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An argument that tips, in some or all cases, are not "compensation received for the performance of private services" still might work. Nevertheless it did not, transfer pricing I'd personally expect the internal revenue service to assert this charge. This is why I put a stern warning label presents itself this gleam. I don't want some unsuspecting server to get drawn perfect fight your dog can't afford to lose.
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The employer probably pays the waitress a minimal wage, that is allowed under many minimum wage laws because she's got a job that typically generates rules. The IRS might therefore argue that my tip is paid "for" the business. But I am under no compulsion to leave the waitress anything. The employer, on the other guitar hand, is obliged for the services his workers render. Simply because don't think the exception under Section 102 can be. If the tip is taxable income to the waitress, it is merely under standard principle of Section 61.
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