This is crap. Where is the due process? I once worked as a server and sometimes people dont tip. I also had to "tip out" to the bartender and busboy. Since the computer system would not allow me to claim less tips than came in by credit cards, there were times that I was forced to claim more tips than I actually took home. Once you see how the IRS works it is really quite clear. They operate by getting you to agree with them that you are a taxpayer. It is only by your choice that this happens. And once you are in, it is much harder to get out. But it is still possible to be free.

Joseph Anthony - Stop hiding 'tip' income from the IRS - Microsoft bCentral