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Republicans blast Biden admin over plan to crack down on waiters’ tips

GOP concerns about IRS targeting middle-class Americans starting to ‘come to fruition,’ top Republican tells Fox News Digital

EXCLUSIVE: Republicans heavily criticized the Biden administration in response to its plan to increase scrutiny on service industry workers’ tips.

Earlier this week, the Internal Revenue Service (IRS) proposed a revenue procedure to “improve tip reporting compliance,” reduce administrative burdens and provide more transparency and certainty to taxpayers. As part of the program, which wouldn’t go into effect until after a multi-month public comment period, the IRS could withdraw liability protection related to “rules that define tips as part of an employee’s pay” from employers that don’t cooperate.

On Tuesday evening, an IRS official told Fox News Digital that the proposal wasn’t about the “auditing of servers.” However, Mike Palicz, federal affairs manager at Americans for Tax Reform, said in an interview that the agency’s “goal is to go and grab as much revenue as possible and from whoever they can.”

“Washington has a spending problem, not a revenue problem,” Rep. Mike Kelly, R-Pa., the chairman of the Ways and Means Subcommittee on Tax, told Fox News Digital on Wednesday. “Now, the IRS is going after middle-income families and working moms and dads who are just trying to make ends meet and put food on the table.”

“My colleagues and I have warned for months that the IRS would start targeting hardworking Americans in the Biden administration’s quest for more taxpayer dollars. Now, we’re starting to see some of these concerns come to fruition,” he added.

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