Instructions For Form 8027 (Page 3 of 6) in pdf

560 for additional information. Also include with your petition

when filing more than one Form 8027. Do not attach any

a check or money order made payable to the “United States

unrelated correspondence.

Treasury” for the amount of the user fee required for

Name and address of establishment and employer

determination letters. For the current user fee amount,

identification number. If your preprinted name, EIN, or

contact the IRS at 1-800-829-1040.

address information on Form 8027 and/or Form 8027-T is

not correct, cross out any errors and print the correct

A majority of all the directly tipped employees must

information. If Form 8027 and/or Form 8027-T does not

consent to any petition written by an employee. A “majority

have your preprinted information, type or print the name and

of employees” means more than half of all directly tipped

address of the establishment. They may be different from

employees employed by the establishment at the time the

your mailing address, as in the case of employers who have

petition is filed. Employee groups must follow the

more than one establishment. If mail is not delivered to the

procedures in Regulations section 31.6053-3(h); Pub. 531,

street address of the establishment, enter the P.O. box

Reporting Tip Income; and Rev. Proc. 86-21.

number. The employer identification number (EIN) should be

The IRS will notify you when and for how long the

the same as the number on the Forms W-2 that you give to

reduced rate is effective.

the employees and the Form 941, Employer’s QUARTERLY

Note. You must attach a copy of your “lower rate”

Federal Tax Return, that you file to report wages and taxes

determination letter from the IRS when filing a paper Form

for employees working for the establishment. Once you

8027. See Pub. 1239 for instructions on submitting a copy of

have filed a paper return, a preaddressed Form 8027 and/or

your “lower rate” determination letter from the IRS when

Form 8027-T will be sent to you annually. If you do not

filing electronically.

receive your preprinted forms, call 1-800-TAX-FORM

(1-800-829-3676) or visit IRS.gov.

Reporting Allocated Tips To

Type of establishment. Check the box (check only one

Employees

box) on the form that best describes the food or beverage

operation at this establishment:

Give each employee who has been allocated tips a Form

•

An establishment that serves evening meals only (with or

W-2 that shows the allocated amount in box 8. The form

without alcoholic beverages).

must be furnished to the employee by January 31 of the

•

An establishment that serves evening and other meals

following year. If employment ends before the end of the

(with or without alcoholic beverages).

year and the employee asks for the Form W-2, a tip

•

An establishment that serves only meals other than

allocation is not required on the early Form W-2. However,

evening meals (with or without alcoholic beverages).

you may include on the early Form W-2 the employee’s

•

An establishment that serves food, if at all, only as an

actual tip allocation or a good-faith estimate of the

incidental part of the business of serving alcoholic

allocation. Signify a good-faith estimate by writing “estimate”

beverages.

next to the allocated amount in box 8 of the Form W-2.

Employer’s name and address. Enter the name and

If no allocation was shown on the early Form W-2 or if the

address of the entity or individual whose EIN is shown

estimated allocation on the early form differs from the actual

above. Enter foreign addresses as follows: city, province or

amount by more than 5%, give the employee a new Form

state, and country. Do not abbreviate the name of the

W-2 marked “CORRECTED” with the correct information

country.

during January of the next year.

Establishment number. Enter a five-digit number to

If you allocate tips among employees by the methods

identify the individual establishments that you are reporting

described in the instructions for lines 7a through 7c, you are

under the same EIN. Give each establishment a separate

not liable to any employee if any amount is improperly

number. For example, each establishment could be

allocated. However, if the allocation shown on the

numbered consecutively, starting with 00001.

employee’s Form W-2 differs from the correct allocation by

Attributed Tip Income Program (ATIP). Check this box

more than 5%, you must adjust that employee’s allocation

for the election to participate in ATIP. You can elect to

and must review the allocable amount of all other

participate in ATIP by filing Form 8027 even if you are not

employees in the same establishment to assure that the

required to do so under current regulations. See Who Must

error did not distort any other employee’s share by more

File on page 1. If you do not meet the requirements for filing

than 5%.

Form 8027, but wish to participate in ATIP, you must check

Use the current version of Form W-2c, Corrected Wage

the ATIP box on Form 8027 to notify the IRS of your

and Tax Statement, to report the corrected allocation on a

participation in ATIP, complete lines 1 through 5, and send

previously filed Form W-2. However, if you discover the

Form 8027 to the IRS. If you have more than one

allocation error on Form W-2 after you issue it to your

establishment, you must satisfy the requirements for each

employee but before you send it to the Social Security

establishment that is going to participate.

Administration (SSA), prepare a new Form W-2 with the

To qualify, at least 20 percent of your establishment’s

correct information, and send Copy A to the SSA. Write

gross receipts from the sale of food or beverages for the

“CORRECTED” on the employee’s new copies (B, C, and

prior calendar year must come from charged receipts that

2), and furnish them to the employee. Do not write

show charged tips. Also, at least 75% of the tipped

“CORRECTED” on Copy A of Form W-2.

employees at your establishment must agree to participate

You do not need to send to the IRS separate copies of

in ATIP. You must see Rev. Proc. 2006-30, 2006-31 I.R.B.

Forms W-2 showing allocated tips. The IRS will use the

110 at

for complete

information shown on the Forms W-2 that you file with the

details on qualifications and requirements for participating in

Social Security Data Operations Center.

ATIP and notifying the IRS. Rev. Proc. 2009-53, 2009-49

Tip allocations have no effect on withholding income or

IRB 746 extended ATIP until December 31, 2011.

social security or Medicare taxes from employees’ wages.

Lines 1 Through 8

Allocated tips are not subject to withholding and are not to

be included in boxes 1, 3, 5, and 7, of Form W-2.

Credit card sales. If the credit or debit charge receipts

reflect tips, then you must enter on lines 1 and 2 the

appropriate amounts shown on the credit card or debit card

Specific Instructions

charge statements. See instructions for line 1 below.

File a separate Form 8027 for each large food or beverage

Rounding off to whole dollars. You may round off cents

establishment. Use Form 8027-T, Transmittal of Employer’s

to whole dollars on your Form 8027. If you do round to

Annual Information Return of Tip Income and Allocated Tips,

whole dollars, you must round all amounts. To round, drop

-3-

Instructions For Form 8027 Page 3

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