Form 8027 is the Internal Revenue Service (IRS) return on which an employer reports food and beverage receipts and tips for a large food or beverage establishment and figures any allocated tips. A separate return is filed for each establishment, for calendar year 2025 on this revision. On this page you can fill out Form 8027 online on FillingPDF and download or print the completed PDF; the form and its instructions are published by the IRS at www.irs.gov/Form8027.
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What is 8027?
Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, is the IRS form that employers use each year to report receipts and tips from their large food or beverage establishments and to determine allocated tips for tipped employees.
The return is filed under OMB No. 1545-0029. It collects the establishment's gross receipts from food and beverages, charged tips and charge receipts, tips reported by directly and indirectly tipped employees, and any service charges of less than 10% paid to employees as wages. Line 6 multiplies gross receipts by 8% (or a lower rate granted by the IRS). If that result is more than the tips reported on line 4c, the excess on line 7 must be allocated to directly tipped employees, and each employee's share goes in box 8 of that employee's Form W-2.
The form is not a tax payment and does not decide what employees owe on their tips. The 8% rate is used for allocation only: the instructions state that employees must still report the actual amount of tips they receive.
Companion forms named in the IRS materials include Form 8027-T (the transmittal used when more than one paper Form 8027 is filed), Form 8809 (extension of time to file), Form 8508 (waiver from electronic filing), Form W-2 and Form W-2c. Pub. 1239 gives the specifications for filing Form 8027 electronically.
Who needs to file 8027?
You must file Form 8027 if you are an employer who operates a large food or beverage establishment. The IRS instructions define it as a food or beverage operation that meets all three tests:
- it is located in the 50 states or the District of Columbia;
- tipping of food or beverage employees by customers is customary; and
- the employer normally employed more than 10 employees on a typical business day during the preceding calendar year (the 10-employee test).
If you provide food or beverages at more than one location, each separate operation is its own establishment and gets its own Form 8027, even if that operation has fewer than 10 employees on its own. The 10-employee test is not applied operation by operation, and all employees count, not only food or beverage employees. Fast-food operations are excluded, and so are employees at fast-food operations. Tipping is generally not customary in a cafeteria-style operation or where at least 95% of total sales (other than carryout) carry a service charge of 10% or more.
If you use a certified professional employer organization (CPEO), the customer operating the establishment is treated as the employer and must file Form 8027.
When to file 8027
File Form 8027 by March 2, 2026 for calendar year 2025 if you file on paper. If you file electronically, the due date is March 31, 2026. When you file more than one paper Form 8027, Form 8027-T is due by the same date.
You can request more time on Form 8809, filed as soon as you know you need it, but not before January 1 of the filing year and not later than March 2, 2026 (March 31, 2026 for electronic filers).
A new business, meaning one that opened a food or beverage operation during the year and ran none the year before, files Form 8027 if, during any 2 consecutive calendar months, all employees averaged more than 80 hours worked each business day. After the test is met for 2 consecutive months, you file a return covering the rest of the year, beginning with the next payroll period.
The law provides a penalty for not filing on time unless you can show reasonable cause.
Documents you need
- Copy of the IRS determination letter for a lower tip rate, attached to a paper Form 8027 only if you entered a lower rate than 8% on line 6.
- Copy of your timely filed Form 8809, attached to a paper Form 8027 only if you requested an extension of time to file.
- Copy of the approved waiver you received, attached to a paper Form 8027 only if you filed Form 8508, Application for a Waiver from Electronic Filing of Information Returns.
- Form 8027-T, Transmittal of Employer's Annual Information Return of Tip Income and Allocated Tips, only when you file more than one paper Form 8027.
How to fill out 8027
Mark the return and establishment type
Check Amended Return or Final Return if either applies. Under Type of establishment, check only one box: 1 Evening meals only, 2 Evening and other meals, 3 Meals other than evening meals, or 4 Alcoholic beverages.
Enter the establishment name and EIN
Type or print the name by which customers know the establishment (your doing-business-as name), its number and street (no P.O. box), city, state and ZIP code. Enter the employer identification number exactly as the IRS assigned it.
Enter the employer and establishment number
Enter the name and address of the employer whose EIN you gave; use a P.O. box only if mail isn't delivered to the street, and don't abbreviate a foreign country name. Enter a five-digit establishment number, such as 00001, and use the same number for that establishment every year.
Answer the credit card question
Check Yes or No for whether the establishment accepts credit cards, debit cards, or other charges. If you check Yes, complete lines 1 and 2 and enter an amount, even zero, on each.
Complete lines 1 through 3
Line 1: total charged tips for calendar year 2025, without service charges. Line 2: total charge receipts showing charged tips, without tips or taxes. Line 3: service charges of less than 10% paid to employees as wages.
Report tips on lines 4a through 4c
Line 4a: tips reported by indirectly tipped employees such as cooks and bussers. Line 4b: tips reported by directly tipped employees such as waitstaff and bartenders. Add them on line 4c, which can't be negative.
Enter gross receipts on line 5
Enter total gross receipts from food and beverages for the establishment for the year. The amount can't be less than line 2, and it excludes state and local taxes and merchandise sales.
Figure the amount on line 6
Multiply line 5 by 8% (0.08) or by the lower rate the IRS granted, entering that rate in the space provided and attaching the determination letter to a paper return. If you allocated tips using a period other than the calendar year, mark an "X" on line 6.
Enter the allocation on line 7
If line 6 is more than line 4c, enter the excess on line 7; if line 4c is more, no allocation is needed. If you allocated using another period, enter the allocated amount from your records.
Check the allocation method
Check line 7a (hours-worked method, and enter the average employee hours worked per business day), line 7b (gross receipts method) or line 7c (good-faith agreement). The hours-worked method is limited to establishments with fewer than the equivalent of 25 full-time employees in the payroll period.
Enter directly tipped employees on line 8
Enter the total number of directly tipped employees who worked at the establishment at any time during 2025. Don't use this number for the 10-employee test.
Sign, review and download the PDF
Sign, give your title and date, and include a daytime phone number if the form asks for it; the person who signs depends on the business type, as the instructions explain. Check every line, then download or print the completed PDF from FillingPDF.
How to submit 8027
You can file Form 8027 on paper by mail or electronically through the IRS Filing Information Returns Electronically (FIRE) system.
- Paper: mail the return to Department of the Treasury, Internal Revenue Service, Ogden, UT 84201. If you file more than one paper Form 8027, attach the forms in establishment number order (lowest to highest) to Form 8027-T. Do not mail Form 8027 to the National Tip Reporting Compliance address in Grand Rapids, MI; that address is only for lower-rate petitions.
- Electronic: you must file electronically if you are required to file 10 or more information returns during the year, and the IRS encourages electronic filing even if you are not. Go to IRS.gov/FIRE and see Pub. 1239 for the specifications. Form 8027-T is not filed with electronically filed returns.
With a paper return, attach a copy of your timely filed Form 8809 and your lower-rate determination letter if they apply, and a copy of the approved waiver if you filed Form 8508. Do not attach any other documents. For questions about reporting on Form 8027, the IRS Technical Services Operation (TSO) can be reached at 866-455-7438 (toll free) or 304-263-8700. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Leaving the credit card question unanswered. You must check Yes or No, and if you check Yes you must enter an amount, even zero, on lines 1 and 2.
- Entering a P.O. box as the establishment address. The form says not to enter a P.O. box there; a P.O. box is allowed only for the employer's mailing address when mail isn't delivered to the street.
- Counting service charges as tips. Service charges aren't reported as tips on Form 8027; only service charges of less than 10% paid to employees as wages go on line 3.
- Applying the 10-employee test to each operation separately. All employees at all your food or beverage operations count, and you don't count fast-food employees.
- Rounding only some lines. If you round to whole dollars, you must round all amounts, and when adding amounts for a line, add the cents and round only the total.
- Including December 2024 tips reported in January 2025, or leaving out December 2025 tips reported in January 2026, when figuring the tips reported for 2025.
- Using a lower rate on line 6 without attaching a copy of the IRS determination letter to a paper return.
- Mailing the paper return to the Grand Rapids, MI address. That address is for lower-rate petitions; returns go to Ogden, UT 84201.
- Using a Social Security number where the form asks for an EIN, or an EIN that doesn't match the one the IRS assigned to your business.
Frequently asked questions
What is Form 8027 used for?
Form 8027 is the IRS return employers use to report receipts and tips from large food or beverage establishments each year and to determine allocated tips for tipped employees. A separate return is filed for each establishment.
Who has to file Form 8027?
An employer who operates a large food or beverage establishment: one in the 50 states or D.C. where tipping is customary and that normally employed more than 10 employees on a typical business day in the preceding year. Fast-food operations are excluded.
When is Form 8027 due for 2025?
March 2, 2026 if you file on paper, and March 31, 2026 if you file electronically. You can request an extension on Form 8809, filed not before January 1 of the filing year and not later than those same dates.
Where do I mail Form 8027?
Mail a paper Form 8027 to Department of the Treasury, Internal Revenue Service, Ogden, UT 84201. Don't send it to the Grand Rapids, MI address in the instructions, which is only for petitions to use a lower tip rate.
Do I have to file Form 8027 electronically?
Yes, if you must file 10 or more information returns during the year. Electronic returns go through the IRS FIRE system, and Pub. 1239 has the specifications. The IRS encourages electronic filing even when you aren't required.
What is the difference between tips and service charges on Form 8027?
A payment is generally a tip if the customer pays freely, decides the amount, isn't negotiating or following employer policy, and decides who receives it. Service charges aren't tips; only those under 10% paid to employees as wages go on line 3.
How do I file Form 8027 for more than one establishment?
Complete a separate Form 8027 for each establishment, each with its own five-digit establishment number. If you file on paper, include Form 8027-T and attach the returns in establishment number order, lowest to highest.
Can I fill out Form 8027 online on FillingPDF?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF doesn't file the return with the IRS; you submit it by mail or electronically through the IRS channels.
What are the penalties for not filing Form 8027?
The law provides a penalty for not filing on time unless you show reasonable cause. Without an accurate Form 8027 you also can't correctly prepare Forms W-2 for employees who were allocated tips, and penalties can apply to each failure.
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