The point about the IRS is a very good one. If she admits in writing that she received these huge tips, then she should have reported a fair amount of income for ‘tips’ on her returns. If she claims she didn't keep the money, she would still have to report the income, and then the ‘charity’ she donated it to. She may have caused herself more trouble than she would have imagined.
I realize all of that - and yes, it’s a high likelihood of being BS. Doesn’t change my point to the poster who assumed she was down on her luck - which is that wait and bar staff in such establishments make good money. Those jobs are coveted. Those who have them are not down on their luck.
Now, if they’re at the Waffle House - that’s another story.
The IRS is was too busy harassing Tea Party groups to look into her claim. Not going to happen.
IRS has had in place for a number of years, rules for tip income. And unless Rush left a cash tip, the full amount of the charged tip would be reported on her W-2.
Back in the day, tips were reported at 8% of total sales or if higher, the reported charge tips. I could be wrong on the numbers, it’s been a couple of decades or so since I waited.