Hi,

I have a restaurant client that recieves a Form 1099-K and files an annual Form 1120-S. For the return, I have the Line 1 gross receipts or sales match the Form 1099-K amount then treat the tips as an expense. Has the IRS specified which line on the return to put the tips expense under? Under the Salaries and Wages Line (Line 8), under the Other Deductions Line (Line 20), or deducted another way?