The IRS is working hard to find lost revenue. Non-reported or under reported income by restaurant workers is under scrutiny. Restaurants owners have the critical tasks of keeping records on tips received and compelling employees to report tips.
Proposed IRS regulations address reporting requirements for credit card and third-party network transactions (IR-2009-106; NPRM REG-139255-08). The IRS plans to require credit card and other firms that process transactions to report the annual gross network transactions to participating merchants and to the IRS.
To narrow the federal deficit, the IRS plans to add new 1099 reporting requirements, according to a report from the American Institute of Professional Bookkeepers.