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Revision as of 21:51, 15 May 2026

Every year, the irs issues a listing of tax scams. Actual is to alert taxpayers to the lack of merit of certain strategies as well as letting everyone know the IRS will not accept them.

The employer probably pays the waitress a little wage, as well as allowed under many minimum wage laws because she gets a job that typically generates suggestions. The IRS might therefore believe my tip is paid "for" the employer. But I am under no compulsion to leave the waitress anything. The employer, on the other hand, is obliged for the services his workers render. Simply because don't think the exception under Section 102 provides. If the tip is taxable income to the waitress, it is only under common principle of Section 61.

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If the $100,000 annually person didn't contribute, he'd end up $720 more in his pocket. But, having contributed, he's got $1,000 more in his IRA and $280 - rather than $720 - in his pocket. So he's got $560 ($280+$1000 less $720) more to his moniker. Wow!

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