President Joe Biden is taking criticism after the IRS said it will go after service industry tips in a new effort to increase collection.<\/p>\n\n\n\n
The IRS issued new guidance this week for a \u201cvoluntary tip reporting program\u201d for service industry employers.<\/p>\n\n\n\n
The plan allows for the \u201cmonitoring of employer compliance based on actual annual tip revenue and charge tip data from an employer\u2019s point-of-sale system, and allowance for adjustments in tipping practices from year to year.\u201d<\/p>\n\n\n\n
The IRS incentivizes employers to allow this monitoring by saying \u201cemployers receive protection from liability\u201d and that it makes them less likely to receive a \u201ccompliance review\u201d from the IRS.<\/p>\n\n\n\n
\u201cParticipating employers demonstrate compliance with the program requirements by submitting an annual report after the close of the calendar year, which reduces the need for compliance reviews by the IRS,\u201d the IRS said.<\/p>\n\n\n\n
The effort comes the same week Biden emphasized in his State of the Union address that no one making less than $400,000 will pay more in taxes.<\/p>\n\n\n\n
In the speech,<\/a> Biden also called for the \u201cwealthiest and biggest corporations to begin to pay their fair share,\u201d and proposed quadrupling the tax on corporate stock buybacks from 1% to 4%, a proposal critics say would cost countless jobs.<\/p>\n\n\n\n \u201cLook, I\u2019m a capitalist, but pay your fair share,\u201d Biden said. \u201cThe idea that in 2020, 55 of the largest corporations in America, the Fortune 500, made $40 billion in profits and paid zero in federal taxes \u2026 folks, it\u2019s simply not fair.\u201d<\/p>\n\n\n\n Biden also touted the 15% minimum tax on book income passed in the Inflation Reduction Act in his speech.<\/p>\n\n\n\n A more aggressive IRS is not new. Biden has made clear since taking office that it is a key part of his agenda. The president pushed for greater IRS enforcement to fund some of his spending as an alternative to raising taxes. The main thrust of that plan came through the previous Democrat-led Congress funding 87,000 new IRS agents to audit Americans and thus increase revenue.<\/p>\n\n\n\n \u201cJoe Biden\u2019s radical war on the working class just expanded to tipped workers, further proof that working-class Americans who make less than $75,000 will bear the brunt of over 710,000 new IRS audits under the newly supercharged IRS,\u201d said Ways and Means Committee Chairman Rep. Jason Smith, R-Mo. \u201cWhile the president talked a big game about going after billionaires in his partisan State of the Union address, it\u2019s clear that the White House is doubling down on crazy and prioritizing going after hardworking middle-class employees.\u201d<\/p>\n\n\n\n