Form 8027 E-filing Simplified
—Report Tip Income with Ease
E-file Form 8027 in minutes with our user-friendly platform. Save time with automated tip allocations and seamless bulk filing.
Form 8027: Key Insights
- IRS Form 8027 is an information return for food or beverage establishments that reports tip income and determines the allocated tips of the tipped employees.
- Employers who operate a food or beverage establishment, and have more than 10 employees must file Form 8027 with the IRS.
- Form 8027 must be filed electronically with the IRS by March 31, 2025 for the 2024 tax year.
Why Choose TaxBandits to E-file Form 8027?
E-file with ease, accuracy, and confidence—TaxBandits make your 8027 filing process stress-free, so you can focus on your business.
Fast, Simple and Secure IRS E-filing
Our intuitive interface simplifies every step of the e-filing process from start to finish—no complications, no delays.
File for Multiple Establishments at Once
Managing multiple establishments? E-file all your 8027 forms in one go, saving time and reducing manual work.
Accurate Tip Allocations, Every Time
Say goodbye to miscalculations! TaxBandits automatically calculates tip allocations for your employees
Coming soon . . .
Instantly Fax IRS Determination Letter
Simply upload your IRS determination letter based on the tip allocation rate, and we'll take care of faxing it on your behalf.
Stay Informed with Real-Time Status Updates
Get email and text notifications as soon as the IRS processes your 8027—no need to keep checking manually.
World Class Support When You Need It
Have questions? Our team is ready to assist via live chat, phone, and email to ensure a smooth e-filing.
Extra Perks for Tax Pros: More Control, More Efficiency
We offer powerful tools to simplify and scale your Form 8027 filings.
Effortless Bulk Filing
Upload employers and their establishments’ data in seconds with our CSV template—saving time and reducing manual entry in your 8027 filings.
Team Management
Invite your team to manage and delegate 8027 filings by assigning specific roles—Preparer, Approver, or Transmitter.
Comprehensive Reports
Access detailed reports to gain insights into team performance and client filings. Track filings, monitor team performance, and access key analytics to stay ahead.
Contact our team at (704) 684-4758 to discuss custom pricing options for high-volume filing!
Information Required to File Form 8027 Online
Discover the key information needed to file Form 8027 online, including total sales, reported tips, allocated tips,
and employee hours worked on a typical business day.
Basic Establishment Information:
- Name, address, EIN of the establishment
- The establishment number of each one reported under the same EIN.
- Indicate the type of establishment in Form 8027.
Employer Information:
Name and address of the employer.
Accepted Payment Method:
Indicate if your establishment accepts credit or debit cards.
Tip Income Reporting Information:
- Total charged tips for 2024.
- Total charge receipts showing charged tips.
- Service charges paid as wages.
- Tips reported by directly and indirectly tipped employees.
Gross Receipts Information:
- Total receipts from food and beverages.
- Multiply gross receipts by 8% or a lower IRS rate.
Tip Allocation Information:
The IRS offers three methods to calculate the tip allocation- the hours worked, gross receipts, and good-faith agreement.
How to File Form 8027 Electronically with TaxBandits?
Create your free account with TaxBandits and follow these easy steps to e-file Form 8027 quickly and accurately!
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Step 1: Enter Employer and Establishment Information
Enter the Form 8027 information about the establishment and the employer manually.
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Step 2: Enter Tip Income and Allocated Tips Information
Enter the required information about the employee's tip income and the allocation of tips.
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Step 3: Review, and Transmit to the IRS
Review the information, and transmit it to the IRS. You will then receive instant updates on your return status.
Are you ready to File 8027 electronically?
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Frequently Asked Questions About Form 8027
What is a Form 8027?
Form 8027, the Employer’s Annual Information Return of Tip Income and Allocated Tips, used by employers in the food or beverage industry to report tip income and allocated tips for their employees. The form ensures compliance with IRS regulations regarding tip reporting and allocation.
Who needs to file Form 8027?
Employers operating a large food or beverage establishment (such as restaurants or bars) must file Form 8027 with the IRS, if they meet the following conditions:
- Located in the 50 U.S. states or in the District of Columbia,
- Located where the tipping is considered customary for food and beverage employees from customers
- Employs more than 10 employees on a typical business day. This is known as the “10-employee test”.
How do I calculate allocated tips?
Allocated tips are calculated based on the gross receipts from food and beverages. Typically, you can multiply the gross receipts by 8% (or a lower rate approved by the IRS) to determine the amount of tips to allocate. The difference is allocated to employees if your reported tips are less than this amount.
There are various allocation methods, such as hours-worked, gross receipts, or good-faith methods.
What are the IRS penalties for not filing?
If you fail to file Form 8027 on time, you may incur penalties. The penalty depends on how late the form is filed. The penalties range from $60 to $660 per form. If you can show that the delay was due to reasonable cause (such as unforeseen circumstances), the penalty may be reduced or waived.
Should I file a Form 8027 for each establishment?
Yes, you must file Form 8027 for each establishment under the same EIN. Each form should reflect the tip income and allocated tips for each specific establishment. Make sure to provide accurate information for each location when filing.
