Pub 531 p. 3 mentions a penalty for unreported tip income. Form 4137 calculates the soc. sec. & Med. tax owed, but it doesn't show a penalty. Where is the penalty found?

I see no forms generated as part of my TurboTax return that show a penalty calculation and I see no penalty entry on the 1040. Does this mean that no penalty applies - possibly because of the amount of the unreported tips - even though they exceeded $20 per month? Does anyone have more info on the penalty that is discussed on page 3 of Pub 531?

492

Level 7

Apr 19, 2023 10:31:43 AM

Form 4137, line 13 reports the additional the Social Security and Medicare tax you need to pay for the tips you didn't report.

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Pub 531 p. 3 mentions a penalty for unreported tip income. Form 4137 calculates the soc. sec. & Med. tax owed, but it doesn't show a penalty. Where is the penalty found?