I've known bartenders who had issues related to this. Not from the IRS. They rarely seem to bother with service employees who report a "reasonable" percentage o

I've known bartenders who had issues related to this. Not from the IRS. They rarely seem to bother with service employees who report a "reasonable" percentage of their sales as tips. The issues were with lenders, when the bartenders wanted to buy houses. They had enough income to easily afford the mortgage, but no records that indicated that. In the end, they dealt with a local lender that understood the situation, but it was definitely a hassle.