The Biden administration announced a new program to “improve tip reporting compliance” to the IRS more than a year before Vice President Kamala Harris’ presidential campaign promised to eliminate tip taxes.
The IRS and Treasury departments introduced a new tip reporting program last year called the Service Industry Tip Compliance Agreement (SITCA) program. The stated goal of the program is to “improve tip reporting compliance.”
“The proposed SITCA program is designed to take advantage of advancements in point-of-sale, time and attendance systems, and electronic payment settlement methods to improve tip reporting compliance,” the IRS stated in a February 2023 announcement. “The proposed program would also decrease taxpayer and IRS administrative burdens and provide more transparency and certainty to taxpayers.”
The program is currently optional for employers to enroll,…
