Yes, you do. Which is why wait staff prefer it when you tip in cash. That makes it a lot easier to hide. Though that doesn't always work. A lot of places pool

Yes, you do. Which is why wait staff prefer it when you tip in cash. That makes it a lot easier to hide. Though that doesn't always work. A lot of places pool tips. Everybody puts their tips together and it's distributed as part of your paycheck -- and the IRS knows about it.