I worked as a server 20 years ago. The rule then was all tips were taxed. If IRS might be alerted that the proper amount was not reported if 8% of the sales was not reported. This 8 % would be on cash sales. The server should report all Credit card sales and automatic % tips plus at least 8 % of what was paid in cash or justify why they did not make 8 %.
It was real easy to calculate, just report what you actually made.
Several of my coworkers did not report the correct amount. They had to pay fines.
What is different in 2014?
It was real easy to calculate, just report what you actually made.
Several of my coworkers did not report the correct amount. They had to pay fines.
What is different in 2014?