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on a monthly basis, and all tips received are required to be
reported as income on federal income tax returns:
WHEREAS, the Las Vegas District of the Internal Revenue
Service and Las Vegas Hilton Corporation, (hereinafter
“Employer”) have agreed to implement a program to ensure
maximum compliance by the employees of the Employer
(hereinafter referred to as an “Employee” or “Employees”)
with those provisions of the Internal Revenue Code of 1986,
as amended, (hereinafter the “Code”) relating to tip income,
to minimize the burden on the Employer resulting from tip
compliance programs of the Internal Revenue Service
(hereinafter the “Service”), and to reduce the cost to the
Service of enforcing the relevant provisions of the Code;
WHEREAS, the Service and the Employer have agreed to
resolve disputes concerning the responsibility of the
Employer under section 3121(q) of the Code for periods
preceding this agreement, and to establish procedures which
will prevent such disputes in future periods;
NOW IT IS HEREBY DETERMINED AND AGREED for federal
income and employment tax purposes as follows:
* * * * * * *
II. EMPLOYEE PARTICIPATION
A. For purposes of this agreement, a “Participating
Employee” is an Employee who:
1) reports and continues to report his or her
tips to the Employer at or above the “tip rates” established
pursuant to Paragraph V of this agreement; and
2) timely files federal income tax returns that
report those tips.
B. In order to participate in this program an
Employee must have filed, if required to do so by law,
federal income tax returns for 1988, 1989, 1990 (and 1991
when due). Any Employee who has not filed these returns but
wishes to participate in this program must file these
federal income tax returns with the Las Vegas District
Director of the Internal Revenue Service within 60 days of
the effective date of this agreement.
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Last modified: May 25, 2011