Comments on: Ask the Tax Resolution Expert–Business Owner Needs Tax Help for Avoiding IRS Audits on Employees Underreporting Tips http://www.taxresolution.com/blog/ask-the-tax-resolution-expert-business-owner-needs-tax-help-for-avoiding-irs-audits-on-employees-underreporting-tips/ Your Complete IRS Tax Resolution Resource Fri, 13 Jan 2012 21:15:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jeff Day http://www.taxresolution.com/blog/ask-the-tax-resolution-expert-business-owner-needs-tax-help-for-avoiding-irs-audits-on-employees-underreporting-tips/comment-page-1/#comment-2226 Jeff Day Wed, 12 Aug 2009 13:43:19 +0000 http://www.taxresolution.com/blog/?p=2116#comment-2226 To me, you left out the 2nd greatest potential benefit in reporting all tip income. Virtually all tip employees (at least in midwest) are on border of poverty. The increased income would increase the earned income credit, if there are children in play. The increased earned income credit is usually aproximately double the amount of increased FICA taxes and usually there are no federal income taxes! The greatest potential benefit is, IT IS THE RIGHT THING TO DO! Jeff Day EA Evansville, IN To me, you left out the 2nd greatest potential benefit in reporting all tip income. Virtually all tip employees (at least in midwest) are on border of poverty. The increased income would increase the earned income credit, if there are children in play. The increased earned income credit is usually aproximately double the amount of increased FICA taxes and usually there are no federal income taxes!

The greatest potential benefit is, IT IS THE RIGHT THING TO DO!

Jeff Day EA
Evansville, IN

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