In our experience, IRS problems typically do not just go away. Once the IRS has informed you of a problem, the agency intends to pursue it and recover the money that it believes the federal government is owed.
It is important to know that tips are taxable income and thus must be reported to the IRS—even if the tip was received in cash. As with many IRS decisions, the agency is likely to notice that you are underreporting income and pursue back taxes, interest, and penalties against you if the amount of tips that were allegedly underreported was high.
If you have been contacted by the IRS about unpaid taxes on your cash tips, then it is important to take the notice seriously and to expect that the IRS is going to use the tools in its power to recover the money that it believes is owed. Accordingly, we encourage you to contact an experienced Oklahoma City tax attorney today at 800-721-7054 to schedule a FREE consultation about your rights. We also invite you to read our FREE book, The Ultimate Survival Guide for IRS Problems, to learn more about what to do after you are contacted by the IRS.