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Good and Bad News For Workers
The IRS considers cracking down on tips
According to this site, unemployment nationwide is down to 3.4% as we’ve created over 500,000 new jobs. That’s great for the economy, though some caution that wages have not been rising to keep up with inflation.
Nevertheless, it’s a good thing when more people who want jobs can find them. There is nothing more discouraging than being out of work, looking, and not being able to find one. So overall, this is good news.
However, for people who depend on tips, the news might be less rosy.
According to this article, the IRS may be cracking down on the reporting of tips by the service industry.
When people learned that the IRS’ budget would be doubled and 87,000 new IRS agents were being hired, the public was told that the main targets would be the rich.
However, according to this analysis, Americans earning less than $75,000 a year would end up receiving over 700,000 additional tax audits while those making over $1 million would only receive a little over 50,000 audits under the Inflation Reduction Act.
One IRS whistleblower has apparently said the IRS will target the middle class under this new legislation.
