Gratuity included? A new IRS rule could end, or at least curtail, the practice.
The Internal Revenue Service will soon begin classifying automatic gratuities as service charges that are taxable as regular wages and subject to payroll tax withholding. Currently, they're considered tips, and it's up to the wait staff to report them as income.
Originally published on Thu August 29, 2013 1:16 pm
The U.S. Department of the Treasury and the Internal Revenue Service announced on Thursday that when it comes to federal tax purposes, same-sex couples who have legally married will be treated the same as straight married couples, no matter what state they reside in now.
Now that the Supreme Court has ruled that the federal ban on same-sex marriage is unconstitutional, federal agencies have to figure out the regulations that govern everything from immigration permission to income taxes.
The Internal Revenue Service, under attack by congressional Republicans, has been operating without a permanent commissioner. President Obama nominated John Koskinen on Thursday for what might be seen as a thankless job.
The president called his nominee "an expert at turning around institutions in need of reform." But Koskinen will have his work cut out for him, starting with his Senate confirmation hearing.