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paid by walkouts, or mistakes they made on the bills, but
contends that these items are deductions and not an offset that
results in a reduction in the gross income received from tips.
At the conclusion of the evidence, the Court called the attention
of respondent's counsel to the fact that many cases had allowed a
waitress's tips to be reduced by "payouts" to busboys and
bartenders in determining her gross income from tips, and
requested a memorandum explaining any distinction between those
cases and this case. The memorandum filed discusses none of
these cases.
In Meneguzzo v. Commissioner, 43 T.C. 824, 829 (1965),
respondent in computing tip income of a waiter at Whyte's
Restaurant in New York City, reduced the tips computed on the
charge payment or left in cash by 15 percent "paid out" to
busboys. In approving the formula, we specifically referred to
the reduction of the income from tips by 15 percent for sharing
by the waiter of tips with busboys. Meneguzzo v. Commissioner,
43 T.C. at 833. This same type reduction has been used by this
Court in numerous other cases. Some of the cases in which tip
income was reduced by an amount shared by the waitress with
busboys are the following: Guadron v. Commissioner, T.C. Memo.
1994-553; Nika v. Commissioner, T.C. Memo. 1991-335; Butler v.
Commissioner, T.C. Memo. 1991-118; Williams v. Commissioner, T.C.
Memo. 1985-476; McLeod v. Commissioner, T.C. Memo. 1984-658;
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