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I'm sorry; I know I'm dangerously close (if not already over the edge) to being off topic but this is a pet peeve of mine. Tip Compliance Agreements are between the IRS and the EMPLOYER, not the employee, even though the employee is a party to it. The agreement is to help ensure that the employer is withholding enough tax on the actual income of the employee, including tips. BUT, the employee is required to report ALL of his or her income. Just because the odds are that you will get away with under-reporting your income doesn't make it ok.
YOu are beating a dead horse. The unions here are very active in the negotiation of the agreements. They represent the tipees. I would expect the number of tipees who report over the compliance agreement amount to be negligible. A few fvor ethical reasons and a few for business reasons...but that is it.
There is de jure law and defacto law. Dejure they have to report it all. Defacto they report to the agreed amount.
Not Fair. True.
Had an old boss who also use to point out that there is no requirement that life be fair. So get over it.
As to the audit possibility...audit what? It is cash. No specific record exists. Aside from some really anal person who puts it all in the bank there is no audit. Nothing to check. They do not do net worths on bartenders.
This is a good article about the moral dillema on foreclosing.
"The law provides a penalty for walking away. That penalty is ruined credit for five years. That is it. Lest people get all bent up over how easy you can get off, the lender knew those risks in advance and took them anyway."
So there you have it, the lenders knew the law and took risks anyway. The law ALLOWS foreclosures. All you posters can b*tch and complain and whine all you want, but guess what the law allows foreclosures...
The other thing is, from my perspective it's not like the money was a friend's or even the lender's actual money that they earned based on their productivity. The money was sort of 'created out of thin air.' So is it really a big deal?
YOu are beating a dead horse. The unions here are very active in the negotiation of the agreements. They represent the tipees. I would expect the number of tipees who report over the compliance agreement amount to be negligible. A few fvor ethical reasons and a few for business reasons...but that is it.
There is de jure law and defacto law. Dejure they have to report it all. Defacto they report to the agreed amount.
Not Fair. True.
Had an old boss who also use to point out that there is no requirement that life be fair. So get over it.
As to the audit possibility...audit what? It is cash. No specific record exists. Aside from some really anal person who puts it all in the bank there is no audit. Nothing to check. They do not do net worths on bartenders.
I'm a recently retired tax compliance employee, and I'll never "get over it". Everyone who cheats is screwing all of the other honest taxpayers out there who pay their fair share. If the IRS and the states had the resources to be able to enforce compliance with the laws already on the books, there would be no need to raise taxes. Just because you can get away with it does not make it alright.
To the OP, you could foreclose then rent for awhile, since the market is going to continue to decline. Then for a year or two you can state real income. Yes it'll suck you will have to pay more taxes, but then at least you can qualify for a higher mortgage. Or continue to build cash for a couple years and try buy a house largely in cash.
If my husband wasn't so hell bent on purchasing a home asap, I would have waited till the market bottomed out and purchased a home in cash or mostly in cash in a few years.
I'm a recently retired tax compliance employee, and I'll never "get over it". Everyone who cheats is screwing all of the other honest taxpayers out there who pay their fair share. If the IRS and the states had the resources to be able to enforce compliance with the laws already on the books, there would be no need to raise taxes. Just because you can get away with it does not make it alright.
Actually the problem is not more people it is that the system simply cannot deal with the cash portion of the economy. Run into it all the time. Standard in construction, land scaping and many other industries.
The service workers like bartenders are really intermediate. They pay most taxes but not all.
There really is no solution except to do away with cash...a step that the government is unwilling to take.
Tough problem but you are not going to solve it by pilloring some bartender who happened to bring this absolutely standard process into view.
They pay most taxes but not all pilloring some bartender who happened to bring this absolutely standard process into view.
C'mon, Jim. What about all of the people who have NO leeway in this 'Carefully orchestrated dance' you refer to? You state that this standard practice of not paying all your taxes is alright. Well it isn't alright with the people who pay all of their taxes. Surely, you can understand that point of view.
They pay most taxes but not all pilloring some bartender who happened to bring this absolutely standard process into view.
C'mon, Jim. What about all of the people who have NO leeway in this 'Carefully orchestrated dance' you refer to? You state that this standard practice of not paying all your taxes is alright. Well it isn't alright with the people who pay all of their taxes. Surely, you can understand that point of view.
Actually Rudy we screw the middle class worker. Teachers and cops and mid level corporate workers pay their share. But the bottom like construction people or landscapers and the top like corporate executives beat the system all to hell. My employer had consultants helping us avoid taxes by such things as deferred compensation and stock options. You ever have a school district give you a stock option. And it turns out in a number of places they changed the date of the stock option grant...
Face it Rudy taxing is not ever going to be fair. Both the upper echelons and the lowest echelon beat it all to hell. And the the services workers like bartenders have an intermediate deal where they pay most of their taxes because the tax people prefer most to only a little.
The problem I have with the OP simply walking away is this:
If his house-- that he paid $318k for-- was now worth $500k, would he simply say the bank was making a business decision if they decided to revoke his mortgage, take his house and sell it to someone else for $500k because it's a good "business decision" for the bank? Of course not. The OP would be screaming bloody murder that "how dare the bank think they can just change the contract to suit themselves and screw me..." yet the OP sees nothing wrong with not fulfilling the contract that they agreed to when they bought the house and screwing the bank.
I don't have any opinion on the income/taxes thing as I simply think the OP was unclear in their explanation and they weren't asking about their tax situation.
BAH! He is simply invoking the part of the contract that says, 'if you don't make your payments, we will take the house'.
This is from a person who wants to ***** a contract that he signed! I don't think the banks should be bailed out, and I don't think YOU should be bailed out either! Nothing wrong with my morals.
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