Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Course Introduction

Maintaining Taxpayers' Trust


Case Study 1

Julie, a waitress in a popular restaurant, needs help filing her tax return. Her Form W-2 indicates she earned $10,000 in wages for the year. Box 8, Allocated Tips, is blank.

Tim, a VITA/TCE volunteer, will be reviewing Form 13614-C with Julie. He asks Julie if she earned any tips while working in the restaurant. She says she received only $20 in cash tips during the year, stating that the restaurant discourages tipping. Tim questions whether Julie is honestly reporting all of her tip income, and decides to ask the Site Coordinator about his next step.

Julie, in the restaurant.