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.
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.