Restaurant need to file IRS 8027 Tip Reporting by 2006

 In 1. David Scott Peters, Operations, The Numbers

Unfortunately I have a member who is going through an IRS Tip audit at this time because of an irregularity in their IRS 8027 Tip Report from two years earlier.

I felt this is a useful today as it was when it was written:

Headliner Volume 109
February 2, 2005

Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, (and Form 8027T when filing more than one Form 8027) is due to the IRS by February 28, 2005. However, electronic filers (not by magnetic media) have until March 31, 2005.

Filers of Form 8027 may request an extension of time to file on Form 8809, Application for Extension of Time to File Information Returns. Requests for extensions must be received by the IRS no later than February 28, 2005.

Any employer who operates a large food or beverage establishment must file Form 8027. Employers owning more than one establishment must file Form 8027 for each one. There may be more than one establishment (business activity providing food or beverages) operating within a single building, and, if gross receipts are recorded separately, each activity is required to file a Form 8027.

A large food and beverage establishment is one to which all the following apply:

  • Food or beverage is provided for consumption on the premises
  • Tipping is a customary practice
  • More than 10 employees, who work more than 80 hours, were normally employed on a typical business day during the preceding calendar year

Send Form 8027 to the new mailing address: Internal Revenue Service, Cincinnati, OH 45999.

Employers failing to file Form 8027 (and Form 8027T) on time will be subject to penalty, unless reasonable cause for the delay is established. Employers filing late (after the due date including extensions) should attach an explanation to the return to show reasonable cause.

Form 8027 may be downloaded from, or it may be ordered by calling 1-800-829-3676.

For additional information on Form 8027, go to General Instructions page.


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