We earlier reported on a
new IRS tip reporting program—ATIP (Attributed Tip Income Program)—for
employers in the food and beverage industry. The program is designed to reduce industry
recordkeeping burdens, offer simple enrollment requirements, and promote tip
reporting on federal income tax returns. The IRS was requiring those employers
wishing to take part in ATIP for calendar year 2007 to elect to participate by
Feb. 28, 2007, and to begin following ATIP procedures on Jan. 1, 2007.
Now, however, the IRS has
extended the deadline. For this year only, employers have until June 30 to begin
the tip attribution process and make the election to participate in ATIP. More
information on the extension is contained in IRS News Bulletin IR-2007-44, and ATIP
program details are in Rev. Proc. 2006-30. Both are available on the IRS
website at www.irs.gov/index.html.