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Form 8027 for TIPS

Is form 8027 part of payroll taxes? Who should file this form, payroll or corporate tax? Thanks!


  • The employer is responsible for filing Form 8027 - Usually this responsibility rests with the person who is to sign the Form. This may not be the person who prepared the Form . whether in payroll or corporate tax. I think what you are really asking is who is responsible for preparing the form - that depends upon your organization and may be based on who has best access to all the information required for the Form, the organizational structure of the company, and, possibly, the whim of the person signing the form. From where I stand, it looks like the form will be a collaboration between the two groups - that is, payroll has some of the information (primarily line 3 Line 3. Total Amount of Service Charges of Less Than 10% Paid as Wages to Employees and line 4 concerning tips reported by employees. Most of the rest of the information looks like stuff that payroll may not normally be concerned with on a day to day basis - for example company gross receipts and sorting out credit card payments into tips and revenue - that sounds more like general accounting or accounts receivable issues. However, ultimate responsibility lies with the person who signs the return. Per the IRS that will be:
    Who Must Sign
    The following persons are authorized to sign the return for each type of business entity.
    • Sole proprietorship. The individual who owns the business.
    • Corporation (including a limited liability company (LLC) treated as a corporation). The president, vice president, or other principal officer duly authorized to sign.
    • Partnership (including an LLC treated as a partnership) or unincorporated organization. A responsible and duly authorized member, partner, or officer having knowledge of its affairs.
    • Single-member LLC treated as a disregarded entity for federal income tax purposes. The owner of the LLC or principal officer duly authorized to sign.
    • Trust or estate. The fiduciary.
    Form 8027 may also be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.