The U.S. Tax Court has ruled that a waitress who received a $10 million lottery ticket left as a tip by a customer will be liable for paying the gift tax.

The invaluable TaxProf blog cites a fascinating Tax Court decision that was handed down Tuesday involving a waitress at an Alabama waffle house whose winning lottery ticket has been the subject of much litigation with her fellow restaurant workers who also were expecting a share of the prize.

Her co-workers claimed they had a pre-existing agreement to share in the proceeds of any winning lottery tickets, but she claimed that she had a similar agreement with her family members, who also bought lottery tickets. She set up an S corporation for her family into which she transferred the prize, but still controlled nearly half of it. The Tax Court ruled that she still would owe the gift tax on it.

The decision makes for an entertaining read. It might also give you a craving for waffles.