IRS Extends Attributed Tip Income Program for Two Years

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The attributed tip income program, a reporting alternative for employers in the food and beverage industry, has been extended for two additional years, IRS announces in Rev. Proc. 2009-53. ATIP is designed to promote compliance with the tax code among both employers and employees by reducing disputes during audit and reducing filing and recordkeeping burdens, IRS says. Employers who participate in the program report the tip income of employees based on a formula that uses a percentage of gross receipts, which are generally attributed among employees based on restaurant practices.