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Forma 8027 Inštrukcie

Pokyny pre formulár 8027, Zamestnávatelia výročné informácie Návrat Tip príjmov a Allocated tipy

Rev. 2023

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  • Forma 8027 - Zamestnávatelia výročné informácie Návrat Tip príjmov a Allocated tipy
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Department of the Treasury  
Internal Revenue Service  
2021  
Instructions for Form 8027  
Employer's Annual Information Return of Tip Income and Allocated Tips  
Section references are to the Internal Revenue Code  
unless otherwise noted.  
for 3 years after the due date of the return or statement to  
which they relate.  
Certified professional employer organizations  
(CPEOs). The Stephen Beck, Jr., ABLE Act of 2014  
required the IRS to establish a voluntary certification  
program for professional employer organizations (PEOs).  
PEOs handle various payroll administration and tax  
reporting responsibilities for their business clients and are  
typically paid a fee based on payroll costs. To become  
and remain certified under the certification program,  
CPEOs must meet various requirements described in  
sections 3511 and 7705 and related published guidance.  
A CPEO is generally treated for employment tax purposes  
as the employer of any individual who performs services  
for a customer of the CPEO and is covered by a contract  
described in section 7705(e)(2) between the CPEO and  
the customer (CPEO contract), but only for wages and  
other compensation paid to the individual by the CPEO.  
For purposes of Form 8027, the customer for whom a  
work site employee performs services (that is, the  
employer who operates a large food or beverage  
establishment) is considered the employer and must file  
Form 8027. The CPEO must furnish to the customer any  
information necessary to complete this form.  
For more information about CPEOs, go to IRS.gov/  
CPEO. Also see Rev. Proc. 2017-14, 2017-3 I.R.B. 426,  
Future Developments  
For the latest information about developments related to  
Form 8027 and its instructions, such as legislation  
enacted after they were published, go to IRS.gov/  
Reminders  
You must check either the “Yes” or “No” box under the  
employer's name and address to indicate whether or not  
the establishment accepts credit cards, debit cards, or  
other charges. If the “Yes” box is checked, lines 1 and 2 of  
Form 8027 must be completed, and you must enter an  
amount, even if zero, on lines 1 and 2. Also see the  
instructions for lines 1 and 2.  
You can complete the optional Worksheet for  
2021, later, to determine if you must file Form 8027.  
You may want to use the Employer's Optional  
Worksheet for Tipped Employees, later, as a means of  
determining if your employees are reporting all of their tip  
income to you.  
For information about the credit for employer social  
security and Medicare taxes paid on certain employee  
tips, see Form 8846. Also see section 6 of Pub. 15 for  
more information about tips.  
You can advise your employees to see Pub. 531 or use  
the IRS Interactive Tax Assistant at IRS.gov/TipIncome for  
help in determining if their tip income is taxable and for  
information about how to report tip income.  
General Instructions  
Purpose of Form  
Employers must annually report to the IRS receipts and  
tips from their large food or beverage establishments.  
Employers use Form 8027 to report that information. In  
addition, employers use Form 8027 to determine  
allocated tips for tipped employees.  
Electronic filing. If you're required to file 250 or more  
Forms 8027, you must file the forms electronically.  
Information returns are filed electronically through the  
Filing Information Returns Electronically (FIRE) system.  
Go to IRS.gov/FIRE for more information. See Pub. 1239  
for more information about filing Form 8027 electronically.  
We encourage you to file electronically even if you're not  
required to file 250 or more Forms 8027.  
These instructions give you some background  
information about Form 8027. They tell you who must file  
Form 8027, when and where to file it, and how to fill it out  
line by line.  
The Taxpayer First Act of 2019, enacted July 1,  
2019, authorized the IRS and Treasury to issue  
!
All employees receiving $20 or more a month in  
CAUTION  
regulations that could reduce the 250 return limit  
cash tips must report 100% of their tips to you in a  
written report. Cash tips include tips paid by cash,  
TIP  
to 100 and then to 10, potentially starting with respect to  
2020 returns required to be filed in 2021. If those  
regulations are issued and effective for 2021 tax year  
returns, we will post an article at IRS.gov/Form8027  
explaining the change. Otherwise, the 250 return  
threshold will apply for tax year 2021, as reflected in these  
instructions.  
check, debit card, and credit card. The report should  
include tips you paid over to the employee for charge  
customers, tips the employee received directly from  
customers, and tips received from other employees under  
any tip-sharing arrangement.  
Who Must File  
Recordkeeping. You must keep records to substantiate  
any information returns, employer statements to  
You must file Form 8027 if you're an employer who  
operates a large food or beverage establishment.  
employees, or tip allocations. The records must be kept  
Oct 26, 2021  
Cat. No. 61013P  
   
A large food or beverage establishment is a food or  
beverage operation:  
Food or beverage employee. A food or beverage  
employee is an employee who provides services in  
connection with the provision of food or beverages. These  
employees include, but aren't limited to, waitstaff,  
bussers, bartenders, persons in charge of seating (such  
as a maitre d'), wine stewards, cooks, and kitchen help.  
Examples of employees who aren't food or beverage  
employees include, but aren't limited to, coat check  
persons, bellhops, and doormen.  
That is located in the 50 states or in the District of  
Columbia,  
Where tipping of food or beverage employees by  
customers is customary, and  
Whose employer normally employed more than 10  
employees on a typical business day during the preceding  
calendar year. We call this the 10-employee test. To  
determine if you meet the 10-employee test, see  
Worksheet for Determining if You Must File  
Form 8027 for Calendar Year 2021  
Food or beverage operation. A food or beverage  
operation is any business activity that provides food or  
beverages for consumption on the premises, other than  
fast food operations. An operation is a fast food operation  
only if its customers order, pick up, and pay for food or  
beverages at a counter or window and then carry the food  
or beverages to another location (either on or off the  
premises). Some people call food or beverage operations  
venues, stores, rooms, outlets, or cost centers.  
You can complete the optional worksheet to determine if  
you had more than 10 employees on a typical business  
day during 2020 and, therefore, must file Form 8027 for  
2021. It is the average number of employee hours  
worked on a typical business day that determines  
whether or not you employed more than 10 employees.  
Completing this worksheet is only for the employer's  
information (don't send it to the IRS).  
You must consider the following when completing the  
worksheet.  
If you provide food or beverages at more than one  
location, the activity at each separate location is  
Include employees at all of your food or beverage  
considered to be a separate food or beverage operation  
and a separate Form 8027 is filed for each location. You  
could also have more than one food or beverage  
operations, even if an individual operation has fewer than  
10 employees.  
Include all employees at your food or beverage  
operation within a single building. Each activity conducted  
within a single building is treated as a separate location if  
the customers of the activity, while being provided with  
food or beverages, occupy an area separate from that  
occupied by customers of other activities and the gross  
receipts from the activity are recorded separately. For  
example, a gourmet restaurant, a coffee shop, and a  
cocktail lounge in a hotel would each be treated as a  
separate food or beverage operation if gross receipts from  
each activity are recorded separately. In addition, an  
employer may treat different activities conducted in the  
identical place at different times as separate food or  
beverage operations if the gross receipts of the activities  
at each time are recorded separately. For example, a  
restaurant may record the gross receipts from its  
operations, not just food or beverage employees.  
Don't include employees at fast food operations.  
Don't apply the 10-employee test separately to each  
food or beverage operation.  
Don't consider anyone who owns 50% or more in value  
of the stock of a corporation as an employee for the  
10-employee test. See Regulations section 31.6053-3(j)  
(9) for more information.  
1. Enter one-half of the total employee hours worked  
during the month in 2020 with the greatest  
aggregate gross receipts from food and  
beverages  
2. Enter the number of days opened for business  
during the month shown in line 1 .  
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cafeteria-style lunch operation separately from the gross  
receipts of its full-service food or beverage operations.  
3. Enter one-half of the total employee hours worked  
during the month in 2020 with the least aggregate  
gross receipts from food and beverage  
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Tipping of food or beverage employees by custom-  
ers is customary. Generally, tipping isn't considered  
customary in a cafeteria-style operation or if at least 95%  
of total sales (other than carryout) had a service charge of  
10% or more. See Regulations section 31.6053-3(j)(7)  
and (18) for more information. If tipping isn't considered  
customary, the food or beverage operation isn't a large  
food or beverage establishment. Service charges aren't  
later.  
Example. Good Food Restaurant is a soup-and-salad  
specialty business. Customers select food items at a  
buffet. They then pay and take their tray to a table. The  
restaurant employees clear the tables but may also help  
the customers if they need anything extra. Customers  
rarely leave a tip. Thus, tipping isn't customary at Good  
Food Restaurant. Therefore, Good Food Restaurant isn't  
a large food or beverage establishment and a Form 8027  
isn't required.  
4. Enter the number of days opened for business  
during the month shown in line 3  
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5. Divide line 1 by line 2  
6. Divide line 3 by line  
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7. Add lines 5 and 6. If line 7 is greater than 80 (hours),  
you must file Form 8027 for 2021  
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If your answer on line 7 of the worksheet is more than  
80 hours, then you meet the 10-employee test.  
Example. Oak Co. operates five restaurants in the  
Midwest. Those working at the restaurants include food or  
beverage employees, coat check employees, and parking  
valet employees. Oak Co. must count all the employees  
working at all five of Oak Co.'s restaurants, and not just  
the food or beverage employees, to determine the  
-2-  
Instructions for Form 8027 (2021)  
 
10-employee test. Oak Co. must not figure the  
10-employee test separately for each operation.  
know an extension of time to file is necessary, but not  
before January 1 of the filing year, and not later than  
February 28, 2022 (March 31, 2022, if you file Forms 8027  
electronically).  
Example. Rose Casino includes a fine dining  
restaurant, a café, a bar, and a dinner showroom. Rose  
Casino must count all employees at all these food or  
beverage operations for the 10-employee test, including  
the managers of the operations as well as the food or  
beverage employees. Rose Casino must not figure the  
10-employee test separately for each operation.  
Where To File  
If you file a paper return, mail Form 8027 to:  
Department of the Treasury  
Internal Revenue Service  
Ogden, UT 84201  
If you meet the 10-employee test, file a separate  
Form 8027 for each food or beverage operation  
!
CAUTION  
where tipping is customary. This is true even if an  
Form 8027 attachments if filing on paper. If  
applicable, attach a copy of your timely filed Form 8809,  
and a copy of your “lower rate” determination letter from  
the IRS. If you filed Form 8508, Request for Waiver From  
Filing Information Returns Electronically, attach a copy of  
the approved waiver that you received. Don't attach any  
other documents.  
Reporting and filing electronically. You may be  
required to file Forms 8027 electronically. For more  
information, see Electronic filing, earlier.  
individual operation, when considered separately, doesn't  
have more than 10 employees on a typical business day.  
Example. Continuing with the previous example, Rose  
Casino meets the 10-employee test. All four of the food or  
beverage operations meet the other tests, as they are  
located in the 50 states and tipping of food or beverage  
employees by customers is customary at each of the  
operations. Each of the four food or beverage activities  
record gross receipts separately and customers of each  
activity occupy an area separate from that occupied by  
customers of the other activities. Because each activity  
qualifies as a large food or beverage establishment, Rose  
Casino is required to file four Forms 8027 (a separate  
Form 8027 for the restaurant, the café, the bar, and the  
showroom) even if an individual activity has less than 10  
employees.  
Penalties  
The law provides for a penalty if you don't file Form 8027  
(and Form 8027-T, if applicable) on time unless you can  
show reasonable cause for the delay. In addition, if you  
don't complete an accurate Form 8027, you won't be able  
to correctly prepare Form W-2, Wage and Tax Statement,  
for each directly tipped employee for whom a tip allocation  
was required to be made. You may be charged penalties  
for each failure to:  
If you're required to report for more than one  
establishment and you file Forms 8027 on paper,  
you must complete and file Form 8027-T,  
TIP  
Timely file a correct information return (Forms 8027 and  
Transmittal of Employer's Annual Information Return of  
Tip Income and Allocated Tips, with Forms 8027. Attach  
Forms 8027 in establishment number order (lowest to  
highest). For more information on establishment numbers,  
see Establishment Number, later. Form 8027-T isn't filed  
with electronically filed Forms 8027.  
W-2), including failure to file electronically, if required; and  
Timely furnish a correct Form W-2 to the employee.  
For more information on penalties for untimely or  
incorrect Forms W-2 or 8027, see the penalties sections  
in the General Instructions for Forms W-2 and W-3, and  
the General Instructions for Certain Information Returns.  
New business. You're a new business if you opened a  
food or beverage operation during the year and you didn't  
operate any food or beverage operations during the  
preceding calendar year. File Form 8027 for a new food or  
beverage operation if, during any 2 consecutive calendar  
months, the average number of hours worked each  
business day by all employees is more than 80 hours. To  
figure the average number of employee hours worked  
each business day during a month, divide the total hours  
all employees worked during the month by the number of  
days the operation was open for business. After the test is  
met for 2 consecutive months, you must file a return  
covering the rest of the year, beginning with the next  
payroll period.  
Gross Receipts  
On Form 8027, you must report your establishment’s  
gross receipts from food and beverages you provide. You  
will use gross receipts to determine other amounts that  
you must report. Gross receipts include all receipts from  
the provision of food or beverages (other than  
nonallocable receipts, as defined later) from cash sales,  
charge receipts, charges to a hotel room (excluding tips  
charged to the hotel room if your accounting procedures  
allow these tips to be separated), and the retail value of  
complimentary food or beverages served to customers as  
explained later.  
Generally, tips aren't included in gross receipts.  
However, if you reduced your cash sales by the amount of  
any cash you paid to tipped employees for any charged  
tips due to them, then include those charged tips in your  
gross receipts. Don't include state or local taxes in gross  
receipts. Don't include receipts from the sale of  
When To File  
File Form 8027 (and Form 8027-T when filing more than  
one paper Form 8027) by February 28, 2022. However, if  
you file electronically, the due date for Form 8027 is  
March 31, 2022.  
merchandise such as souvenirs, memorabilia, tee shirts,  
or glassware in gross receipts from food and beverages.  
Extension of time to file. Filers of Form 8027 submitted  
on paper or electronically may request an extension of  
time to file on Form 8809. File Form 8809 as soon as you  
If you don't charge separately for providing food and  
beverages along with other goods or services (such as a  
Instructions for Form 8027 (2021)  
-3-  
   
package deal for food and lodging), make a good-faith  
estimate of the gross receipts from the food and  
beverages. This estimate must reflect the cost to the  
employer for providing the food and beverages plus a  
reasonable profit factor.  
Internal Revenue Service  
National Tip Reporting Compliance  
3251 North Evergreen Dr. NE  
Grand Rapids, MI 49525  
Don't mail Form 8027 to this address. See Where  
To File, earlier.  
Remind all directly and indirectly tipped  
!
employees to include all charged tips and all cash  
tips received in the tip amount that they must  
TIP  
CAUTION  
The burden of supplying sufficient information to allow  
report to you.  
the IRS to estimate with reasonable accuracy the actual  
tip rate of the establishment rests with the petitioner. Your  
petition for a lower rate must clearly demonstrate that a  
rate less than 8% should apply. It must include the  
following information.  
Nonallocable receipts. These are receipts for carryout  
sales and receipts with a service charge added of 10% or  
more. Carryout sales are sales of food or beverages for  
consumption off the premises of the establishment. Room  
service isn't a carryout sale. Nonallocable receipts  
generally include all sales on which tipping isn't  
customary.  
Complimentary items. Food or beverages served to  
customers without charge must be included in gross  
receipts if (a) tipping for providing them is customary at  
the establishment, and (b) they are provided in connection  
with an activity that is engaged in for profit, whose receipts  
wouldn't be included in the amount on line 5 of Form  
8027, and whose receipts aren't nonallocable receipts  
that have a service charge of 10% or more added.  
For example, you would have to include in gross  
receipts the retail value of the complimentary drinks  
served to customers in a gambling casino because tipping  
is customary, the gambling casino is an activity engaged  
in for profit, and the gambling receipts of the casino aren't  
included in the amount on line 5.  
However, you wouldn't have to include the retail value  
of complimentary hors d'oeuvres at your bar or a  
complimentary dessert served to a regular patron of your  
restaurant in gross receipts because the receipts of the  
bar or restaurant would be included in the amount on  
line 5. You wouldn't have to include the value of a fruit  
basket placed in a hotel room in gross receipts because,  
generally, tipping for it isn't customary.  
Employer's name, address, and employer identification  
number (EIN).  
Establishment's name, address, and establishment  
number.  
Detailed description of the establishment that would  
help to determine the tip rate. The description should  
include the type of restaurant, days and hours of  
operation, type of service including any self-service, the  
person (waiter or waitress, cashier, etc.) to whom the  
customer pays the check, whether the check is paid  
before or after the meal, and whether alcohol is available.  
Past year's information shown on lines 1 through 6 of  
Form 8027 as well as total carryout sales; total charge  
sales; percentage of sales for breakfast, lunch, and  
dinner; average dollar amount of a guest check; service  
charge, if any, added to the check; and the percentage of  
sales with a service charge.  
Type of clientele.  
Copy of a representative menu for each meal.  
An employer petition must contain the following  
statement and be signed by a responsible person who is  
authorized to make and sign a return, statement, or other  
document.  
“Under penalties of perjury, I declare that I have  
examined this petition, including accompanying  
documents, and to the best of my knowledge and  
belief, the facts presented in support of this petition are  
true, correct, and complete.”  
Allocation of Tips  
You must allocate tips among employees who receive  
them if the total tips reported to you during any payroll  
period are less than 8% (or the approved lower rate) of  
this establishment's gross receipts for that period. The  
allocation is made to each directly tipped employee  
performing services for the establishment who has a  
reporting shortfall for the payroll period. No allocation is  
made to indirectly tipped employees.  
For an employer petition, you must attach to the  
petition copies of Form 8027 (if any) filed for the 3 years  
before your petition. If you're petitioning for more than one  
establishment or you want to know your appeal rights, see  
Rev. Proc. 86-21, 1986-1 C.B. 560, for additional  
information. Also, include with your petition a check or  
money order made payable to “United States Treasury”  
for the amount of the user fee required for determination  
letters.  
Generally, the amount allocated is the difference  
between the total tips reported by employees and 8% (or  
the lower rate) of the gross receipts, other than  
nonallocable receipts.  
For the current user fee amount, consult the first  
revenue procedure of the year (for example, Rev. Proc.  
2021-1, 2021-01 I.R.B. 1, available at IRS.gov/irb/  
2021-01_IRB#REV-PROC-2021-1). This revenue  
procedure is updated annually as the first revenue  
procedure of the year, but it may be modified or amplified  
during the year. The user fees are posted in Appendix A of  
the revenue procedure. Since the taxpayer is requesting a  
There are three methods you may use to allocate tips.  
See the instructions for line 7, later, for a description of the  
three methods.  
Lower rate. You (or a majority of the employees) may  
request a lower rate (but not lower than 2%) by submitting  
a petition to:  
-4-  
Instructions for Form 8027 (2021)  
   
determination letter, the payment for the user fee must be  
submitted along with the petition for the rate reduction.  
actual tip allocation or a good-faith estimate of the  
allocation. Signify a good-faith estimate by writing  
“Estimate” next to the allocated amount in box 8 of the  
Form W-2.  
If you didn't include an allocation on the early Form W-2  
or if the estimated allocation on the early form differs from  
the actual amount by more than 5%, prepare a new Form  
W-2 with the correct information, and file Copy A with the  
SSA. Write “Corrected” on the employee’s new copies (B,  
C, and 2) and furnish them to the employee during  
January of the next year. Don't write “Corrected” on Copy  
A of the Form W-2 that you file with the SSA.  
A majority of all the directly tipped employees must  
consent to any petition written by an employee. A  
“majority of employees” means more than half of all  
directly tipped employees employed by the establishment  
at the time the petition is filed. Employee groups must  
follow the procedures in Regulations section  
31.6053-3(h); Pub. 531, Reporting Tip Income; and Rev.  
Proc. 86-21.  
The IRS will notify you when and for how long the  
reduced rate is effective.  
Don't send Forms W-2 to the IRS. We use the  
You must attach a copy of your “lower rate”  
information shown on the Forms W-2 that you file  
determination letter from the IRS when filing a  
!
!
CAUTION  
with the SSA.  
CAUTION  
paper Form 8027. See Pub. 1239 for instructions  
on submitting a copy of your “lower rate” determination  
letter from the IRS when filing electronically.  
Difference Between Service Charges  
and Tips  
Reporting Allocated Tips to  
Employees  
Service charges are treated differently from tips for federal  
tax purposes. Any portion of a service charge that is  
distributed to an employee is wages, and you must  
withhold federal income tax, social security tax, and  
Medicare tax and include the amount on Form W-2 as  
wages. Service charges aren't reported as tips on Form  
8027. You may be required to report service charges on  
line 3; see the instructions for line 3, later. To accurately  
report and pay your taxes, you must correctly identify  
amounts as either a tip or a service charge. Generally, an  
amount is a tip if:  
Give each employee who has been allocated tips a Form  
W-2 that shows the allocated amount in box 8. Tip  
allocations have no effect on withholding income tax,  
social security tax, or Medicare tax from employees’  
wages. Allocated tips aren't subject to withholding and  
must not be included in boxes 1, 3, 5, and 7 of Form W-2.  
If you allocate tips among employees by the methods  
described later under the instructions for line 7, you're not  
liable to any employee if any amount is improperly  
allocated. However, if the allocation shown on the  
employee’s Form W-2 differs from the correct allocation  
by more than 5%, you must correct that employee’s  
allocation. You must also review the allocable amount of  
all other employees in the same establishment to ensure  
that the error didn't distort any other employee’s share by  
more than 5%.  
You must furnish Form W-2 to employees by January  
31 of the following year. If employment ends before the  
end of the year and the employee asks for the Form W-2,  
a tip allocation isn't required on the early Form W-2. See If  
Correcting allocated tips reported on Form W-2 fur-  
nished to an employee in January. If you furnished  
Form W-2 to an employee in January and later discover  
an error that requires a correction (as discussed earlier),  
the method for making a correction depends on whether  
Form W-2 has been filed with the Social Security  
Administration (SSA).  
If you filed Form W-2 with the SSA. Use the current  
version of Form W-2c to report the corrected allocation  
and correct the previously filed Form W-2.  
The payment is made free from compulsion,  
The customer has the unrestricted right to determine  
the amount (including zero),  
The payment isn't the subject of negotiation or dictated  
by employer policy, and  
The customer has the right to determine who receives  
the payment.  
The absence of any of these factors creates a doubt as to  
whether a payment is a tip and indicates that the payment  
may be a service charge.  
For additional information, including examples of both  
service charges and tips, see Q&A 1 in Revenue Ruling  
2012-18, 2012-26 I.R.B. 1032, available at IRS.gov/irb/  
Specific Instructions  
File a separate Form 8027 for each large food or  
beverage establishment. Use Form 8027-T when filing  
more than one paper Form 8027.  
Name and Address of Establishment  
and Employer Identification Number  
If you furnished Form W-2 to an employee but  
didn't file it with the SSA. Prepare a new Form W-2  
with the correct information and file Copy A with the SSA.  
Write “Corrected” on the employee’s new copies (B, C,  
and 2), and furnish them to the employee. Don't write  
“Corrected” on Copy A of the Form W-2 that you file with  
the SSA.  
Type or print the name and address of the establishment.  
They may be different from your mailing address, as in the  
case of employers who have more than one  
establishment. Enter the name by which your customers  
know you (your “doing business as” name). For example,  
enter the name on the front of the building or the name of  
the restaurant within the casino. The EIN should be the  
same as the number on the Forms W-2 that you furnish to  
the employees and the Form 941 that you file to report  
If you furnished Form W-2 before the end of the year.  
You may include on the early Form W-2 the employee’s  
Instructions for Form 8027 (2021)  
-5-  
       
wages and taxes for employees working for the  
establishment. However, if you use a CPEO, see Certified  
amounts. To round, drop amounts under 50 cents and  
increase amounts from 50 to 99 cents to the next dollar.  
For example, $1.39 becomes $1 and $2.50 becomes $3.  
Always be sure the EIN on the form you file  
If you have to add two or more amounts to figure the  
amount to enter on a line, include cents when adding the  
amounts and round off only the total.  
exactly matches the EIN that the IRS assigned to  
your business. Don't use your social security  
TIP  
number on forms that ask for an EIN.  
Line 1. Total Charged Tips for Calendar Year  
2020  
Enter the total amount of tips that are shown on charge  
receipts for the year. Don't include service charges. See  
you indicated that your establishment accepts credit  
cards, debit cards, or other charges but have no amounts  
to report on line 1, enter zero.  
If one of the following applies to you, check the  
appropriate box on the left side of the form to tell us which  
type of return you're filing.  
Amended return.  
Final return.  
Type of Establishment  
Check the box (check only one box) on the form that best  
describes the type of food or beverage establishment.  
Line 2. Total Charge Receipts Showing Charged  
Tips  
An establishment that serves evening meals only (with  
or without alcoholic beverages).  
An establishment that serves evening and other meals  
Enter the total sales from the provision of food and  
beverages (other than nonallocable receipts, as defined  
earlier) from charge receipts that had a charged tip  
shown. Include credit card charges and other credit  
arrangements and charges to a hotel room unless your  
normal accounting practice consistently excludes charges  
to a hotel room. Don't include any tips or any state or local  
taxes in the amounts reported. If you indicated that your  
establishment accepts credit cards, debit cards, or other  
charges but have no amounts to report on line 2, enter  
zero.  
(with or without alcoholic beverages).  
An establishment that serves only meals other than  
evening meals (with or without alcoholic beverages).  
An establishment that serves food, if at all, only as an  
incidental part of the business of serving alcoholic  
beverages.  
Employer's Name and Address  
Enter the name and address of the entity or individual  
whose EIN was provided earlier. If mail isn't delivered to  
your street address, enter your P.O. box number. Enter  
foreign addresses as follows: city, province or state, and  
country. Don't abbreviate the name of the country.  
Line 3. Total Amount of Service Charges of Less  
Than 10% Paid as Wages to Employees  
Enter the total amount of service charges of less than 10%  
that have been added to customers' bills and have been  
distributed to your employees for the year.  
Establishment Number  
Enter a five-digit number to identify the individual  
establishments that you're reporting under the same EIN.  
Give each establishment a separate number and  
complete a separate Form 8027 for each. For example,  
each establishment could be numbered consecutively,  
starting with 00001. Once you assign a number to an  
establishment, always use the same number for that  
establishment each year. If you close an establishment,  
don't use the number you assigned to it for another  
establishment.  
Line 4a. Total Tips Reported by Indirectly  
Tipped Employees  
Enter the total amount of tips reported for the year by  
indirectly tipped employees, such as cooks, bussers, and  
service bartenders. Indirectly tipped employees generally  
receive their tips from other tipped employees and not  
directly from the customer.  
Line 4b. Total Tips Reported by Directly Tipped  
Employees  
Does This Establishment Accept  
Credit Cards, Debit Cards, or Other  
Charges?  
Enter the total amount of tips reported for the year by  
directly tipped employees, such as bartenders and  
waitstaff. Directly tipped employees receive tips directly  
from customers. Treat employees, such as maitre d's,  
who receive tips directly from customers and indirectly  
through tip splitting or pooling, as directly tipped  
employees.  
You must check either the “Yes” or “No” box to indicate  
whether or not the establishment accepts credit cards,  
debit cards, or other electronic settlement methods. If the  
“Yes” box is checked, lines 1 and 2 of Form 8027 must be  
completed, and you must enter on lines 1 and 2 the  
appropriate amounts shown on the charge receipts. See  
the instructions for lines 1 and 2, later.  
Line 4c. Total Tips Reported  
Add the amounts on lines 4a and 4b and enter the result  
on line 4c. This amount can't be a negative amount.  
Lines 1 Through 8  
Rounding Off to Whole Dollars  
You may round off cents to whole dollars on your Form  
8027. If you do round to whole dollars, you must round all  
-6-  
Instructions for Form 8027 (2021)  
       
Line 7a. Hours-Worked Method  
Line 4a  
+ Line 4b  
Line 4c  
Establishments that employ fewer than the equivalent of  
25 full-time employees (both tipped and nontipped  
employees) during a payroll period may use the  
hours-worked method to allocate tips. You will be  
considered to have employed fewer than the equivalent of  
25 full-time employees during a payroll period if the  
average number of employee hours worked (both tipped  
and nontipped employees) per business day during a  
payroll period is less than 200 hours.  
In figuring the tips you should report for 2021,  
don't include tips received by employees in  
December 2020, but not reported until January  
!
CAUTION  
2021. However, include tips received by employees in  
December 2021, but not reported until January 2022.  
To allocate tips by the hours-worked method, follow the  
steps explained in Line 7b. Gross Receipts Method, later.  
However, for the fraction in step 3 of the gross receipts  
method, substitute in the numerator (top number) the  
number of hours worked by each employee who is tipped  
directly, and in the denominator (bottom number) the total  
number of hours worked by all employees who are directly  
tipped for the payroll period. See Regulations section  
31.6053-3(f)(1)(iv) for details.  
Line 5. Gross Receipts From Food and  
Beverages  
Enter the total gross receipts from the provision of food  
and beverages for this establishment for the year. See  
Gross Receipts, earlier, for an explanation of what's  
included in gross receipts.  
Line 6  
Enter the result of multiplying line 5 by 8% (0.08) or a  
lower rate (if the establishment was granted a lower rate  
by the IRS).  
If you use the hours-worked method, be sure to enter  
on line 7a the average number of employee (both tipped  
and nontipped) hours worked per business day during the  
payroll period. If the establishment has more than one  
payroll period, you must use the payroll period in which  
the greatest number of workers (both tipped and  
nontipped) were employed.  
If a lower rate was granted, write the rate in the space  
provided and attach a copy of the IRS determination  
letter. If you file Form 8027 electronically, see Pub. 1239  
for instructions on submitting a copy of the IRS  
determination letter.  
Line 7b. Gross Receipts Method  
The 8% rate (or lower rate) is used for tip  
If no good-faith agreement (as explained later) applies to  
the payroll period, you must allocate the difference  
between total tips reported and 8% of gross receipts using  
the gross receipts method (or hours-worked method  
(line 7a)) as follows (see Example for Line 7b. Gross  
Receipts Method, later).  
allocation purposes only. Using this rate doesn't  
!
CAUTION  
mean that directly tipped employees must report  
only 8%. All directly tipped employees and indirectly  
tipped employees must report the actual amount of tips  
they receive.  
The instructions that follow assume you have  
You may allocate tips for the calendar year, annually,  
by payroll period, or by using any period that results in a  
reasonable division of a calendar year, including biweekly,  
semimonthly, quarterly, etc. The method you choose will  
be effective for the entire calendar year.  
chosen to allocate tips by payroll period.  
TIP  
However, as described earlier in the instructions  
for line 6, you may choose to allocate tips for the calendar  
year, annually, or by using any period that results in a  
reasonable division of a calendar year, including biweekly,  
semimonthly, quarterly, etc.  
If you have allocated tips using other than the  
calendar year, put an “X” on line 6 and enter the  
amount of allocated tips (if any) from your records  
TIP  
1. Multiply the establishment's gross receipts (other  
than nonallocable receipts) for the payroll period by 8%  
(0.08) or the approved lower rate.  
2. Subtract from the amount figured in step 1 the total  
amount of tips reported by employees who were tipped  
indirectly for the payroll period. This difference is the  
directly tipped employees' total share of 8% (or the lower  
rate) of the gross receipts of the establishment. Indirectly  
tipped employees don't receive tips directly from  
on line 7.  
Line 7. Allocation of Tips  
If the amount shown on line 6 is more than the amount of  
tips reported by your employees on line 4c, you must  
allocate the excess to those employees. Enter the excess  
on line 7. This excess amount is reported on each  
employee's Form W-2 as described earlier in Reporting  
Allocated Tips to Employees. If you previously filed Forms  
W-2 for employees that didn't include accurate tip  
allocations, you may be required to file Forms W-2c. For  
If the amount on line 4c is more than the amount on line 6,  
you don't need to make a tip allocation.  
customers. Examples are bussers, service bartenders,  
and cooks. Directly tipped employees, such as waitstaff  
and bartenders, receive tips directly from customers.  
Employees, such as maitre d's, who receive tips directly  
from customers and indirectly through tip splitting or  
pooling, are treated as directly tipped employees.  
3. For each employee who is tipped directly, multiply  
the result in step 2 by the following fraction: the numerator  
(top number) is the amount of the establishment's gross  
receipts attributable to the employee, and the  
There are three methods by which you may allocate  
tips. Check the box on line 7a, 7b, or 7c to show the  
method used.  
Instructions for Form 8027 (2021)  
-7-  
       
denominator (bottom number) is the gross receipts  
attributable to all directly tipped employees. The result is  
each directly tipped employee's share of 8% (or the lower  
rate) of the gross receipts for the payroll period.  
4. From each directly tipped employee's share of 8%  
(or the lower rate) of the gross receipts figured in step 3,  
subtract the tips the employee reported for the payroll  
period. The result is each directly tipped employee's  
shortfall (if any) for the period.  
5. From the amount figured in step 1, subtract the total  
tips reported by both directly and indirectly tipped  
employees. The result is the amount that has to be  
allocated among the directly tipped employees who had a  
shortfall for the payroll period as figured in step 4.  
Signature  
Sign your name and include your title. Then, enter the  
date signed and the best daytime telephone number  
where the IRS can reach you, including area code.  
Who Must Sign  
The following persons are authorized to sign the return for  
each type of business entity.  
• Sole proprietorship. The individual who owns the  
business.  
• Corporation (including a limited liability company  
(LLC) treated as a corporation). The president, vice  
president, or other principal officer duly authorized to sign.  
• Partnership (including an LLC treated as a partner-  
ship) or unincorporated organization. A responsible  
and duly authorized member, partner, or officer having  
knowledge of its affairs.  
• Single-member LLC treated as a disregarded entity  
for federal income tax purposes. The owner of the  
LLC or principal officer duly authorized to sign.  
6. For each directly tipped employee who had a  
shortfall for the period as figured in step 4, multiply the  
amount in step 5 by the following fraction: the numerator is  
the employee's shortfall (figured in step 4), and the  
denominator is the total shortfall of all directly tipped  
employees. The result is the amount of allocated tips for  
each directly tipped employee.  
Line 7c. Good-Faith Agreement  
• Trust or estate. The fiduciary.  
An allocation can be made under a good-faith agreement.  
This is a written agreement between you and at least  
two-thirds of the tipped employees of each occupational  
category (for example, waitstaff, bussers, and maitre d's)  
working in the establishment when the agreement is  
adopted. The agreement must:  
Form 8027 may also be signed by a duly authorized  
agent of the taxpayer if a valid power of attorney has been  
filed.  
Alternative signature method. Corporate officers or  
duly authorized agents may sign Form 8027 by rubber  
stamp, mechanical device, or computer software  
program. For details and required documentation, see  
Rev. Proc. 2005-39, 2005-28 I.R.B. 82, available at  
1. Provide for an allocation of the difference between  
total tips reported and 8% (or the lower rate) of gross  
receipts among tipped employees that approximates the  
actual distribution of tip income among the employees;  
2. Be effective the first day of a payroll period that  
begins after the date the agreement is adopted, but no  
later than January 1 of the next year;  
3. Be adopted when there are tipped employees in  
each occupational category who would be affected by the  
agreement; and  
4. Allow for revocation by a written agreement  
adopted by at least two-thirds of the tipped employees in  
occupational categories affected by the agreement when  
it is revoked. The revocation is effective only at the  
beginning of a payroll period.  
Example for Line 7b. Gross Receipts Method  
A large food or beverage establishment has chosen to  
make tip allocations using its actual payroll period. It has  
gross receipts for a payroll period of $100,000 and has  
tips reported for the payroll period of $6,200. Directly  
tipped employees reported $5,700, while indirectly tipped  
employees reported $500.  
Keep a copy of the good-faith agreement for your  
records.  
Line 8. Total Number of Directly Tipped  
Employees  
Enter the total number of directly tipped employees who  
worked at the establishment during 2021. This is the  
cumulative total of all directly tipped employees who  
worked at the establishment at any time during the year. If  
you have a large turnover of directly tipped employees,  
this number may be large. Don't use this number to  
determine if you must file Form 8027. Instead, see  
Calendar Year 2021, earlier.  
-8-  
Instructions for Form 8027 (2021)  
   
Directly  
tipped  
Gross receipts  
for payroll  
period  
1. Enter amount from Form 8027, line 1  
2. Enter amount from Form 8027, line 2  
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1.  
2.  
employees  
Tips reported  
3. Divide line 1 by line 2, enter as a decimal (at least  
A
B
C
D
E
F
$18,000  
16,000  
23,000  
17,000  
12,000  
14,000  
$1,080  
880  
1,810  
800  
450  
680  
4 decimal places)  
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3.  
4.  
5.  
4. Enter amount from Form 8027, line 4c  
5. Enter amount from Form 8027, line 5  
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6. Divide line 4 by line 5, enter as a decimal (at least  
4 decimal places)  
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6.  
7.  
Totals  
$100,000  
$5,700  
7. Subtract line 6 from line 3; if zero or less, stop  
1. $100,000 (gross receipts) x 0.08 = $8,000  
2. $8,000 − $500 (tips reported by indirectly tipped employees) =  
$7,500  
here  
8. Potential unreported tips. Multiply line 7 by  
line 5  
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8.  
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3.  
Directly tipped  
employees'  
Directly  
tipped  
(Times)  
Employee's  
share of 8% of Gross receipts share of 8%  
employees  
the gross  
ratio  
of gross  
$1,350  
Once you have completed the worksheet:  
If the entry on line 7 is zero or less, your employees are  
A
B
C
D
E
F
$7,500  
$7,500  
$7,500  
$7,500  
$7,500  
$7,500  
18,000/100,000 =  
16,000/100,000 =  
23,000/100,000 =  
17,000/100,000 =  
12,000/100,000 =  
14,000/100,000 =  
1,200  
1,725  
1,275  
900  
probably accurately reporting their tips; however,  
If the entry on line 8 is greater than zero, depending on  
the type of operation you have, it is possible that your  
employees aren't reporting all of their tip income to you.  
1,050  
Total  
$7,500  
Another quick method to determine if your  
4.  
Directly  
tipped  
Employee's  
share of 8% of  
the gross  
employees are properly reporting all of their tips to  
you is to compare the rate of tips reported on  
TIP  
(Minus)  
Tips reported  
Employee  
shortfall  
employees  
credit sales to the rate of tips reported on cash sales. For  
example, if line 3 in the worksheet greatly exceeds the  
rate determined from dividing reported cash tips by  
reportable cash receipts (that is, total cash receipts less  
nonallocable cash receipts), some of your employees may  
not be reporting all of their tips to you and you should  
generally be showing an amount on line 7 (“Allocation of  
tips”) of Form 8027.  
A
B
C
D
E
F
$1,350  
$1,200  
$1,725  
$1,275  
$ 900  
$1,080 =  
880 =  
1,810 =  
800 =  
$270  
320  
475  
450  
370  
450 =  
680 =  
$1,050  
Total shortfall  
$1,885  
5. $8,000 less $6,200 (total tips reported) = $1,800 (amount allocable  
among employees who had a shortfall)  
6.  
Shortfall  
employees  
Allocable  
amount  
(Times)  
Shortfall ratio  
Amount of  
allocation  
Do You Need Help?  
If it appears that not all tips are being reported to you, the  
IRS offers a service called the Tip Rate Determination &  
Education Program. This program can assist you, the  
employer, in implementing more effective methods of tip  
income reporting. The program also offers assistance in  
educating tipped employees concerning their obligations  
relating to the reporting of any tip income they receive. To  
find out more about this program or to participate in a  
voluntary tip compliance agreement, see Pub. 3144. You  
may also send an email to TIP.Program@irs.gov and  
request information on this program.  
A
B
D
E
F
$1,800  
$1,800  
$1,800  
$1,800  
$1,800  
$270/1,885 =  
320/1,885 =  
475/1,885 =  
450/1,885 =  
370/1,885 =  
$258  
306  
454  
430  
353  
Since employee C has no shortfall, there is no allocation to C.  
In this example, the total amount of the allocation  
is $1,801 resulting from the rounding off to whole  
numbers.  
TIP  
An information reporting customer service section is  
available to answer questions about reporting on Forms  
8027, W-2, W-3, 1099, and other information returns. If  
you have questions about reporting on information  
returns, call:  
For additional examples for the hours-worked method  
and gross receipts method, see Regulations section  
31.6053-3(f).  
Employer's Optional Worksheet  
for Tipped Employees  
866-455-7438 (toll free),  
304-263-8700 (toll call), or  
Unreported tip income can lead to additional employer  
liability for social security tax and Medicare tax. As a  
means of determining if your employees are reporting all  
of their tips to you, please take a few minutes to voluntarily  
complete the following worksheet. Completing this  
worksheet is only for the employer's information (don't  
send it to the IRS).  
304-579-4827 (TDD/TTY for persons who are deaf,  
hard of hearing, or have a speech disability).  
You can also reach the center by email at  
mccirp@irs.gov. Don't include tax identification numbers  
(TINs) or attachments in email correspondence because it  
isn't secure.  
Privacy Act and Paperwork Reduction Act Notice.  
We ask for the information on this form to carry out the  
Internal Revenue laws of the United States. You're  
Instructions for Form 8027 (2021)  
-9-  
 
required to give us the information. We need it to ensure  
that you're complying with these laws and to allow us to  
figure and collect the right amount of tax.  
Columbia, and U.S. commonwealths and possessions to  
administer their tax laws. We may also disclose this  
information to other countries under a tax treaty, to federal  
and state agencies to enforce federal nontax criminal  
laws, or to federal law enforcement and intelligence  
agencies to combat terrorism.  
Chapter 61, Information and Returns, of Subtitle F,  
Procedure and Administration, requires certain employers  
to report gross receipts, tips reported to them, and any  
allocated tips; and to furnish the amount of any allocated  
tips to affected employees. Section 6053 and its related  
regulations provide the definitions and methodology to be  
used in completing these forms. If you fail to provide this  
information in a timely manner, you may be liable for  
penalties as provided by section 6721.  
The time needed to complete and file these forms will  
vary depending on individual circumstances. The  
estimated average times are:  
Forms  
8027  
8027-T  
43 min.  
Recordkeeping.  
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7 hr., 53 min.  
53 min.  
Learning about the law or the form .  
You're not required to provide the information  
requested on a form that is subject to the Paperwork  
Reduction Act unless the form displays a valid OMB  
control number. Books or records relating to a form or its  
instructions must be retained as long as their contents  
may become material in the administration of any Internal  
Revenue law.  
Generally, tax returns and return information are  
confidential, as required by section 6103. However,  
section 6103 allows or requires the IRS to disclose or give  
the information shown on your tax return to others as  
described in the Code. For example, we may disclose  
your tax information to the Department of Justice for civil  
and criminal litigation, and to cities, states, the District of  
Preparing and sending the form to the  
IRS  
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1 hr., 3 min.  
If you have comments concerning the accuracy of  
these time estimates or suggestions for making these  
forms simpler, we would be happy to hear from you. You  
can send us comments from IRS.gov/FormComments. Or  
you can send your comments to Internal Revenue  
Service, Tax Forms and Publications Division, 1111  
Constitution Ave. NW, IR-6526, Washington, DC 20224.  
Don't send the tax forms to this address. Instead, see  
Where To File, earlier.  
-10-  
Instructions for Form 8027 (2021)