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The IRS might therefore debate that my tip is paid "for" the business. But I am under no compulsion to leave the waitress anything. The employer, on the other hand hand, is obliged paying the services his workers render. Liked working out don't think the exception under Section 102 can be. If the tip is taxable income to the waitress, it is simply under the typical principle of Section 61. (iv) All unaccounted income should be declared.
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