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Service Seeks Comment on Changes Proposed for Tip Reporting Agreements

Tuesday, April 30, 2013
The Internal Revenue Service in Announcement 2013-29, scheduled for publication April 29 in Internal Revenue Bulletin 2013-18, said it is seeking public comment on possible changes to the Tip Rate Determination and Education Program (TRDEP).

IRS said it is interested in updating its suite of voluntary tip compliance agreements; the agency is particularly interested in public comments regarding tip rate determination agreements (TRDAs) and tip reporting alternative commitments (TRACs), it said.

“TRDAs and TRACs have been in existence since the 1990s and may not take advantage of advances in Point of Sale systems and electronic payment settlement method technologies,” the Service said. The TRDEP was introduced in 1993 for the food and beverage industry; in later years it was expanded to cosmetology, transportation, gaming, and other tipping industries.

IRS noted the gaming industry tip compliance agreement was updated in 2007, so the agency is not currently seeking comments on that agreement.


Text of Announcement 2013-29 is in TaxCore.

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