I.R.C. § 6053(a) Reports By Employees
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 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.
I.R.C. § 6053(b) Statements Furnished By Employers
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
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.
I.R.C. § 6053(c) Reporting Requirements Relating To Certain Large Food Or Beverage
I.R.C. § 6053(c)(1) Report To 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:
I.R.C. § 6053(c)(1)(A)
The gross receipts of such establishment
from the provision of food and beverages (other than nonallocable
I.R.C. § 6053(c)(1)(E)
With respect to each employee, the
amount allocated to such employee under paragraph(3).
I.R.C. § 6053(c)(2) Furnishing Of Statement To Employees
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:
I.R.C. § 6053(c)(2)(C)
The amount allocated to the employee
under paragraph (3)
for all payroll periods ending within the calendar year.
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.
I.R.C. § 6053(c)(3) Employee Allocation Of 8 Percent Of Gross Receipts
I.R.C. § 6053(c)(3)(A) In General
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—
I.R.C. § 6053(c)(3)(A)(i)
8 percent of the gross receipts
(other than nonallocable receipts) of such establishment for the
payroll period, over
I.R.C. § 6053(c)(3)(A)(ii)
the aggregate amount reported by
such employees to the employer under subsection (a) for such period.
I.R.C. § 6053(c)(3)(B) Method Of Allocation
The employer shall allocate the amount under subparagraph
I.R.C. § 6053(c)(3)(B)(ii)
in the absence of an agreement under
clause (i), in the manner determined under regulations prescribed
by the Secretary.
I.R.C. § 6053(c)(3)(C) The Secretary May Lower The Percentage Required To Be Allocated
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.
I.R.C. § 6053(c)(4) Large Food Or Beverage Establishment
For purposes of this subsection, the term “large
food or beverage establishment” means any trade or business
(or portion thereof)—
I.R.C. § 6053(c)(4)(B)
with respect to which the tipping
of employees serving food or beverages by customers is customary,
I.R.C. § 6053(c)(4)(C)
which normally employed more than
10 employees on a typical business day during the preceding calendar
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.
I.R.C. § 6053(c)(5) Employer Not To Be Liable For Wrong Allocations
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).
I.R.C. § 6053(c)(6) Nonallocable Receipts Defined
For purposes of this subsection, the term “nonallocable
receipts” means receipts which are allocable to—
I.R.C. § 6053(c)(7) Application To New Businesses
The Secretary shall prescribe regulations for the application
of this subsection to new businesses.
I.R.C. § 6053(c)(8) Certified Professional Employer Organizations
For purposes of any report required by this subsection,
in the case of a certified professional employer organization that
is treated under section 3511
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.
(Added by Pub. L. 89-97,
title III, 313(e)(2)(A), July 30, 1965, 79 Stat. 384, and amended
by Pub. L. 89-212,
2(d), Sept. 29, 1965, 79 Stat. 859; Pub.
L. 94-455, title XIX, 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834; Pub. L. 97-248,
title III, 314(a), Sept. 3, 1982, 96 Stat. 603; Pub. L. 98-369, div. A, title X,
1072(a), (c)(1), July 18, 1984, 98 Stat. 1052; Pub. L. 113-295, Div. B, title II,
Sec. 206(c)(3), Dec. 19, 2014.)
2014--Subsec. (c)(8). Pub. L. 113-295, Div. B, Sec. 206(c)(3),
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
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 “o section 3202 (as the case
EFFECTIVE DATE OF 2014 AMENDMENT
Amendment by Pub.
L. 113-295, Div. B, Sec. 206(c)(3), effective for
wages for services performed on or after January 1 of the first calendar
year beginning more than 12 months after the date of the enactment
of this Act [Enacted: Dec. 19, 2014].
DATE OF 1984 AMENDMENT
1072(c)(2) of Pub. L. 98-369 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
Section 314(e) of Pub.
L. 97-248, as amended by Pub.
L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided
“(1) In general.--The amendments made by
this section [amending sections 6001, 6053, 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
], 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
“(B) the name, and identification
number, wages paid to, and tips reported by, each tipped employee.”
EFFECTIVE DATE OF 1965 AMENDMENT
Amendment 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 section 3201 of this
Section 313(f) of Pub.
L. 89-97 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.”
MODIFICATION OF TIPS ALLOCATION METHOD
Pub. 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.”
RECORDKEEPING BY TIPPED EMPLOYEES
Section 1072(b) of Pub.
L. 98-369 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.”
Section 314(c) of Pub.
L. 97-248 provided that: “The Secretary of
the Treasury or his delegate shall submit before January 1, 1987,
to the Committee on Ways and Means of the House of Representatives
and to the Committee on Finance of the Senate a report with respect
to tip compliance in the food and beverage service industry. Such
study shall include, but not be limited to, an analysis of tipping
patterns, tip-sharing arrangements, and tip compliance patterns.”
[6056. Repealed. Pub.
L. 96-603, 1(c), Dec. 28, 1980, 94 Stat. 3504]
Section, added Pub.
L. 91-172, title I, 101(d)(3), Dec. 30, 1969, 83
Stat. 521, and amended Pub. L. 94-455,
title XIX, 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, required an
annual report by private foundations having at least $5,000 of assets
at any time during a taxable year, prescribed the contents of the
report and the form to be used, and provided special rules concerning
information to be filed with the report and availability of the report.
Repeal applicable to taxable years beginning after
Dec. 31, 1980, see section 1(f) of Pub.
L. 96-603, set out as an Effective Date of 1980 Amendment
note under section 6033 of this title.