If you are a food or beverage establishment with more than 10 employees where tipping is customary, you are generally required to file Form 8027 each year. Starting this year, you must file your form 8027(s) electronically if you are required to file 10 or more information returns during the year, which includes 1099s and W-2s. If you are required to file Form 8027, then you are likely filing 10 or more W-2s and therefore have a mandatory e-filing requirement for your Form(s) 8027.

Electronic filing of Form 8027 is done from the Filing Information Returns Electronically (FIRE) system through the Internal Revenue Service.  A Transmitter Control Code (TCC) is required to access theFIRE system. If the taxpayer does not have a TCC, a representative of the business will need to create an account through the IRS’ ID.me system. After validation of identity through ID.me, an application for TCC must be submitted. Applications need to be completed early as full processing and receipt of the tracking number via USPS can take up to six weeks. For more information, refer to the IRS Modernized e-File.

For establishments that are required to file electronically based on the criteria above, the due date for the Form 8027 is March 31, 2024.

Failure to file Form 8027 electronically or filing an incomplete or incorrect form will result in penalties. Accuracy and timely submission are important.

If you have any questions or need further guidance on the filing of Form 8027, please reach out to Nikki Prashad at sprashad@citrincooperman.com or Sharon Zsoldos at szsoldos@citrincooperman.com.