TaxBandits Knowledge Base

What is Form 8027?

Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, is an IRS information return used by employers who operate large food or beverage establishments. The form serves two primary purposes:

• Reporting annually to the IRS about the receipts and tips from their food or beverage establishments.

• Determining allocated tips for tipped employees who may not have reported enough tips to meet IRS thresholds.