SECTION 3. MODIFICATION TO

REV. PROC. 2007-32

Sections 4.03 and 4.04 of Revenue Procedure 2007-32 are modified, and as modified these sections read in their entirety as follows:

.03 In general, a Gaming Industry Tip Compliance Agreement shall be for a term of five years. For new properties and for properties that do not have a prior agreement with the Service, however, the initial term of the Agreement may be for a shorter period.

.04 A Gaming Industry Tip Compliance Agreement may be renewed for additional terms of up to five years, in accordance with Section IX of the model Gaming Industry Tip Compliance Agreement. Beginning not later than six months prior to the termination date of a Gaming Industry Tip Compliance Agreement, the Service and the employer shall commence discussions as to any appropriate revisions to the agreement, including any appropriate revisions to the tip rates described in Section VIII of the model Gaming Industry Tip Compliance Agreement. In the event that the Service and the employer have not reached final agreement on the terms and conditions of a renewal agreement, the parties may, by mutual agreement, extend the existing agreement for an appropriate time to finalize and execute a renewal agreement.