Funny you mention that. Under present rules, very scant few tips would surpass annual gift exclusion levels, so couldn’t just about every service employee ever claim their tips were merely gifts?
Under the same premise, servers could set up a GoFundMe and have customers contribute to it via tablet that the server carries as those are also currently deemed nontaxable gifts. This would provide an extra level of separation from the restaurant books for better defense against the IRS.
Financial planners next week: Instead of bequeathing or gifting your kids money, just tip them $300 million, tax free.
I’m not against the policy, but implementation details are everything.
Funny you mention that. Under present rules, very scant few tips would surpass annual gift exclusion levels, so couldn’t just about every service employee ever claim their tips were merely gifts?
Under the same premise, servers could set up a GoFundMe and have customers contribute to it via tablet that the server carries as those are also currently deemed nontaxable gifts. This would provide an extra level of separation from the restaurant books for better defense against the IRS.