How Does Tax Relief Work?
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Published date: 02/04/2025
- Location: 1096 Bl, Nova Scotia, Canada
Many small small business owners start with a sole proprietorship to avoid the costs of forming a corporation or LLC. It is a wise decision as statistics show that a lot of small businesses throw money away for the first several years.
The employer probably pays the waitress a very tiny wage, that allowed under many minimum wage laws because this lady has a job that typically generates help. The IRS might therefore argue that my tip is paid "for" the employer. But I am under no compulsion to leave the waitress anything. The employer, alternatively hand, is obliged to repay the services his workers render. I absolutely don't think the exception under Section 102 makes use of. If the tip is taxable income to the waitress, it can be under common principle of Section 61.
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