tipping

What is Form 8027 and how to file electronically

Form 8027 is used for food or beverage establishments where tipping is customary.

If your employees make more than $20 in tips per month, they are required to send you a document stating how much they made so you can record this on Form 8027.

They can use Form 4070 to record tips to share with you.

What is Form 8027?

Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, is a document used to record the tips your food and beverage business made throughout the year.

Keep accurate records throughout the year for Forms 4070 and receipts so you can fill out Form 8027 correctly.

The government uses the information you report on Form 8027 to verify that you withheld the correct amount of taxes from your employees’ tip income throughout the year.

Who needs to file Form 8027?

If you meet the following requirements in a food and beverage establishment, the IRS requires you to submit Form 8027:

  • That is located in the 50 states or in the District of Columbia
  • Where tipping of food or beverage employees by customers is customary
  • Whose employer normally employed more than 10 employees on a typical business day during the preceding calendar year. This

How to know if tipping is customary

Generally speaking, tipping is considered customary in non-cafeteria-style establishments.

Watch your customers and if they consistently leave a tip, you may need to file for Form 8027.

What about fast food?

Fast food is exempt from this requirement as long as tipping is not expected.

Where to electronically file Form 8027

Filing Information Returns Electronically (FIRE) can be done online.

If you are filing 250+ Form 8027s you are required to file electronically.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

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