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C. Employees with unpaid tax liabilities may
participate in this program; however, they must cooperate
with the Service in the resolution of their delinquent
accounts. The policy of the Service with regard to the
collection of delinquent accounts is set forth in attachment
“A” to this closing agreement.
D. The Service will not initiate new tip income
examinations of Participating Employees’ tip income for any
year prior to 1992 for which a return was timely filed and
will not examine tip income for 1992 or any later year in
which the Employee is a Participating Employee for the
entire period during such year in which he or she earns tip
income, provided that the following conditions listed below
are fulfilled. New employees may participate if they make
an election to do so within 30 days of the start of their
employment. Such employees must have been participants in
any previous employer’s tip compliance program if that
employer had a tip compliance program and the employee was a
tip earner.
* * * * * * *
III. NONPARTICIPATING EMPLOYEES
A. An Employee other than a Participating Employee
(hereinafter a “Nonparticipating Employee”) is subject to
the full range of compliance and enforcement procedures of
the Service.
* * * * * * *
V. TIP RATES
A. Tip rates will be established by the Employer and
approved in writing by the Service as follows:
(1) Dealers Who Pool or Split Tips -- The
Employer may use either of the following options:
Option A:
The Employees or their representative (e.g., the
toke committee) will present to the Employer a listing of
the actual tip split received by or given to each Employee.
This listing must reconcile to the tokes presented to the
Employer’s cage for cashing. The tip rate is the amount of
tips so reported to the Employer. Failure of the Employees
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Last modified: May 25, 2011