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Issue
Number: IR-2009-110
Inside This
Issue
IRS Extends
Food Industry Tip Reporting Program
WASHINGTON — The Internal
Revenue Service today extended for an additional two years its program
that simplifies the recordkeeping burden for reporting tip income in the
food and beverage industry. The Attributed Tip Income
Program (ATIP) was first announced in 2006 in Revenue Procedure
2006-30. The program, which was originally set to expire Dec. 31,
2009, has been extended to Dec. 31, 2011, under Revenue Procedure 2009-53
issued today. Employers who participate in
ATIP report the tip income of employees based on a formula that uses a
percentage of gross receipts, which are generally allocated among
employees based on the practices of the restaurant.
Both employees and employers
benefit from participation in the ATIP program. The IRS will not initiate
a tip examination during the period the employer and employee participate
in ATIP. Participating employees do not have to keep a daily tip log or
other tip records. Enrollment is simple. Employers
elect participation in ATIP by checking the designated box on Form 8027, Employer’s
Annual Information Return of Tip Income and Allocated Tips. Employees who
work for a participating employer can easily elect to participate in ATIP
by signing an agreement with their employer to have their tip income
computed under the program and reported as wages.
Form 8027 is available on
IRS.gov, or by calling the IRS toll-free at 1-800-TAX-FORM (829-3676).
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