"Martin D. Pay" wrote in message
...
On Fri, 09 Nov 2007 14:29:27 -0600, James Robinson
mangled uncounted electrons thus:

Martin D. Pay wrote:

(Dennis P. Harris) mangled uncounted electrons thus:

it's an unfortunate fact of life
that the american restaurant industry has refused to pay their
employees a living wage and expects them to live off tips, to the
point that it's actually the law and they will be taxed on tips
that the govt expects them to receive even if they don't.

That's the bit I find extraordinary! Can the worker reclaim any
overpaid tax at the end of the year, if they can demonstrate a
lower actual income than the amount on which they've been
charged? (Even with the rapacious tax regime in the UK, this is
possible.)

The tax authority (IRS) estimates what the person should receive in tips
based on the total sales of the restaurant, and tax returns filed by other
people in similar jobs. If the amount reported by someone varies
significantly from the estimates, the onus is on them to prove why they
are
different than the trend. In many cases, they simply take the easiest
course and accept the IRS estimate.

Good... grief... @_@

Martin D. Pay
Nothing witty comes to mind...

In the U.S., the restaurant reports as tips those paid on credit card
receipts (which tips can be easily computed). It is up to the employee to
estimate additional tips and show them on his/her tax return.