<prompt> Human: So my employer owns several franchise locations in food service with an electronic system for recording tips. All credit tips are automatically recorded and accounted for tax wise and cash tips are recorded when a tipped employee cashes out at the end of the night.The problem with this is that managers dont ask how much we are tipped in cash and either put in zero or a small amount 5. I was thinking about reporting this discrepancy to the IRS but was nervous after looking in to this that the penalty for not reporting tips is 50 extra on the SS and medical taxesI dont mind paying the appropriate amount to catch up in any back taxes, but 50 extra would suck and my means are limited as I am someone who works for tips. After looking up the relevant information I see that I should have been recording my tips daily, I did not know this any the employer did not have any kind of training, especially regarding tip reporting aside from a week in Jan. managers told workers we had a system for recording cash tips that we are supposed to be using, which fell out of use and into the routine I described earlierSo I was wondering, in this situation if I report this to the IRS will pursue giving me a penalty for not reporting tips?  <response>: Dont do it. Your decision will impact more then you. Not saying engage in tax fraud, but if you dont like the way the business runs get another job. The IRS isnt going to pin a medal on you and you will likely end up screwing over some people who cant afford it. Like, really, really messing up their lives. 