Heard the first income tax was sold on the idea “the only ones who’ll pay are the very rich.” Government quickly disposed of that lie.
And I thought the government has demanded what they assumed must have been the waitstaff income, even though it wasn’t.
As: how much money handled at the restaurant so “probably” they assume, tippers must have given this much. Even if not true.
From Turbotax:
Are servers taxed on assumed tips?
The simple answer is yes, the IRS treats tips as taxable income. If you earn tips, then you’re responsible for paying income, Social Security, and Medicare tax on that tip money.
So the Internal Robbery Service is now going to say "We think you made this much, so pay or go to jail."
livin' in the gangsta's paradise...
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