Thursday February 10, 2022 – The Sixteenth Amendment to the United States Constitution states:
“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration.”
This year the IRS is driving that point home. Today, IRS Tax Tim 2022-23 warns “Taxpayers must report tip money as income on their tax return.” Most of those accepting tips as part of their income already know that tips are taxable – although some don’t report all of their tips.
Remember, in IRS Publication 17 (2021) issued December 16, 2021, the IRS reminded us “If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.”
Or the sports fan who receives gifts in return for giving back a record ball – The value of the gifts are taxable.
Attorney Steven A. Leahy reminds taxpayers EVERYTHING is taxable in today’s episode.