This Form 8027 2026 guide explains the IRS Employer's Annual Information Return of Tip Income and Allocated Tips. Form 8027 reports the food or beverage establishment tip information covered by its instructions. Establishment applicability, receipts, charged tips, reported tips and any allocation should be reviewed using the actual records. It does not replace the employee wage-statement or tip income reporting process.
Reviewed October 31, 2026. This is an independent guide. The version and availability information below identifies the IRS documents used for this page.
What Form 8027 2026 does and who prepares it
An establishment or employer covered by the large food or beverage establishment reporting rules uses the annual tip information return.
For the connected reporting route, see Form W-2. Keep the role of that document separate from the task explained on this page.
| Official form | Form 8027 |
|---|---|
| IRS title | Employer's Annual Information Return of Tip Income and Allocated Tips |
| Guide period | 2026 |
| Target version | 2026 |
| Availability | Current IRS catalog PDF |
| Last checked | October 31, 2026 |
Get the Form 8027 2026 PDF and check its status
Use the IRS source to confirm the document before completing a real filing. The download link is a reference to the official file; it is not a statement that every copy inside the PDF may be printed and submitted. Follow any instructions about electronic filing, scannable copies, recipient copies or attachments.
Which version of Form 8027 2026 should you use?
The 2026 in the title identifies the tax year or calendar-year information addressed by this guide. For a 2026 income reporting document, the preparation or filing activity may occur in 2027. Do not change the income year simply because the calendar has changed. The exact filing or furnishing date comes from the instructions for this form and the filer circumstances.
Records to gather for Form 8027 2026
- Establishment receipts.
- Charged tip records.
- Employee reported tips.
- Payroll and staffing information.
- Allocation workpapers when relevant.
Keep a working reconciliation with these records. It should show the source of each reported item, any correction made before filing and the reason a different amount appears on a connected form. This is especially useful when a statement is corrected or a prior-year balance continues into the current calculation.
How to work through Form 8027 2026
- Confirm applicability. Start with the purpose, filer category and version of the form. Complete any eligibility or applicability question before spending time on the numerical calculation.
- Prepare the source workpapers. Gather the records listed below and reconcile their totals. Keep prior-year balances, current-year transactions and estimated payments separate where they serve different purposes.
- Complete dependent calculations first. When a line refers to another form, schedule or worksheet, finish that supporting calculation first. Preserve any classification, limitation and carryforward information.
- Follow the line sequence. Use the actual line labels and arithmetic in the applicable form. A line number from an older version may refer to something different after a revision.
- Reconcile the filing package. Check names, identifying numbers, tax periods, totals and required attachments. Then use the filing method, signature process and deadline that apply to this filer and form.
Form-specific IRS instructions and reporting details
The following points retain the operative wording of the IRS documents linked above. Read each point with its stated conditions and the applicable form version. References to another form or section describe a connected requirement; they do not mean that every reader must file every referenced document.
What’s New New question added to Form 8027. We added new line B for you to indicate whether the establishment participated in a voluntary tip reporting program during the calendar year. You must check either the “Yes” or “No” box. For more information, see the instructions for line B, later. Filing Information Returns Electronically (FIRE) sys tem retired. The FIRE system to electronically file Form 8027 is now retired. The Information Returns Intake System (IRIS) is now the only system available to electronically file your 2026 Form 8027. Go to IRS.gov/ IRIS for more information.
Employers must annually report to the IRS receipts and tips from their large food or beverage establishments. Employers use Form 8027 to report that information. In addition, employers use Form 8027 to determine allocated tips for tipped employees. These instructions give you some background information about Form 8027. They tell you who must file Form 8027, when and where to file it, and how to fill it out line by line.
Worksheet for Determining if You Must File Form 8027 for Calendar Year 2026 You can complete the optional worksheet to determine if you had more than 10 employees on a typical business day during 2025 and, therefore, must file Form 8027 for 2026. It is the average number of employee hours worked on a typical business day that determines whether you employed more than 10 employees. Completing this worksheet is only for the employer’s information (don’t send it to the IRS).
Additional reporting conditions
If you file a paper return, mail Form 8027 to: Internal Revenue Service Ogden, UT 84201 Form 8027 attachments if filing on paper. If applicable, attach a copy of your timely filed Form 8809 and a copy of your “lower rate” determination letter from the IRS. If you filed Form 8508, Application for a Waiver from Electronic Filing of Information Returns, attach a copy of the approved waiver that you received. Don’t attach any other documents. Reporting and filing electronically. You may be required to file Forms 8027 electronically.
For more information, see Electronic filing, earlier.
Calculations and supporting information
Service charges are treated differently from tips for federal tax purposes. Any portion of a service charge that is distributed to an employee is wages, and you must withhold federal income tax, social security tax, and Medicare tax and include the amount on Form W-2 as wages. Service charges aren’t reported as tips on Form 8027. You may be required to report service charges on line 3; see the instructions for line 3, later. To accurately report and pay your taxes, you must correctly identify amounts as either tips or service charges.
Generally, an amount is a tip if: • The payment is made free from compulsion, • The customer has the unrestricted right to determine the amount (including zero), • The payment isn’t the subject of negotiation or dictated by employer policy, and • The customer has the right to determine who receives the payment. The absence of any of these factors raises doubt as to whether a payment is a tip and indicates that the payment may be a service charge.
For additional information, including examples of both service charges and tips, see Q&A 1 in Rev. Rul. 2012-18, 2012-26 I.R.B. 1032, available at IRS.gov/irb/ 2012-26_IRB#RR-2012-18.
Specific Instructions File a separate Form 8027 for each large food or beverage establishment. File Form 8027-T when filing more than one paper Form 8027.
Exceptions and related reporting
Enter a 5-digit number to identify the individual establishment that you’re reporting under the same EIN. Give each establishment a separate number and complete a separate Form 8027 for each. For example, each establishment could be numbered consecutively, starting with 00001. Once you assign a number to an establishment, always use the same number for that establishment each year. If you close an establishment, don’t use the number you assigned to it for another establishment.
Enter the result of multiplying line 5 by 8% (0.08) or a lower rate (if the establishment was granted a lower rate by the IRS). If a lower rate was granted, enter the rate in the space provided and attach a copy of the IRS determination letter. If filing electronically, you will attach a copy to Form 8027 in IRIS. Caution: The 8% rate (or lower rate) is used for tip allocation purposes only. Using this rate doesn’t mean directly tipped employees must report only 8%.
All directly tipped employees and indirectly tipped employees must report the actual amount of tips they receive. You may allocate tips for the calendar year, annually, by payroll period, or by using any period that results in a reasonable division of a calendar year, including biweekly, semimonthly, quarterly, etc. The method you choose will be effective for the entire calendar year.
Tip: If you allocated tips using a period other than the calendar year (semimonthly, biweekly, quarterly, etc.), mark an “X” on line 6 and enter the amount of allocated tips (if any) from your records on line 7.
Further form details
Enter the total number of directly tipped employees who worked at the establishment during 2026. This is the cumulative total of all directly tipped employees who worked at the establishment at any time during the year. If you have a large turnover of directly tipped employees, this number may be large. Don’t use this number to determine if you must file Form 8027. Instead, see Worksheet for Determining if You Must File Form 8027 for Calendar Year 2026, earlier.
Once you have completed the worksheet: • If the entry on line 7 is zero or less, your employees are probably accurately reporting their tips; however, • If the entry on line 8 is greater than zero, depending on the type of operation you have, it is possible that your employees aren’t reporting all of their tip income to you.
Tip: Another quick method to determine if your employees are properly reporting all their tips to you is to compare the rate of tips reported on credit sales to the rate of tips reported on cash sales.
For example, if line 3 in the worksheet greatly exceeds the rate determined from dividing reported cash tips by reportable cash receipts (that is, total cash receipts less nonallocable cash receipts), some of your employees may not be reporting all of their tips to you and you should generally be showing an amount on line 7 (“Allocation of tips”) of Form 8027.
Reading the lines and boxes
These selected labels come from the linked target PDF. They are a reading aid, not a replacement for the full line instructions or a completed calculation. Match the label and document version before transferring any amount.
| Line or box | Label in the source form | What to check |
|---|---|---|
| 2 | Evening and other meals | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 3 | Meals other than evening meals | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 4 | Alcoholic beverages | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| A | Does this establishment accept credit cards, debit cards, or other charges? | Complete the applicable eligibility and limitation workpapers before entering an amount. The label alone does not establish that every reported expense or payment qualifies. |
| B | Did this establishment participate in a voluntary tip reporting program with the IRS during the calendar year? | Use the date or tax period requested by this particular field. A payment date, acquisition date and return year can describe different facts. |
Further selected fields
| Line or box | Label in the source form | What to check |
|---|---|---|
| 1 | Total charged tips for calendar year 2026 | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 2 | Total charge receipts showing charged tips (see instructions) | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 3 | Total amount of service charges of less than 10% paid as wages to employees | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 4a | Total tips reported by indirectly tipped employees | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 4b | Total tips reported by directly tipped employees | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
A practical example
A restaurant reviews its annual receipts and tip records. The employer checks whether the establishment reporting rules apply and reconciles any allocation calculation with payroll and employee information statements.
This example illustrates the order of the review. It does not assume an unverified deduction, exemption, treaty rate or final tax amount. The applicable form instructions and the actual records determine the result.
Common mistakes to avoid with Form 8027 2026
- Determine establishment applicability before preparing the return.
- Do not confuse allocated tips with tips already reported through payroll.
- Reconcile the establishment information with employee reporting where required.
Questions about Form 8027 2026
Does receiving or downloading this form mean I must file it?
An establishment or employer covered by the large food or beverage establishment reporting rules uses the annual tip information return. The form purpose and the applicable filing or furnishing conditions determine the action. Downloading a blank PDF does not itself create a filing obligation or establish eligibility for a tax benefit.
Is the revision date always the same as the tax year?
No. Some forms show a tax year, while continuing-use forms show a revision date and ask separately for the reporting period. Check the actual document and instructions. Do not relabel a payment or transaction solely because it was reported in a later calendar year.
What should I do if the underlying information is wrong?
Determine establishment applicability before preparing the return. Keep the original record and the correction trail. The issuer correction process, an amended return and an updated certificate can be different procedures. Choose the process that matches the document and the actual error.
Which records should I keep with the completed form?
Retain the source documents, applicable worksheets, submitted version and filing or furnishing confirmations. For this form, the working file should include establishment receipts, charged tip records, employee reported tips. Keep continuing balances and prior-year support for as long as they remain relevant under the applicable recordkeeping rules.
Related forms and next steps
Use these guides when the connected issue applies to your records. Each page has its own purpose, reporting year and availability status.