TaxBandits Knowledge Base

What information is required to E-File Form 8027?

When filing Form 8027 online, the employer must provide key details about their establishment, tip income, gross receipts, and tip allocation. Below is the essential information required:

1. Basic Establishment Information

• Establishment name, address, and EIN (Employer Identification Number).

• A unique five-digit establishment number for each location under the same EIN.

• Type of establishment:

  • Evening meals only

  • Evening and other meals

  • Meals other than evening meals

  • Alcoholic beverages

2. Employer Information

• Name and address of the employer.

3. Accepted Payment Methods

• Indicate whether the establishment accepts credit or debit card payments.

4. Tip Income Reporting Information

• Total charged tips received for the year.

• Total charge receipts that include charged tips.

• Service charges paid as wages.

• Tips reported by both directly and indirectly tipped employees.

5. Gross Receipts Information

• Total receipts from food and beverage sales.

• IRS tip allocation calculation (gross receipts multiplied by 8% or a lower IRS-approved rate).

6. Tip Allocation Information

If total reported tips are less than 8% of gross receipts, you must allocate additional tips using one of the three IRS-approved methods:

• Hours-Worked Method

• Gross Receipts Method

• Good-Faith Agreement Method

7. Directly Tipped Employees

• Total number of directly tipped employees working at the establishment.

8. Signature

• Employer’s signature, title, and date for verification.

Providing accurate and complete information ensures compliance with IRS reporting requirements and helps avoid penalties for incorrect or late filing.