IRS Form 4070 "Employee's Report of Tips to Employer"

What Is Form 4070?

IRS Form 4070, Employee's Report of Tips to Employer - also known as the IRS tip-reporting form - is a form used by employees receiving tips to report them to their employers. The employer needs this information for proper tax withholding and to report the employee's earnings to the Social Security Administration (SSA).

The most recent version of this form was issued by the Internal Revenue Service (IRS) in August 2005. A fillable IRS Form 4070 is available for download below.

IRS Form 4070 and 4070A

The IRS Form 4070 can be used in conjunction with the IRS Form 4070A, Employee's Daily Record of Tips. This form is used to keep track of tips received every day.

Using the IRS Form 4070A is voluntary, the employee can keep their own daily tips record, as long as it contains the amount of cash tips, tips from credit and debit cards, the value of noncash tips and the number of tips paid to other employees through tip pools or splitting. The names of employees, to whom the tips were paid, should also be included in the record.

The establishment can keep an electronic system of daily tips report. The paper version should be also used in this case.

The information from the daily tips report of any kind should be transferred to the IRS Form 4070.

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Download IRS Form 4070 "Employee's Report of Tips to Employer"

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4070
Form
Employee’s Report
(Rev. August 2005)
OMB No. 1545-0074
of Tips to Employer
Department of the Treasury
Internal Revenue Service
Employee’s name and address
Social security number
Employer’s name and address (include establishment name, if different)
1 Cash tips received
2 Credit and debit card tips received
3 Tips paid out
Month or shorter period in which tips were received
4 Net tips (lines 1 + 2 - 3)
from
,
, to
,
Signature
Date
4070
Cat. No. 41320P
Form
(Rev. 8-2005)
For Paperwork Reduction Act Notice, see the instructions on the
back of this form.
4070
Form
Employee’s Report
(Rev. August 2005)
OMB No. 1545-0074
of Tips to Employer
Department of the Treasury
Internal Revenue Service
Employee’s name and address
Social security number
Employer’s name and address (include establishment name, if different)
1 Cash tips received
2 Credit and debit card tips received
3 Tips paid out
Month or shorter period in which tips were received
4 Net tips (lines 1 + 2 - 3)
from
,
, to
,
Signature
Date
4070
Cat. No. 41320P
Form
(Rev. 8-2005)
For Paperwork Reduction Act Notice, see the instructions on the
back of this form.
Purpose. Use this form to report tips you receive to
Paperwork Reduction Act Notice. We ask for the
your employer. This includes cash tips, tips you
information on these forms to carry out the Internal
receive from other employees, and debit and credit
Revenue laws of the United States. You are required
card tips. You must report tips every month
to give us the information. We need it to ensure that
regardless of your total wages and tips for the year.
you are complying with these laws and to allow us to
However, you do not have to report tips to your
figure and collect the right amount of tax.
employer for any month you received less than $20 in
You are not required to provide the information
tips while working for that employer.
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
Report tips by the 10th day of the month following
control number. Books or records relating to a form or
the month that you receive them. If the 10th day is a
its instructions must be retained as long as their
Saturday, Sunday, or legal holiday, report tips by the
contents may become material in the administration of
next day that is not a Saturday, Sunday, or legal
any Internal Revenue law. Generally, tax returns and
holiday.
return information are confidential, as required by
See Pub. 531, Reporting Tip Income, for more
Code section 6103.
details.
The average time and expenses required to
You can get additional copies of Pub. 1244,
complete and file this form will vary depending on
Employee’s Daily Record of Tips and Report to
individual circumstances. For the estimated averages,
Employer, which contains both Forms 4070A and
see the instructions for your income tax return.
4070, by calling 1-800-TAX-FORM (1-800-829-3676)
If you have suggestions for making this form
or by downloading the pub from the IRS website at
simpler, we would be happy to hear from you. See
www.irs.gov.
the instructions for your income tax return.
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IRS Form 4070 Instructions

Tips are subjected to the federal income tax and should be properly reported regardless of the employee's wages. The employee should report cash, credit and debit card tips to their employer every month or shorter time periods. Annual tax return should contain the amount of tips received during the year in cash, via cards and in items of value, such as tickets, passes, etc. If tips are shared between employees, each of them should report only the part they received. If the employee received tips less than $20, they do not have to report them.

The employee must also report their allocated tips on their tax return. Do refer to the IRS detailed instructions on what the allocated tips are, how they are calculated and in which cases your employer is obliged to allocate tips.

The employee should report tips by the 10th day of the month following the month that the tips were received. If the 10th day of this month is a Saturday, Sunday or a legal holiday, the tips should be reported on the next business day.

If the employee does not report tips, they are subject to a penalty equal to 50% of all taxes owed on the unreported tips. However, if the employee shows a reasonable cause for not reporting tips to their employer and provides a supporting statement, they can avoid the penalty.

Additional information and instructions for completing the IRS Form 4070 can be found in the IRS Publication 531, issued in 2018.

How to Fill up Form 4070?

  1. 1 to 3. Self-explanatory;
  2. A month or a shorter period in which tips were received. Enter the dates of the beginning and end of the time period you received the reported tips;
  3. Item 1, Cash tips received. Enter the amount you received in tips in cash during the reported time period;
  4. Item 2, Credit and debit card tips received. Enter the amount of tips you received from customers credit and debit cards;
  5. Item 3, Tips paid out. Enter the amounts you paid to other employees;
  6. Item 4, Net tips. Add numbers from Items 1 and 2, subtract the number from Item 3 from this sum, enter the number you got;
  7. Sign and date the report.
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