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A comment on To tip or not to tip?. Parent comment

Re:To tip or not to tip? by Kalium on Tuesday March 10, 2015 @07:18PM (#9181449)
One of the hidden complexities of food service is that tipping often serves as a tax dodge. Servers often wind up taking home a fair amount of cash but reporting poverty-grade incomes.

I knew one lady who got a Section 8 voucher this way. She definitely did not qualify on what she regularly took home.

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Re:To tip or not to tip? by waterlesscloud on Tuesday March 10, 2015 @07:24PM (#9181461)
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.

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