In order to crack down on the service industry's tip reporting, the Internal Revenue Service (IRS) has proposed a new reporting procedure to be implemented. The proposed program would be called the Service Industry Tip Compliance Agreement (SITCA) where a voluntary tip reporting system would be created and the IRS would give the public until May to give feedback before implementing the program. According to a tweet from Mike Palicz, the federal affairs manager at Americans for Tax Reform, "those 87,000 new IRS agents that you were promised would only target the rich. They're coming after waitresses' tips now." The IRS claims the program would only seek to "improve tip reporting compliance," thus decreasing costs by the IRS and supposedly improving transparency. In an interview with Fox News Digital, an IRS official said, "this is not a proposal for the auditing of servers. Yesterday’s action was a proposal for comment – not a rule – based on over a decade of feedback from restaurants and other businesses seeking the increased flexibility for their overall tax compliance on tips. This proposal is not in effect and is intended to welcome further conversation from all interested parties before any rule is put into place." The program would include "monitoring of employer compliance based on actual annual tip revenue and charge tip data from an employer's point-of-sale system, and allowance for adjustments in tipping practices from year to year." Employers who would submit annual reports to the IRS would receive liability protections for "rules that define tips as part of an employee's pay." In an interview with Fox News Digital, Palicz said "there's no reason they'd be issuing guidance on how to crack down on this if it was only going to end up being voluntary. Ultimately, the goal is to go and grab as much revenue as possible and from whoever they can." "All of this in the backdrop of — they told us they're not going to be coming after people earning $400,000 or less," he said in the interview. "Well, here's a new IRS rule that's focused on bringing in tips from waitresses. That's what they're focused on doing, that's what they're putting new rules on."