Keeping TRAC of Tip Income: Tip Compliance

Participating in an IRS Tip Agreement is like having an audit insurance policy. If your business employs workers who earn a substantial portion of their income from tips (bartenders, restaurant or hotel workers, beauticians, casino employees and so on), then a tip agreement essentially provides you with immunity against an IRS audit. The IRS established…

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Congress-passed bill averts fiscal cliff tax consequences

By Priya Patel In the early morning hours of Jan. 1, 2013, the Senate, by a vote of 89-8, passed H.R.8, the “American Taxpayer Relief Act” (the Act). Late on that same day—hours after the government had technically gone over the “fiscal cliff”—the House of Representatives, by a vote of 257 to 167, also passed…

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