What records must be furnished to the IRS?
• Description of the attribution method; • An annual report providing each tipped employee’s name, address, and social security number, status as a participating or nonparticipating employee, and the amount attributed to each tipped employee; and • Amount reported to each tipped employee as Social Security tips on Form W-2. This information must be sent to the IRS on or before March 31 for the preceding calendar year. What benefits does ATIP provide an employer? The IRS will not initiate tip examinations of a participating food or beverage establishment as long as the establishment satisfies all ATIP requirements. Any section 3121(q) notice and demand issued to the employer with respect to a participating establishment relating to any period during which the establishment participates in ATIP will be based either on amounts reflected on a Form 4137, Social Security and Medicare Tax on Unreported Tip Income, filed by an employee with Form 1040 or Form 885-T, Adjustment of Social Securit
