Instructions For Form 8027 printable pdf download

2011

Department of the Treasury

Internal Revenue Service

Instructions for Form 8027

Employer’s Annual Information Return of

Tip Income and Allocated Tips

•

More than 10 employees who work more than 80 hours

Section references are to the Internal Revenue Code unless

were normally employed on a typical business day during

otherwise noted.

the preceding calendar year.

What’s New

Worksheet for Determining Whether

To File Form 8027

Expiration of the Attributed Tip Income Program (ATIP).

Complete the worksheet below to determine if you had more

The Attributed Tip Income Program (ATIP) is scheduled to

than 10 employees on a typical business day during 2010

expire on December 31, 2011.

and, therefore, must file Form 8027 for 2011. It is the

Reminders

average number of employee hours worked on a typical

business day that determines whether or not you employed

•

You must check one of the “Yes” or “No” boxes under

more than 10 employees.

employer’s name and address to indicate whether or not the

establishment accepts credit cards, debit cards, or other

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

charges. If the “Yes” box is checked, lines 1 and 2 of Form

during the month in 2010 with the greatest aggregate

8027 must be completed. Also see the instructions for lines

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

1 and 2.

2. Enter the number of days opened for business

•

Complete the Worksheet for Determining Whether To File

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

Form 8027 (below) to determine if you must file Form 8027.

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

•

You may want to use the Employer’s Optional Worksheet

during the month in 2010 with the least aggregate

for Tipped Employees, later, as a means of determining if

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

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

4. Enter the number of days opened for business

•

Electronic filing. If you file 250 or more Forms 8027, you

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

must file the returns electronically. See Pub. 1239,

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

Specifications for Filing Form 8027, Employer’s Annual

Information Return of Tip Income and Allocated Tips,

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

Electronically, for more information.

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

you must file Form 8027 for 2011. . . . . . . . . . . . . . .

General Instructions

Note. The filing requirement (more than 10 employees) is

based on the total of all employees who provided services in

Purpose of Form

connection with the provision of food and beverages at the

Form 8027 is used by large food or beverage

establishment, not just the number of directly tipped

establishments when the employer is required to make

employees. Include employees such as waitstaff, bussers,

annual reports to the IRS on receipts from food or beverage

bartenders, seat persons, wine stewards, cooks, and kitchen

operations and tips reported by employees.

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

information.

All employees receiving $20 or more a month in tips

must report 100% of their tips to their employer.

TIP

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 determining whether the establishment

Who Must File

normally employs more than 10 individuals.

If you are an employer who operates a large food or

New large food or beverage establishment. File Form

beverage establishment, you must file Form 8027. If you

8027 for a new large food or beverage establishment if,

own more than one establishment, you must file Form 8027

during any 2 consecutive calendar months, the average

for each one. There may be more than one establishment

number of hours worked each business day by all

(business activity providing food or beverages) operating

employees is more than 80 hours. To figure the average

within a single building, and, if gross receipts are recorded

number of employee hours worked each business day

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

during a month, divide the total hours all employees worked

during the month by the number of days the establishment

A return is required only for establishments in the 50

was open for business. After the test is met for 2

states and the District of Columbia.

consecutive months, you must file a return covering the rest

If you are required to report for more than one

of the year, beginning with the next payroll period.

establishment, you must complete and file Form

Exceptions To Filing

8027-T, Transmittal of Employer’s Annual

CAUTION

Information Return of Tip Income and Allocated Tips, with

A return is not required for:

Forms 8027.

•

Establishments operated for less than 1 month in

A large food or beverage establishment is one to which

calendar year 2011.

•

all of the following apply.

Fast food restaurants and operations where tipping is not

•

Food or beverage is provided for consumption on the

customary such as cafeterias or operations where 95% of

premises.

the total sales are carryout sales or sales with a service

•

Tipping is a customary practice.

charge of 10% or more.

Oct 11, 2011

Cat. No. 61013P

Instructions For Form 8027

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