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Supreme Court sides with IRS on cash tips

     In a defeat for the restaurant industry and other businesses with workers who receive tips, the U.S. Supreme Court has approved the Internal Revenue Service's method for calculating Social Security taxes owed from employees' cash tips. The case involved a San Francisco restaurant that challenged an extra $23,000 tax bill; using credit card receipts, the IRS had estimated the amount of unreported cash tips given restaurant employees and then relied on the estimate to determine the additional taxes. The restaurant had argued unsuccessfully that the IRS should audit individual workers when underreporting is suspected, rather than relying on speculation and assumptions. 

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