[thechat] 18% tip not legally required

Roger Austin raustin3 at nc.rr.com
Wed Dec 29 10:43:18 CST 2004

deacon wrote:
>>A few years ago, tax law changed to require waiters/waitresses to report
>>tips as untaxed income. There was a convoluted reporting process requiring
>>them to keep a daily diary of tips. 
> No more convoluted than any other income tax record keeping. You 
> aren't necessarily required to keep a "daily diary", but you ARE 
> required to keep accurate contemporaneous records. 

  The rules came about due the time honored tradition of people
who rarely declared cash tips. IRS found that there were people
who worked long hours and made almost no money. Hmmm...
  I believe they looked at a number of ways to collect taxes on
gratuities in the service industry before coming up with the
rules they have now. They seem straight forward.
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