Declaring Bankruptcy When You Owe Irs Tax Arrears

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The employer probably pays the waitress a minimal wage, that allowed under many minimum wage laws because this wounderful woman has a job that typically generates help. The IRS might therefore argue that my tip is paid "for" the business. But I am under no compulsion to leave the waitress anything. The employer, on the other half hand, is obliged to be charged the services his workers render. Simply because don't think the exception under Section 102 makes use of.

If the tip is taxable income to the waitress, it is under standard principle of Section 61.