IRS Seeking Comments on Tipping Practices Survey

Friday, December 05, 2014 2:32 PM | NCSA Website Manager (Administrator)
The Internal Revenue Service is asking for comment on plans to conduct a one-month pilot test in preparation for a nationwide survey on consumer tipping practices, so it can ultimately develop updated estimates of consumer tipping revenue across services where tipping is prevalent.
 
In a Nov. 28 notice in the Federal Register, the Treasury Department said previous research has shown income from tips to be significantly underreported. "The IRS believes a new study of consumer tipping practices is needed in order to better understand current tip reporting behavior so tax administrators and policy makers can make the tax system fairer and more efficient," Treasury said.
 
Because there is a big difference in cost between a probability and a non-probability sample, the department said, it needs to do pilot tests "to determine the relative accuracy and selection bias of tipping data that are collected using these different sampling methodologies in order to determine if there is a tradeoff between accuracy and cost."
 
Pilot tests will be used to determine the sampling method for a nationwide survey, it said. The notice to the OMB was published in the Dec. 1 Federal Register.
 
Comments are due by Jan. 30, 2015, to Kim M. Bloomquist, Office of Research, Compliance Analysis and Modeling, 1111 Constitution Ave. N.W., K-3rd Floor/006, Washington, D.C. 20224, or by e-mail to kim.bloomquist@irs.gov.


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