Employers who operate a large food or beverage establishment must file Form 8027 to report annual receipts and tips from customers, as well as allocated tips for tipped employees. This article provides an overview of who must file, when and where to file, and provides helpful worksheets to make the filing process easier.
What is Form 8027?
Form 8027 is an IRS form employers must file annually to report both their receipts and tips from their large food or beverage establishments. In order to meet the 10-employee test, businesses must include all employees in all their food or beverage operations in the calculation. Depending on the amount of gross receipts from the operation the employer may be required to file multiple forms and submit them in establishment number order with Form 8027-T. Failure to do so may result in penalties.
IRS Form 8027 – Who Needs to Fill It Out?
Employers who operate a large food or beverage establishment (with more than 10 employees working an average of 80+ hours a day) must file IRS Form 8027 annually in order to report the amount of receipts and tips from the establishment. This includes all employees at the establishment- food or beverage, coat check, parking valet, managers, etc. All employees receiving $20 or more in cash tips a month must also report to the employer 100% of the tips received in a written report. Electronic filing is also encouraged on the form, with an extension/waiver available as needed. Penalties may be imposed for not filing the form correctly and on time.
Step-by-Step: Form 8027 Instructions For Filling Out the Document
Form 8027 is required from employers who operate a large food or beverage establishment, as it is used to report tips and receipts to the IRS. Employers must consider all employees at each of their food or beverage operations, not just food or beverage employees, for the 10-employee test. In addition, employers must count all gross receipts from food and beverages, including sales charged to hotel rooms and complimentary items. Employers must file Form 8027 by February 28th, and failing to do so can result in penalties. Electronic filing is required for many, and an extension can be requested via Form 8809.
Below, we present a table that will help you understand how to fill out Form 8027.
| Form 8027 | Instructions |
|---|---|
| Form 8027 is required from employers who operate a large food or beverage establishment, as it is used to report tips and receipts to the IRS. |
|
Do You Need to File Form 8027 Each Year?
If you are an employer operating a large food or beverage establishment where tipping of employees by customers is customary, you must file Form 8027 each year. This must be done separately for each food or beverage operation you own, even if one particular operation did not employ more than 10 employees on a typical business day during the preceding year. Utilize a worksheet to determine if you need to file Form 8027 and file it by February 28th of the current year (March 31st if filing electronically). Failure to do so may result in penalties. Be sure to include all employees at your food or beverage operations, not just food or beverage employees, when considering the 10-employee test.
Download the official IRS Form 8027 PDF
On the official IRS website, you will find a link to download Form 8027. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8027
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