Form 8027

Form 8027

A form that a restaurant or bar files with the IRS to report all tips reported by employees. All employees who receive $20 or more in tips per month must report tips to their employer, who in turn reports this information to the IRS.
References in periodicals archive ?
Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips
Check the appropriate box on Form 8027, Employer Annual Information Return, to sign up for the program (businesses with 10 or fewer employees can file an abbreviated Form 8027 to sign up); -- Demonstrate 20 percent of gross receipts on credit card charge slips, with tip included; -- Maintain participation of at least 75 percent of its tipped employees (both directly and indirectly tipped employees qualify); and -- Report the tips on W-2s, and withhold income and employment tax.
Each year Fior filed Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips.
In order to participate in ATIP, an employer must: -- Check the appropriate box on Form 8027, Employer Annual Information Return, to sign up for the program (businesses with 10 or fewer employees can file an abbreviated Form 8027 to sign up); -- Demonstrate 20 percent of gross receipts on credit card charge slips, with tip included; -- Maintain participation of at least 75 percent of tipped employees (both directly and indirectly tipped employees qualify); and -- Report the tips on W-2s, and withhold income and employment tax.
Source Income of Foreign Persons; Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips; Form CT-1, Employer's Annual Railroad Retirement Tax Return; and any variant of these forms.
2d 1050 (1999), Coco Pazzo, a Chicago restaurant, declared both its total charged tips and cash tips reported by employees on Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, for 1993-95, the years at issue.
The agent estimated tip income by reviewing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips.
Any employer who operates a large food or beverage establishment in which tipping is customary and where ten people or more are employed on a typical business day, must file Form 8027 each year for each such establishment.
The IRS will try to increase the number of filings of Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, as well as the percentage of tips reported by both employers and employees and the tax collections from tip income.
Furthermore, employers required to file a Form 8027 must send an additional copy of the form to the IRS district director.
For 1990 and 1991, the company had timely filed Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, for that particular restaurant.
Recent IRS analysis of filings of Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, highlighted some serious concerns, including the number of forms filed compared with the known number of establishments required to file, the significant number of restaurants reporting tips received on charge sales in excess of total tips reported by employees and the reported tip rates.