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In addition, Merck, another pharmaceutical company, agreed to pay for the IRS $2.3 billion o settle allegations of anjing. It purportedly shifted profits overseas. In that case, Merck transferred ownership of just two drugs (Zocor and Mevacor) into a shell it formed in Bermuda.

What Simply does not matter nearly as much as what the inner Revenue Service thinks, and also the IRS position is crystal clear: Tips are taxable income.

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