Thank you for the consideration and information, SweetieJean.
The tips were given to owners (managing members) while working (labor, cooking, staff, etc.) in the restaurant.
In 2021, there wasn't anyone else to distribute tips to other than the owners doing the work. They were the only one's - i.e. there weren't any employees or contractors.
That requirement that you mentioned doesn't seem right because it is income, however not income from sales. It has to be reported somewhere.... just trying to find out if it should go directly to the schedule C or if it needs to pass through the business on the 1065 as well.
