Employers use Form 8027 to report the amount of money received as tip income by employees or any allocations of tips. Just like other filings the IRS has been migrating online, filing Form 8027 has also become possible electronically.
For the most part, information needed to be noted on Form 8027 corresponds to the electronic filing. In the case of Form 8027, you will need to use the IRS’s FILING INFORMATION RETURNS ELECTRONICALLY (FIRE) service. Unlike other commonly offered e-file options, FIRE is used for specific types of informational reporting on certain forms, like Form 1099.
The due date of filing Form 8027 is the last day of February of the following year. If you file it electronically through FIRE, the due date is instead moved back almost a month to March 31. Definitely another incentive from the IRS to get everyone to start filing their taxes electronically! In the event that you may need an extension, you will be required, as of the 2016 tax year, to submit a paper Form 8809 though.
To file through FIRE, you have to apply to use it with Form 4419. It can be completed online. Once processed and approved, your company will receive a Transmitter Control Code (TCC) so that you can transmit informational filings such as Form 8027.
Sometimes the amount of filings and where they can go can get overwhelming for a small business. Having a supportive team like MiklosCPA to take care of the accounting and taxes can ease that burden. We are a California-based firm that has helped many small to mid-sized businesses with their accounting and tax needs. If you are interested in learning more about our services, please do not hesitate to reach out to us.
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