AHLSTARZ Tax and Accounting Service -- Numbers, Simplified.

The IRS's Attributed Tip Income Program (ATIP), originally set to expire Dec. 31, 2009, has been extended to Dec. 31, 2011. 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. Employers elect participation in the program 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 elect to participate by signing an agreement with their employer to have their tip income computed under the program and reported as wages. Rev. Proc. 2006-30, 2006-2 CB 110, is modified.

IR-2009-110,

2009FED ¶46,545

Rev. Proc. 2009-53, 2009FED ¶46,546