- Cape student sues, accuses school officials of slamming her to ground multiple times (04/28/16)46
- Bob Evans restaurant in Cape Girardeau among chain's 21 closings (04/26/16)9
- Missouri House votes to allow concealed weapons without permits (04/28/16)7
- Police report filed, but no charges in incident at Cape Central (04/29/16)38
- Two hurt in motorcycle wreck on Interstate 55 (04/25/16)1
- Senator introduces bill for I-57 that would connect Sikeston with Little Rock (04/28/16)4
- Law firm requests information about Cape's traffic cameras (04/25/16)2
- Local lawmakers split over failed medical marijuana bill; voters may have a say (04/26/16)19
- Local company makes eco-friendly kitty litter that cuts cat-box smell (04/25/16)
- Man accused of pointing BB gun at Chaffee resident (04/26/16)2
Court affirms power to catch tip cheating
WASHINGTON -- The Supreme Court gave the Internal Revenue Service its blessing Monday to aggressively audit restaurants to catch underreported tips.
Justices said Congress, not the court, was the appropriate venue for a challenge to IRS auditing techniques.
The 6-3 ruling is a defeat for the 200,000 restaurants with tipped workers, and many other businesses with employees who receive tips.
"Obviously this isn't the end of the game. The next battle will be up on Capitol Hill," said Peter Kilgore, senior vice president for the National Restaurant Association.
The calculating of taxes that businesses owe from employees' tips is a thorny task because often tips are cash and workers report their own earnings.
The Supreme Court said a federal law permits the IRS to estimate the amount of cash tips based on tips shown on credit card receipts. The estimate is used to determine a restaurant's tax bill.
The ruling does not affect individual audits of employees.