The correct interpretation of the quote you provided is that you must report all the tips you receive, including any given to you by other employees. But you do not report any tips you give other employees. There is no double-taxation if the tips are reported correctly.
If you need to adjust the tips reported on your W-2, check the box for "unreported tips" on the page "Let's check for uncommon situations." On the next page, you can report both the tips you received from other employees AND the tips you paid out.
@iemak
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