Advice on reporting illegal business practices.

[Acts2416]

Hello all,
I'm currently working as a delivery driver at a national fast-food chain. As a driver, you get tipped on most delivers. You can choose to either tip on the credit card receipt, or in cash. At the end of a shift, you are supposed to report the cash tips to your boss and therefore also the IRS.

I am the only driver who reports their cash tips, and even the general managers advise the drivers not to report their cash tips. Sometimes though, even after I report my cash tips at the end of the day and am watching my boss, she won't enter it into the computer; probably because it might raise some red flags and bring suspicion on the other drivers. Now here's my question, should I report this to local store owner, or even the IRS? I think it's wrong, but I don't know if it's even worth it to report because I'm sure that the owner has some idea of whats going on, and even that the IRS knows that it's common practice. After doing a quick Google search for "are delivery drivers required to report cash tips" you can see that nearly all delivery drivers at most chains around the country don't report their tips and that the IRS has had some dealing with the problem in the past (Truth or Consequences | Pizza Marketplace). So I'm sure reporting the problem would be no new information to the owner or the IRS.

On one hand, I think that since nothing would probably become of it except to upset my boss and somewhat muddy my ability to share the gospel with my co-workers since they would really dislike me, it's not worth it. On the other hand, it is clearly stealing (tax-evasion) and stealing is obviously wrong Biblically. Advice time. What should I do? I want to do the right thing, but if reporting it will do nothing, then what's the point?

 

[yeshuaslavejeff]

http://www dot nailsmag.com/article/108604/are-you-reporting-your-tips

"What if I report my tips to my employer but she doesn’t report them? What if the employer does not acknowledge tips at all?

If you report your tips to your employer and she does not include them in wages, your employer has not complied with the tax law. If she is audited, it may result in penalties in addition to paying interest and the employment tax due on the tips you reported to her.

Your employer’s failure to properly report the tips will reduce the Social Security credit you get for your earnings as well. It is in your interest to make sure she reports your earnings as well."

 

[yeshuaslavejeff]

..... double post ... (delete)

 

[Waddler]

Doing what is right is not always easy. You could lose your job for reporting this to the IRS. Yet doing what is right is what is right, even if there won't be anything to come of it, in the long run. Most businesses have a way of confidentially reporting problems to the corporate headquarters. If nothing else, maybe create an email account and send them an anonymous tip of what's going on.

 

[Yanni depp]

The anonymous email sounds very good. Dont wanna rock the boat too hard.
If anything, with that conviction, just keep reporting your tips to your boss and after that, its kind of out of your hands. youve done what youre supposed to do, in my opinion.

God bless

 

[tdidymas]

Hello all,
I'm currently working as a delivery driver at a national fast-food chain. As a driver, you get tipped on most delivers. You can choose to either tip on the credit card receipt, or in cash. At the end of a shift, you are supposed to report the cash tips to your boss and therefore also the IRS.

I am the only driver who reports their cash tips, and even the general managers advise the drivers not to report their cash tips. Sometimes though, even after I report my cash tips at the end of the day and am watching my boss, she won't enter it into the computer; probably because it might raise some red flags and bring suspicion on the other drivers. Now here's my question, should I report this to local store owner, or even the IRS? I think it's wrong, but I don't know if it's even worth it to report because I'm sure that the owner has some idea of whats going on, and even that the IRS knows that it's common practice. After doing a quick Google search for "are delivery drivers required to report cash tips" you can see that nearly all delivery drivers at most chains around the country don't report their tips and that the IRS has had some dealing with the problem in the past (Truth or Consequences | Pizza Marketplace). So I'm sure reporting the problem would be no new information to the owner or the IRS.

On one hand, I think that since nothing would probably become of it except to upset my boss and somewhat muddy my ability to share the gospel with my co-workers since they would really dislike me, it's not worth it. On the other hand, it is clearly stealing (tax-evasion) and stealing is obviously wrong Biblically. Advice time. What should I do? I want to do the right thing, but if reporting it will do nothing, then what's the point?

There are many different ways you could respond to this. Some would cause a lot of trouble, and possibly even lose your job or even kill the business. I can't tell you what to do, as you will need to have a resolve in your own conscience what is the right thing to do, or what God is calling you to do. This might involve prayer, possibly fasting, possibly going through Proverbs looking for the answer.

At the very least, your only responsibility is to report your tips, because that is part of your job description. You don't have any control over what your supervisor does with the information. It seems to me that failing to report them to your supervisor would clearly be against your conscience, so that is the boundary for you. The question then becomes, what do you do about suspicious activity of others?

The only way to prove (with forensic evidence) that your supervisor failed to report your tips would be to compare your personal tip record with what shows on your W2 at the end of the year. If it would be against your conscience to report only the W2 info to the IRS (because you know that you received more tip money), then simply add the remaining tip amount to the W2 amount on your 1040. However, keep in mind that this might affect your Social Security & Medicare tax that the company might not have paid, and this might open another can of worms. Therefore, it might be important on how you report it.

The bottom line is, if you don't want to "rock the boat" with the company, then just decide to report on your 1040 whatever the W2 form says, but you'll have to settle this with your conscience. May God help you to decide whatever is right for your situation. I personally don't think you have a legal or moral responsibility to report others unless you know there is an investigation into the issue.

Just a note, one time the IRS leaked a report that indicated how they collected $700M one year from people who owed them; but they spent over a billion (that's Billion) doing that. Talk about mismanagement!! There are always 2 sides to a story. I sometimes notice that people I give cash tips to pocket the money and likely don't report it. But on my part, I've done my duty, and I don't feel obligated to investigate or report what I think others are doing. If this kind of thing was happening in a church, then that would be a spiritual corruption among Christians and would definitely need to be addressed. But in the world, we are still in it and have to live here with unbelievers, we are just not of it. If I were in your situation, I would tithe my full tips to God, and render to Washington whatever is on the W2. I think that would satisfy my conscience. But then again, I'm speculating.
TD

 

[discipler7]

Advice time. What should I do? I want to do the right thing, but if reporting it will do nothing, then what's the point?

.
IRS Tipping Rule | PMQ Pizza Magazine
Reporting driver's tips to the IRS
.
From the above links, it seems, higher cash tips reported equals to higher FICA withholding tax imposed by the IRS on the employer and employees(= delivery drivers).

If their total wage is above Federal minimum wage, not reporting cash tips will not result in the employers forking out money to make up the difference.

FICA taxes are supposed to be for the Social Security Trust Fund(SSTF) to fund employees' retirement but the US govt has been abusing the SSTF since the 1960s, eg beginning with President Lyndon Johnson to fund Kennedy's foolish Vietnam War, as a loan from the SSTF.
... So, the SSTF is expected to be insolvent in 2033, ie the collected FICA taxes in 2033 will not be enough to pay all the eligible retired workers.
... So, it may be wiser for the employees to minimize their FICA taxes, eg by the act of civil disobedience of not reporting their cash tips if there are no serious repercussions by the powerful IRS.

 

[JIMINZ]

Hello all,
I'm currently working as a delivery driver at a national fast-food chain. As a driver, you get tipped on most delivers. You can choose to either tip on the credit card receipt, or in cash. At the end of a shift, you are supposed to report the cash tips to your boss and therefore also the IRS.

I am the only driver who reports their cash tips, and even the general managers advise the drivers not to report their cash tips. Sometimes though, even after I report my cash tips at the end of the day and am watching my boss, she won't enter it into the computer; probably because it might raise some red flags and bring suspicion on the other drivers. Now here's my question, should I report this to local store owner, or even the IRS? I think it's wrong, but I don't know if it's even worth it to report because I'm sure that the owner has some idea of whats going on, and even that the IRS knows that it's common practice. After doing a quick Google search for "are delivery drivers required to report cash tips" you can see that nearly all delivery drivers at most chains around the country don't report their tips and that the IRS has had some dealing with the problem in the past (Truth or Consequences | Pizza Marketplace). So I'm sure reporting the problem would be no new information to the owner or the IRS.

On one hand, I think that since nothing would probably become of it except to upset my boss and somewhat muddy my ability to share the gospel with my co-workers since they would really dislike me, it's not worth it. On the other hand, it is clearly stealing (tax-evasion) and stealing is obviously wrong Biblically. Advice time. What should I do? I want to do the right thing, but if reporting it will do nothing, then what's the point?

.
You have asked a question which was bothering you, is that the Holy Spirit talking to you, probably.

Your belief is you should, but your not sure what the repercussions would be, the only repercussion worth worrying about is, what dos not reporting this do you your Integrity as a Christian?
It's not what we do when people are watching that counts, but what we do when we are alone that matters to God, don't compromise your beliefs out of fear.

If what you see being done is wrong, and it does affect you personally, which it does, then report it.

If a Christian knows something to be right and does nothing, to him it is sin.

You said it would muddy your wittiness, your wittiness is not what you say, but what you do. Report it.

You could contact the IRS anonymously, ask the questions of them, and then make a decision from there.

If they say nothing will be done, then no harm, no foul.

If they say something will be done then report it.

 

[paul1149]

nothing would probably become of it except to upset my boss and somewhat muddy my ability to share the gospel with my co-workers

Some questions I would have are how long you've been at this company, and what the tips amount to as a portion of your earnings. How serious this is depends on the amount in question. Is it like driving 45 in a 40 zone, or 75?

I would say the owner most certainly knows what's going on. If we're talking serious change, i would consider reporting it. But otherwise, if it bothers you that much, my first response is to deal with it yourself by reporting it as other income on your own taxes, and let the company and its workers do what they want. This would keep you in good stead with the workers, and preserve your witness and your conscience, both. Or you could find another company to work for, because you would be disrupting the present company by reporting them for what amounts to a minor infraction. There might be people who really need their income, and the disruption for them could be difficult.

 

[Zatek]

I don't think it is wrong if you don't report it. The government is not God and they don't make moral law. God gives some authority to government, but stealing is not one of them. Most of the money the federal government taxes gets used for purposes not defined in the constitution and is therefore the moral equivalent of stealing regardless of whatever legal label they give it. Also, there's a strong case to be made that taxing wages is not even legal to begin with. Either way, you are well with in your moral rights to not help the government steal even more of your money.

That said, the government still has power and does immoral things all the time, which could including punishing you for not paying the taxes they claim you owe them even though they aren't spending it on constitutionally defined roles. The government is 20 trillion dollars in debt, odds are very small they care about or have the resources to try and figure out if you paid taxes on a couple thousand in tips last year, but it could happen. Up to you if you want to take that risk.

 

[Kit Sigmon]

Hello all,
I'm currently working as a delivery driver at a national fast-food chain. As a driver, you get tipped on most delivers. You can choose to either tip on the credit card receipt, or in cash. At the end of a shift, you are supposed to report the cash tips to your boss and therefore also the IRS.

I am the only driver who reports their cash tips, and even the general managers advise the drivers not to report their cash tips. Sometimes though, even after I report my cash tips at the end of the day and am watching my boss, she won't enter it into the computer; probably because it might raise some red flags and bring suspicion on the other drivers. Now here's my question, should I report this to local store owner, or even the IRS? I think it's wrong, but I don't know if it's even worth it to report because I'm sure that the owner has some idea of whats going on, and even that the IRS knows that it's common practice. After doing a quick Google search for "are delivery drivers required to report cash tips" you can see that nearly all delivery drivers at most chains around the country don't report their tips and that the IRS has had some dealing with the problem in the past (Truth or Consequences | Pizza Marketplace). So I'm sure reporting the problem would be no new information to the owner or the IRS.

On one hand, I think that since nothing would probably become of it except to upset my boss and somewhat muddy my ability to share the gospel with my co-workers since they would really dislike me, it's not worth it. On the other hand, it is clearly stealing (tax-evasion) and stealing is obviously wrong Biblically. Advice time. What should I do? I want to do the right thing, but if reporting it will do nothing, then what's the point?

Ask the IRS about what you should do...then do it.
Reporting Tip Income Restaurant Tax Tips | Internal Revenue Service

 

[LoricaLady]

First, good for you that you pay your taxes. I believe the LAW does not REQUIRE you to report such crimes by others,, generally, though you can research that. I don't see anything requiring that in the Bible either. The focus is all on YOU and what you are doing and not doing.

If it were something truly awful, like danger to a child, I would certainly report it. However, in this case I would just let it go. MHO