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It's been a very long time since I worked as a server. I remember the
days when tips were not reported as income. Then someone at the IRS
woke up and said hey, wait a minute! what about all that money people
keep handing them? We need to find a way to tax it! So they decided
not to rely on servers reporting what they earned. So they calculate a
percentage based on each server's sales rung up at the register. Even
if you don't make diddly squat in tips, a percentage gets reported to
the IRS as taxable income.
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