The Internal Revenue Service (IRS) on Feb. 6 issued proposed guidance for a voluntary tip-reporting program between the agency and employers across an array of service industries.
Notice 2023-13 contains a proposed revenue procedure that would establish the “Service Industry Tip Compliance Agreement” (SITCA) program, which the IRS says would serve as the sole tip-reporting compliance program between the IRS and employers in all service industries.
The new program, which would be voluntary, would replace three other programs: the Tip Rate Determination Agreement (TRDA), the Tip Reporting Alternative Commitment (TRAC), and the Employer designed TRAC (EmTRAC).
The IRS notice is seeking public comment on the proposed program until May 7, 2023….