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

originally posted by: odzeandennz

originally posted by: Bluntone22
Well duh....

Know who else doesnt report income?

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

Politicians
Movie stars
Athletes
Politicians
Billionaires.


The offshore fake companies money funneling scheme didn't disappear when our attention was quickly diverted

Lemonade stands.
The kid who mows my lawn.
Cash-only busineses.

The difference in most cases is that a corporation is making money on the sweat off its employees backs to show a profit, and everyone else is seeking to be comprnsated fairly in exchange for their labor. Personal income tax needs to die.

a reply to: Waterglass

Bah. I never went for the airheads anyways. Now softball players with athletic builds? YES PLEASE! The gal I dated in 10th, 11th, and 12th grade was a starting pitcher and SS on the varsity softball team. I always found the softball and soccer (though I hate soccer) girls were usually the best built.

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.

It isn't a gift if it's in exhange for any type of service. The IRS can legally tax bartering between people as well.

a reply to: Waterglass

Its a simple formula: Cash sales * .20 = expected cash tips. Its what the IRS will do when they audit you...theyll take your cash sales, multiply it by the 20% expected in cash tips, and issue you a bill for any variance. They did this at the Mansion on Turtle Creek back in the 90s. Ended up costing the employees about $50k in underpaid taxes. The hotel was issued a similar bill, since employers pay payroll taxes equal to your income tax.

Bartenders are no different. Nor are bellmen.

a reply to: CynConcepts

I tip with my card but only because I don't carry cash. And I tip anywhere between 40% and 50% for good service. If it's bad service, I tell my wife to sign the receipt because she won't tip as well.

it's interesting, and depressing isn't it? Go after and complain about somewhat negligible funds from struggling populations, while the billionaires (mostly) go unchecked with their expensive accountants who can cover it up.

originally posted by: Fowlerstoad
a reply to: Waterglass

I am a contrarian, for sure, believing income tax is 'theft', taken under threat of duress.

I guess if you believe this, then the waiters, waitresses, and maybe bartenders too (probably?) are just resisting the illegal government cartel, because they still 'can'.

To this day, there's still much debate as to whether the 16th amendment was "properly" ratified, but the point is somewhat moot after more than 100 years. Here's the official story should anyone be interested...
16th Amendment

For the record, I agree with your statement. It is theft, as well as extortion. Our republic was never meant to impose such a burden on its people. That's what tarriff's and sales tax are for.

I think it was the summer of 76 I worked for 3 months as a waiter and made a LOT OF MONEY. That same year the IRS sent me a bill for something like $3000 in unreported income because I was supposed to make that much. My reply was I was a crappy waiter and didn't make squat. never heard from them again.

Gotta do what ya gotta do.

a reply to: LSU2018

She had a scheme in which she would go by food at the supermarket. Would spend around $300 on credit card but immediately reverse the transaction and take $150 cash back and actually spend the other $150 on groceries. I never caught on until after the divorce and I am seeing this in receipts. When your traveling all over the world on business and working 50-70 hours a week this sheet slips by.

a reply to: drewlander

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



Bankrupt

a reply to: ladyinwaiting

Agree

a reply to: ladyinwaiting

While i get the gist of what you are saying...trust me when I tell you that bartenders are not struggling. I have a bartender that out earns me at least 1 paycheck out of the month. Have 2 servers that do the same. Our servers were paid out around $400 each for the Easter Brunch yesterday in tips. It was 6 hours of work.

Our lowest earning server makes around $20/hr.

Yes, its a nice restaurant. But not 5 star or anything.

originally posted by: Waterglass
Just wondering where Bartenders fit into this situation. Just wondering................

www.nolo.com...

pocketsense.com...

www.washingtonpost.com... _term=.26c7553c284a

Good morning OPS! So tell us what you think about my subject line about Bartenders as here's my opinion. We all were kids that grew up and and for many of us we became adults. Remember High School or even Middle School. You betcha! To hell with our parents as we had privilege and access to drugs, guns, porn, boos and moonshine and yes we all discussed the best ways to get around paying taxes. Yep we did, especially in the second tier suburbs we had connections of privilege that live on for life. So you say it not accurate or true? Surely you jest. So are you MEEK because you don't believe that could be true, because I no longer believe the MEEK will inherit the earth. You know the guys and gals who stand on the sidelines. They say nothing, see nothing and do nothing.

In my opine the criminals will inherit the earth and its all about under reporting income.

As kids we also talked about our jobs as a waitress, waiter or bartender and all of those cash tips, tips and tips and our 75 /25 rule of thumb. So we pocket 75% and only report 25% as income on our taxes. Well I never worked in any of the above positions as i didn't have that privilege. I was a 15 year old dishwasher, stocked the bar and ooooo, I also cleaned the toilets. Yikes as I saw stuff in those restrooms that I should have reported to MUFON as no not a UFO but a SFO. Oh and no one ever shared a tip with me. Were they supposed to?

So comment on.

I feel you. I'll bet you don't miss the cut up hands from being soaked for 8+ hours or the 1/4" caluses from handling scalding hot plates coming out of the dishwasher. Yeah it would have been nice to get tips but we were all looked down at by much of the waitresses, like slaves there to do their bidding. Actually I think it was just a female thing b/c the owner was the cook and he got treated the same way much of the time.

I'd guess bartenders might pocket even more especially if they are tipped with cash. I remember seeing pitchures full of cash and the guy reported $20 and probably made $400-600 that night. Of course it didn't hurt he was giving away the bar's booze for free to lots of people.

originally posted by: AugustusMasonicus

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.

It isn't a gift if it's in exhange for any type of service. The IRS can legally tax bartering between people as well.

Then why is it not specifically listed on the menu or bill of lading? If you pay this amount crappy service or if you want better service...it will cost this amount? They don't list any amounts because you are already paying for and expecting the good service per agreement. Any tips, if any, beyond the service received, is simply a reward and should not be taxed.

a reply to: bigfatfurrytexan

I had a relative who according to her parents was taking in around $700 per week in tips. That was around 2012.

a reply to: CynConcepts

If its added to the menu, you also then pay sales tax. It becomes a menu item which is taxable.

In Texas, so long as the "tip" is less than 20%, and all of it is passed through to the server, there is no sales tax. Otherwise, the tip would be taxed at 8.25%.

originally posted by: CynConcepts
Then why is it not specifically listed on the menu or bill of lading?

It doesn't need to be, it's part of the IRS tax code, and honestly, who doesn't know how tipping works?

a reply to: Waterglass

I know some servers, in 4 and 5 star restaurants, who easily clear 100k/year.

a reply to: CynConcepts

Yes, the system sucks. But the government supports it, so it exists. The other option: do away with tips, pay servers the $20/hr they make other wise, then you can start paying $30 just for a burger and glass of tea.

Someone, somehow, has to pay the difference. Or there are no restaurants. Its going to be the consumer one way or another. Do you want it to be sales taxed, or do you want to just tip and save on the sales tax?

a reply to: DigginFoTroof

Actually I was allowed to eat as much as I wanted so I did from the kitchen. Their food and soup was good. I could handle all but cleaning the johns. Jesus. Thank god it had a center floor drain. I would just bomb it with chemicals and rinse. I swear to god I never figured out how a small volley ball sized thing got into the women's rest room. Had to call maintenance on that one. Plumber described as a teenage mutant ninja turdtle.