- Peter Kinder resigns federal agency post, concludes position unnecessary and waste of tax dollars (6/16/18)2
- Stormy Daniels to visit East Cape Girardeau (6/13/18)20
- Longtime downtown Cape bartender Marcellus Jones remembered by friends (6/12/18)2
- A community rallies behind Honorable Young Men's Club (6/16/18)1
- Couple charged in beating death at Brick's (6/13/18)
- Southeast to spend $150,000 to refresh brand with Ohio firm (6/19/18)6
- New urban dance studio opens on Broadway (6/15/18)2
- Jackson natives compete in 260-mile canoe race (6/16/18)1
- Feeding deer in Bollinger, Cape and Perry counties prohibited soon to help curb spread of CWD (6/13/18)7
- New Zaxby's restaurant open in Cape (6/13/18)3
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.