Every employee who, in the course of his employment by an employer, receives in any calendar month tips which are wages (as defined in section 3121(a) or section 3401(a)) or which are compensation (as defined in section 3231(e)) shall report all such tips in one or more written statements furnished to his employer on or before the 10th day following such month. Such statements shall be furnished by the employee under such regulations, at such other times before such 10th day, and in such form and manner, as may be prescribed by the Secretary.
If the tax imposed by section 3101 or section 3201 (as the case may be) with respect to tips reported by an employee pursuant to subsection (a) exceeds the tax which can be collected by the employer pursuant to section 3102 or section 3202 (as the case may be), the employer shall furnish to the employee a written statement showing the amount of such excess. The statement required to be furnished pursuant to this subsection shall be furnished at such time, shall contain such other information, and shall be in such form as the Secretary may by regulations prescribe. When required by such regulations, a duplicate of any such statement shall be filed with the Secretary.
In the case of a large food or beverage establishment, each employer shall report to the Secretary, at such time and manner as the Secretary may prescribe by regulation, the following information with respect to each calendar year:
Each employer described in paragraph (1) shall furnish, in such manner as the Secretary may prescribe by regulations, to each employee of the large food or beverage establishment a written statement for each calendar year showing the following information:
Any statement under this paragraph shall be furnished to the employee during January of the calendar year following the calendar year for which such statement is made.
For purposes of paragraphs (1)(E) and (2)(C), the employer of a large food or beverage establishment shall allocate (as tips for purposes of the requirements of this subsection) among employees performing services during any payroll period who customarily receive tip income an amount equal to the excess of-
The employer shall allocate the amount under subparagraph (A)-
Upon the petition of the employer or the majority of employees of such employer, the Secretary may reduce (but not below 2 percent) the percentage of gross receipts required to be allocated under subparagraph (A) where he determines that the percentage of gross receipts constituting tips is less than 8 percent.
For purposes of this subsection, the term "large food or beverage establishment" means any trade or business (or portion thereof)-
For purposes of subparagraph (C), rules similar to the rules of subsections (a) and (b) of section 52 shall apply under regulations prescribed by the Secretary, and an individual who owns 50 percent or more in value of the stock of the corporation operating the establishment shall not be treated as an employee.
The employer shall not be liable to any person if any amount is improperly allocated under paragraph (3)(B) if such allocation is done in accordance with the regulations prescribed under paragraph (3)(B).
For purposes of this subsection, the term "nonallocable receipts" means receipts which are allocable to-
The Secretary shall prescribe regulations for the application of this subsection to new businesses.
For purposes of any report required by this subsection, in the case of a certified professional employer organization that is treated under section 3511 as the employer of a work site employee, the customer with respect to whom a work site employee performs services shall be the employer for purposes of reporting under this section and the certified professional employer organization shall furnish to the customer and the Secretary any information the Secretary prescribes as necessary to complete such reporting no later than such time as the Secretary shall prescribe.
26 U.S.C. § 6053
AMENDMENTS2014-Subsec. (c)(8). Pub. L. 113-295 added par. (8).1984-Subsec. (c)(3)(C). Pub. L. 98-369, §1072(a), substituted "Upon the petition of the employer or the majority of employees of such employer, the Secretary" for "The Secretary" and "2 percent" for "5 percent".Subsec. (c)(4). Pub. L. 98-369, §1072(c)(1), inserted provision that an individual who owns 50 percent or more in value of the stock of the corporation operating the establishment shall not be treated as an employee.1982-Subsec. (c). Pub. L. 97-248 added subsec. (c).1976- Pub. L. 94-455 struck out "or his delegate" after "Secretary" wherever appearing.1965-Subsec. (a). Pub. L. 89-212, §2(d)(1), inserted "or which are compensation (as defined in section 3231(e)".Subsec. (b). Pub. L. 89-212, §2(d)(2), inserted "or section 3201 (as the case may be)" and "or section 3202 (as the case may be)".
EFFECTIVE DATE OF 2014 AMENDMENTAmendment by Pub. L. 113-295 applicable with respect to wages for services performed on or after Jan. 1 of the first calendar year beginning more than 12 months after Dec. 19, 2014, see section 206(g)(1) of Pub. L. 113-295 set out as a note under sectionof this title.
EFFECTIVE DATE OF 1984 AMENDMENTPub. L. 98-369, div. A, title X, §1072(c)(2), July 18, 1984, 98 Stat. 1052, provided that: "The amendment made by paragraph (1) [amending this section] shall apply to calendar years beginning after December 31, 1982."
EFFECTIVE DATE OF 1982 AMENDMENTPub. L. 97-248, title III, §314(e), Sept. 3, 1982, 96 Stat. 605, as amended by Pub. L. 99-514, §2, Oct. 22, 1986, 100 Stat. 2095, provided that:"(1) IN GENERAL.-The amendments made by this section [amending this section and sections Internal Revenue Code of 1986 [formerly I.R.C. 1954], in the case of payroll periods ending before April 1, 1983, an employer must only report with respect to such periods-"(A) amounts described in subparagraphs (A), (B), (C), and (D) of section 6053(c)(1) of such Code, and"(B) the name, and identification number, wages paid to, and tips reported by, each tipped employee."and of this title, and enacting provisions set out as a note under this section] shall apply to calendar years beginning after December 31, 1982."(2) SPECIAL RULE FOR 1983.-For purposes of section 6053(c) of the
EFFECTIVE DATE OF 1965 AMENDMENTAmendment by Pub. L. 89-212 effective only with respect to tips received after 1965, see section 6 of Pub. L. 89-212 set out as a note under sectionof this title.
EFFECTIVE DATEPub. L. 89-97, title III, §313(f), July 30, 1965, 79 Stat. 385, provided that: "The amendments made by this section [enacting this section and amending sections, , , , , , , and of this title and section of Title 42, The Public Health and Welfare] shall apply only with respect to tips received by employees after 1965."
REGULATIONSPub. L. 98-369, div. A, title X, §1072(b), July 18, 1984, 98 Stat. 1052, provided that: "The Secretary of the Treasury shall prescribe by regulations within 1 year after the date of the enactment of this Act [July 18, 1984] the applicable recordkeeping requirements for tipped employees."
THREAT OF AUDIT PROHIBITED TO COERCE TIP REPORTING ALTERNATIVE COMMITMENT AGREEMENTS Pub. L. 105-206, title III, §34143414,, 112 Stat. 755, provided that: "The Secretary of the Treasury or the Secretary's delegate shall instruct employees of the Internal Revenue Service that they may not threaten to audit any taxpayer in an attempt to coerce the taxpayer into entering into a Tip Reporting Alternative Commitment Agreement."
MODIFICATION OF TIPS ALLOCATION METHODPub. L. 99-514, title XV, §1571, Oct. 22, 1986, 100 Stat. 2765, provided that: "Effective for any payroll period beginning after December 31, 1986, an establishment may utilize the optional method of tips allocation described in the last sentence of section 31.6053-3(f)(1)(iv) of the Internal Revenue Regulations only if such establishment employs less than the equivalent of 25 full-time employees during such payroll period."
STUDY OF TIP COMPLIANCE Pub. L. 97-248, title III, §314(c), Sept. 3, 1982, 96 Stat. 605, directed Secretary of the Treasury or his delegate to submit before Jan. 1, 1987, to Committee on Ways and Means of House of Representatives and to Committee on Finance of Senate a report with respect to tip compliance in food and beverage service industry. Such study to include, but not be limited to, an analysis of tipping patterns, tip-sharing arrangements, and tip compliance patterns.
- Internal Revenue Code of 1986
- The term "Internal Revenue Code of 1986" means this title, and the term "Internal Revenue Code of 1939" means the Internal Revenue Code enacted February 10, 1939, as amended.
- Secretary of the Treasury
- The term "Secretary of the Treasury" means the Secretary of the Treasury, personally, and shall not include any delegate of his.
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- The term "corporation" includes associations, joint-stock companies, and insurance companies.
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- The term "stock" includes shares in an association, joint-stock company, or insurance company.
- The term "taxpayer" means any person subject to any internal revenue tax.
- trade or business
- The term "trade or business" includes the performance of the functions of a public office.