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The IRS reminds Las Vegans tips are taxable

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Updated: 3/03/2013 9:58 am
LAS VEGAS (KSNV & MyNews3) -- In a city where lots of cash flows, some people may be a little lax in reporting their tips to the Internal Revenue Service.

During this tax season, the IRS says don’t even become tempted to keep that tip money a secret.

“Simply because you earn cash does not mean you don't have to file a tax return. Cash is income. Tips are income,” said Internal Revenue Service Special Agent in Charge Paul Camacho.

Since so many Las Vegans earn much of their living through tips, many hotels/casinos have tip agreements with IRS making it easier for employees to report income. Whether workers have this type of agreement or not at the workplace, it is their responsibility to keep track of gratuities and report this income to the government.

“If you have sloppy record keeping but you are trying to keep an earnest effort that's not criminal. My advice to them: if you can't get can't get these numbers together, seek out professional assistance. Try your best, try to do what you can,” Camacho said.

But some people have chosen another path.

“There's been a lot of people who have been sentenced in this town for tax evasion and it runs the gamut from a lot of different professions, legal professions and illegal professions,” Camacho said.

In recent years, local attorneys, company owners, even a firefighter convicted of tax evasion.

The IRS says spending beyond your earnings is easy to spot, but even hiding money always surfaces.

“...you have to remember our legacy, it wasn't just Capone, we've had 93 years of refining the art of following the money,” Camacho said.

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