Under Reporting

You work at the Dribble Hard Express, a sloppy joe spot in the mall food court. You leave a tip jar by the register. Every day, after splitting the tips among the other workers, you walk out with an extra $0.50-$0.60 in your pocket. However, you never bother listing these tips on your tax return. You are under reporting.

The concept applies any time a person or organization reports a lower income figure than the one they actually earned. The usual goal is to avoid paying income taxes.