DETROIT - IRS changes that take effect on New Year's Day may lead to the end of automatic tips at restaurants.
Automatic tips at restaurants, those are generally 18% tips for larger parties, are now viewed as a "service charge." That's because customers are "required" to pay it, which in turn makes it a taxable wage for servers.
The IRS actually made the change in 2012, but postponed it until this year.
The Texas Roadhouse has already said that automatic tips will be gone starting in 2014.
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