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left in her pocket when she got home from work, after paying for
any breakage or the like and sharing tips with other employees.
Although, based on petitioner's testimony, these payments might
not account for the complete difference in the amounts determined
by respondent and the amounts that petitioner reported, they
would account for a substantial amount of the difference.
Respondent recognizes that it was customary for waitresses
to share tips with other employees and also to pay for breakage,
walkouts, and misordered food, and that petitioner did use part
of her tips for this purpose. However, it is respondent's
position that these items do not reduce petitioner's gross income
in arriving at adjusted gross income, but are itemized deductions
which petitioner is not entitled to take, since she used the
standard deduction in computing her income. Respondent claims
that these amounts are employee business expenses that are not
deductible because of the provisions of section 62(a) in arriving
at adjusted gross income, but are itemized deductions subject to
certain limitations and not deductible when the taxpayer uses the
standard deduction.
Section 62(a) provides for the deduction by an individual
taxpayer of trade or business expenses of that taxpayer "if such
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