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IRS Form 8027 Employer's Annual Information Return of Tip Income and Allocated Tips
What Is IRS Form 8027?
IRS Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips , is a fiscal instrument filed by food and beverage establishments whose employees get tips from customers on a regular basis.
Alternate Names:
- Tax Form 8027;
- Tip Reporting Form 8027.
It is important to track how much income your workers generate through tips in addition to their salaries and other types of compensation your entity offers - the tips may impact the adjustments made to their wages, bonuses they qualify for, or incentives your business decides to offer its most successful employees. In order to allow tax authorities to monitor this category of income, you must elaborate on those tips annually and show your accountability when it comes to disclosing all types of earnings your workers get.
This document was released by the Internal Revenue Service (IRS) in 2023 , making previous editions of the return obsolete. Download an IRS Form 8027 fillable version through the link below.
Check out the 8027 Series of forms to see more IRS documents in this series.
Who Has to File Form 8027?
Prepare and submit Tax Form 8027 if your business belongs to the food service industry and your workers get tips from the customers. It is the responsibility of the employer to inform tax organs about the tips the employees received and explain how they were distributed among the workers to demonstrate the amount of taxes deducted from the compensation the employees get was accurate. The workers may provide you with the details of their tip income with the IRS Form 4070, Employee's Report of Tips to Employer.
Note that not all food and beverage establishments are expected to provide these details to the IRS - file Tip Reporting Form 8027 if your business is located in the United States, you employ more than ten individuals who carry out their duties regularly over the course of the tax period covered in the form, and your employees usually receive tips from people that visit your establishment. Many organizations have more than one cafe or restaurant where food and drinks are served which means all these establishments will be considered separate operations and you need to submit Form 8027 for every single one of them.
Form 8027 Instructions
Follow these Form 8027 Instructions to let the government know how much tip income your employees received:
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Check the appropriate box to confirm you are filing a modified document or this form will be the last one you submit due to the upcoming closure of the business . List the details of the establishment - its name, address, and number (if you have multiple establishments under your control, you get to assign them with numbers to avoid confusion).
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Enter the name of the employer, your correspondence address, and the employer identification number . Put a tick in the box that describes the type of your establishment - for instance, you are serving evening meals or alcoholic drinks. Specify whether the place accepts cards or uses other electronic payment methods - an affirmative response will require you to state how many tips were included on receipts and how many receipts were issued during the year.
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Indicate the amount of service charges that were below 10% if they were included in the bills you gave to customers and later allocated to your workers . Record the tips your employees reported to you whether they got them directly from people coming to the establishment or received them from other employees in line with the distribution system you set up.
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Write down how many receipts were generated due to the serving of food and drinks and use the formulas and rates in the document to elaborate on the tip allocation . Specify the tip distribution method you adhere to and point out how many employees received the tips directly. Certify the paperwork by signing it, adding your title, and indicating the actual date.
When Is Form 8027 Due?
The Form 8027 due date is February 29 of the year that comes after the calendar year outlined in writing. Taxpayers that prefer to submit the information online have to comply with different Form 8027 filing requirements that give them more time to prepare the documentation - the deadline for them is March 31. It is possible to request more time to complete the instrument - once you realize you will not be able to submit the form on time, file IRS Form 8809, Application for Extension of Time to File Information Returns. There is no specific date to keep in mind when requesting an extension but you cannot send Form 8809 before January 1 and after the deadline that applies in your case.
Where to Mail Form 8027?
The IRS Form 8027 mailing address is the same for all businesses no matter where their establishment is located - Department of the Treasury, IRS, Ogden, UT 84201 . You have an option to file the paperwork online, and some employers are obliged to do it - if you have ten or more Forms 8027 to submit, e-filing is mandatory for you. Note that if there are two or more forms to mail, you need to attach IRS Form 8027-T, Transmittal of Employer's Annual Information Return of Tip Income and Allocated Tips, to them. Taxpayers that previously submitted IRS Form 8508, Application for a Waiver From Electronic Filing of Information Returns, must enclose a copy of this instrument as well.
