Tip Credit

Restaurants Tax Center

Tax Tips – Restaurant

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Voluntary-Compliance-Agreements-Restaurant-Tax-Tips
This section provides general tax information including employee benefits and rules on reporting tip income. Three types of tip agreements have been developed for the food and beverage industry: (download PDF files from the link above)

Tax Laws and Regulations – Restaurant

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Tax-Laws-and-Regulations-Restaurant
This page provides links to revenue rulings and court cases, and other regulations for the Restaurant industry.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Restaurants-Tax-Center

This page provides links to general tax information, selecting a recordkeeping system, revenue rulings and court cases, and other regulations for the Restaurant industry.

Trends and Statistics – Restaurant

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Trends-and-Statistics—Restaurant
This section provides links to various sources that supply restaurant-related statistics and trends; as well as forecasts on economic, workforce, consumer and menu trends, and information for restaurant operators to overcome the current economic challenges and position themselves for future growth.

Retail Industry ATG – Chapter 4: Examination Techniques for the Food and Beverages Industries (Restaurants and Bars)

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Retail-Industry-ATG—Chapter-4:-Examination-Techniques-for-the-Food-and-Beverages-Industries-(Restaurants-and-Bars)
The Audit Techniques Guides (ATGs) focus on developing highly trained examiners for a particular market segment. These Guides contain examination techniques, common and unique industry issues, business practices, industry terminology and other information to assist examiners in performing examinations.

Restaurant and Bars Forms and Publications

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Restaurant-and-Bars-Forms-and-Publications
The links on this page provide Restaurant industry forms and publications.

Credit for Portion of Employer Social Security Paid with Respect to Employee Cash Tips (IRC 45 B Credit)

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Credit-for-Portion-of-Employer-Social-Security-Paid-with-Respect-to-Employee-Cash-Tips-IRC-45-B-Credit
Are you getting the credit you deserve? If you are an employer in the food and beverage industry, you may be entitled to a credit for the social security and Medicare taxes you pay on your employees’ tip income.

Market Segment Understandings (MSU)

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Market-Segment-Understandings-(MSU)
The MSU Program, first introduced in 1993, is a means of enhancing tax compliance while reducing taxpayer burden. This Program envisions that the IRS and taxpayers in particular market segments, work together to improve tax compliance in those areas through educational efforts and other collaborative approaches rather than through traditional audit techniques.

Tipped Employee.pdf

U.S. Department of Labor Wage and Hour Division: Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)