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Old February 8th, 2006, 09:06 PM
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Fern Fern is offline
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Join Date: Mar 2004
Location: Arkansas
Posts: 5,104

Hi Kuki,

There are also many cases where the IRS investigate "service industry workers", where tips are the norm. This is because it is understood that those service workers will make a certain % of their income via gratuties. In fact there have been cases in the past where gratuity income was assumed, even when it wasn't declared
This happened to a friend of ours when the new rules came out (quite a long time ago). She was a waitress (and not very good at it ) at a popular steak house. When the paychecks came out after the first month she owed the company and the IRS money! Needless to say, she found another job.

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