8027 Formatting Errors and Solutions

Electronic filing specifications of IRS Form 8027 are published in Publication 1239 which is titled "Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, Electronically". Here we list common problems (with solutions) encountered when electronically filing Form 8027 to the IRS. These problems may result in IRS/ECC-MTB requesting replacement files.

Invalid Characters

• The Establishment Name, positions 7 through 46, is a required field. It must not be blank or contain invalid characters.
• The Employer Name, positions 132 through 171, is a required field. It must not be blank or contain invalid characters.
• Establishment Street Address, positions 47 through 86, is a required field. It must not be blank or contain invalid characters.
• Employer Street Address, positions 172 through 211, is a required field. It must not be blank or contain invalid characters.

!.,&*/# are not allowed. In words, exclamation point, comma, period, ampersand, asterisk, slash, pound sign are not allowed and any other punctuation mark is not allowed. Just use A-Z or a-z, 0-9 and blanks for the name and/or street address.

Tips

• Indirect Tips, positions 284 through 295, is a required numeric field. This field cannot exceed Total Tips, reported in positions 308-319.
• Direct Tips, positions 296 through 307 is a required numeric field. Your entry must not exceed Total Tips reported in positions 308 through 319.
• Total Tips, positions 308 through 319, is a required numeric field. This field must be the total of Indirect Tips and Direct Tips reported.

Total Tips is reported on Line 4C of Form 8027. It is the sum of Indirect Tips (Line 4A) and Direct Tips (Line 4B). Our 8027 software will generate the total and find the total the user entered and pop up this error if there is a difference in values. Double check the calculation before e-filing.

Tip Rate Percentage

• Tip Rate Percentage, positions 344 through 347, is blank or invalid. If your tip rate percentage is correct, then your multiplication of Gross Receipts and Tip Percentage Rate is inconsistent.

Tip Percentage Rate is typically 8% and shown on Line 6. You can enter just 8 on Form 8027 in Line 6 and the software will automatically multiply Line 5 by 8%. 8%, when e-filing, is entered as 0800. If instead of entering 8 you enter .08, the Tip Percentage Rate is 0008 which is incorrect and you will receive this error.

Gross Receipts

• Gross Receipts, positions 320 through 331, is a required numeric field. Report all receipts, except non-allocable receipts. Generally, this field must exceed all other monetary fields.
• The multiplication of the Gross Receipts, positions 320 through 331, by the Tip Percentage Rate, positions 344 through 347 is inconsistent.

Gross Receipts must reflect the cost of providing food or beverages served to customers if tipping for them is customary and they are provided in connection with an activity engaged in for profit who receipts would not be included as gross recipes from the provision of food or beverages. Gross Receipts must be the largest value on Form 8027. Line 6 of Form 8027 multiplies Line 5 by .08 (8%). This error is telling you that this calculation is incorrect.

Please e-mail technical support at support@1099fire.com with any questions related to IRS Form 8027.

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