IRS Power Confirmed
WASHINGTON (AP) -- The Internal Revenue Service can use estimates to make sure it is collecting enough taxes on cash restaurant tips, the Supreme Court said Monday.
The court beefed up the IRS' power to calculate taxes that businesses owe from employees' tips, a thorny task because often the tips are cash and workers report their own earnings.
The ruling is a defeat for the estimated 200,000 restaurants with tipped workers, and many other businesses whose employees receive tips.
The court said the IRS can estimate the amount of cash tips given to employees based on tips shown on credit card receipts. The estimate is used to determine taxes. …
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Publication information:
Article title: IRS Power Confirmed.
Contributors: Not available.
Newspaper title: THE JOURNAL RECORD.
Publication date: June 18, 2002.
Page number: Not available.
© 2009 THE JOURNAL RECORD.
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