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.

General Instructions

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

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

Items To Note

you are required to file Form 8027 for 2002. . . . . . . .

•

Check one of the “Yes” or “No” boxes under employer’s name and

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

address to indicate whether or not the establishment accepts credit

total of all employees who provided services in connection with the

cards or other credit arangements. If the “Yes” box is checked, lines 1

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

and 2 of Form 8027 must be completed. Also see the instructions for

number of directly tipped employees. Include employees such as

lines 1 and 2 on page 3.

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

Complete the Worksheet for Determining Whether To File Form

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

8027 (below) to determine if you are required to file Form 8027.

•

information.

You may want to use the Employer’s Optional Worksheet for

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

Tipped Employees on page 4 as a means of checking to see if your

corporation that runs the establishment is not considered an employee

employees are reporting all of their tip income to you.

when determining whether the establishment normally employs more

Purpose of Form

than 10 individuals.

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

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

new 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

TIP

report 100% of their tips to their employer.

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

of the year, beginning with the next payroll period.

Who Must File

Exceptions To Filing

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

A return is not required for:

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

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Establishments operated for less than 1 month in calendar year 2002.

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

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Fast food restaurants and operations where tipping is not customary

more than one establishment (business activity providing food or

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

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

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

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

When To File

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

District of Columbia.

File Form 8027 (and Form 8027-T when filing more than one Form

8027) by February 28, 2003. However, the due date if you file

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

electronically (not by magnetic media) is March 31, 2003.

you must complete and file Form 8027-T, Transmittal of

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

Employer’s Annual Information Return of Tip Income and

CAUTION

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

Allocated Tips, with Forms 8027.

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

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

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

following apply:

file is necessary, but not later than February 28, 2003.

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Food or beverage is provided for consumption on the premises.

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Where To File

Tipping is a customary practice.

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

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

normally employed on a typical business day during the preceding

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

calendar year.

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

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

Worksheet for Determining Whether

Specifications for filing. Get the Nov. 2000 revision of Pub. 1239,

To File Form 8027

Specifications for Filing Form 8027, Employer’s Annual Information

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

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

employees on a typical business day during 2001 and, therefore, are

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

required to file Form 8027 for 2002. It is the average number of

a waiver from magnetic media reporting because of undue hardship.

employee hours worked on a typical business day that determines

Penalties

whether or not you employed more than 10 employees.

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

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

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

during the month in 2001 with the greatest aggregate

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

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

attach an explanation to the return to show reasonable cause.

2. Enter the number of days opened for business during

You may be charged penalties for each failure to —

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Timely file an information return including failure to file on magnetic

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

media, if required.

•

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

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

during the month in 2001 with the least aggregate

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

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

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

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

4. Enter the number of days opened for business during

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Include correct information on a return or statement. This penalty

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

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

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

incorrect information.

Cat. No. 61013P

Instructions For Form 8027

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