Department of the Treasury

Department of the Treasury

Internal Revenue Service

Publication 531

(Rev. December 2024)

Cat. No. 15059V

Reporting

Tip

Income

Contents

Future Developments . . . . . . . . . . . . . . . . . . . . . . . 1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Keeping a Daily Tip Record . . . . . . . . . . . . . . . . . . 2

Reporting Tips to Your Employer . . . . . . . . . . . . . . 3

Reporting Tips on Your Tax Return . . . . . . . . . . . . . 4

Allocated Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . . . 6

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Future Developments

For the latest information about developments related to

Pub. 531, such as legislation enacted after it was

published, go to IRS.gov/Pub531.

Reminder

Continuous use publication. Publication 531 will no

longer be updated annually. Instead, it will only be updated when necessary.

Publication 1244 no longer available. Beginning in

2024, the Publication 1244 has been made obsolete and

will no longer be made available.

Form 4070 and Form 4070A are historical. The Form

4070, Employee's Report of Tips to Employer, and Form

4070A, Employee's Daily Record of Tips, previously included in the Publication 1244, were made historical. The

steps on How to keep a daily tip record and How to report

your tips to your employer are provided later. The previous

revisions of the Forms 4070 and 4070A are still available

on the Prior Year Forms and Instructions page at IRS.gov/

prior-year-forms-and-instructions.

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Introduction

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This publication is for employees who receive tips. All tips

you receive are income and are subject to federal income

tax. You must include in gross income all tips you receive

directly, charged tips paid to you by your employer, and

your share of any tips you receive under a tip-splitting or

tip-pooling arrangement.

The value of noncash tips, such as tickets, passes, or

other items of value, is also income and subject to tax.

Reporting your tip income correctly isn’t difficult. You

must do three things.

1. Keep a daily tip record.

2. Report tips to your employer.

3. Report all your tips on your income tax return.

This publication will explain these three things and show

you what to do on your tax return if you haven’t done the

first two. This publication will also show you how to treat

allocated tips.

Comments and suggestions. We welcome your comments about this publication and suggestions for future

editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue

Service, Tax Forms and Publications, 1111 Constitution

Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will

consider your comments and suggestions as we revise

our tax forms, instructions, and publications. Don’t send

tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. If you have

a tax question not answered by this publication or the How

To Get Tax Help section at the end of this publication, go

to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the search

feature or viewing the categories listed.

Getting tax forms, instructions, and publications.

Go to IRS.gov/Forms to download current and prior-year

forms, instructions, and publications.

Ordering tax forms, instructions, and publications.

Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order

prior-year forms and instructions. The IRS will process

your order for forms and publications as soon as possible.

Don’t resubmit requests you’ve already sent us. You can

get forms and publications faster online.

Keeping a Daily Tip Record

Why keep a daily tip record? You must keep a daily tip

record so you can:

• Report your tips accurately to your employer,

• Report your tips accurately on your tax return, and

• Prove your tip income if your return is ever questioned.

How to keep a daily tip record. There are two ways to

keep a daily tip record. You can either:

• Write information about your tips in a tip diary; or

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• Keep copies of documents that show your tips, such

as restaurant bills and credit or debit card charge

slips.

You should keep your daily tip record with your tax or

other personal records. You must keep your records for as

long as they are important for administration of the federal

tax law. For information on how long to keep records, see

How Long To Keep Records in chapter 1 of Publication 17,

Your Federal Income Tax.

Start your records by writing your name, your employer's name, and the name of the business (if it's different

from your employer's name). Then, each workday, write

the date and the following information.

• Cash tips you get directly from customers or from

other employees.

• Tips from credit and debit card charge customers that

your employer pays you.

• The value of any noncash tips you get, such as tickets,

passes, or other items of value. Although you don’t report these tips to your employer, you must report them

on your tax return.

• The amount of tips you paid out to other employees

through tip pools or tip splitting, or other arrangements, and the names of the employees to whom you

paid the tips.

Electronic tip record. You can use an electronic system provided by your employer to record your daily tips. If

you do, you must receive and keep a paper copy of this record.

Service charges. Don't write in your tip diary the amount

of any service charge that your employer adds to a customer's bill and then pays to you and treats as wages. This

is part of your wages, not a tip. The following factors determine if you have a tip or service charge.

• The payment is made free from compulsion.

• The customer has the right to determine the amount of

payment.

• The payment isn't subject to negotiation or dictated by

employer policy.

• The customer generally has the right to determine

who receives the payment.

See examples below.

Example 1. Your employer, Good Food Restaurant,

adds an 18% charge to the bill for parties of six or more

customers. Devon’s bill for food and beverages for a party

of eight includes an amount on the tip line equal to 18% of

the charges for food and beverages, and the total includes

this amount. Because Devon didn’t have an unrestricted

right to determine the amount on the “tip line,” the 18%

charge is considered a service charge. Don't include the

18% charge in your tip diary. Service charges that are paid

to you are considered wages, not tips.

Example 2. Your employer, Good Food Restaurant, includes sample calculations of tip amounts at the bottom of

Publication 531 (12-2024)

its bills for food and beverages provided to customers.

Pat’s bill includes a blank “tip line,” with sample tip calculations of 15%, 18%, and 20% of the charges for food and

beverages at the bottom of the bill beneath the signature

line. Because Pat is free to enter any amount on the “tip

line” or leave it blank, any amount included is considered

a tip. Include this amount in your tip diary.

Example 3. The facts are the same as in Example 1,

except that there is also an “additional tip line” and a “total

tip line.” 18% was included by the restaurant on the “tip

line” and the customer decided to enter 2% on the “additional tip line” and 20% on the “total tip line.” Because the

customer is free to enter any amount on the “additional tip

line” or leave it blank, the 2% included is considered a tip.

Include the amount included on the “additional tip line” in

your tip diary.

Reporting Tips to Your

Employer

Why report tips to your employer? You must report

tips to your employer so that:

• Your employer can withhold federal income tax and

social security, Medicare, Additional Medicare, or railroad retirement taxes;

• Your employer can report the correct amount of your

earnings to the Social Security Administration or Railroad Retirement Board (which affects your benefits

when you retire or if you become disabled, or your

family's benefits if you die); and

• You can avoid the Penalty for not reporting tips to your

employer (explained later).

Note. The maximum amount of wages and tips subject

to social security tax and the social security tax rate an

employee must pay on tips are both available on the Social Security Administration Contribution and Benefit page

at SSA.gov/oact/cola/cbb.html.

See Caution for Uncollected taxes, later.

What tips to report? Report to your employer only cash,

check, and debit and credit card tips you receive.

If your total tips for any 1 month from any one job are

less than $20, don't report the tips for that month to that

employer.

If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain. Don't report to your employer any portion of the tips you receive

that you pass on to other employees. However, you must

report tips you receive from other employees.

Don't report the value of any noncash tips, such as tickets, passes, or other items of value, to your employer. You

don't pay social security, Medicare, Additional Medicare,

or railroad retirement taxes on these tips.

Publication 531 (12-2024)

How to report. If your employer doesn't give you any

other way to report your tips, you can give your employer a

statement with the following information.

• Your name, address, and social security number.

• Your employer's name, address, and business name

(if it's different from your employer's name).

• The month (or the dates of any shorter period) in

which you received tips.

• The total tips required to be reported for that period.

You must sign and date the statement. Keep a copy with

your tax or other personal records.

Your employer may require you to report your tips more

than once a month. However, the statement can't cover a

period of more than 1 calendar month.

Electronic tip statement. Your employer can have

you furnish your tip statements electronically.

When to report. Give your report for each month to your

employer by the 10th of the next month. If the 10th falls on

a Saturday, Sunday, or legal holiday, give your employer

the report by the next day that isn’t a Saturday, Sunday, or

legal holiday.

Legal holidays can fall on the 10th of the month in

TIP October (Indigenous Peoples’ Day (Columbus

Day)) and November (Veteran’s Day).

Example 1. You must report your tips received in September 2025 by October 10, 2025.

Example 2. In 2025, you must report your tips received in July 2025 by August 11, 2025. August 10, 2025,

falls on a Sunday. August 11, 2025, is the next day that

isn’t a Saturday, Sunday, or legal holiday.

Final report. If your employment ends during the

month, you can report your tips when your employment

ends.

Penalty for not reporting tips. If you don't report tips to

your employer as required, you may be subject to a penalty equal to 50% of the social security, Medicare, Additional Medicare, or railroad retirement taxes you owe on

the unreported tips. For information about these taxes,

see Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to

your employer under Reporting Tips on Your Tax Return,

later. The penalty amount is in addition to the taxes you

owe.

You can avoid this penalty if you can show reasonable

cause for not reporting the tips to your employer. To do so,

attach a statement to your return explaining why you didn’t

report them.

Giving your employer money for taxes. Your regular

pay may not be enough for your employer to withhold all

the taxes you owe on your regular pay plus your reported

tips. If this happens, you can give your employer money

until the close of the calendar year to pay the rest of the

taxes.

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If you don't give your employer enough money, your

employer will apply your regular pay and any money you

give to the taxes, in the following order.

1. All taxes on your regular pay.

2. Social security, Medicare, Additional Medicare, or railroad retirement taxes on your reported tips.

3. Federal, state, and local income taxes on your reported tips.

Any taxes that remain unpaid can be collected by your

employer from your next paycheck. If withholding taxes remain uncollected at the end of the year, you may be subject to a penalty for underpayment of estimated taxes. See

Publication 505, Tax Withholding and Estimated Tax.

Uncollected taxes. You must report on your tax

return any social security and Medicare taxes, or

CAUTION railroad retirement taxes that remained uncollected at the end of your tax year. These uncollected taxes

will be shown on your tax year Form W-2. See Reporting

uncollected social security, Medicare, Additional Medicare, or railroad retirement taxes on tips reported to your

employer under Reporting Tips on Your Tax Return, later.

!

A 0.9% Additional Medicare Tax applies to Medicare wages, RRTA compensation, and self-employment income

that are more than:

• $125,000 if married filing separately,

• $250,000 if married filing jointly, or

• $200,000 for any other filing status.

An employer is required to withhold Additional Medicare

Tax on any Medicare wages or RRTA compensation it

pays to an employee in excess of $200,000 in a calendar

year without regard to the employee's filing status.

Tip Rate Determination and

Education Program

Your employer may participate in the Tip Rate Determination and Education Program. The program was developed

to help employees and employers understand and meet

their tip-reporting responsibilities.

There are two agreements under the program: the Tip

Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC).

If you are employed in the gaming industry, your employer may participate in the Gaming Industry Tip Compliance Agreement (GITCA) Program. See Revenue Procedure 2007-32, 2007-22, as modified by Revenue

Procedure 2020-47. Revenue Procedure 2007-32 is available at IRS.gov/irb/2007-22_IRB#RP-2007-32. Revenue

Procedure 2020-47 is available at IRS.gov/irb/

2020-48_IRB#Rev-Proc-2020-47.

Your employer can provide you with a copy of any applicable agreement. To find out more about these agreements, visit IRS.gov and enter “MSU voluntary tip compliance agreements” in the search box. You may also call

4

800-829-4933, visit IRS.gov/TACLocator for the IRS Taxpayer Assistance Center in your area, or send an email to

Tip.Program@irs.gov and request information on this program.

Reporting Tips on Your

Tax Return

How to report tips. Report your tips with your wages on

Form 1040 or 1040-SR, line 1; or Form 1040-NR, line 1a.

What tips to report? Generally, you must report all tips

you received in the tax year on your tax return including

both cash tips and noncash tips. Any tips you reported to

your employer as required in the tax year are included in

the wages shown in box 1 of your Form W-2. Add to the

amount in box 1 only the tips you didn’t report to your employer.

However, do not include in box 1 any tips you received

in December of the tax year that were timely reported in

January of the following year. For example, any tips you

received in 2024 that you reported to your employer as required after the tax year but on or before January 10,

2025, aren’t included in the wages shown in box 1 of your

2024 Form W-2. Don't include the amount of these tips on

your 2024 tax return. Instead, include them on your 2025

tax return. Tips you received in 2023 that you reported to

your employer as required after 2023 but on or before January 10, 2024, are included in the wages shown in box 1

of your 2024 Form W-2. Although these tips were received

in 2023, you must report them on your 2024 tax return.

If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain. Don't report on your income tax return any portion of the tips you

receive that you pass on to other employees. However,

you must report tips you receive from other employees.

If you received $20 or more in cash and charge

tips in a month and didn’t report all of those tips to

CAUTION your employer, see Reporting social security,

Medicare, Additional Medicare, or railroad retirement

taxes on tips not reported to your employer, later.

!

If you didn’t keep a daily tip record as required

and an amount is shown in box 8 of your Form

CAUTION W-2, see Allocated Tips, later.

!

If you kept a daily tip record and reported tips to your

employer as required under the rules explained earlier,

add the following tips to the amount in box 1 of your Form

W-2.

• Cash and charge tips you received that totaled less

than $20 for any month.

• The value of noncash tips, such as tickets, passes, or

other items of value.

Example. You began working at the Blue Ocean Restaurant (your only employer in 2023) on June 30 and received $10,000 in wages during the year. You kept a daily

tip record showing that the tips for June were $18 and the

Publication 531 (12-2024)

tips for the rest of the year totaled $7,000. You weren’t required to report any June tips to your employer, but you reported all of the rest of your tips to your employer as required.

Your Form W-2 from Blue Ocean Restaurant shows

$17,000 ($10,000 wages + $7,000 reported tips) in box 1.

You must add the $18 unreported tips to that amount and

report $17,018 as wages on your tax return.

Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported

to your employer. If you received $20 or more in cash

and charge tips in a month from any one job and didn’t report all of those tips to your employer, you must report the

social security, Medicare, and Additional Medicare taxes

on the unreported tips as additional tax on your return. To

report these taxes, you must file Form 1040, Form

1040-SR, Form 1040-NR, Form 1040-PR, or Form

1040-SS even if you won’t otherwise have to file.

Use Form 4137, Social Security and Medicare Tax on

Unreported Tip Income, to figure social security and Medicare taxes and/or Form 8959, Additional Medicare Tax, to

figure Additional Medicare Tax. Enter the tax(es) on your

return as instructed, and attach the completed Form 4137

and/or Form 8959 to your return.

If you’re subject to the Railroad Retirement Tax

Act, you can't use Form 4137 to pay railroad reCAUTION tirement tax on unreported tips. To get railroad retirement credit, you must report tips to your employer.

!

Reporting uncollected social security, Medicare, Additional Medicare, or railroad retirement taxes on tips

reported to your employer. You may have uncollected

taxes if your regular pay wasn’t enough for your employer

to withhold all the taxes you owe and you didn’t give your

employer enough money to pay the rest of the taxes. For

more information, see Giving your employer money for

taxes under Reporting Tips to Your Employer, earlier.

If your employer couldn’t collect all the social security,

Medicare, and Additional Medicare taxes, or railroad retirement taxes you owe on tips reported in the tax year, the

uncollected taxes will be shown in box 12 of your Form

W-2 (codes A and B). You must report these amounts as

additional tax on your return.

If you worked in the U.S. territories and received Form

W-2AS, W-2CM, W-2GU, or W-2VI, any uncollected taxes

on tips will be shown in box 12 with codes A and B. If you

received Form 499R-2/W-2PR, any uncollected taxes will

be shown according to its instructions. Unlike the uncollected portion of the regular (1.45%) Medicare tax, the uncollected Additional Medicare Tax isn't reported on Form

W-2. To report these uncollected taxes, you must file Form

1040-NR or Form 1040-SS even if you wouldn’t otherwise

have to file. You can report these taxes on Schedule 2

(Form 1040), line 13, if you file Form 1040-NR. If you file

Form 1040-SS, see the instructions for the form.

Self-employed persons. If you receive tips as a self-employed person, you should report these tips as income on

Schedule C. See Publication 334, Tax Guide for Small

Publication 531 (12-2024)

Business, for more information on reporting business income.

Allocated Tips

If your employer allocated tips to you, they’re shown separately in box 8 of your Form W-2. They’re not included in

box 1 with your wages and reported tips. If box 8 is blank,

this discussion doesn't apply to you.

What are allocated tips? These are tips that your employer assigned to you in addition to the tips you reported

to your employer for the year. Your employer will have

done this only if:

• You worked in an establishment (restaurant, cocktail

lounge, or similar business) that must allocate tips to

employees, and

• The tips you reported to your employer were less than

your share of 8% of food and drink sales.

No income, social security, Medicare, Additional Medicare, or railroad retirement taxes are withheld on allocated

tips.

How were your allocated tips figured? The tips allocated to you are your share of an amount figured by subtracting the reported tips of all employees from 8% (or an

approved lower rate) of food and drink sales (other than

carryout sales and sales with a service charge of 10% or

more). Your share of that amount was figured using either

a method provided by an employer-employee agreement

or a method provided by IRS regulations based on employees' sales or hours worked. For information about the

exact allocation method used, ask your employer.

Must you report your allocated tips on your tax return? You must report tips you received in the tax year

(including both cash and noncash tips) on your tax return

as explained in What tips to report, earlier. Any tips you reported to your employer in the tax year as required (explained under Reporting Tips to Your Employer, earlier)

are included in the wages shown in box 1 of your Form

W-2. Add to the amount in box 1 only the tips you didn’t

report to your employer as required. This should include

any allocated tips shown in box 8 on your Form(s) W-2,

unless you have adequate records to show that you received less tips in the year than the allocated amount.

See What tips to report under Reporting Tips on Your

Tax Return, and Keeping a Daily Tip Record, earlier.

How to report allocated tips. If you received any tips in

the tax year that you didn’t report to your employer as required (including allocated tips that you are required to report on your tax return), add these tips to the amount in

box 1 of your Form(s) W-2 and report this amount as wages on Form 1040 or 1040-SR, line 1; or Form 1040-NR,

line 1a.

Because social security, Medicare, or Additional Medicare taxes weren’t withheld from the allocated tips, you

must report those taxes as additional tax on your return.

5

Complete Form 4137 and include the allocated tips on

line 1 of the form as provided in its instructions. See Reporting social security, Medicare, Additional Medicare, or

railroad retirement taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, earlier.

How to request an approved lower rate. Your employer can use a tip rate lower than 8% (but not lower than

2%) to figure allocated tips only if the IRS approves the

lower rate. Either the employer or the employees can request approval of a lower rate by filing a petition with the

IRS. The petition must include specific information about

the establishment that will justify the lower rate. A user fee

must be paid with the petition.

An employee petition can be filed only with the consent

of a majority of the directly tipped employees (waiters, bartenders, and others who receive tips directly from customers). The petition must state the total number of directly

tipped employees and the number of employees consenting to the petition. Employees filing the petition must

promptly notify the employer, and the employer must

promptly give the IRS a copy of all Forms 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, filed for the establishment for the previous 3

years.

For more information about how to file a petition and

what information to include, see Allocation of Tips in the

Instructions for Form 8027.

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications,

forms, or instructions, go to IRS.gov to find resources that

can help you right away.

Preparing and filing your tax return. After receiving all

your wage and earnings statements (Forms W-2, W-2G,

1099-R, 1099-MISC, 1099-NEC, etc.); unemployment

compensation statements (by mail or in a digital format) or

other government payment statements (Form 1099-G);

and interest, dividend, and retirement statements from

banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you

qualify for free tax preparation, or hire a tax professional to

prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

• Direct File. Direct File is a permanent option to file in-

dividual federal tax returns online—for free—directly

and securely with the IRS. Direct File is an option for

taxpayers in participating states who have relatively

simple tax returns reporting certain types of income

and claiming certain credits and deductions. While Direct File doesn't prepare state returns, if you live in a

participating state, Direct File guides you to a

state-supported tool you can use to prepare and file

6

your state tax return for free. Go to IRS.gov/DirectFile

for more information, program updates, and frequently

asked questions.

• Free File. This program lets you prepare and file your

federal individual income tax return for free using software or Free File Fillable Forms. However, state tax

preparation may not be available through Free File. Go

to IRS.gov/FreeFile to see if you qualify for free online

federal tax preparation, e-filing, and direct deposit or

payment options.

• VITA. The Volunteer Income Tax Assistance (VITA)

program offers free tax help to people with

low-to-moderate incomes, persons with disabilities,

and limited-English-speaking taxpayers who need

help preparing their own tax returns. Go to IRS.gov/

VITA, download the free IRS2Go app, or call

800-906-9887 for information on free tax return preparation.

• TCE. The Tax Counseling for the Elderly (TCE) pro-

gram offers free tax help for all taxpayers, particularly

those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors.

Go to IRS.gov/TCE or download the free IRS2Go app

for information on free tax return preparation.

• MilTax. Members of the U.S. Armed Forces and quali-

fied veterans may use MilTax, a free tax service offered by the Department of Defense through Military

OneSource. For more information, go to

MilitaryOneSource (MilitaryOneSource.mil/MilTax).

Also, the IRS offers Free Fillable Forms, which can

be completed online and then e-filed regardless of income.

Using online tools to help prepare your return. Go to

IRS.gov/Tools for the following.

• IRS.gov/DirectFile offers an Eligibility Checker to help

you determine if Direct File is the right choice for your

tax filing needs.

• The Earned Income Tax Credit Assistant (IRS.gov/

EITCAssistant) determines if you’re eligible for the

earned income credit (EIC).

• The Online EIN Application (IRS.gov/EIN) helps you

get an employer identification number (EIN) at no

cost.

• The Tax Withholding Estimator (IRS.gov/W4App)

makes it easier for you to estimate the federal income

tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

• The First-Time Homebuyer Credit Account Look-up

(IRS.gov/HomeBuyer) tool provides information on

your repayments and account balance.

• The Sales Tax Deduction Calculator (IRS.gov/

SalesTax) figures the amount you can claim if you

itemize deductions on Schedule A (Form 1040).

Publication 531 (12-2024)

Getting answers to your tax questions. On

IRS.gov, you can get up-to-date information on

current events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant, a tool that

will ask you questions and, based on your input, provide answers on a number of tax topics.

• IRS.gov/Forms: Find forms, instructions, and publica-

sites. Always protect your identity when using any social

networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English,

Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

tions. You will find details on the most recent tax

changes and interactive links to help you find answers

to your questions.

Online tax information in other languages. You can

find information on IRS.gov/MyLanguage if English isn’t

your native language.

• You may also be able to access tax information in your

Free Over-the-Phone Interpreter (OPI) Service. The

IRS is committed to serving taxpayers with limited-English

proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and

every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

e-filing software.

Need someone to prepare your tax return? There are

various types of tax return preparers, including enrolled

agents, certified public accountants (CPAs), accountants,

and many others who don’t have professional credentials.

If you choose to have someone prepare your tax return,

choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification

number (PTIN).

Although the tax preparer always signs the return,

you're ultimately responsible for providing all the

CAUTION information required for the preparer to accurately

prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns

for others should have a thorough understanding of tax

matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

!

Employers can register to use Business Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure

W-2 filing options to CPAs, accountants, enrolled agents,

and individuals who process Form W-2, Wage and Tax

Statement; and Form W-2c, Corrected Wage and Tax

Statement.

Business tax account. If you are a sole proprietor, a

partnership, or an S corporation, you can view your tax information on record with the IRS and do more with a business tax account. Go to IRS.gov/businessaccount for

more information.

IRS social media. Go to IRS.gov/SocialMedia to see the

various social media tools the IRS uses to share the latest

information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our

highest priority. We use these tools to share public information with you. Don’t post your social security number

(SSN) or other confidential information on social media

Publication 531 (12-2024)

Accessibility Helpline available for taxpayers with

disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and

future accessibility products and services available in alternative media formats (for example, braille, large print,

audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or

account-related issues, go to IRS.gov/LetUsHelp.

Alternative media preference. Form 9000, Alternative

Media Preference, or Form 9000(SP) allows you to elect to

receive certain types of written correspondence in the following formats.

• Standard Print.

• Large Print.

• Braille.

• Audio (MP3).

• Plain Text File (TXT).

• Braille Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the

available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/

Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to

IRS.gov/OrderForms to place an order.

Mobile-friendly forms. You'll need an IRS Online Account (OLA) to complete mobile-friendly forms that require

signatures. You'll have the option to submit your form(s)

online or download a copy for mailing. You'll need scans of

your documents to support your submission. Go to

IRS.gov/MobileFriendlyForms for more information.

Getting tax publications and instructions in eBook

format. Download and view most tax publications and

7

instructions (including the Instructions for Form 1040) on

mobile devices as eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's iBooks for

iPad. Our eBooks haven’t been tested on other dedicated

eBook readers, and eBook functionality may not operate

as intended.

Access your online account (individual taxpayers

only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax

year.

• See payment plan details or apply for a new payment

plan.

• Make a payment or view 5 years of payment history

and any pending or scheduled payments.

• Access your tax records, including key data from your

most recent tax return, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

• View your address on file or manage your communication preferences.

Get a transcript of your return. With an online account,

you can access a variety of information to help you during

the filing season. You can get a transcript, review your

most recently filed tax return, and get your adjusted gross

income. Create or access your online account at IRS.gov/

Account.

Tax Pro Account. This tool lets your tax professional

submit an authorization request to access your individual

taxpayer IRS OLA. For more information, go to IRS.gov/

TaxProAccount.

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit,

which securely and electronically transfers your refund directly into your financial account. Direct deposit also

avoids the possibility that your check could be lost, stolen,

destroyed, or returned undeliverable to the IRS. Eight in

10 taxpayers use direct deposit to receive their refunds. If

you don’t have a bank account, go to IRS.gov/

DirectDeposit for more information on where to find a bank

or credit union that can open an account online.

Reporting and resolving your tax-related identity

theft issues.

• Tax-related identity theft happens when someone

steals your personal information to commit tax fraud.

Your taxes can be affected if your SSN is used to file a

fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by

email, text messages (including shortened links), telephone calls, or social media channels to request or

verify personal or financial information. This includes

requests for personal identification numbers (PINs),

8

passwords, or similar information for credit cards,

banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft

Central webpage, for information on identity theft and

data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or

stolen or you suspect you’re a victim of tax-related

identity theft, you can learn what steps you should

take.

• Get an Identity Protection PIN (IP PIN). IP PINs are

six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your

SSN. To learn more, go to IRS.gov/IPPIN.

Ways to check on the status of your refund.

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

The IRS can’t issue refunds before mid-February

for returns that claimed the EIC or the additional

CAUTION child tax credit (ACTC). This applies to the entire

refund, not just the portion associated with these credits.

!

Making a tax payment. Payments of U.S. tax must be

remitted to the IRS in U.S. dollars. Digital assets are not

accepted. Go to IRS.gov/Payments for information on how

to make a payment using any of the following options.

• IRS Direct Pay: Pay your individual tax bill or estimated

tax payment directly from your checking or savings account at no cost to you.

• Debit Card, Credit Card, or Digital Wallet: Choose an

approved payment processor to pay online or by

phone.

• Electronic Funds Withdrawal: Schedule a payment

when filing your federal taxes using tax return preparation software or through a tax professional.

• Electronic Federal Tax Payment System: This is the

best option for businesses. Enrollment is required.

• Check or Money Order: Mail your payment to the address listed on the notice or instructions.

• Cash: You may be able to pay your taxes with cash at

a participating retail store.

• Same-Day Wire: You may be able to do same-day

wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to

ensure that the electronic payments you make online, by

phone, or from a mobile device using the IRS2Go app are

safe and secure. Paying electronically is quick, easy, and

faster than mailing in a check or money order.

Publication 531 (12-2024)

What if I can’t pay now? Go to IRS.gov/Payments for

more information about your options.

• Apply for an online payment agreement (IRS.gov/

OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once

you complete the online process, you will receive immediate notification of whether your agreement has

been approved.

The Taxpayer Advocate Service (TAS)

Is Here To Help You

What Is the Taxpayer Advocate Service?

• Use the Offer in Compromise Pre-Qualifier to see if

The Taxpayer Advocate Service (TAS) is an independent

organization within the Internal Revenue Service (IRS).

TAS helps taxpayers resolve problems with the IRS,

makes administrative and legislative recommendations to

prevent or correct the problems, and protects taxpayer

rights. We work to ensure that every taxpayer is treated

fairly and that you know and understand your rights under

the Taxpayer Bill of Rights. We are Your Voice at the IRS.

Filing an amended return. Go to IRS.gov/Form1040X

for information and updates.

How Can TAS Help Me?

Checking the status of your amended return. Go to

IRS.gov/WMAR to track the status of Form 1040-X amended returns.

TAS can help you resolve problems that you haven’t been

able to resolve with the IRS on your own. Always try to resolve your problem with the IRS first, but if you can’t, then

come to TAS. Our services are free.

you can settle your tax debt for less than the full

amount you owe. For more information on the Offer in

Compromise program, go to IRS.gov/OIC.

It can take up to 3 weeks from the date you filed

your amended return for it to show up in our sysCAUTION tem, and processing it can take up to 16 weeks.

!

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

IRS Document Upload Tool. You may be able use the

Document Upload Tool to respond digitally to eligible IRS

notices and letters by securely uploading required documents online through IRS.gov. For more information, go to

IRS.gov/DUT.

Schedule LEP. You can use Schedule LEP (Form 1040),

Request for Change in Language Preference, to state a

preference to receive notices, letters, or other written communications from the IRS in an alternative language. You

may not immediately receive written communications in

the requested language. The IRS’s commitment to LEP

taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive

communications, including notices and letters, in English

until they are translated to your preferred language.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting a TAC.

Go to IRS.gov/LetUsHelp for the topics people ask about

most. If you still need help, TACs provide tax help when a

tax issue can’t be handled online or by phone. All TACs

now provide service by appointment, so you’ll know in advance that you can get the service you need without long

wait times. Before you visit, go to IRS.gov/TACLocator to

find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app,

under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

————————————————————————

Below is a message to you from the Taxpayer Advocate

Service, an independent organization established by Congress.

Publication 531 (12-2024)

• TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for TAS help if your IRS

problem is causing financial difficulty, if you’ve tried

and been unable to resolve your issue with the IRS, or

if you believe an IRS system, process, or procedure

just isn't working as it should.

• To get help any time with general tax topics, visit

www.TaxpayerAdvocate.IRS.gov. The site can help

you with common tax issues and situations, such as

what to do if you make a mistake on your return or if

you get a notice from the IRS.

• TAS works to resolve large-scale (systemic) problems

that affect many taxpayers. You can report systemic issues at www.IRS.gov/SAMS. (Be sure not to include

any personal identifiable information.)

How Do I Contact TAS?

TAS has offices in every state, the District of Columbia,

and Puerto Rico. To find your local advocate’s number:

• Go to www.TaxpayerAdvocate.IRS.gov/Contact-Us,

• Check your local directory, or

• Call TAS toll free at 877-777-4778.

What Are My Rights as a Taxpayer?

The Taxpayer Bill of Rights describes ten basic rights that

all taxpayers have when dealing with the IRS. Go to

www.TaxpayerAdvocate.IRS.gov/Taxpayer-Rights

for

more information about the rights, what they mean to you,

and how they apply to specific situations you may encounter with the IRS. TAS strives to protect taxpayer rights and

ensure the IRS is administering the tax law in a fair and

equitable way.

9

Index

To help us develop a more useful index, please let us know if you have ideas for index entries.

See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

A

Allocated tips 5

Assistance (See Tax help)

C

Cash tips 2

Credit card charge tips 2

D

Daily tip record 2

E

Electronic tip record 2

Electronic tip statement 3

Employers:

Giving money to, for taxes 3

Reporting tips to 3

F

Form 1040 or 1040-SR:

Schedule C 5

Unreported tips 5

Form 4137 5

10

Form 8027 6

Form W-2:

Uncollected taxes 4, 5

G

Gaming Industry Tip Compliance

Agreement Program 4

N

Noncash tips 2

P

Penalties:

Failure to report tips to employer 3

Underpayment of estimated taxes 4

Publications (See Tax help)

R

Recordkeeping requirements:

Daily tip record 2

Reporting:

Employee to report tips to

employer 3

Tip income 2

S

Self-employed persons 5

Service charge paid as wages 2

Social security and Medicare taxes:

Allocated tips 5

Reporting of earnings to Social

Security Administration 3

Tips not reported to employer 5

Uncollected taxes on tips 5

T

Tax help 6

Tax returns 4

Tip pools 2

Tip Rate Determination and

Education Program 4

Tip splitting 2

U

Uncollected taxes 4, 5

W

Withholding 3

Publication 531 (12-2024)