IRS claims waitresses and waiters, underreport their tips in cash by 84%. Bartenders?

originally posted by: bigfatfurrytexan
a reply to: LSU2018

I used to live in Big Spring....Odessa is a real arm pit to find yourself in. Moreso than Big Spring.

Slowdeatha?

originally posted by: CynConcepts
Personally, I have difficulty in understanding how tips are considered earned income. It is simply a rewarded charity gift that is given to another and varies greatly. I certainly don't see why tips given in any service should be claimed. I may pay my service bills with check or card, but always tip with cash directly.

I agree with you. A tip is not part of you agreed on pay. Its charity and as such tax free. The only exception is your job including tips as part of your pay.

Oopsie.

originally posted by: Waterglass
In my opine the criminals will inherit the earth and its all about under reporting income.

Are you serious? The criminal part is under reporting income? Maybe the criminal part is being forced to give money you earned to a bloated, wasteful government.

originally posted by: Bluntone22
a reply to: drewlander

Know what they call a corporation that doesnt make a profit?



Bankrupt

I didn't say corporations cannot show a profit. Even if they paid 10% they have 90% remaining for growth.

Ah...the good ol' days when I was a hot cocktail waitress raking in the tips...

For all we made it truly was the bartenders that made a fortune. Man, the 80's and 90s were fun.

You could go to college, drive a Camaro and live with a roommate and have money to pay for it all.

Yep, it's true. However, eventually you get old and not so hot anymore, better have a backup plan. LOL

p.s. And no one declared their tips and I don't blame them then or now.

a reply to: Waterglass

I always made sure I reported cash tips as a higher percentage of sales than card tips. Meaning if on checks paid by card I earned 15%, i'd report just over that on my cash sales.
The beauty of it was you'd always have some who paid by card but tipped cash, so it kept it artificially low.

Man I made stupid money for the most fun job I ever had in those college restaurant / bar days! I think it took 7 years out of college in the corporate world to exceed my restaurant income. Effectively only paying social security tax, sales tax, gas tax and alcohol tax wasn't bad comparatively!

a reply to: Lysergic

We have a different tipping culture in the UK.

In pubs, if you want to tip someone, you buy them a drink which they either have there and then or "have it later" which means keeping the cash.

In restaurants, when you tip the staff, it's a gift, a thank you for good service etc, we don't see it as a wage top up and I'd wager most people would want the tax man to keep his damn nose out.


Waiting staff are some of the worst paid people in the economy, if they are hiding their tips from the tax man, good luck to them, it's a drop in the ocean compared to the tax fiddles the rich are allowed.

a reply to: scolai

I was thinking about Drug Cartels and Organized Crime, not the service sector.

Income earned from employement should be taxed. Why some income and not others?

a reply to: gortex

I wonder if A pOlitiCal superstar who used to be a bartender ever hid income from the IRS?

a reply to: Waterglass

a reply to: Rob808

Thank you. I always wondered why a female living in New York City with a degree from a respected University and who apparently graduated Cum Laude took a job as a waitress and then as a bartender. You kidding me. Even if she is a ditz Wall Street would still be climbing all over each other to hire her beginning at $100,000 year either for a front room job or back room job. Shes a trophy for their diversity program to meet state and federal employment hiring. Shes a female, educated, decent looking, lost her father, a minority and a native of New York City thus no relocation package need to be offered.

She knows the ropes as we all do however she is probably better connected and can hide stuff better than us. Do you know that her Condo remains in her fathers ownership and name. Why? Must be because of some financial or legal angle that I am not privy to.

That's why people who think like a criminal mind are always one step ahead of the rest of us and even the government. Watch her net worth once she leaves Congress. In my opinion as I have hired 100's of people for all types of positions, either the hiring Managers sensed that she was trouble aka "rabble rouser" or simply an idiot. Simply speaking an idiot can also be an excellent conniver and game the system. Either of those traits would cause the hiring manager to run away from her. I used to when I interviewed many with high GPA's that exhibited her traits.

I do know one thing and that shes a professional wordsmith. Meaning an intentional twister of speech near close to being a liar but on just on the edge as you have to carefully look at her use of semantics. That's how she baits and traps people. She also routinely attacks people personally. My opine is that she under reported her income

Just look at what is now being discussed on twitter relating to her "economics degree". Personally, I went to graduate school for my MBA among a top 50 ranked school by US News and World Report. I received an A in both Micro and Macro Economics. I hated both courses. I heard her talk about Capitalism. She fumbled it big time. Anyone with a degree in Economics would know how to answer it. She needs cue cards.

So here's direct from the horse; Boston University. They say she has a degree in Economics. No way, did someone else take her exams or the did the teachers pad the grades. SOMETHING IS WRONG HERE WRONG

www.bu.edu...

Alexandria Ocasio-Cortez (Pardee ’11) upset top-ranking House Democrat Joe Crowley in the June 26, 2018 primary for New York’s 14th Congressional District, a blue-leaning district comprised of the Bronx and Queens. “This is delightful news,” said Pardee School Dean Adil Najam. “As a school of international politics, the Pardee School could not be more proud to see our students taking up the challenge of public service, which is among the greatest challenges of our time.” Ocasio-Cortez, who graduated from Boston University with degrees in international relations and economics, is a former organizer for Bernie Sanders’ 2016 presidential campaign and a former staffer for the late Sen. Ted Kennedy. In a June 27, 2018 story in BU Today entitled “BU Alumna Wins Upset Congressional Primary in New York City,” Associate Provost and Dean of Students Kenneth Elmore (Wheelock ’87) said “[Ocasio-Cortez] is brilliant—she is boldly curious and always present. She makes me think and could always see multiple sides of any issue. [She] is also heart and soul real. It is wonderful to see [her] emerge as a leader—I can’t wait to see what happens when her time truly comes.” In her campaign platform, Ocasio-Cortez promotes universal job guarantees, fully funded public schools and universities, paid family and sick leave and housing as a human right. Speaking to NPR’s Morning Edition, Ocasio-Cortez discussed her approach to policy: “We’re having an affordability crisis in New York City. We have a security crisis with our current immigration system, and I think I was able to allow our community to really feel seen and heard, and visited and advocated for.” In November, Ocasio-Cortez will face Republican Anthony Pappas, a St. John’s University professor who ran unopposed in his party’s primary. Ocasio-Cortez is the second Pardee School alumni to win a Congressional primary in 2018. Gina Ortiz Jones (Pardee ’03) won the democratic primary for the U.S. House of Representative seat in the Texas 23rd district. If Ortiz Jones unseats her Republican incumbent opponent in November, she will become the first woman to represent the district as well as the first Filipina American and first lesbian to hold a U.S. House seat from Texas.

Good. # the IRS
a reply to: Waterglass

I know where I live, the minimum wage is lower for those who serve food and drinks because they make tips.

a reply to: Bluntone22

Know who else doesnt report income?

Back yard mechanics.
Ladies having garage sales.
Drug dealers.
Etc
Etc
Etc

... You forgot Donald Trump ;-)

These people cheating on tips will also get less social security income when the time comes. Evens out over the long run.

a reply to: JimD350


Nah I haven't. Hes under audit and I am betting they are digging deep into his shorts. That's what is taking so long and they are looking into all of his side companies. Then again, if hes at the top he could have no clue as to whats going on as there is no way one guy knows all the details in any business. No way. It happens in publicly traded companies also in that even the Vice Presidents and Managers will withhold information to undermine the CEO or President. It happens all the time:

www.gsb.stanford.edu...

I trust that the IRS will get their piece of Trumps arse. AOC is small potatoes at this point in history to them but trust me her mouth will sink her and the other Democrats will bide their time. Especially all of those whom she threatened in public. She can be removed via expulsion just for that as it is a serious threat to "democracy"

ethics.house.gov...

HOUSE ETHICS MANUAL

Violations of the House gift rule, the performance of campaign work in an official congressional office by congressional employees on official time, and the failure to maintain adequate records to verify the legitimacy of expenditures of campaign funds;80 and Making statements that impugned the reputation of the House, failing to cooperate fully with fact-finding being undertaken by the Chairman and Ranking Minority Member of the Committee on Standards of Official Conduct, threatening to retaliate against a fellow Member because of the Member‘s vote on particular legislation, and offering a political endorsement for a relative of a Member in exchange for vote by the Member in favor of particular legislation.81

a reply to: sligtlyskeptical

Agree 1000%

It should not matter what the IRS thinks. If there is not proof of earnings then it should not have the right to claim they exist. Not to mention that the really big money owed to the IRS comes from the one percent. And that's even with the way they game the system by having their congressional proxies write loopholes into law after law.