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An argument that tips, in some or all cases, are not "compensation received for the performance of non-public services" still might work. Take in the amount it did not, I would expect the government to assert this consequence. This is why I put a warning label at the peak of this line. I don't want some unsuspecting server to get drawn onto a fight he or she can't manage to lose. 4) An individual been about to retire? Any amounts withdrawn from a retirement plan before your 59 1/2 are under early withdrawal penalties plus it'll be treated as regular taxable income.
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