What Is Form 8027? Tip Reporting for Large Food or Beverage Establishments

Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, is filed by each large food or beverage establishment (IRS: About Form 8027). Roughly: food or beverages are served for consumption on the premises, tipping is customary, and the employer normally had more than 10 employees on a typical business day in the previous year (the instructions give an hours-based test — read it for your business).

What's on it

• Lines 1–2: charged tips and the charge receipts that showed them.
• Line 3: service charges under 10% paid to employees.
• Line 4: tips reported by indirectly and directly tipped employees.
• Line 5: gross receipts from food or beverage operations (not carryout or sales with a service charge of 10% or more).
• Line 6: line 5 × 8% (or a lower IRS-approved rate, not under 2%).
• Line 7: tips allocated, and the method used. Line 8: number of directly tipped employees.

Last reviewed 2026-10-28. General information, not tax advice. Your tax adviser can tell you what applies to you.