Billy
Rancher
sthe
Unreal
Bods
n
^Restless Natives
pipsqueaks
Friday April i
Eugene Armory
across from JUitzon Stadium
8PM Tickets at the door $5
J
IRS puts a tax on tips today
WASHINGTON (AP) — The government
carries its campaign against tax chiselers into
the nation’s bars and restaurants today, hoping
to pick up an extra $1 billion a year from waiters
and others who’ve fudged their earnings from
tips.
The Internal Revenue Service estimates
that 84 percent of taxable tips received by
waiters, cabbies and others are never reported
as income. That tax-dodging rate is exceeded
only by drug pushers, prostitutes and other
criminals, the IRS says.
Beginning today, restaurants and bars
with 11 or more employees — some or all of
whom are tipped regularly — must begin com
plying with a new law that, in essence, requires
waiters and waitresses to prove they are not tip
ped at least 8 percent of sales.
“It’s bad legislation because the average
tip is much less than 8 percent — maybe as low
as 3 percent,” says Jeffrey Prince, senior direc
tor of the National Restaurant Association.
A campaign to repeal the law is already
under way. One reason is that even before the
law went into effect, some establishments
mistakenly began withholding an extra 8 per
cent of waiters’ paychecks. Some waitresses
have told of taking home checks from which
every cent had been withheld, ot course, they
also took home all their tips.
But the law has nothing to do with
withholding — it specifically prohibits
withholding taxes from any tips except those
reported by the waiter.
Tips have been taxable as long as there
has been an income tax. Since 1965, waiters
have been required to report to employers tips
totaling more than $20 a month. The employer
withholds Social Security and income taxes
from those tips and the waiter’s wages.
None of that changes under the new law.
After each pay period, the restaurant will
add up sales and tips reported by all waiters.
Any waiter whose tips don’t total at least 8 per
cent of his sales will be allocated enough to
make up the difference. He won’t get the
allocated money and he won’t necessarily have
to pay tax on it; the employer will simply report
the figure to IRS.
When the waiter files his tax return early
next year, he will report tips received and pay
tax on that amount. But the W-2 form showing
his wages and reported tips will also list his j
allocated tips, and any waiter whose return is
audited might have to prove he did not receive 8
percent tips.
TAKE AN EASY
PASS THIS TERM.
Now it's easy to pass the whole term, with an Easy Pass from LTD.
It's good for unlimited rides for three months beginning April 1st, and
the Easy Pass saves you money.
We're making this special offer for U of O students, faculty and staff
at a price that's easy to take—only S40.00 for the entire term. That s
even cheaper than the regular Fast Pass.
You can buy your spring term Easy Pass at the U of OBookstore, the
EMU Main Desk or Customer^ervice on 10th & Willamette
Take it easy^On and pass this term with the moneysaving Easy Pass.
THE
o
BUS
Take It easy, take The Bu*.
For Information call 687-5555
CLASSIC FRENCH BAGUETTES • PEASANT FRENCH BREAD
£co!l> BRIOC HE BREAD FILLEDWITH GRlTERE,
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CROISSANTS ROLLED WITH SPINACH
AND < .ARLIC, ClIEESES (>R MEATS •
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BREAKFAST BREADS
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c*ll 484—1662 to see what we have today, or order your favorite
I \I1 (REEK BAKERY HAS CAKES, I OKIES it
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DARTOI
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AND
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often
m l H-ti
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C(X)KIES•AWARD WINNING ((X)KIES -COOKIES .('(X)KIhS
SEMI SWEET Ik Mll.K CHOCOLATE CHIP • OATMEAI, CHOCOLATE CHIP
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CHOCOLATE COOKIES CHOCOLATE COOKIES
WITH PEANUT i i 'I WITH M,XT
BITTER »• FLAVORED
chips JR r*^ cm™
881 EAST 13th
near campus
484-1662
Mon-Fti 8-6 Sat 8-3