Ron Paul

Ron Paul Tax Free Tips Act112th Congress: 2011-2012, Sponsored March 16th, 2011 To amend the Internal Revenue Code of 1986 to provide that tips shall not be subject to income or employment taxes. Dr. Ron Paul has been a proponent of tax free tips for a long time. [...]

Tips & Taxes – The misconception about IRS tip reporting.

There is a misconception that servers are required to report their tips as at least 8% of their sales revenue. 8% is simply a bottom line that the IRS uses when attempting to determine how much a server earned in tips over the year. The IRS does not expect to be paid 8% of a server’s sales as tax – that would be akin to taxing the customer for their bill… [...]

IRS Cracking Down on Tip Reporting

The IRS figures the food and beverage business should be sending in some 200,000 tip disclosure forms every year. But only about a quarter ever show up. The IRS wouldn’t go on the record, but said it recently hired an outside contractor to identify slackers and that it’s conducting more audits… [...]