Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has issued revised specifications for electronically filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips. Form 8027 is used by large food or beverage establishments to report their gross receipts from food or beverage operations and tips reported by employees. The updated specifications are effective for Forms 8027 due on the last day of February 2009 or filed after that date.

  The new procedure reflects the following changes to the existing procedures:

  (1) Filings on magnetic media will no longer be accepted; all filings must be electronic.

  (2) Form 8809, Application for Extension of Time to File Information Returns, is now available as a fill-in form on the FIRE (Filing Information Returns Electronically) System, and the IRS encourages its use there in place of the filing of a paper application.

  (3) Establishments that send a test filing will receive email notification of the status of their test filing within five days.

The new procedure also provides additional and clarifying guidance for establishments that allocate tips based on a good-faith agreement and for those that wish to request a determination letter allowing the use of a lower rate for tip allocation purposes.

 
Rev. Proc. 2006-29, I.R.B. 2006-27, 13, is superseded.

Rev. Proc. 2008-34, 2008FED ¶46,508

Other References:

 
Code Sec. 3402

  CCH Reference - 2008FED ¶33,577.25

 
Code Sec. 6053

  CCH Reference - 2008FED ¶36,465.11

 
Code Sec. 7513

  CCH Reference - 2008FED ¶42,702.15

  Tax Research Consultant

  CCH Reference - TRC PAYROLL: 3,406.25