Customers dine in the Wicker Park neighborhood on Nov. 11, 2020, in Chicago, Illinois. The IRS has proposed a new point-of-sale tip reporting program that may help service industry employers avoid ...

Over the past number of years, the IRS has been on a campaign to “encourage” tipped employees to properly and accurately report their tip income. Because tip income often is received in the ...

Headlines falsely claim the IRS is cracking down on the reporting of tips by service industry workers, including waiters. Here's what's actually happening. Skip Navigation.

In the 1990s, the IRS realized some service workers and their employers were having difficulty complying with tip reporting requirements on their own, resulting in unreported income and audits.