Originally Posted by
pilotalan
I tend to tip in cash. If it's on a credit card, it goes through the restaurant/bar system, and is declared on their W2.
Cash is not, which equivalent to a 30% increase in tip to the server with no difference to my wallet. I was a server/bartender once, and do what I can to help them out.
Legally, they're still required to declare it, and depending on the restaurant it may tracked on paper even if you tip in cash (especially likely if they pool tips rather than having each tip go to the given waiter.) The IRS has gotten much tougher on this in the past few years, so it's less likely to end up in their pocket than it would have in the past.
A certain amount of their sales is
imputed to tips, although it's generally low enough that it's only an issue for places that do most of their business in cash.
Lastly, whatever sympathies you have, facilitating intentional tax cheating is hardly laudable.