Instructions For Form 8027 (2015) (Page 2 of 8) in pdf

Note. When filing a paper Form 8027, attach a copy of your

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

timely filed Form 8809, a copy of your approved waiver (Form

during the month in 2014 with the greatest

8508) from filing Form 8027 electronically, and a copy of your

aggregate gross receipts from food and

“lower rate” determination letter from the IRS. Don't attach

beverages.

. . . . . . . . . . . . . . . . . . . . . . . .

any other documents.

2. Enter the number of days opened for business

during the month shown in line 1.

Reporting and filing electronically. If you are the

. . . . . . . . . .

employer and you are required to file 250 or more Forms

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

8027, you must file the returns electronically. See Pub. 1239

during the month in 2014 with the least aggregate

for information on filing Form 8027 electronically.

gross receipts from food and beverages.

. . . . .

Penalties

4. Enter the number of days opened for business

during the month shown in line 3.

. . . . . . . . . .

The law provides for a penalty if you don't file Form 8027

5. Divide line 1 by line 2.

. . . . . . . . . . . . . . . . .

(and Form 8027-T) on time unless you can show reasonable

cause for the delay. In addition, if you don't complete an

6. Divide line 3 by line 4.

. . . . . . . . . . . . . . . . .

accurate Form 8027, you won't be able to correctly prepare

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

Forms W-2, Wage and Tax Statement, for each directly

you must file Form 8027 for 2015.

. . . . . . . . .

tipped employee for whom a tip allocation was required to be

made. You may be charged penalties for each failure to:

Timely file a correct information return (Forms 8027 and

If your answer on line 7 of the worksheet is more than 80

W-2) including failure to file electronically if required; and

hours, then you meet the 10-employee test.

Timely furnish a correct Form W-2 to the employee.

If you meet the 10-employee test, file a separate

For more information on penalties for untimely or incorrect

Form 8027 for each food or beverage operation

Forms W-2 or 8027, see Pub. 1239 and the General

where tipping is customary. This is true even if an

Instructions for Forms W-2 and W-3.

CAUTION

individual operation, when considered separately, doesn't

Gross Receipts

have more than 10 employees on a typical business day.

Gross receipts include all receipts (other than nonallocable

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

receipts, see definition below) from cash sales, charge

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

receipts, charges to a hotel room (excluding tips charged to

Employer's Annual Information Return of Tip Income and

the hotel room if your accounting procedures allow these tips

Allocated Tips, with Forms 8027. Attach Forms 8027 in

to be separated), and the retail value of complimentary food

establishment number order (lowest to highest). For more

or beverages served to customers as explained below.

information on establishment numbers, see Establishment

Also include charged tips in gross receipts, but only to the

Number, later.

extent that you reduced your cash sales by the amount of

New business. You are a new business if you opened a

any cash you paid to tipped employees for any charged tips

food or beverage operation during the year and you didn't

due them. However, if you didn't reduce cash sales for

operate any food or beverage operations during the

charged tips paid out to employees, don't include those

preceding calendar year. File Form 8027 for a new food or

charged tips in gross receipts. Don't include state or local

beverage operation if, during any 2 consecutive calendar

taxes in gross receipts.

months, the average number of hours worked each business

Remind all directly and indirectly tipped employees

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

to include all charged tips and all cash tips received

TIP

average number of employee hours worked each business

in the tip amount that they must report to you.

day during a month, divide the total hours all employees

worked during the month by the number of days the

Nonallocable receipts. These are receipts for carryout

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

sales and receipts with a service charge added of 10% or

consecutive months, you must file a return covering the rest

more. Nonallocable receipts generally include all sales on

of the year, beginning with the next payroll period.

which tipping is not customary.

When To File

Complimentary items. Food or beverages served to

customers without charge must be included in gross receipts

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

if (a) tipping for providing them is customary at the

Form 8027) by February 29, 2016. However, if you file

establishment, and (b) they are provided in connection with

electronically, the due date is March 31, 2016.

an activity that is engaged in for profit and whose receipts

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

wouldn't be included in the amount on line 5 of Form 8027.

paper or electronically may request an extension of time to

For example, you would have to include in gross receipts

file on Form 8809. File Form 8809 as soon as you know an

the retail value of the complimentary drinks served to

extension of time to file is necessary, but not later than

customers in a gambling casino because tipping is

February 29, 2016 (March 31, 2016 if you file Forms 8027

customary, the gambling casino is an activity engaged in for

electronically).

profit, and the gambling receipts of the casino aren't included

Where To File

in the amount on line 5.

However, you wouldn't have to include the retail value of

Mail Form 8027 to:

complimentary hors d'oeuvres at your bar or a complimentary

Department of the Treasury

dessert served to a regular patron of your restaurant in gross

Internal Revenue Service

receipts because the receipts of the bar or restaurant would

Cincinnati, OH 45999

be included in the amount on line 5. You wouldn't have to

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Instructions For Form 8027 (2015) Page 2

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