Form 8027 is due by the last day of February for paper filers, or March 31 if you file electronically, for the prior calendar year. For 2025 returns those dates were March 2, 2026 (because February 28 fell on a Saturday) and March 31, 2026. Late or incorrect filing is penalized under the information-return penalty rules, which are figured per return.
Who must file Form 8027
According to the Form 8027 instructions, a food or beverage operation is a "large food or beverage establishment" if all of these apply (irs.gov/instructions/i8027):
- It is located in the 50 states or the District of Columbia.
- Food or beverages are provided for consumption on the premises (fast food operations are excluded).
- Tipping of food or beverage employees by customers is customary.
- You normally employed more than 10 employees on a typical business day during the preceding calendar year.
The 10-employee test counts all employees at all of your food or beverage operations, including managers, not just tipped staff. If you meet it, file a separate Form 8027 for each qualifying establishment, even one that has 10 or fewer employees on its own.
Form 8027 due dates
| Filing method | Due date | 2025 return (filed 2026) |
|---|---|---|
| Paper (with Form 8027-T if filing more than one) | Last day of February (next business day if it falls on a weekend) | March 2, 2026 |
| Electronic | March 31 | March 31, 2026 |
| Extension (Form 8809) | Request by the original due date | By March 2, 2026 (or March 31, 2026 if e-filing) |
Penalties for late or incorrect Form 8027
The instructions say you may be penalized for each failure to timely file a correct information return (Form 8027 and Form W-2), including failing to e-file when required, and for each failure to furnish a correct W-2 to an employee, unless you show reasonable cause. The amounts follow the per-return information-return penalty schedule. For W-2s due after December 31, 2026, that schedule is $60 per return if corrected within 30 days, $130 if corrected by August 1, and $340 after that, and at least $690 per return for intentional disregard (irs.gov/instructions/iw2w3).
Allocated tips on Form 8027
If reported tips are below 8% of gross receipts (or a lower rate the IRS approved, which can't go below 2%), you must allocate the shortfall among directly tipped employees and show it in W-2 Box 8. Allocated tips aren't subject to withholding. See ttoccodes.com/…/allocated-tips-vs-unreported-ti… and our line-by-line guide ttoccodes.com/blog/form-8027-instructions-2 .
Frequently asked questions
When is Form 8027 due?
Paper Forms 8027 are due by the last day of February for the prior calendar year, moved to the next business day if that falls on a weekend (March 2, 2026 for 2025). Electronically filed forms are due March 31. Form 8809 requests an extension.
Is there a dollar threshold for filing Form 8027?
No. The requirement is based on being a large food or beverage establishment: located in the U.S., serving food or drink on premises, tipping customary, and more than 10 employees on a typical business day in the prior year. It isn't based on a dollar amount of tips.
How do I correct a Form 8027?
File a corrected Form 8027 by checking the amended return box, and correct any affected employees' W-2s with Form W-2c. Form 4137 is not an employer form. Employees use it to report their own unreported tips.
This article is general information, not tax advice. Rules can change; confirm your situation with the current IRS instructions linked above or a tax professional.