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- Business notebook: Jackson salon owner also opens a clothing store (1/16/17)
- Area hospitals hope a box helps prevent infant deaths (1/19/17)6
- Jackson police describe night of anger, car crashes, drug possession by 18-year-old (1/22/17)5
- Two subjects of interest in 1992 homicide to take polygraph tests (1/15/17)8
- Meat-processing plant faces $70K penalty for Clean Water Act violations (1/17/17)4
- Cape SportsPlex contractor offers a look at the project (1/15/17)14
- Local students to perform with choir at inauguration (1/19/17)3
- Southeast to lose $3.5 million from state in budget cuts (1/18/17)21
- Subjects of interest in 1992 killing take polygraph tests; results not revealed (1/18/17)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.