GUIDELINES FOR REQUESTING TIP RATE REDUCTIONS CONTAINED IN REV. PROC. 85-4 APPLY ONLY TO EMPLOYERS

Rev. Proc. 85-10

SECTION 1. PURPOSE

The purpose of this revenue procedure is to modify Rev. Proc. 85-4, 1985-4 I.R.B. 36, which provides guidelines for employers and employees of certain large food or beverage establishments who wish to apply to the district director for the district in which the establishment is located to have the percentage of gross receipts required to be allocated as tips under section 6053(c)(3)(A) of the Internal Revenue Code reduced from 8 percent to a lower percentage (not below 2 percent). Rev. Proc. 85-4 will apply only to employers making application to the district director. Guidelines for employees making application will be issued upon publication of regulations.

SEC. 2. MODIFICATION

01 Sections 3.03 and 3.04 of Rev. Proc. 85-4 are withdrawn.

02 Sections 3.01, 3.05, 3.06, 3.07, 4.01 and 4.02 of Rev. Proc. 85-4 are modified to apply only to applications filed by employers.

SEC. 3. EFFECTIVE DATE

Rev. Proc. 85-4 is modified effective January 28, 1985.