Printable Form 2026

IRS Form 8027-T – IRS Form, Instructions, Pubs 2026

IRS Form 8027-T – In the hospitality industry, accurate reporting of tip income is essential for compliance with IRS regulations. For employers operating multiple large food or beverage establishments, IRS Form 8027-T plays a crucial role as a transmittal document. This form ensures that all related Forms 8027 are properly submitted to the IRS. Whether you’re a restaurant owner, hotel manager, or business operator in the food service sector, understanding Form 8027-T can help you avoid penalties and streamline your tax filing process. In this SEO-optimized guide, we’ll cover everything you need to know about Form 8027-T, including its purpose, filing requirements, and step-by-step instructions.

What is IRS Form 8027-T?

IRS Form 8027-T, officially titled “Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips,” is a cover sheet used when submitting multiple Forms 8027 on paper. It summarizes the number of accompanying Forms 8027 and provides essential employer details. This form is not required for electronic filings but is mandatory for paper submissions involving more than one establishment.

Form 8027-T is directly linked to Form 8027, which employers use to report gross receipts, charged tips, and allocated tips from large food or beverage operations. Large establishments are defined as those where tipping is customary, located in the U.S. or D.C., and employing more than 10 employees on a typical business day based on the previous year’s data.

The current revision of Form 8027-T is from October 2024, applicable for calendar year reporting. You can download the PDF directly from the IRS website at https://www.irs.gov/pub/irs-pdf/f8027t.pdf.

Who Needs to File Form 8027-T?

You must file Form 8027-T if:

  • You operate more than one large food or beverage establishment.
  • You are filing Forms 8027 on paper (not electronically).
  • Your establishments meet the criteria for “large” operations, including customary tipping and the 10-employee test.

The 10-employee test is calculated using an optional worksheet that averages employee hours from the months with the highest and lowest gross receipts in the prior year. If the average exceeds 80 hours per day, you meet the threshold. This test applies across all your operations combined, not individually.

Examples of qualifying establishments include restaurants, bars, and hotel dining areas where customers tip for service. Fast-food operations or venues where tipping isn’t customary (e.g., cafeterias with 95% or more sales including a 10% service charge) are exempt.

New businesses must file if, during any two consecutive months, the average daily employee hours exceed 80.

When and Where to File Form 8027-T?

Form 8027-T, along with the attached Forms 8027, must be filed annually by the last day of February following the calendar year (e.g., February 28, 2026, for the 2025 calendar year). If the due date falls on a weekend or holiday, it shifts to the next business day.

Mail the completed form and attachments to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201

Electronic filing of Forms 8027 is encouraged and required if you have 10 or more information returns. In such cases, Form 8027-T is not needed. Use the IRS’s Filing Information Returns Electronically (FIRE) system for electronic submissions.

How to Complete IRS Form 8027-T: Step-by-Step Instructions?

Filling out Form 8027-T is straightforward, as it primarily serves as a transmittal. Here’s a breakdown:

  1. Calendar Year: Enter the four-digit year (e.g., “2025”).
  2. Employer’s Name and Address: Type or print your business name, street address (or P.O. box), apartment/suite number, city, state, and ZIP code. For foreign addresses, follow the instructions in the Form 8027 guidelines.
  3. Employer Identification Number (EIN): Enter your nine-digit EIN as shown on Form 8027.
  4. Number of Accompanying Forms 8027: Indicate how many Forms 8027 are attached. Attach them in establishment number order (lowest to highest).

No signature is required on Form 8027-T, but ensure all information matches your Forms 8027.

For detailed guidance, refer to the Instructions for Form 8027, which cover both Form 8027 and 8027-T.

  • Form 8027: The primary form for reporting tip income. File one per establishment, including gross receipts, charged tips, and allocated tips. Allocated tips must be reported to employees on Form W-2 (box 8), but they are not subject to withholding.
  • Tip Allocation: If total reported tips are less than 8% of gross receipts, allocate the difference among tipped employees. Methods include hours worked, gross receipts, or good-faith agreements.
  • Service Charges vs. Tips: Service charges are wages, not tips, and must be treated as such for withholding and reporting.

Penalties for Not Filing or Incorrect Filing

Failure to file Form 8027-T (when required) or Forms 8027 on time can result in penalties, including:

  • Up to $290 per return for late filing.
  • Additional penalties for not furnishing correct W-2s to employees.

You can avoid penalties by showing reasonable cause. Always keep records of tip reports from employees.

Download and Resources

Download Form 8027-T PDF: https://www.irs.gov/pub/irs-pdf/f8027t.pdf

For more details:

Frequently Asked Questions (FAQs) About IRS Form 8027-T

What if I file electronically?

You don’t need Form 8027-T for electronic filings via the FIRE system.

Can I file Form 8027-T without Forms 8027?

No, it’s a transmittal form and must accompany at least two Forms 8027.

What happens if my tip allocations are incorrect?

Correct them on Form W-2c if already filed, or issue a new W-2 if not.

Is Form 8027-T required for single establishments?

No, only for multiple establishments filing on paper.

By staying compliant with IRS Form 8027-T, you ensure accurate tip income reporting and avoid costly penalties. Consult a tax professional for personalized advice, especially if your business involves complex tip-sharing arrangements.