WASHINGTON The Internal Revenue Service will air a free webcast on Feb. 13 at 2 p.m. EST to explain its new Attributed Tip Income Program to restaurateurs.
The hour-long presentation will have a panel of tax experts describe the new program, which began Jan. 1, and answer questions from webcast participants. The program is geared specifically to restaurant owners and managers.
ATIP was unveiled last year as a simplified way for small restaurants to encourage accurate reporting of servers’ income from tips. The program differs from earlier tip-reporting systems because an agreement with the IRS and a restaurant does not have to be negotiated beforehand. Restaurants file a form to join.
The NRA has criticized ATIP because, like earlier programs, it can prompt the IRS to press employers to come up with unpaid FICA taxes on unreported tips, instead of seeking payment from the servers who failed to disclose the gratuities.