Employer’s Annual Information Return Tip Income and Allocated Tips – for 2013
All employees receiving $20 or more a month in tips must report 100% of their tips to their employer.
Form 8027 is used by large food or beverage establishments when the employer is required to make annual reports to the IRS on receipts from food or beverage operations and tips reported by employees.
You must file Form 8027 if you are an employer who operates a large food or beverage establishment. If you own more than one establishment, you 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 return is required only for establishments in the 50 states and the District of Columbia.
A large food or beverage establishment is one to which all of 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.
The filing requirement (more than 10 employees) is based on the total of all employees who provided services in connection with the provision of food and beverages at the establishment, not just the number of directly tipped employees. Include employees such as waitstaff, bussers, bartenders, seat persons, wine stewards, cooks, and kitchen help. See Regulations section 31.6053-3(j)(10) for more information.
A person who owns 50% or more in value of the stock of a corporation that runs the establishment is not considered an employee when determining whether the establishment normally employs more than 10 individuals.
File Form 8027 (and Form 8027-T when filing more than one Form 8027) by February 28, 2014. However, if you file electronically, the due date is March 31, 2014.
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, Application for Extension of Time To File Information Returns. File Form 8809 as soon as you know an extension of time to file is necessary, but not later than February 28, 2014 (March 31, 2014 if you file electronically).