Wednesday February 8, 2023 – The Treasury Department and Internal Revenue Service have announced the proposed Service Industry Tip Compliance Agreement (SITCA) program. A program designed to improve compliance with tip reporting regulations.
The SITCA program would monitor employers’ compliance by using their point-of-sale systems and allowing them to adjust tipping practices from year to year. Participating employers would demonstrate compliance by submitting an annual report after the close of the calendar year and receive protection from liability under applicable tax law.
This is part of the Administration’s plan to make sure no one making under $400,000.00 per year pays even $1 more in taxes. This rule focusing on waitresses will make sure the rich pay their fair share.
Attorney Steven A. Leahy reviews the State of The Union and the IRS focus on TIPS on Today’s Tax Talk.