- 13 - forthcoming. Under these circumstances, we do not consider this an appropriate case to discuss in further detail the correctness of the long-standing method of computing gross income from tips by reducing the tips left on a waitress's table by the "payout" she makes to busboys, bartenders, and other waitresses. Respondent apparently does not dispute petitioner's testimony that on the average she "paid out" $10 a day to busboys, bartenders, cooks, and other waitresses. This amount is in line with the 20 to 25 percent of tips allowed as "payouts" to other employees in some recent cases. We, therefore, hold that the amount of tip income of petitioner as determined by respondent should be reduced in each year by $10 a day for "payouts" to other employees. The situation with respect to the cash payments to the restaurant for breakage, misordered food, walkouts, and similar items is different. We did not find nearly as many cases dealing with this question as we did cases dealing with "payouts" to busboys and similar employees. Also, we found no case making a specific adjustment for these items, although some cases referred in general to a consideration of the items.5 In this case 5 For instance, in Applegate v. Commissioner, T.C. Memo. 1980-497, we stated: "We also hold that the petitioner failed to sustain her burden of proving that she is entitled to deductions for the 'walkouts'". In Sanders v. Commissioner, T.C. Memo. 1979-352, we stated: Finally, petitioner argues that respondent has notPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
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