Form 8027 attachments if filing on paper. If applicable,
1. Enter one-half of the total employee hours worked
attach a copy of your timely filed Form 8809, a copy of your
during the month in 2015 with the greatest
aggregate gross receipts from food and
approved waiver (Form 8508) from filing Form 8027
electronically, and a copy of your “lower rate” determination
. . . . . . . . . . . . . . . . . . . . . . . .
letter from the IRS. Don't attach 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're the employer
3. Enter one-half of the total employee hours worked
and you're required to file 250 or more Forms 8027, you must
during the month in 2015 with the least aggregate
file the returns electronically. See Pub. 1239 for information
gross receipts from food and beverages.
on filing Form 8027 electronically.
. . . . .
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
6. Divide line 3 by line 4.
. . . . . . . . . . . . . . . . .
cause for the delay. In addition, if you don't complete an
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),
Form W-2, Wage and Tax Statement, for each directly tipped
you must file Form 8027 for 2016.
. . . . . . . . .
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.
individual operation, when considered separately, doesn't
have more than 10 employees on a typical business day.
Gross receipts include all receipts from the provision of food
If you're required to report for more than one establishment,
or beverages (other than nonallocable receipts, see definition
you must complete and file Form 8027-T, Transmittal of
below) from cash sales, charge receipts, charges to a hotel
Employer's Annual Information Return of Tip Income and
room (excluding tips charged to the hotel room if your
Allocated Tips, with Forms 8027. Attach Forms 8027 in
accounting procedures allow these tips to be separated), and
establishment number order (lowest to highest). For more
the retail value of complimentary food or beverages served to
information on establishment numbers, see Establishment
customers as explained below.
New business. You're a new business if you opened a food
Also include charged tips in gross receipts, but only to the
or beverage operation during the year and you didn't operate
extent that you reduced your cash sales by the amount of
any food or beverage operations during the preceding
any cash you paid to tipped employees for any charged tips
calendar year. File Form 8027 for a new food or beverage
due them. However, if you didn't reduce cash sales for
operation if, during any 2 consecutive calendar months, the
charged tips paid out to employees, don't include those
average number of hours worked each business day by all
charged tips in gross receipts. Don't include state or local
employees is more than 80 hours. To figure the average
taxes in gross receipts.
number of employee hours worked each business day during
Remind all directly and indirectly tipped employees
a month, divide the total hours all employees worked during
to include all charged tips and all cash tips received
the month by the number of days the operation was open for
in the tip amount that they must report to you.
business. After the test is met for 2 consecutive months, you
must file a return covering the rest of the year, beginning with
Nonallocable receipts. These are receipts for carryout
the next payroll period.
sales and receipts with a service charge added of 10% or
When To File
more. Nonallocable receipts generally include all sales on
which tipping isn't customary.
File Form 8027 (and Form 8027-T when filing more than one
Complimentary items. Food or beverages served to
Form 8027) by February 28, 2017. However, if you file
customers without charge must be included in gross receipts
electronically, the due date is March 31, 2017.
if (a) tipping for providing them is customary at the
Extension of time to file. Filers of Form 8027 submitted on
establishment, and (b) they are provided in connection with
paper or electronically may request an extension of time to
an activity that is engaged in for profit and whose receipts
file on Form 8809. File Form 8809 as soon as you know an
wouldn't be included in the amount on line 5 of Form 8027.
extension of time to file is necessary, but not before January
For example, you would have to include in gross receipts
1 of the filing year, and not later than February 28, 2017
the retail value of the complimentary drinks served to
(March 31, 2017, if you file Forms 8027 electronically).
customers in a gambling casino because tipping is
Where To File
customary, the gambling casino is an activity engaged in for
profit, and the gambling receipts of the casino aren't included
Mail Form 8027 to:
in the amount on line 5.
Department of the Treasury
However, you wouldn't have to include the retail value of
Internal Revenue Service
complimentary hors d'oeuvres at your bar or a complimentary
Cincinnati, OH 45999
dessert served to a regular patron of your restaurant in gross
Instructions for Form 8027 (2016)