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
A food or beverage operation is any business activity
which provides food or beverages for consumption on the
premises, other than fast food operations. An operation is a
fast food operation only if its customers order, pick up, and
pay for food or beverages at a counter or window and then
For the latest information about developments related to
carry the food or beverages to another location (either on or
Form 8027 and its instructions, such as legislation enacted
off the premises). Some people call food or beverage
after they were published, go to
operations venues, stores, rooms, outlets, or cost centers.
If you provide food or beverages at more than one
You must check one of the “Yes” or “No” boxes under
location, the activity at each separate location is considered
employer's name and address to indicate whether or not the
to be a separate food or beverage operation. You could also
establishment accepts credit cards, debit cards, or other
have more than one food or beverage operation within a
charges. If the “Yes” box is checked, lines 1 and 2 of Form
single building. Each activity conducted within a single
8027 must be completed. Also see the instructions for lines 1
building is treated as a separate location if the customers of
the activity, while being provided with food or beverages,
You can complete the optional Worksheet for Determining
occupy an area separate from that occupied by customers of
if You Must File Form 8027 for Calendar Year 2015, later, to
other activities and the gross receipts from the activity are
determine if you must file Form 8027.
You may want to use the Employer's Optional Worksheet
Generally, tipping isn't considered customary in a
for Tipped Employees, later, as a means of determining if
cafeteria-style operation or if at least 95% of total sales (other
your employees are reporting all of their tip income to you.
than carryout) had a service charge of 10% or more. See
Electronic filing. If you are required to file 250 or more
Regulations section 31.6053-3(j)(7) and (18) for more
Forms 8027, you must file electronically. See Pub. 1239 for
information. If tipping isn't considered customary, the food or
beverage operation is not a large food or beverage
Worksheet for Determining if You Must File
Purpose of Form
Form 8027 for Calendar Year 2015
Employers must annually report to the IRS receipts and tips
You can complete the optional worksheet to determine if you
from their large food or beverage establishments. Employers
had more than 10 employees on a typical business day
use Form 8027 to report that information. In addition,
during 2014 and, therefore, must file Form 8027 for 2015. It is
employers use Form 8027 to determine allocated tips for
the average number of employee hours worked on a
typical business day that determines whether or not you
employed more than 10 employees. Completing this
These instructions give you some background information
worksheet is only for the employer's information (don't send it
about Form 8027. They tell you who must file Form 8027,
to the IRS).
when and where to file, and how to fill Form 8027 out line by
You must consider the following when completing the
All employees receiving $20 or more a month in tips
Include employees at all of your food or beverage
must report 100% of their tips to their employer.
operations, even if an individual operation has fewer than 10
Who Must File
Include all employees at your food or beverage operations,
not just food or beverage employees.
You must file Form 8027 if you are an employer who
Don't include employees at fast food operations.
operates a large food or beverage establishment.
Don't apply the 10-employee test separately to each food
A large food or beverage establishment is a food or
or beverage operation.
Don't consider anyone who owns 50% or more in value of
That is located in the 50 states or in the District of
the stock of a corporation as an employee for the
10-employee test. See Regulations section 31.6053-3(j)(9)
Where tipping of food or beverage employees by
for more information.
customers is customary, and
Whose employer normally employed more than 10
employees on a typical business day during the preceding
calendar year. We call this the 10-employee test.
Oct 01, 2015
Cat. No. 61013P