: You must maintain a daily tip log or other adequate records to support the figures reported on the form .
: The completed form must be attached to your annual income tax return . The calculated tax is typically reported on Schedule 2 (Form 1040) . Consequences of Non-Compliance : You must maintain a daily tip log
: Failure to report required tips to your employer can lead to a penalty equal to 50% of the Social Security and Medicare taxes due on those tips . Consequences of Non-Compliance : Failure to report required
IRS is the tax document used to calculate and report the Social Security and Medicare taxes owed on unreported tip income . This includes cash tips, noncash tips, and "allocated tips" shown in Box 8 of your Form W-2 that were not previously reported to your employer . Core Purpose of Form 4137 Core Purpose of Form 4137 : Using IRS
: Using IRS Form 4137 fulfills your legal responsibility to report all income and helps avoid IRS audits or penalties . Who Must File