any statistics on how much tipped employees under-report income

[removep...@yahoo.com]

Are there any statistics on how much tipped employees under-report
income? I've been searching in google for a while, but just can't
come up with anything. I'm sure it has been researched.

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[Arthur Kamlet]

In article <023fa8b2-c9fe-46e9...@a10g2000pre.googlegroups.com>,

removep...@yahoo.com <removep...@yahoo.com> wrote:
>Are there any statistics on how much tipped employees under-report
>income? I've been searching in google for a while, but just can't
>come up with anything. I'm sure it has been researched.

I don't know.

For restaurants where tipping is the norm, an employer has met his
responsibility to assure tips are reported, and is not required
to allocate tips, when at least 8% of the tab has been reported
as tips.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

[Tempuser]

On 12/18/2009 1:42 PM, removep...@yahoo.com wrote:
> Are there any statistics on how much tipped employees under-report
> income? I've been searching in google for a while, but just can't
> come up with anything. I'm sure it has been researched.
>

Any data from the IRS would probably be buried in the reports
they issue on the Tax Gap. You may want to revise your search to
Tax Gap and Unreported Tip Income.

[HLunsford]

Arthur Kamlet wrote:
> In article <023fa8b2-c9fe-46e9...@a10g2000pre.googlegroups.com>,
> removep...@yahoo.com <removep...@yahoo.com> wrote:
>> Are there any statistics on how much tipped employees under-report
>> income? I've been searching in google for a while, but just can't
>> come up with anything. I'm sure it has been researched.
>
>
> I don't know.
>
>
>
> For restaurants where tipping is the norm, an employer has met his
> responsibility to assure tips are reported, and is not required
> to allocate tips, when at least 8% of the tab has been reported
> as tips.

Well then, I would guess the underreporting percentage at 7%.

--
Holiday ChEAr$!
Harlan Lunsford, EA n LA

[removep...@yahoo.com]

On Dec 18, 7:56�pm, Tempuser <tempu...@vacationmail.com> wrote:
> On 12/18/2009 1:42 PM, removeps-gro...@yahoo.com wrote:> Are there any statistics on how much tipped employees under-report

> > income? �I've been searching in google for a while, but just can't
> > come up with anything. �I'm sure it has been researched.
>
> Any data from the IRS would probably be buried in the reports
> they issue on the Tax Gap. You may want to revise your search to
> Tax Gap and Unreported Tip Income.

Thanks for the keyword "tip income". Adding that to my search I came
up with

<Quote source="https://www.treasury.gov/tigta/congress/
congress_02162007.pdf">
An IRS study showed that the amount of tip income reported in CY 1993
was less than one-half of the tip income, leaving over $9 billion
unreported.
</Quote>

Does CY stand for calendar year?

Anyway, I'd like a study that is more up to date. Since 1993 there
have been new tip agreements to increase compliance, so maybe the tax
gap on unreported tip income is smaller now.

Also, does the $9 billion estimate only cover the restaurant
industry? What about coffee shops, movers, strippers, travel guides,
etc?