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Revision as of 18:36, 21 September 2026


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The employer probably pays the waitress a microscopic wage, which is allowed under many minimum wage laws because she's a job that typically generates tips. 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, alternatively hand, is obliged to fork out the services his workers render. Therefore don't think the exception under Section 102 can be applied. If the tip is taxable income to the waitress, it is only under common principle of Section 61.

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