The IRS knows exactly how much sales are credit card vs cash from the restaurant's point of sale. When all of a server's tips come from credit card transactions (which are automatically claimed), they can be red flagged.
I'm sure many who get cash tips don't report or under-report them. This might not be a problem for you until you're audited. The IRS knows that people in professions who get cash tips often under-report, and they have a number of ways to flag them, tools and reports to determine what they likely did earn in tips, and penalties to apply if they determine under-reporting: 20% for negligence, 75% for fraud, or even criminal charges in some cases.
I'm not defending the IRS, just saying that they have sophisticated tools and methods for identifying those they think have underreported.
But why you're jumping all over him for pointing out how they fuck us ... as if he's saying he agrees with it .. that I don't understand.
It's like going after someone for saying "careful if you go to Jan 6 they might view it as an insurrection" ... and saying "it's a peaceful gathering get fucked" ...
Pointing out the FUCKED mindset of the other side is usually a good thing and protects patriots still awakening ... especially when it's obvious he's not legitimizing [them] by describing how they fuck us, but describing it for people who don't know they fuck us that way.
Even if it was a cash tip, why would you report it?
The IRS knows exactly how much sales are credit card vs cash from the restaurant's point of sale. When all of a server's tips come from credit card transactions (which are automatically claimed), they can be red flagged.
Not really I have never reported cash tips and nobody I know does either.
I'm sure many who get cash tips don't report or under-report them. This might not be a problem for you until you're audited. The IRS knows that people in professions who get cash tips often under-report, and they have a number of ways to flag them, tools and reports to determine what they likely did earn in tips, and penalties to apply if they determine under-reporting: 20% for negligence, 75% for fraud, or even criminal charges in some cases.
I'm not defending the IRS, just saying that they have sophisticated tools and methods for identifying those they think have underreported.
If I must use a debit/credit card I always leave a cash tip- I usually pay cash for dining (I'm an old bartender)
We did a declare 10% of cash tips at our bar. I think a lot of places do this.
If you aren't red flagged for something at this point you're doing it wrong.
Correct.
But why you're jumping all over him for pointing out how they fuck us ... as if he's saying he agrees with it .. that I don't understand.
It's like going after someone for saying "careful if you go to Jan 6 they might view it as an insurrection" ... and saying "it's a peaceful gathering get fucked" ...
Pointing out the FUCKED mindset of the other side is usually a good thing and protects patriots still awakening ... especially when it's obvious he's not legitimizing [them] by describing how they fuck us, but describing it for people who don't know they fuck us that way.