Department of the Treasury
Internal Revenue Service
Instructions for Form 8027
Employer’s Annual Information
Return of Tip Income and Allocated Tips
(Section references are to the Internal Revenue Code unless otherwise noted.)
Paperwork Reduction Act Notice.—We ask for the
A return is not required for establishments operated for
information on this form to carry out the Internal Revenue
less than 1 month in any calendar year.
laws of the United States. You are required to give us the
A return is not required for cafeterias or fast food
information. We need it to ensure that you are complying
restaurants where tipping is not customary.
with these laws and to allow us to figure and collect the
Note: If you are required to report for more than one
right amount of tax.
establishment, you must complete and attach Form
The time needed to complete and file these forms will
8027-T, Transmittal of Employer’s Annual Information
vary depending on individual circumstances. The
Return of Tip Income and Allocated Tips to the Forms
estimated average times are:
New Large Food or Beverage Establishment.—You
must file Form 8027 for a new large food or beverage
establishment if, during any 2 consecutive calendar
5 hr., 44 min.
months, the average number of hours worked each
Learning about the
business day by all employees is more than 80 hours. To
law or the form
figure the average number of employee hours worked
each business day during a month, divide the total hours
all employees worked during the month by the number of
Preparing and sending
the form to the IRS
days the establishment was open for business. After the
test is met for 2 consecutive months, you must file a
If you have comments concerning the accuracy of
return covering the rest of the year, beginning with the
these time estimates or suggestions for making these
next payroll period.
forms more simple, we would be happy to hear from you.
You can write to both the Internal Revenue Service,
When To File.—File Form 8027 by March 1, 1993.
Washington, DC 20224, Attention: IRS Reports Clearance
Where To File.—File with the Internal Revenue Service
Officer, T:FP; and the Office of Management and
Center, Andover, MA 05501.
Budget, Paperwork Reduction Project (1545-0714),
Reporting on Magnetic Media.—If you are the employer
Washington, DC 20503. Do NOT send the tax forms to
and you file 250 or more Forms 8027, you must file the
either of these offices. Instead, see the instructions below
returns on magnetic media. For details, see Regulations
for information on where to file.
section 301.6011-2. Get Pub. 1239, Specifications for
Filing Form 8027, Employer’s Annual Information Return
of Tip Income and Allocated Tips, on Magnetic Tape and
- or 3
-Inch Magnetic Diskettes, for details on
Purpose of Form.—Form 8027 is used by large food or
submitting Form 8027 on magnetic media and requesting
beverage establishments when the employer is required
a waiver from magnetic media reporting because of
to make annual reports to the IRS on receipts from food
or beverage operations and tips reported by employees.
Penalties.—The law provides for a penalty if you do not
Who Must File.—If you are an employer who operates a
file Form 8027 (Form 8027-T) on time unless you can
large food or beverage establishment, you must file Form
show reasonable cause for the delay. Those filing late
8027. If you own more than one, you must file for each
(after the due date including extensions) should attach an
establishment. A large food or beverage establishment is
explanation to the return to show reasonable cause.
You may be charged penalties for each failure to—
That provides food or beverages for consumption on
Timely file an information return including failure to file
on magnetic media if required.
Where tipping is a customary practice; and
Furnish the employee’s TIN (taxpayer identification
Where there were normally more than 10 employees on
number, usually the social security number) on Form W-2,
a typical business day during the preceding calendar year.
Wage and Tax Statement.
Get Pub. 937, Employment Taxes and Information
Timely file Form W-2 and give a Form W-2 to the
Returns, for details.
A person who owns 50% or more in value of the stock
Include your TIN (taxpayer identification number, usually
of a corporation that runs the establishment is not
the employer identification number) on any return,
considered an employee when determining whether the
statement, or document.
establishment normally employs more than 10 individuals.
Include correct information on a return or statement.
A return is required only for establishments in the 50
This penalty applies to the omission of information as well
states and the District of Columbia.
as the inclusion of incorrect information.
Cat. No. 61013P