- 8 -
trade or business does not consist of the performance of services
by the taxpayer as an employee."3
Respondent does not deny that it was customary for
waitresses to share tips with busboys, bartenders, cooks, and
sometimes other waitresses, and that they were required to pay
for any breakage and food that was misordered, or for bills not
3 SEC. 62. ADJUSTED GROSS INCOME DEFINED.
(a) General Rule.--For purposes of this subtitle, the
term "adjusted gross income" means, in the case of an
individual, gross income minus the following deductions:
(1) Trade and business deductions.--The deductions
allowed by this chapter (other than by part VII of
this subchapter) which are attributable to a trade
or business carried on by the taxpayer, if such
trade or business does not consist of the
performance of services by the taxpayer as an
employee.
(2) Certain trade and business deductions of
employees.--
(A) Reimbursed expenses of employees.--The
deductions allowed by part VI (sec. 161 and
following) which consist of expenses paid or
incurred by the taxpayer, in connection with the
performance by him of services as an employee,
under a reimbursement or other expense allowance
arrangement with his employer. The fact that the
reimbursement may be provided by a third party
shall not be determinative of whether or not the
preceding sentence applies.
(B) Certain expenses of performing artists.--
The deductions allowed by sec. 162 which consist
of expenses paid or incurred by a qualified
performing artist in connection with the
performances by him of services in the performing
arts as an employee.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011