Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 6

Lance asks you to explain why his employer, the Good Food Truck Stop, an establishment that employs more than 30 waiters and waitresses, included $2,400 in tip income on his Form W-2 for the year. Lance always has kept track of the tips he actually received, and he has reported them in full on his tax return.