26 USC 6053 - Reporting of tips

Editorial Notes

Amendments

2014—Subsec. (c)(8). Puspan. L. 113–295 added par. (8).

1984—Subsec. (c)(3)(C). Puspan. 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). Puspan. 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). Puspan. L. 97–248 added subsec. (c).

1976—Puspan. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.

1965—Subsec. (a). Puspan. L. 89–212, § 2(d)(1), inserted “or which are compensation (as defined in section 3231(e)”.

Subsec. (span). Puspan. L. 89–212, § 2(d)(2), inserted “or section 3201 (as the case may be)” and “or section 3202 (as the case may be)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Amendment by Puspan. 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 Puspan. L. 113–295, set out as a note under section 3302 of this title.

Effective Date of 1984 Amendment

Puspan. 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 Amendment

Puspan. L. 97–248, title III, § 314(e), Sept. 3, 1982, 96 Stat. 605, as amended by Puspan. 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 6001 and 6678 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 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.”

Effective Date of 1965 Amendment

Amendment by Puspan. L. 89–212 effective only with respect to tips received after 1965, see section 6 of Puspan. L. 89–212, set out as a note under section 3201 of this title.

Effective Date

Puspan. 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 451, 3102, 3121, 3401, 3402, 6051, 6652, and 6674 of this title and section 409 of Title 42, The Public Health and Welfare] shall apply only with respect to tips received by employees after 1965.”

Regulations

Puspan. L. 98–369, div. A, title X, § 1072(span), 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

Puspan. L. 105–206, title III, § 3414, July 22, 1998, 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 Method

Puspan. 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

Puspan. 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.