3 ms·

Very much so, if you take them in cash and don't report them on your tax return.

• adastra22 4y ago
  Which is tax evasion, unless your tips are less than $20 per month.
  • christophilus 4y ago
    Way back when I was in college, none of my peers reported tips. Has that situation changed? It is tax evasion, but it was commonplace.
    • bluGill 4y ago
      It always was illegal, but hard for the IRS to prove so most got away with tax evasion. These days most people pay with a credit card which means there is an electronic record that the IRS can demand of the employer. With cash tips the waitress was collecting the cash themself and the manager didn't have a good way to get the correct number. If you report zero tips in the cash system someone will notice, but if you report everyone only gave you half what they really did there is no way to know.
  • tastyfreeze 4y ago
    Yet this practice is nearly ubiquitous with cash tip jobs.