A Nevada union says a deal between casinos and the IRS to reduce reporting requirements for tip income does not represent a real help for the Las Vegas casino workers. According to Nevada’s Culinary Union, which currently represents over 60,000 workers, the income generated by tips has decreased 50% as visitors spend less time and money in Las Vegas, making workers really angry with what they consider is an unfair and unrealistic IRS adjustment. The IRS has recently agreed with casinos to decrease the amount casino workers must declare as tip income by 20%.  Union officials said that a lot of its affiliated workers are considering dropping out the voluntary program and simply refuse to pay taxes on the tips received.

"What the IRS has not done is fully understand the economy that's going on here. Our tip earners are getting whacked in a number of ways, and we don't feel the tax rates reflect that." said D. Taylor, secretary-treasurer for the union.

Since its implementation about two years ago, the IRS says 90% of tip-earning workers in the State of Nevada have joined the program.  A spokesman for MGM Mirage Inc., one of the larger employers in Nevada and the largest casino operator on the Las Vegas Strip, disagreed with the union's opinion and said the agreement brings more benefits than problems for its employees.

"It's not often that the letters I-R-S spell relief, but if you're a tip-earning employee in this economy, that's what they spell. It's our hope that this move will help tip-earning employees to better deal with the adverse economy we're all suffering through." MGM Mirage spokesman Gordon Absher said.

IRS officials will hold a seminar at the union's hall, in where they will explain union members how to keep a record of their tips. Under the new program, employers can withhold taxes on estimated tips and the IRS promises not to audit participants. All the employees who don't participate are required to track their tips and report them on their income taxes. However, since the IRS implemented the program, thousands of union members became angry when they were audited regardless the IRS promises about the program.

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