Instructions For Form 8027 printable pdf download

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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.

Note: The filing requirement (more than 10 employees) is based on the

General Instructions

total of all employees who provided services in connection with the

provision of food and beverages at the establishment, not just the

number of directly tipped employees. Include employees such as

Items To Note

waitstaff, bussers, bartenders, seat persons, wine stewards, cooks, and

kitchen help. See Regulations section 31.6053–3(j)(10) for more

Complete the new worksheet under Who Must File below if you are

information.

unsure about your requirement for filing Form 8027.

An optional worksheet is provided on page 4 as a means of checking

A person who owns 50% or more in value of the stock of a corporation

that runs the establishment is not considered an employee when

to see if your employees are reporting all of their tip income to you.

determining whether the establishment normally employs more than 10

individuals.

Purpose of Form

New large food or beverage establishment. File Form 8027 for a new

Form 8027 is used by large food or beverage establishments when the

large food or beverage establishment if, during any 2 consecutive

employer is required to make annual reports to the IRS on receipts from

calendar months, the average number of hours worked each business

food or beverage operations and tips reported by employees.

day by all employees is more than 80 hours. To figure the average

number of employee hours worked each business day during a month,

All employees receiving $20.00 or more a month in tips must

divide the total hours all employees worked during the month by the

report 100% of their tips to their employer.

TIP

number of days the establishment was open for business. After the test

is met for 2 consecutive months, you must file a return covering the rest

Who Must File

of the year, beginning with the next payroll period.

If you are an employer who operates a large food or beverage

Exceptions To Filing

establishment, you must file Form 8027. If you own more than one

establishment, you must file Form 8027 for each one. There may be

A return is not required for:

more than one establishment (business activity providing food or

Establishments operated for less than 1 month in calendar year 2000.

beverages) operating within a single building, and, if gross receipts are

Fast food restaurants and operations where tipping is not customary

recorded separately, each activity is required to file a Form 8027.

such as cafeterias or operations where 95% of the total sales are

A return is required only for establishments in the 50 states and the

carryout sales or sales with a service charge of 10% or more.

District of Columbia.

When To File

If you are required to report for more than one establishment, you

must complete and file Form 8027-T, Transmittal of Employer's

File Form 8027 (and Form 8027-T) by February 28, 2001. However, the

Annual Information Return of Tip Income and Allocated Tips, with

CAUTION

due date if you file electronically (not by magnetic media) is April 2, 2001.

Forms 8027.

Extension of time to file. Filers of Form 8027 submitted on paper, on

A large food or beverage establishment is one to which all of the

magnetic media, or electronically may request an extension of time to file

following apply:

on Form 8809, Request for Extension of Time To File Information

Food or beverage is provided for consumption on the premises.

Returns. File Form 8809 as soon as you know an extension of time to

Tipping is a customary practice.

file is necessary, but not later than February 28, 2001.

More than 10 employees, who work more than 80 hours, were

normally employed on a typical business day during the preceding

Where To File

calendar year.

File with the Internal Revenue Service Center, Andover, MA 05501.

Worksheet for Determining Whether

Reporting on magnetic media. If you are the employer and you file

To File Form 8027

250 or more Forms 8027, you must file the returns on magnetic media

Complete the worksheet below to determine if you had more than 10

(or electronically). For details, see Regulations section 301.6011-2.

employees on a typical business day during 2000 and, therefore, are

Specification for filing. Get the 2000 revision of Pub. 1239,

required to file Form 8027. It is the average number of employee

Specifications for Filing Form 8027, Employer's Annual Information

hours worked on a typical business day that determines whether or

Return of Tip Income and Allocated Tips, Magnetically or Electronically.

not you employed more than 10 employees.

This publication provides instructions on how to file and how to request

a waiver from magnetic media reporting because of undue hardship.

1. Enter one-half of the total employee hours worked

during the month in 2000 with the greatest aggregate

gross receipts from food and beverages .........................

Penalties

2. Enter the number of days opened for business during

The law provides for a penalty if you do not file Form 8027 (and Form

the month shown in line 1 ................................................

8027-T) on time unless you can show reasonable cause for the delay.

Employers filing late (after the due date including extensions) should

3. Enter one-half of the total employee hours worked

attach an explanation to the return to show reasonable cause.

during the month in 2000 with the least aggregate gross

You may be charged penalties for each failure to—

receipts from food and beverages ...................................

Timely file an information return including failure to file on magnetic

media if required.

4. Enter the number of days opened for business during

the month shown in line 3. ...............................................

Furnish the employee's TIN (taxpayer identification number, usually

the social security number) on Form W-2, Wage and Tax Statement.

5. Divide line 1 by line 2.......................................................

Timely file Form W-2 and give a Form W-2 to the employee.

Include your EIN on any return, statement, or document.

6. Divide line 3 by line 4.......................................................

Include correct information on a return or statement. This penalty

7. Add lines 5 and 6. If line 7 is greater than 80 (hours),

applies to the omission of information as well as the inclusion of incorrect

you are required to file Form 8027 for 2000. ...................

information.

Cat. No. 61013P

Instructions For Form 8027

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