Who must file Form 8027?

Last modified 3/14/2025 8:36:12 AM EST

You as an employer, must file Form 8027 if you operate a large food or beverage establishment and meet the following conditions:

1. Located in the U.S. – To be required to file Form 8027, your establishment must be located within the 50 U.S. states or the District of Columbia.
    
2. Tipping is Customary – Your establishment must be one where customers typically leave tips for food and beverage employees. This includes restaurants, bars, hotel dining services, and similar businesses.
    
3. Meets the "10-Employee Test" – Your business qualifies as a large food or beverage establishment if you regularly employ more than 10 employees on a typical business day (for more than 8 hours). This means you have over 10 employees working on a given day at your establishment.

If your establishment meets all these criteria, you are required to file Form 8027 with the IRS to report gross receipts, reported tips, and tip allocation (if applicable).