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applied by obtaining from the restaurant the total sales each
individual waitress had made and reducing those sales for
"stiffs", which in this case was based on 13.33 percent of sales,
to arrive at sales subject to tips. The tip rate was then
determined by the average tips as shown on charge sales, reduced
by approximately 1 percent, with the resulting percent, which was
14.63 percent in this case, applied to the sales subject to tips.
On her income tax returns filed for 1991 and 1992,
petitioner claimed the standard deduction of $5,000 for 1991, and
$5,250 for 1992 in lieu of itemized deductions.
On certain days the tips petitioner showed on her records
were less than the tips shown on the charge slips of her
customers. It is petitioner's position that at least a
substantial amount, if not all, of the difference in the amount
that respondent determined to be her tips and the amount she
showed on the records she kept was due to her payout of tips to
the busboys, bartenders, cooks, and other waitresses, and her
payment for breakage, walkouts, and similar items.
OPINION
The record here shows that, except for mistakes petitioner
might have made, her records reported only the cash that she had
amount, stating: "We are convinced that petitioners gave 10 to
15 percent of their tips to the captains and that to account for
this and other factors respondent's formula should be applied
with a 10 percent rather than a 12 percent rate of tipping."
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