Although I've appropriated E.F. Hutton's tag line, I know very little about taxes. Can any of you in the tax or restaurant field help sort out this server's tip-tax dilemma?
I work at a hot spot in Tacoma. My employer just allocated me way too much money. I claim my tips accurately and fairly.
Management added tips on my W2 that they claim I made. I claim tips every night. They allocated me an additional $10,800. And if I don't dispute this allocation then I will have to pay taxes on it.
They allocated tips to every Front of House staff member and the amounts they allocated are outrageous. I don't mind paying taxes, but I do mind paying taxes on money I didn't make.
I have been a server in many reputable restaurants and have never had this happen to me. ... Is this fishy or what? Or am I simply not aware of some new government mandate that says all servers must be allocated?
[The employer] is saying that the IRS made him do it. Is this true? Is the IRS internally auditing every restaurant and deciding for the employer how much a server can be allocated? I was always under the impression that you can't be allocated unless an audit is going on.
Any thoughts or insights or tips on how servers can protect themselves from this unjust allocation, and who do we contact, or how do we dispute this?