IRS Revises Specifications For Filing Tip Reporting Form Electronically.
Rev. Proc. 2000-49; 2000-2 C.B. 491
- Institutional AuthorsInternal Revenue Service
- Cross-Reference26 CFR 601.602: Tax forms and instructions.
- Code Sections
- Subject Areas/Tax Topics
- Index Termstips, reportingfiling, electronic
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-29660 (24 original pages)
- Tax Analysts Electronic Citation2000 TNT 224-8
Rev. Proc. 2000-49
Reprinted from IR Bulletin 2000-47 dated November 20, 2000 (and containing copies of Forms 4419, 4802, 4804, 8508, and 8809 for taxpayers' use)
NOTE: Use this revenue procedure to prepare Forms 8027,
Employer's Annual Information Return of Tip Income and
Allocated Tips, for submission to Internal Revenue Service
(IRS) using any of the following:
o Magnetic Tape
o Tape Cartridges
o 8mm, 4mm and Quarter Inch-Cartridges (QIC)
o 3-1/2-inch Diskette
o Electronic Filing
Please read this publication carefully. Persons required to file may be subject to penalties if they do not follow the instructions in this revenue procedure.
Beginning in calendar year 2003 for Tax Year 2002, 9 track
magnetic tape will no longer be an acceptable method for
submitting Forms 8027 to IRS/MCC. See Part A, Sec. 03 and Part
B, Sec. 2. In addition, IRS/MCC will no longer return problem
media in need of replacement. See Part A, Sec. 2 .06 for details.
Table of Contents
Part A. General
Section 1. Purpose
Section 2. Nature of Changes
Section 3. Where to File and How to Contact the IRS, Martinsburg
Computing Center
Section 4. Filing Requirements
Section 5. Form 8508, Request for Waiver From Filing Information
Returns on Magnetic Media
Section 6. Form 4419, Application for Filing Information Returns
Magnetically/Electronically
Section 7. Test Files
Section 8. Filing Forms 8027 Magnetically/Electronically
Section 9. Due Dates
Section 10. Extensions of Time
Section 11. Processing of Information Returns
Magnetically/Electronically
Section 12. Penalties
Section 13. Corrected Returns, Substitute Forms, and Computer-
Generated Forms
Section 14. Effect on Paper Returns
Section 15. Definition of Terms
PART B. MAGNETIC MEDIA SPECIFICATIONS
Section 1. General
Section 2. Tape Specifications
Section 3. Tape Cartridge Specifications
Section 4. 8mm, 4mm, and Quarter-Inch Cartridge Specifications
Section 5. 3 1/2-Inch Diskette Specifications
Section 6. Record Format and Layout
PART C. ELECTRONIC FILING SPECIFICATIONS
Section 1. Background
Section 2. Advantages of Filing Electronically
Section 3. General
Section 4. Electronic Filing Approval Procedure
Section 5. Test Files
Section 6. Electronic Submissions
Section 7. Transmittal Requirements
Section 8. Electronic Filing Specifications
Section 9. Dial-up Network/Browser Specifications (Web Interface)
Section 10. Communication Software Specifications (Text Interface)
Section 11. Modem Configuration
Section 12. Common Problems Associated with Electronic Filing
PART D. MISCELLANEOUS INFORMATION
Section 1. Addresses for Martinsburg Computing Center
Section 2. Telephone Numbers for Contacting IRS/MCC
PART A. GENERAL
SECTION 1. PURPOSE
.01 Form 8027 is used by large food or beverage establishments when the employer is required to make annual reports to the IRS on receipts from food or beverage operations and tips reported by employees.
Note: All employees receiving $20.00 or more a month in tips
must report 100% of their tips to their employer
.02 The Internal Revenue Service Martinsburg Computing Center (IRS/MCC) has the responsibility of processing Forms 8027 submitted magnetically/electronically. The purpose of this revenue procedure is to provide the specifications for filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, magnetically or electronically. This revenue procedure is updated when legislative changes occur or reporting procedures are modified. Major changes have been emphasized by italics.
.03 This revenue procedure supersedes the following: Rev. Proc. 99-46 published as Publication 1239 (Rev. 03-2000), Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, Magnetically or Electronically. This revenue procedure is effective for Forms 8027 due the last day of February 2001 and any returns filed thereafter.
SECTION 2. NATURE OF CHANGES
Numerous editorial changes have been made to the revenue procedure. Please read the publication carefully and in its entirety before attempting to prepare your magnetic/electronic file for submission. Major changes have been emphasized by using italics. The changes are as follows:
.01 Part A, Sec. 3, the street address for mailing magnetic returns and correspondence has changed to 240 Murall Dr.
.02 Part A, Sec. 7, Test Files was added to the publication.
.03 PART B, SEC. 2, TAPE SPECIFICATIONS, BEGINNING IN CALENDAR YEAR 2003 FOR TAX YEAR 2002, IRS/MCC WILL NO LONGER ACCEPT 9 TRACK TAPE FOR FILING FORMS 8027.
.04 Electronic filing specifications are in Part C. Numerous changes have been made to these instructions. Please read this part carefully.
.05 Part D is new and contains miscellaneous information on contacting IRS/MCC in a centralized location within the publication.
.06 BEGINNING IN CALENDAR YEAR 2002 FOR TAX YEAR 2001, IRS/MCC WILL NO LONGER RETURN PROBLEM MEDIA IN NEED OF REPLACEMENT. Filers will continue to receive a tracking form, listing and letter detailing the reason(s) their media could not be processed. Filers will be expected to send in replacement media within the prescribed time frame. This makes it imperative that filers maintain backup copies and/or recreate capabilities for their information return files.
SECTION 3. WHERE TO FILE AND HOW TO CONTACT THE IRS, MARTINSBURG COMPUTING CENTER
.01 All Forms 8027 filed magnetically are processed at IRS/MCC and are to be sent to the following address:
IRS-Martinsburg Computing Center
Information Reporting Program
240 Murall Drive
Kearneysville, WV 25430
.02 Requests for paper forms and publications should be requested by calling the "Forms Only Number" listed in your local telephone directory or by calling the IRS toll-free number 1-800- TAX-FORM (1-800-829-3676).
.03 Questions pertaining to magnetic media filing of Forms W2 must be directed to the Social Security Administration (SSA). Filers can call 1-800-SSA-6270 to obtain the phone number of the SSA Employer Services Liaison Officers for their area.
.04 A taxpayer or authorized representative may request a copy of a tax return or a Form W-2 filed with a return by submitting Form 4506, Request for Copy or Transcript of Tax Form, to IRS. This form may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
.05 The Information Reporting Program (IRP) Call Site, located at the Martinsburg Computing Center, provides service to the payer/employer community (financial institutions, employers, and other transmitters of information returns). The IRP Call Site answers questions concerning tax law and magnetic/electronic filing of Forms 8027 and other information returns (Forms 1096, 1098, 1099, 5498, W-2G, W-3, 1042-S), questionable Forms W-4, inquiries dealing with backup withholding due to missing and incorrect taxpayer identification numbers and questions concerning paper filing of Forms W-2. Recipients of information returns (payees) should continue to contact 1-800-829-1040 or other numbers specified in the tax return instructions with any questions on how to report tax returns.
The Call Site accepts calls from all areas of the country. The number to call is 304-263-8700 or Telecommunications Device for the Deaf (TDD) 304-267-3367. These are toll calls. Hours of operation for the Call Site are Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern Time. The Call Site is in operation throughout the year to handle the questions of payers, transmitters, and employers. Due to the high demand for assistance at the end of January and February, it is advisable to call as soon as possible to avoid these peak filing seasons.
.06 The telephone numbers for magnetic media inquiries or electronic submissions are:
304-263-8700 -- Call Site
304-262-2400 -- Electronic Filing
304-267-3367 -- TDD (Telecommunication Device for the Deaf)
304-264-5602 -- Fax Machine
(These are not toll-free telephone numbers.)
TO OBTAIN FORMS & PUBLICATIONS, CALL:
1-800-TAX-FORM(1-800-829-3676)
TO OBTAIN FORMS & PUBLICATIONS VIA THE INTERNET:
www.irs.gov
SECTION 4. FILING REQUIREMENTS
.01 Section 6011(e)(2)(A) of the Internal Revenue Code requires that any person, including corporations, partnerships, individuals, estates, and trusts, required to file 250 or more information returns must file such returns on magnetic media.
.02 The filing requirements apply separately to both original and corrected returns.
.03 Filing electronically through the FIRE system with IRS/MCC fulfills the magnetic media filing requirement.
.04 The above requirements do not apply if you establish undue hardship (see Part A, Sec. 5).
SECTION 5. FORM 8508, REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA
.01 If an employer is required to file on magnetic media but fails to do so (or fails to file electronically, in lieu of magnetic media filing) and does not have an approved waiver on record, the employer will be subject to a penalty of $50 per return in excess of 250.
.02 If employers are required to file original or corrected returns on magnetic media, but such filing would create a hardship, they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, to IRS/MCC.
.03 Even though an employer may submit as many as 250 corrections on paper, IRS encourages magnetically or electronically submitted corrections. Once the 250 threshold has been met, filers are required to submit any additional returns magnetically or electronically. However, if a waiver for an original filing is approved, any corrections for the same type of returns will be covered under this waiver.
.04 Generally, only the employer may sign the Form 8508. A transmitter may sign if given power of attorney; however, a letter signed by the employer stating this fact must be attached to the Form 8508.
.05 A transmitter must submit a separate Form 8508 for each employer. Do not submit a list of employers.
.06 All information requested on the Form 8508 must be provided to IRS for the request to be processed.
.07 The waiver, if approved, will provide exemption from magnetic media filing for the current tax year only. Employers may not apply for a waiver for more than one tax year at a time; application must be made each year a waiver is necessary.
.08 Form 8508 may be photocopied or computer-generated as long as it contains all the information requested on the original form.
.09 Filers are encouraged to submit Form 8508 to IRS/MCC at least 45 days before the due date of the returns.
.10 File Form 8508 for Forms W-2 with IRS/MCC, not SSA.
.11 Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth under section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/MCC to respond to a waiver request.
.12 If a waiver request is approved, the transmitter should keep the approval letter on file.
.13 An approved waiver from filing Forms 8027 on magnetic media does not provide exemption from all filing. The employer must timely file Form 8027 on acceptable paper forms with the Andover Service Center. The transmitter should also send a copy of the approved waiver to the Andover Service Center where the paper returns are filed.
SECTION 6. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY
.01 For the purposes of this revenue procedure, the EMPLOYER is the organization supplying the information and the TRANSMITTER is the organization preparing the magnetic/electronic file and/or sending the file to IRS/MCC. The employer and the transmitter may be the same entity. Employers or their transmitters are required to complete Form 4419, Application for Filing Information Returns Magnetically/Electronically.
.02 Form 4419 can be submitted at any time during the year; however, it should be submitted to IRS/MCC at least 30 days before the due date of the return(s). IRS will act on an application and notify the applicant, in writing, of authorization to file. A five- character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an acknowledgment letter within 15 to 45 days of receipt of the application. Magnetic/electronic returns may not be filed with IRS until the application has been approved and a TCC assigned. Include your TCC in any correspondence with IRS/MCC.
.03 If you file information returns other than Form 8027 on magnetic media, you must obtain a separate TCC for those types of returns. The TCC assigned for Forms 8027 is to be used for the processing of these forms only.
.04 Upon approval, a magnetic media reporting package containing the current revenue procedure, forms, and instructions will be sent to the attention of the contact person indicated on Form 4419. Annually, thereafter, IRS/MCC will send the transmitter a package containing the current revenue procedure and forms. This package will continue to be sent to the contact person indicated on the Form 4419 unless IRS/MCC has been notified in writing of any changes or updates. After you have received approval to file magnetically/ electronically, you do not need to reapply each year; however, notify IRS in writing if:
(a) You change your name or the name of your organization, so
that your files may be updated to reflect the proper name;
(b) You discontinue filing on magnetic media for two years (your
TCC may have been reassigned).
.05 Filers who plan to submit for multiple employers, IRS encourages transmitters to submit one application and to use one TCC for all employers.
.06 Only employers or transmitters using equipment compatible with IRS equipment will have their application approved.
.07 If your magnetic media files have been prepared for you in the past by a transmitter, and you now have computer equipment compatible with that of IRS and wish to prepare your own files, you must request your own five-character alpha/numeric TCC by filing an application, Form 4419, as described in Sec. 6.02.
SECTION 7. TEST FILES
.01 IRS/MCC encourages new filers to submit test files for review in advance of the filing season. Employers or transmitters must be approved to file magnetically/electronically before a test file is submitted (See Part A, Sec. 6 for application procedures.)
.02 All test files must be submitted between October 1 and December 15 of the year before the returns are due. If you are filing electronically you may submit a test file through February 15 of the year the returns are due.
SECTION 8. FILING FORMS 8027 MAGNETICALLY/ELECTRONICALLY
.01 Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, must accompany all magnetic media shipments. If you file for multiple employers and have the authority to sign the affidavit on Form 4804, you should also submit Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation). For electronic transmissions, the Form 4804 and Form 4802, if applicable, must be mailed or faxed the same day as the electronic transmission.
.02 The employer MUST sign Form 4804; however, an agent (transmitter, service bureau, paying agent, or disbursing agent) may sign Form 4804 for the employer. To do this, the agent must have the authority to sign for the employer under an agency agreement (either oral, written, or implied) that is valid under the state law and must add to his or her signature the caption "For: (name of employer)".
NOTE: Failure to sign the Form 4804 may delay processing or
could result in your file being returned to you
unprocessed.
.03 Although a duly authorized agent may sign the Form 4804, the employer is responsible for the accuracy of the Form 4804 and the returns filed. The employer will be liable for penalties for failure to comply with filing requirements.
.04 Be sure to include Form 4804, 4802 or computer-generated substitutes with your magnetic media shipment. DO NOT MAIL YOUR MAGNETIC MEDIAAND THE TRANSMITTAL DOCUMENTS SEPARATELY.
.05 Indicate on Form 4804, in the block captioned "Combined Total Payee Records," the total number of establishments being reported in this shipment. This figure should match the total number of records in your magnetic/electronic file.
.06 DO NOT SUBMIT THE SAME INFORMATION ON PAPER FORMS THAT YOU SUBMIT MAGNETICALLY/ELECTRONICALLY. This does not mean that corrected documents are not to be filed. If a return has been prepared and submitted improperly, you must file a corrected return as soon as possible. Refer to Part A, Sec. 13 for requirements and instructions for filing corrected returns.
.07 If an allocation of tips is based on a good faith agreement, a copy of this agreement must accompany the submission.
.08 If, under Rev. Proc. 86-21, 1986-1 C.B. 560, the District Director granted the establishment a percentage of gross receipts of less than 8%, a copy of the determination letter must be sent with the submission. Employers with more than one establishment can receive approval from one district in each Internal Revenue Service region where the establishments are located (See sec. 31.6053-3(h)(4) of the Employment Tax Regulations).
.09 Before submitting your magnetic/electronic file, include the following:
(a) A signed Form 4804, Transmittal of Information Returns
Reported Magnetically/Electronically, along with a Form
4802, Transmittal of Information Returns Reported
Magnetically/Electronically(Continuation), if you submit
data for multiple employers.
(b) Your media (tape, diskette, or cartridge) with an external
identifying label. Notice 210 describes the information
which should be included on this self-prepared label.
(c) On the outside of the shipping container, affix the label,
IRB Special Projects. This label is included in this
publication.
Note: See Part C for electronic submission requirements.
.10 IRS/MCC will not pay or accept "Collect on Delivery" or "Charged to IRS" shipments of reportable tax information that an individual or organization is legally required to submit.
SECTION 9. FILING DATES
.01 Magnetic/electronic reporting to IRS for Form 8027 must be on a calendar year basis. The due date of either paper or magnetically reported Forms 8027 is the last day of February. However, Forms 8027 filed electronically are due March 31.
.02 If the due date falls on a Saturday, Sunday, or legal holiday, filing Form 8027 on the next day that is not a Saturday, Sunday, or legal holiday will be considered timely.
SECTION 10. EXTENSION OF TIME
.01 An extension of time to file may be requested for Forms 8027, 1099, 1098, 5498, W-2G, W-2, and 1042-S.
.02 Form 8809, Request for Extension of Time To File Information Returns, should be submitted to IRS/MCC. This form may be used to request an extension of time to file information returns submitted on paper, magnetically or electronically.
.03 Requesting an extension of time for multiple employers may be done by submitting Form 8809 and attaching a list of the employer names and their TINs (EIN or SSN). The listing must be attached to ensure the extension is recorded for all employers. Form 8809 may be computer-generated or photocopied. Be sure that all the pertinent information is included.
.04 Requests for extensions of time for multiple employers will be responded to with one approval letter, accompanied by a list of employers covered under that approval.
.05 As soon as it is apparent that an extension of time to file is needed, Form 8809 may be submitted. When granted, the extension will be for 30 days. It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances, a request for an extension of time could be denied. When a denial letter is received, any additional or necessary information may be resubmitted within 20 days. When requesting an extension of time, do not hold your files waiting for a response.
.06 While very difficult to obtain, if an additional extension of time is needed, a second Form 8809 must be submitted before the end of the initial extension period. Line 7 on the form should be checked to indicate that an additional extension is being requested. A second 30-day extension will be approved only in cases of extreme hardship or catastrophic events.
.07 Form 8809 must be postmarked no later than the due date of the return for which an extension is requested. If requesting an extension of time to file several types of forms, use one Form 8809, but the Form 8809 must be postmarked no later than the earliest due date. For example, if requesting an extension of time to file both Forms 8027 and 5498, submit Form 8809 postmarked on or before the last day of February.
.08 If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval letter for extension of time should not be sent to IRS/MCC with the magnetic/electronic file. When submitting Form 8027 on paper only to the Andover Service Center, attach a copy of the approval letter. If an approval letter has not been received, send a copy of the timely filed Form 8809.
.09 Request an extension for only one tax year.
.10 The extension request must be signed by the employer or a person who is duly authorized to sign a return, statement or other document for the employer.
.11 Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial. Carefully read and follow the instructions on the back of the Form 8809.
.12 Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800- 829-3676).
Note: AN EXTENSION OF TIME TO FILE IS NOT AN EXTENSION TO ISSUE
FORM W-2 TO THE EMPLOYEE.
.13 Request an extension of time to furnish the statements to recipients of Forms W-2 by submitting a letter to IRS/MCC containing the following information:
(a) Employer name
(b) TIN
(c) Address
(d) Type of return (W-2)
(e) Specify that the extension request is to provide W-2
statements to recipients.
(f) Reason for delay
(g) Signature of employer or person duly authorized.
Requests for an extension of time to furnish the statements for Forms W-2 to recipients are not automatically approved; however, if approved, generally an extension will allow a maximum of 30 additional days from the due date to furnish the statements to the recipients. The request must be postmarked no later than the date on which the statements are due to the recipients.
SECTION 11. PROCESSING OF INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY
.01 All data received at the IRS/MCC for processing will be given the same protection as individual returns (Form 1040). IRS/MCC will process your magnetic/electronic files to ensure the records were formatted and coded according to this revenue procedure.
.02 If the data is formatted incorrectly, the file will be returned for replacement accompanied by a letter of explanation along with a Media Tracking Slip (Form 9267). When media is returned, it is because IRS/MCC encountered errors (not limited to format) and was unable to process the media; therefore, requiring a replacement. Open all packages immediately. Beginning in calendar year 2002 for Tax Year 2001, IRS/MCC will no longer return problem media in need of replacement.
.03 Files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of the letter IRS/MCC included with the returned media. A penalty for failure to file correct information returns by the due date will be assessed if the file is not corrected and returned within the 45 days or if the incorrect file is returned by IRS/MCC for replacement more than two times. Apenalty for intentional disregard of filing requirements will be assessed if a replacement file is not received.
.04 Files will not be returned to you after successful processing. Therefore, if you want proof that IRS/MCC received your shipment, you may use a carrier that provides proof of delivery.
.05 To distinguish between a correction and a replacement, the following definitions are provided:
(a) A correction is a record submitted by the
employer/transmitter to correct a record that was
successfully processed by IRS, but contained erroneous
information.
Note: Correction should only be made to records that have been
submitted incorrectly, not the entire file.
(b) A replacement is a file that IRS has returned because of
format errors or data discrepancies encountered during
processing. After necessary changes have been made, the file
must be returned to IRS/MCC for processing.
Note 1: Filers should never send anything to IRS/MCC marked
"Replacement" unless IRS/MCC returned media to them.
Note 2: Beginning in calendar year 2002 for Tax Year 2001,
IRS/MCC will no longer return problem media in need of
replacement. Filers will continue to receive a tracking
slip, listing and letter detailing the reason(s) their
media could not be processed. Filers will be expected to
send in replacement media within the prescribed time
frame. This makes it imperative that filers maintain
backup copies and/or recreate capabilities for their
information return files.
SECTION 12. PENALTIES
.01 The Revenue Reconciliation Act of 1989 changed the penalty provisions for any documents, including corrections, which are filed after the original filing date for the return. The penalty for failure to file correct information returns is "time sensitive," in that prompt correction of failures to file, or prompt correction of errors on returns that were filed, can lead to reduced penalties.
o The penalty generally is $50 for each information return that
is not filed, or is not filed correctly, by the prescribed
filing date, with a maximum penalty of $250,000 per year
($100,000 for certain small businesses with average annual
gross receipts, over the most recent 3-year period, not in
excess of $5,000,000). The penalty generally is reduced to:
o $30 for each failure to comply if the failure is corrected
more than 30 days after the return was due, but on or before
August 1 of the calendar year in which the return was due,
with a maximum penalty of $150,000 per year ($50,000 for
certain small businesses with average annual gross receipts,
over the most recent 3-year period, not in excess of
$5,000,000).
o $15 for each failure to comply if the failure is corrected
within 30 days after the date the return was due, with a
maximum penalty of $75,000 per year ($25,000 for certain small
businesses with average annual gross receipts, over the most
recent 3-year period, not in excess of $5,000,000).
.02 Penalties can be waived if failures were due to reasonable cause and not to willful neglect. In addition, section 6721(c)of the Code provides a de minimis rule that if:
(a) information returns have been filed but were filed with
incomplete or incorrect information, and
(b) the failures are corrected on or before August 1 of the
calendar year in which the returns were due, then the
penalty for filing incorrect returns (but not the penalty
for filing late) will not apply to the greater of 10 returns
or one-half of 1 percent of the total number of information
returns you are required to file for the calendar year.
.03 Intentional Disregard of Filing Requirements -- If any failure to file a correct information return is due to intentional disregard of the filing and correct information requirements, the penalty is at least $100 per information return with no maximum penalty.
SECTION 13. CORRECTED RETURNS, SUBSTITUTE FORMS, AND COMPUTER-GENERATED FORMS
.01 If returns must be corrected, approved magnetic/electronic filers must provide such corrections magnetically/electronically if you have 250 or more. If your information is filed magnetically/electronically, corrected returns are identified by using the "Corrected 8027 Indicator" in field position 370 of the employer record. Form 4804 must accompany the shipment, and the box for correction should be marked in Block 1 of the form. (See Part A, Sec. 11.05 for the definition of corrections.)
.02 If corrections are not submitted on magnetic media, employers must submit them on official Forms 8027. Substitute forms that have been previously approved by IRS, or computer-generated forms that are exact facsimiles of the official form (except for minor page size or print style deviations), may be submitted without obtaining IRS approval before using the form.
.03 Employers/establishments may send corrected paper Forms 8027 to IRS at the address shown in Part A, Sec. 14.01. Corrected paper returns are identified by marking the "AMENDED" check box on Form 8027.
SECTION 14. EFFECT ON PAPER RETURNS
.01 If you are filing more than one paper Form 8027, you must attach a completed Form 8027-T, Transmittal of Employer's Annual Information Return of Tip Income and Allocated Tips, to the Forms 8027 and send to:
Internal Revenue Service Center
Andover, MA 05501
IRS/MCC processes Forms 8027 submitted magnetically/electronically
only. Do not send paper Forms 8027 to IRS/MCC.
.02 If part of a submission is filed magnetically/electronically and the rest of the submission is filed on paper Forms 8027, send the paper forms to the Andover Service Center. For example, you filed your Forms 8027 magnetically/electronically with IRS/MCC, and later you found that some of the forms you filed need correcting. Because of the low volume of corrections, you submit the corrections on paper Forms 8027. You must send these corrected Forms 8027 along with Form 8027-T to the Andover Service Center.
SECTION 15. DEFINITION OF TERMS
ELEMENT DESCRIPTION
EIN A nine-digit Employer Identification Number which
has been assigned by IRS to the reporting entity.
Employer The organization supplying their information. Use
the same name and EIN you used on your Forms W-2
and Forms 941.
Establishment A large food or beverage establishment that
provides food or beverage for consumption on the
premises; where tipping is a customary practice;
and where there are normally more than 10
employees who work more than 80 hours on a
typical business day during the preceding
calendar year.
More than 10 An employer is considered to have more than 10
employees employees on a typical business day during the
calendar year if half the sum of: the average
number of employee hours worked per business day
in the calendar month in which the aggregate
gross receipts from food and beverage operations
were greatest, plus the average number of
employee hours worked per business day in the
calendar month in which the total aggregate gross
receipts from food and beverage operations were
the least, equals more than 80 hours.
Employee hours The average number of employee hours worked per
worked business day during a month is figured by
dividing the total hours worked during the month
by all your employees who are employed in a food
or beverage operation by the average number of
days in the month that each food or beverage
operation at which these employees worked was
open for business.
File For the purpose of this revenue procedure, a file
consists of all magnetic/electronic records
submitted by an Employer or Transmitter.
Transmitter Person or organization preparing
magnetic/electronic file(s). May be Employer or
agent of Employer.
Transmitter A five-character alpha/numeric code assigned by
Control Code IRS to the transmitter prior to actual filing
(TCC) magnetically/electronically. This number is
inserted in the record and must be present. An
application (Form 4419) must be filed with IRS to
receive this number.
Replacement A replacement is an information return file that
IRS/MCC has returned to the transmitter due to
errors encountered during processing.
Note: Beginning in calendar year 2002 for Tax Year 2001, IRS/MCC
will no longer return problem media in need of
replacement.
Correction A correction is an information return submitted
by the transmitter to correct an information
return that was previously submitted to and
processed by IRS/MCC, but contained erroneous
information.
Part B. MAGNETIC/ELECTRONIC SPECIFICATIONS
SECTION 1. GENERAL
.01 The magnetic/electronic specifications contained in this part of the revenue procedure define the required format and contents of the records to be included in the file.
.02 A self-prepared media label must be affixed to each piece of media submitted for processing. Notice 210 provides instructions on how to complete a self-prepared media label.
.03 The record format in Part B, Sec. 6, applies to both magnetic and electronic files.
SECTION 2. TAPE SPECIFICATIONS
Note: Beginning in calendar year 2003 for Tax Year 2002, IRS/MCC
will no longer accept 9 track tapes for filing Forms 8027.
.01 In most instances, IRS/MCC can process any compatible tape files. Compatible tape files must meet any one set of the following:
(a) 9-track EBCDIC (Extended Binary Coded Decimal Interchange
Code) with
(1) Odd Parity and
(2) A density of 1600 or 6250 BPI.
(3) If you use Unisys Series 1100, you must submit an
interchange tape.
(b) 9-track ASCII (American Standard Coded Information
Interchange) with
(1) Odd Parity and
(2) A density of 1600 or 6250 BPI.
Please be consistent in the use of recording codes and density on your files. If files are generated in more than one recording code and/or density, multiple shipments would be appreciated.
.02 All compatible tape files must have the following characteristics: Type of tape -- 1/2 inch (12.7mm) wide, computer grade magnetic tape on reels up to 2,400 feet (731.52 m) within the following specifications:
(a) Tape thickness: 1.0 or 1.5 mils
(b) Reel diameter: 10.5 inch (26.67 cm), 8.5 inch (21.59 cm), or
7 inch (17.78 cm) or 6-inch.
.03 All records have a fixed record length of 372 positions.
.04 The tape record defined in this revenue procedure may be blocked or unblocked, subject to the following:
(a) All records except the header and trailer labels may be
blocked.
(b) If records are blocked, the block can not exceed 32,736 tape
positions. The block length must be evenly divisible by 372.
(c) If the use of blocked records would result in a short block,
all remaining positions of the block MUST be filled with
9's. DO NOTPAD ABLOCK WITH BLANKS. Padding a block with
blanks will result in a short record, which will cause math
computation errors. Your tape will then be returned for
replacement.
.05 For the purposes of this revenue procedure the following conventions must be used:
Header label:
(a) Transmitters may use standard headers provided they begin
with 1HDR, HDR1, VOL1, or VOL2.
(b) Consists of a maximum of 80 positions.
(c) Header and trailer labels are optional unless more than one
reel is being submitted. If more than one reel is being
submitted, header and trailer labels are required. IRS/MCC
PREFERS STANDARD OR ANSI LABELED TAPES. IF YOU SUBMIT AN
UNLABELED TAPE, THIS MUST BE INDICATED ON THE EXTERNAL
LABELAND ON THE FORM 4804 OR COMPUTER-GENERATED SUBSTITUTE.
Trailer label:
(a) Standard trailer labels may be used provided that they begin
with 1EOR, 1EOF, EOV1, or EOV2.
(b) Consists of a maximum of 80 positions.
(c) Header and trailer labels are optional unless more than one
reel is being submitted. If more than one reel is being
submitted, header and trailer labels are required.
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) May follow the header label and precede and/or follow the
trailer label.
SECTION 3. TAPE CARTRIDGE SPECIFICATION
.01 In most instances, IRS/MCC can process tape cartridges that meet the following specifications:
(a) Must be IBM 3480, 3490, 3490E, 3590, 3590E, or AS400
compatible.
(b) Must meet American National Standard Institute (ANSI)
standards, and have the following characteristics:
(1) Tape cartridges must be 1/2-inch tape contained in plastic
cartridges which are approximately 4-inches by 5- inches by
1-inch in dimension.
(2) Magnetic tape must be chromium dioxide particle based 1/2-
inch tape.
(3) Cartridges must be 18-track or 36-track parallel (See Note).
(4) Cartridges must contain 37,871 CPI or 75,742 CPI (characters
per inch).
(5) Mode must be full function.
(6) The data may be compressed using EDRC (Memorex) or IDRC
(IBM) compression.
(7) Either EBCDIC (Extended Binary Coded Decimal Interchange
Code) or ASCII (American Standard Coded Information
Interchange) may be used.
.02 The tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,736 tape positions.
(b) If the use of blocked records would result in a short block,
all remaining positions of the block must be filled with 9s;
however, the last block of the file may be filled with 9s or
truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be
blocked or unblocked. A record may not contain any control
fields or block descriptor fields which describe the length
of the block or the logical records within the block. The
number of logical records within a block (the blocking
factor) must be constant in every block with the exception
of the last block which may be shorter (see item b above).
The block length must be evenly divisible by 372.
(d) Records may not span blocks.
.03 Tape cartridges may be labeled or unlabeled.
.04 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the
trailer label.
Note: Filers should indicate on the external media label and
transmittal Form 4804 whether the cartridge is 36-track or
18-track.
SECTION 4. 8MM, 4MM, AND QUARTER-INCH CARTRIDGE SPECIFICATIONS
.01 In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(a) Must meet American National Standard Institute (ANSI)
standards, and have the following characteristics:
(b) Created from an AS400 operating system only.
(c) 8mm (.315-inch) tape cartridges must be 2 1/2-inch by 3 3/4-
inch.
(d) The 8mm tape cartridges must meet the following
specifications:
Tracks Density Capacity
1 20 (43245 BPI) 2.3 Gb
1 21 (45434 BPI) 5 Gb
(e) Mode must be full function.
(f) Compressed data is not acceptable.
(g) Either EBCDIC (Extended Binary Coded Decimal Interchange
Code) or ASCII (American Standard Coded Information
Interchange) may be used. However, IRS/MCC encourages the
use of EBCDIC. This information must appear on the external
media label affixed to the cartridge.
(h) A file may consist of more than one cartridge, however, no
more than 250,000 documents may be transmitted per file or
per cartridge. The filename, for example; ATMTAX, will
contain a three-digit extension. The extension will indicate
the sequence of the cartridge within the file 1 of 3, 2 of
3, and 3 of 3 and would appear in the header label
ATMTAX.001, ATM-TAX. 002, and ATMTAX.003 on each cartridge
of the file.
.02 The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,736 tape positions.
(b) If the use of blocked records would result in a short block,
all remaining positions of the block must be filled with
9's; however, the last block of the file may be filled with
9's or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be
blocked or unblocked. A record must not contain any control
fields or block descriptor fields which describe the length
of the block or the logical records within the block. The
number of logical records within a block (the blocking
factor) must be constant in every block with the exception
of the last block which may be shorter (see item (b) above).
The block length must be evenly divisible by 372.
(d) Records must not span blocks.
(e) No more than 250,000 documents per cartridge and per file.
.03 Various COPY commands have been successful; however, the SAVE OBJECT COMMAND is not acceptable.
.04 For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. ATMTAX may be used as a suggested filename.
.05 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the
trailer label.
.06 IRS/MCC can only read one data file on a tape. Adata file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
.07 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(a) 4 mm cassettes must be 2 1/4-inch by 3-inch.
(b) The tracks are 1 (one).
(c) The density is 19 (61000 BPI).
(d) The typical capacity is DDS (DAT data storage) at 1.3 Gb (60
meter) or 2 Gb (90 meter), or DDS-2 at 4Gb (120).
(e) The general specifications for 8mm cartridges will also
apply to the 4 mm cassettes.
.08 Various Quarter-Inch Cartridges (QIC)(1/4-inch) are also acceptable.
(a) QIC cartridges must be 4_ by 6_.
(b) QIC cartridges must meet the following specifications:
Size Tracks Density Capacity
QIC-24 8/9 5 (8000 BPI) 45Mb or 60Mb
QIC-120 15 15 (10000 BPI) 120Mb or 200Mb
QIC-150 18 16 (10000 BPI) 150Mb or 250Mb
QIC-525 26 17 (16000 BPI) 525Mb
QIC-1000 30 21 (36000 BPI) 1Gb
QIC-2Gb 42 34 (40640 BPI) 2Gb
(c) The general specifications that apply to 8mm cartridges will
also apply to QIC cartridges.
Note: Advanced Metal Evaporated (AME) cartridges are not
acceptable.
SECTION 5. 3 1/2-INCH DISKETTE SPECIFICATIONS
IRS/MCC has discontinued processing 5 1/4-inch diskettes. Filers who use 5 1/4-inch diskettes must now use another method of submitting information returns magnetically/electronically.
.01 To be compatible, a diskette file must meet the following specifications:
(a) 3 1/2-inches in diameter.
(b) Data must be recorded in standard ASCII code.
(c) Records must be fixed length of 372 bytes.
(d) Delimiter character commas (,) must not be used.
(e) Positions 371 and 372 of each record have been reserved for
carriage return/line feed (cr/lf) characters.
(f) Filename of ATMTAX must be used. Do not enter any other data
in this field. If a file will consist of more than one
diskette, the filename will contain a three-digit extension.
This extension will indicate the sequence of the diskette
within the file. For example, the first diskette will be
named ATMTAX.001, the second diskette will be ATMTAX.002,
etc.
(g) A file may contain more than one diskette as long as the
filename conventions are adhered to.
(h) Diskettes must meet one of the following specifications:
Capacity Tracks Sides/Density Sector Size
1.44 mb 96tpi hd 512
1.44 mb 135tpi hd 512
1.2 mb 96tp hd 512
.02 IRS requires that 3 1/2-inch diskettes be created using MS/DOS. Diskettes created using other operating systems are not acceptable.
.03 Deviations from the prescribed format are not acceptable.
SECTION 6. RECORD FORMAT AND LAYOUT
FORM 8027 RECORD FORMAT
Field
Position Field Title Length Description and Remarks
1 Establishment 1 REQUIRED. This digit identifies
Type the kind of establishment. Enter
the number which describes
the type of establishment, as
shown below:
1 for an establishment that serves
evening meals only (with or
without alcoholic beverages).
2 for an establishment that serves
evening meals and other meals
(with or without alcoholic
beverages).
3 for an establishment that serves
only meals other than evening
meals (with or without alcoholic
beverages).
4 for an establishment that serves
food, if at all, only as an
incidental part of the business of
serving alcoholic beverages.
2-6 Establishment 5 REQUIRED. These five-digit Serial
Numbers are for identifying Serial
Numbers individual establishments
of an employer reporting under the
same EIN. The employer shall
assign each establishment a unique
number. NUMERICS ONLY.
7-46 Establishment 40 REQUIRED. Enter the name of the
establishment. Left justify and
fill Name unused positions with
blanks. ALLOWABLE CHARACTERS ARE
ALPHAS, NUMERICS, BLANKS, HYPHENS,
AMPERSANDS, AND SLASHES.
47-86 Establishment 40 REQUIRED. Enter the mailing
address of the establishment.
Street address Street Address
should include number, street,
apartment or suite number (use P O
Box only if mail is not delivered
to street address). Left justify
and blank fill.
Note: The only allowable characters are alphas, blanks,
numerics, ampersands, hyphens and slashes. Punctuation
such as periods and commas are not allowed and will cause
your file to be returned. For example, the address 210 N.
Queen St., Suite #300 must be entered as 210 N Queen St
Suite 300.
87-111 Establishment 25 REQUIRED. Enter the city, town, or
post office. Left justify and City
blank fill.
Note: The only allowable characters are alphas, blanks,
numerics, ampersands, hyphens and slashes. Punctuation
such as periods and commas are not allowed and will cause
your file to be returned. For example, the city St. Louis
must be entered as St Louis.
112-113 Establishment 2 REQUIRED. Enter state code of the
State establishment; must be one of the
following:
STATE CODE STATE CODE
Alabama AL Montana MT
Alaska AK Nebraska NE
Arizona AZ Nevada NV
Arkansas AR New Hampshire NH
California CA New Jersey NJ
Colorado CO New Mexico NM
Connecticut CT New York NY
Delaware DE North Carolina NC
District of DC North Dakota ND
Columbia
Florida FL Ohio OH
Georgia GA Oklahoma OK
Hawaii HI Oregon OR
Idaho ID Pennsylvania PA
Illinois IL Rhode Island RI
Indiana IN South Carolina SC
Iowa IA South Dakota SD
Kansas KS Tennessee TN
Kentucky KY Texas TX
Louisiana LA Utah UT
Maine ME Vermont VT
Maryland MD Virginia VA
Massachusetts MA Washington WA
Michigan MI West Virginia WV
Minnesota MN Wisconsin WI
Mississippi MS Wyoming WY
Missouri MO
114-122 Establishment 9 REQUIRED. Enter the complete nine-
ZIP Code digit ZIP Code of the
establishment.
If using a five-digit ZIP Code,
left justify the five-digit ZIP
Code and fill the remaining four
positions with blanks.
Note: MUST BE NINE NUMERICS OR FIVE NUMERICS AND FOUR BLANKS. DO
NOT ENTER THE DASH.
123-131 Employer 9 REQUIRED. Enter the nine-digit
Identification number assigned to the employer by
Number IRS.
DO NOT ENTER HYPHENS, ALPHAS, ALL
9's, OR ALL ZEROS.
132-171 Employer 40 REQUIRED. Enter the name of the
Name employer as it appears on your tax
forms (e.g., Form 941). Any
extraneous information must be
deleted. Left justify and blank
fill. ALLOWABLE CHARACTERS ARE
ALPHAS, BLANKS, NUMERICS,
AMPERSANDS, HYPHENS, AND SLASHES.
172-211 Employer 40 REQUIRED. Enter mailing address of
Street employer. Street address should
Address include number, street, apartment
or suite number (use P O Box only
if mail is not delivered to street
address). Left justify and blank
fill.
Note: The only allowable characters are alphas, blanks,
numerics, ampersands, hyphens and slashes. Punctuation
such as periods and commas are not allowed and will cause
your file to be returned. For example, the address 210 N.
Queen St., Suite #300 must be entered as 210 N Queen St
Suite 300.
212-236 Employer City 25 REQUIRED. Enter the city, town, or
post office. Left justify and
blank fill.
Note: The only allowable characters are alphas, blanks,
numerics, ampersands, hyphens and slashes. Punctuation
such as periods and commas are not allowed and will cause
your file to be returned. For example, the city St. Louis
must be entered as St Louis
237-238 Employer State 2 REQUIRED. Enter state code of
employer. Must be one of the
abbreviations shown in the state
abbreviation table for
Establishment State (field
positions 112-113).
239-247 Employer ZIP 9 REQUIRED. Enter the complete nine-
Code digit ZIP Code of the employer. If
using a five-digit ZIP Code, left
justify the five-digit ZIP Code
and fill the remaining four
positions with blanks.
Note: MUST BE NINE NUMERICS OR FIVE NUMERICS AND FOUR BLANKS. DO
NOT ENTER THE DASH.
248-259 Charge Tips 12 REQUIRED. Enter the total amount
of tips that are shown on charge
receipts for the calendar year.
Amount must be entered in U.S.
dollars and cents. The right most
two positions represent cents.
Right justify and zero fill. If no
entry, zero fill.
NUMERICS ONLY. DO NOT ENTER
DECIMAL POINTS, DOLLAR SIGNS, OR
COMMAS.
260-271 Charged 12 REQUIRED. Enter the total sales
Receipts for the calendar year other than
carry-out sales or sales with an
added service charge of 10 percent
or more, that are on charge
receipts with a charged tip shown.
This includes credit card charges,
other credit arrangements, and
charges to a hotel room unless the
employer's normal accounting
practice consistently excludes
charges to a FORM 8027 RECORD
FORMAT Field Position Field Title
Length Description and Remarks
hotel room. Do not include any
state or local taxes in the amount
reported. Amount must be entered
in U.S. dollars and cents. The
right-most two positions
represent cents. Right justify and
zero fill. If no entry, zero fill.
NUMERICS ONLY. DO NOT INCLUDE
DOLLAR SIGNS, DECIMAL POINTS, OR
COMMAS.
272-283 Service Charge 12 REQUIRED. Enter the total amount
Less Than 10 of service charges less than 10
Percent percent added to customer's bills
and were distributed to your
employees for the calendar year.
In general, service charges added
to the bill are not tips since the
customer does not have a choice.
These service charges are treated
as wages and are included on Form
W-2. For a more detailed
explanation, see Rev. Rul. 69-28,
1969-1 C.B. 270. Amount must be
entered in U.S. dollars and cents.
The right-most two positions
represent cents. Right justify and
zero fill. If no entry, zero fill.
NUMERICS ONLY. DO NOT ENTER DOLLAR
SIGNS, DECIMAL POINTS, OR COMMAS.
284-295 Indirect Tips 12 REQUIRED. Enter the total amount
Reported of tips reported by indirectly
tipped employees (e.g., bussers,
service bartenders, cooks) for the
calendar year. Do not include tips
received by employees in December
of the prior tax year but not
reported until January. Include
tips received by employees in
December of the tax year being
reported, but not reported until
January of the subsequent year.
Amount must be entered in U.S.
dollars and cents. The right-most
two positions represent cents.
Right justify and zero fill. If no
entry, zero fill. NUMERICS ONLY.
DO NOT ENTER DOLLAR SIGNS, DECIMAL
POINTS, OR COMMAS.
296-307 Direct Tips 12 REQUIRED. Enter the total amount
Reported of tips reported by directly
tipped employees (e.g., servers,
bartenders) for the calendar year.
Do not include tips received by
employees in December of the prior
tax year but not reported until
January. Include tips received by
employees in December of the tax
year being reported, but not
reported until January of the
subsequent year. Amount must be
entered in U.S. dollars and cents.
The right-most two positions
represent cents. Right justify and
zero fill. If no entry, zero fill.
NUMERICS ONLY. DO NOT ENTER DOLLAR
SIGNS, DECIMAL POINTS, OR COMMAS.
308-319 Total Tips 12 REQUIRED. Enter the total amount
Reported of tips reported by all employees
(both indirectly tipped and
directly tipped) for the calendar
year. Do not include tips received
in December of the prior tax year
but not reported until January.
Include tips received in December
of the tax year being reported,
but not reported until January of
the subsequent year. Amount must
be entered in U.S. dollars and
cents. The right-most two
positions represent cents. Right
justify and zero fill. If no
entry, zero fill. NUMERICS ONLY.
DO NOT ENTER DOLLAR SIGNS, DECIMAL
POINTS, OR COMMAS.
320-331 Gross Receipts 12 REQUIRED. Enter the total gross
receipts from the provision of
food and/or beverages for this
establishment for the calendar
year. Do not include receipts for
carry-out sales or sales with an
added service charge of 10 percent
or more. Do not include in gross
receipts charged tips (field
positions 248-259) shown on charge
receipts unless you have reduced
the cash sales amount because you
have paid cash to tipped employees
for tips they earned that were
charged. Do not include state or
local taxes in gross receipts. If
you do not charge separately for
food or beverages along with other
services (such as a package deal
for food and lodging), make a good
faith estimate of the gross
receipts attributable to the food
or beverages. This estimate must
reflect the cost of providing the
food or beverages plus a
reasonable profit factor. Include
the retail value of complimentary
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 whose
receipts would not be included as
gross receipts from the provision
of food or beverages (e.g.,
complimentary drinks served to
customers at a gambling casino).
Amount must be entered in U.S.
dollars and cents. The right-most
two positions represent cents.
Right justify and zero fill. If no
entry, zero fill. NUMERICS ONLY.
DO NOT ENTER DOLLAR SIGNS, DECIMAL
POINTS, OR COMMAS.
332-343 Tip Percentage 12 REQUIRED. Enter the amount
Rate Times determined by multiplying Gross
Gross Receipts Receipts for the year (field
positions 320-331) by the Tip
Percentage Rate (field positions
344-347). For example, if the
value of Gross Receipts is
"000045678900" and Tip Percentage
Rate is "0800", multiply
$456,789.00 by .0800 to get
$36,543.12 and enter
"000003654312". If tips are
allocated using other than the
calendar year, enter zeros; this
may occur if you allocated tips
based on the time period for which
wages were paid or allocated on a
quarterly basis. Amount must be
entered in U.S. dollars and cents.
The right-most two positions
represent cents. Right justify and
zero fill. If no entry, zero fill.
NUMERICS ONLY. DO NOT ENTER DOLLAR
SIGNS, DECIMAL POINTS, OR COMMAS.
344-347 Tip Percentage 4 REQUIRED. Enter 8 percent (0800)
unless a lower rate has been
granted by the District Director.
The determination letter must
accompany the magnetic/
electronic submission. NUMERICS
ONLY. DO NOT ENTER DECIMAL POINT.
348-359 Allocated Tips 12
REQUIRED. If Tip Percentage Rate
times Gross Receipts (field
positions 332-343) is greater than
Total Tips Reported (field
positions 308-319), then the
difference becomes Allocated Tips.
Otherwise, enter all zeros. If
tips are allocated using other
than the calendar year, enter the
amount of allocated tips from your
records. Amount must be entered in
U.S. dollars and cents. The right-
most two positions represent
cents. Right justify and zero
fill. If no entry, zero fill.
NUMERICS ONLY. DO NOT ENTER DOLLAR
SIGNS, DECIMAL POINTS, OR COMMAS.
360 Allocation 1 REQUIRED. Enter the allocation
method used if Allocated Tips
(field positions 348-359) are
greater than zero as follows:
0) if allocated tips are equal to
zero
1) for allocation based on hours
worked.
2) for allocation based on gross
receipts.
3) for allocation based on a good
faith agreement. The good faith
agreement must accompany the
magnetic/electronic submission.
Note: Under Section 1571 of the Tax Reform Act of 1986, the
method of allocation of tips based on the number of hours
worked as described in Section 31.6053-3(f)(1)(iv) may be
utilized only by an employer that employs less than the
equivalent of 25 full-time employees at the establishment
during the payroll period. Section 31.6053-3(j)(19)
provides that an employer is considered to employ less
than the equivalent of 25 full-time employees at an
establishment during a payroll period if the average
number of employee hours worked per business day during
the payroll period is less than 200 hours.
361-364 Number of 4 REQUIRED. Enter the total number
Directly (must be greater than zero) of
Tipped directly tipped employees employed
Employees by the establishment for the
calendar year. Right justify and
zero fill. NUMERICS ONLY.
365-369 Transmitter 5 REQUIRED. Enter the five-digit
Control Code Transmitter Control Code assigned
(TCC) by the IRS.
370 Corrected 8027 1 REQUIRED. Enter blank for original
Indicator return. Enter "G" for corrected
return. Acorrected return must be
a complete new return replacing
the original return.
371-372 Blank or 2 Magnetic/electronic filers are
cr/lf required to enter blanks. Diskette
filers may enter blanks or the
carriage return/line feed
characters (cr/lf).
FORM 8027 RECORD LAYOUT
Establishment Establishment Establishment Establishment
Type Serial Number Name Street Address
______________ _____________ _____________ ______________
1 2-6 7-46 47-86
Establishment Establishment Establishment Employer
City State ZIP Code Identification
Number
______________ _____________ _____________ ______________
87-111 112-113 114-122 123-131
Employer Name Employer Street Employer City Employer State
Address
______________ _____________ _____________ ______________
132-171 172-211 212-236 237-238
Employer ZIP Charged Tips Charged Service Charge
Receipts Less Than 10
Percent
______________ _____________ _____________ ______________
239-247 248-259 260-271 272-283
Indirect Tips Directed Tips Total Tips Gross Receipts
Reported Reported Reported
______________ _____________ _____________ ______________
284-295 296-307 308-319 320-331
Tip Percentage Tip Percentage Allocated Allocation
Rate Times Gross Rate Tips Method
Receipts
______________ _____________ _____________ ______________
332-343 344-347 348-359 360
Number of Directly Transmitter Corrected Blank or
Tipped Employees Control Code (TCC) 8027 Indicator cr/lf
______________ _____________ _____________ ______________
361-364 365-369 370 371-372
PART C. ELECTRONIC FILING SPECIFICATIONS
SECTION 1 BACKGROUND
01. All electronic filing of information returns are received at IRS/MCC via the FIRE (Filing Information Returns Electronically) System. The FIRE System can be accessed via analog and ISDN BRI connections. The system is designed to support the electronic filing of information returns only. The telephone number for electronic filing is (1-304-262-2400). Publications and forms are no longer available electronically from MCC. Users needing publications and forms will need to download them from the IRS's Internet Web Site at www.irs.gov or order them by calling 1-800-TAX-FORM (1-800-829-3676).
SECTION 2. ADVANTAGES OF FILING ELECTRONICALLY
Some of the advantages of filing electronically are as follows:
(1) Results available within 10 workdays as to the acceptability
of the data transmitted. It is the filer's responsibility to
dial back in and check results.
(2) Later due date of March 31 for electronically filed Forms
8027.
(3) Better customer service due to on-line availability of
transmitter's files for research purposes.
(4) Additional testing time through February 15.
SECTION 3. GENERAL
.01 Electronic filing of Forms 8027, originals, corrections, and replacements of information returns is offered as an alternative to magnetic media (tape, tape cartridge, or diskette) or paper filing, but is not a requirement. Transmitters filing electronically will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may also be used by payers who are under the filing threshold requirement, but would prefer to file their information returns this way. If the original file was sent magnetically, but was returned for replacement, the replacement may be transmitted electronically. Also, if the original file was submitted via magnetic media, any corrections may be transmitted electronically.
.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two programs are totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the electronic filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist taxpayers in the filing of Form 1040 tax returns. Filers with questions of this nature will be directed to the Customer Service toll-free number (1-800-829-1040) for assistance.
.03 Files submitted to IRS/MCC electronically must be in standard ASCII code. No magnetic media or paper forms are to be submitted with the same information as the electronically submitted file.
.04 If a request for extension is approved, transmitters who file electronically will be granted an extension of time to file. Part A, Sec. 10, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.
.05 The format is the same for electronically filed records as they are for 3 1/2-inch diskettes, tapes, and tape cartridges, and must be in standard ASCII code. For electronically filed documents, each transmission is considered a separate file.
SECTION 4. ELECTRONIC FILING APPROVAL PROCEDURE
.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned prior to submitting their files electronically. (Filers who currently have a TCC for magnetic media filing do not have to request a second TCC for electronic filing.) Refer to Part A, Sec. 6, for information on how to obtain a TCC.
.02 Once a TCC is obtained, electronic filers assign their own passwords and do not need prior or special approval.
.03 For all passwords, it is the user's responsibility to remember the password and not allow the password to be compromised. Passwords are user assigned at first logon and are up to 8 alpha/numerics, which are case sensitive. However, if filers do forget their password, call 304-263-8700 for assistance.
Note: Passwords are case sensitive.
SECTION 5. TEST FILES
.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for all new electronic filers to test hardware and software connectivity. If filers wish to submit an electronic test file, it must be submitted to IRS/MCC no earlier than October and no later than December 15 the year before the returns are due.
.02 If a filer encounters problems while transmitting the electronic test file, contact IRS/MCC for assistance.
.03 Filers can verify the status of their transmitted test data by dialing the electronic filing system phone number (1-304-262- 2400). This information will be available within 10 workdays after their transmission is received by IRS/MCC.
SECTION 6. ELECTRONIC SUBMISSIONS
.01 Electronically filed information may be submitted to IRS/MCC 24 hours a day, 7 days a week. Technical assistance will be available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern time by calling 304-263-8700.
.02 The FIRE System will be down from December 29, 2000, through January 7, 2001. This will allow time for IRS/MCC to update its system to reflect current year changes.
.03 Data compression is encouraged when submitting information returns electronically. WinZip and PKZip are acceptable compression packages. UNIX COMPRESS may be acceptable; however, a test file is recommended to verify compatibility. IRS/MCC cannot accept self- extracting zip files or compressed files containing multiple files.
The time required to transmit information returns electronically will vary depending on the modem speed and the type of data compression used, if any. The time required to transmit a file can be reduced by as much as 95 percent by using software compression and hardware compression.
The following are actual transmission rates achieved in test uploads at MCC using compressed files. The actual transmission rates will vary depending on the modem speeds.
Transmission
Speed in bps 1000 Records 10,000 Records 100,000 Records
____________ ____________ ______________ _______________
19.2K 34 Sec. 6 Min. 60 Min.
56K 20 Sec. 3 1/2 Min. 33 Min.
128K (ISDN) 8 Sec. 1 Min. 10 Min.
.04 Files submitted electronically will be assigned a unique filename by the FIRE System (the users may name files anything they choose from their end). The filename assigned by the FIRE System will consist of submission type [TEST, ORIG (original), CORR (correction), and REPL (replacement)], the filer's TCC and a four-digit number sequence. The sequence number will be incremented for every file sent. For example, if it is your first original file for the calendar year and your TCC is 44444, the IRS assigned filename would be ORIG.44444.0001. Record the filename. This information will be needed by MCC in order to identify the file, if assistance is required, and to complete Form 4804.
.05 Filers are advised not to resubmit an entire file if records were omitted from the original transmission. This will result in duplicate filing. A new file should be sent consisting of the records that had not previously been submitted.
SECTION 7. TRANSMITTAL REQUIREMENTS
Note: In the future, Form 4804 may not be required for
ELECTRONIC filing of Forms 8027. See the bulletin area of
the FIRE system for updates on this and other items of
importance.
.01 The results of the electronic transmission will be available in the File Status area of the electronic system within 10 workdays; however, no further processing will occur until the signed Form 4804 is received. The Form 4804 must be postmarked by the due date of the return. No return is considered filed until a Form 4804 is received by IRS/MCC.
.02 Form 4804, which is located in the back of this publication, can be ordered by calling the IRS toll-free forms and publications order number 1-800-TAX-FORM (1-800-829-3676), or it may be computer- generated. It may also be obtained from the IRS's Internet Web Site at www.irs.gov. If a filer chooses to computer-generate Form 4804, all of the information contained on the original form, including the affidavit, must also be contained on the computer-generated form.
.03 The TCC used in your file is the TCC which must appear on the transmittal Form 4804.
.04 Forms 4804 should be mailed to the following address:
If by Postal Service, air or truck freight:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
240 Murall Drive
Kearneysville, WV 25430
Please indicate on the envelope the following message:
CONTAINS FORM 4804 INFORMATION -- NO MAGNETIC MEDIA
SECTION 8. ELECTRONIC FILING SPECIFICATIONS
.01 The FIRE System is designed exclusively for the filing of Forms 1042-S, 1099, 1098, 5498, 8027, W2-G and W-4.
.02 A transmitter must have a TCC before a file can be transmitted. If you have a TCC for magnetic media filing, that TCC can also be used for electronic filing.
.03 It is the filer's responsibility to dial back to verify the acceptability of files submitted by checking the file status area of the system. These reports will be available on the electronic system in 10 workdays after the transmission is received by IRS/MCC.
.04 Contact the FIRE System by dialing 304-262-2400. This number supports analog connections from 1200bps to 56Kbps or ISDN BRI 128Kbps connections. The system can be accessed via Dial-up network/web browser (see Section 9) or communications software (see Section 10). The Dial-up network/web browser will provide an Internet-like look without going through the Internet (point-to- point). If you do not have this capability, a text interface is provided that can be accessed via communication software such as Hyperterminal, Procomm, PCAnywhere, etc.
SECTION 9. DIAL-UP NETWORK/BROWSER SPECIFICATIONS (WEB INTERFACE)
.01 The following are some general instructions (many of these settings may already be set by default in your software):
Dial-up network settings:
(a) Set dial-up server type to PPP
(b) Set network protocol to TCP/IP
Browser settings:
(a) Set to receive 'cookies'
(b) Enable JavaScript or Jscript
(c) Browser must be capable of file uploads (i.e., Internet
Explorer 4.0, Netscape 2.0 or higher)
(d) Enter the URL address of http://10.225.224.2 (Remember, this
is a point-to-point connection, not the Internet.)
.02 Due to the large number of communication products available, it is impossible to provide specific information on all software/ hardware configurations. However, since most of our filers use Windows 95, 98 or NT software, the following instructions are geared toward those products:
UPLOADING FILES WITH DIAL-UP NETWORKING/WEB BROWSER IN WINDOWS 95/98
(1) This is a point-to-point connection -- not the Internet.
(2) Your browser must be capable of file uploads, i.e., Internet
Explorer 4.0 or Netscape Navigator 2.0 or higher.
(3) If you currently access the Internet via a LAN or a PROXY
server, you will need to disable those options in your
browser and enable 'Connect to the Internet using a modem'.
Select Programs
Accessories
Communications (Windows 98)
Dial-Up Networking
First time connecting with Dial-Up Network (If you have logged on previously, skip to Subsequent Dial-up Network Connections.)
The first time you dial-in, you will need to configure your Dial-Up Networking.
Select 'Make new connection'.
Type a descriptive name for the system you are calling.
Select your modem.
Click 'Next'.
Enter area code 304 and telephone number 262-2400.
Click 'Next'.
When you receive a message that you have successfully created a new Dial-Up Networking connection, click 'Finish'.
Click 'Connect' to dial. If you are prompted for a user name and password, complete according to local procedures; otherwise, click 'OK'.
When you receive the message that you have connected to our system, click on your Web Browser (remember, you are not connecting via the Internet -- this is a point-to-point connection).
In the URL Address enter http://10.225.224.2 and press ENTER.
Subsequent Dial-Up Network connections
Click 'Connect'.
If prompted for user name and password, complete according to local procedures; otherwise, click 'OK'.
When you receive 'Connection Complete', click 'OK'.
Click on your Web Browser (remember, you are not connecting via the Internet).
In the URL Address enter http://10.225.224.2 and press ENTER.
First time connection to The FIRE System (If you have logged on previously, skip to Subsequent Connections to the FIRE System.)
Click 'Create New Account'.
Fill out the registration form and click 'Create'.
Enter your logon name (most users logon with their first and last name).
Enter your password (the password is user assigned and is case sensitive).
Click 'Create'.
If you receive the message 'account created', click 'OK'.
Click 'Start the FIRE Application'
Subsequent connections to The FIRE System
Click 'Log On'.
Enter your logon name (most users logon with their first and last name).
Enter your password (the password is user assigned and is case sensitive).
At Menu Options:
Click 'Information Returns'
Enter your TCC:
Enter your EIN:
Click 'Submit'.
The system will then display the company name, address, city, state, ZIP code and phone number. This information will be used to contact or send any correspondence regarding this transmission. Update as appropriate and/or click 'Accept'.
Click one of the following:
Original File
Correction File
Test File
Replacement File (if you select this option, select one of the following):
FIRE Replacement (file was originally transmitted on this system) Click file to be replaced Magnetic Media Replacement File
Enter the alpha character from Form 9267, Media Tracking Slip, that was returned with your magnetic media shipment.
Click 'Submit'.
Enter the drive/path/filename of the file you want to upload or click 'Browse' to locate the file. Click 'Upload'.
When the upload is complete, the screen will display the total bytes received and the file name to be recorded on your Form 4804, Box 7b.
If you have more files to upload for that TCC:
Click 'File Another'; otherwise,
Click 'Back to Main Menu'.
It is your responsibility to check the acceptability of your file; therefore, be sure to dial back into the system in 10 business days.
At the Main Menu:
Click 'File Stats'.
Enter your TCC:
Enter your EIN:
Click 'Search'.
If 'Results' indicate:
'File Good' and you agree with the 'Count of Payees' and have mailed your Form 4804, you are finished with this file.
(Form 4804 is not needed on a replacement file unless the number of payees has changed from the original/correction file.)
'File Bad' -- Correct the errors and resubmit the file as a 'replacement'.
'Not Yet Processed' -- File has been received, but we do not have results available yet. Please check back in a few days.
Click on the desired file for a detailed report of your transmission.
When finished viewing your files, click on 'Main Menu'.
Click 'Log Off'.
Close your Web Browser.
IMPORTANT
Go back into your Dial-Up Network and click 'hang-up'; otherwise, you may stay connected and incur unnecessary phone charges.
SECTION 10. COMMUNICATION SOFTWARE SPECIFICATIONS (TEXT INTERFACE)
.01 Communications software settings must be:
o No parity
o Eight data bits
o One stop bit
.02 Terminal Emulation must be VT100.
.03 Due to the large number of communication products available, it is impossible to provide specific information on all soft-ware/ hardware configurations. However, since most of our filers use Windows 95, 98 or NT software, the following instructions are geared toward those products (Procomm, PCAnywhere and many other communications packages are also acceptable and the product does not necessarily need to be Windows based.):
Uploading Files Using Hyperterminal in Windows 95, 98 or NT
Select Programs
Accessories
Communications (Windows 98)
Hyperterminal
The first time you log on, select Hyperterminal, Hyperterm or Hyperterm.exe, whichever is available on your system.
Thereafter, you can just select the icon that you have saved.
A box will appear titled 'Connection Description'.
Enter a name and choose an icon for the connection:
Country Code: United States of America
Area Code: 304
Phone Number: 262-2400
Connect Using: (default)
(If you need to modify the phone number, select File, then Properties to enter defaults for the area code, phone numbers and/or special access codes.)
Click on Dial.
A 'Connect' box will appear to show the status.
Once you have connected to The FIRE System, if you do not get a menu within a few seconds, press the
ENTER key one time.
First Time Logon
When you have connected to the system, enter 'new' to create your logon name and password. Complete the registration information and enter 'y' to create account.
Logon Name and Password
Logon Name: Enter a logon name. Most users enter their first and last name as the logon name.
Password: Enter a password of your choosing (1-8 alpha/numerics -- case sensitive).
After entering the password, you will go to the Main Menu.
Transferring Your Electronic File
Enter 'A' for Electronic Filing.
After reading Information Notice, press ENTER.
Enter 'A' for Forms 1098, 1099, 5498, W-2G, 1042-S, 8027 and Questionable Forms W-4.
Press the Tab key to advance to TCC box; otherwise, enter 'E' to exit.
Enter your TCC:
Enter your EIN:
The system will then display the company name, address, city, state, ZIP code, and phone number. This information will be used to contact or send correspondence (if necessary) regarding this transmission. If you need to update, enter 'n' to change information; otherwise, enter 'y' to accept.
Select one of the following:
'A' for an Original file
'B' for a Replacement file
'C' for a Correction file
'D' for a Test file
If you selected 'B' for a replacement file, select one of the following:
'A' Replacement Files For This System This option is to replace an original/correction file that was submitted electronically on this system but was bad and needs to be replaced. Select the file needing replaced.
'B' Magnetic media replacement files Enter the alpha character from Form 9267, Media Tracking Slip, that was returned with your magnetic media shipment.
Choose one of the following protocols (Hyperterminal is normally set to Zmodem by default):
X -- Xmodem
Y -- Ymodem
Z -- Zmodem (Zmodem will normally give you the fastest transfer
rate.)
At this point, you must start the upload from your PC.
To send a file:
Go to the hyperterminal menu bar.
Click on Transfer.
Click on Send file.
A box will appear titled 'Send File'.
Enter the drive/path/filename or click on Browse to locate your file.
Click on Send.
When the upload is complete, the screen will display the total bytes received and the file name to be recorded on your Form 4804, Box 7b.
Press ENTER to continue.
If you have more files to send for the same TCC/EIN, enter 'y'; otherwise, enter 'n'.
It is your responsibility to check the acceptability of your file; therefore, be sure to dial back into the system in 10 business days.
At the Main Menu:
Enter 'B' for file status.
Press the Tab key to advance to TCC box; otherwise, enter 'E' to exit.
Enter your TCC:
Enter your EIN:
Choose the appropriate option.
Tab to the file you want to look at and press ENTER.
If 'Results' indicate:
'File Good' and you agree with the 'Count of Payees' and have mailed your Form 4804, you are finished with this file. (Form 4804 is not needed on a replacement file unless the number of payees changes from the original/correction file.)
'File Bad' -- Correct the errors and resubmit the file as a replacement.
'Not Yet Processed' -- File has been received, but we do not have results available yet. Please check back in a few days.
When you are finished, enter 'E' from the Main Menu to logoff.
Enter '2' to hang-up.
SECTION 11. MODEM CONFIGURATION
.01 Hardware features
(a) Enable hardware flow control
(b) Enable modem error control
(c) Enable modem compression
SECTION 12. COMMON PROBLEMS ASSOCIATED WITH ELECTRONIC FILING
The following are the major non-format errors associated with electronic filing:
1. No Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically.
Even though you have sent your information returns electronically, you still need to mail a signed Form 4804 by the due date of the return. See Part C, Section 7.04, for the mailing address.
2. Transmitter does not dial back to the electronic system to determine file acceptability.
The results of your file transfer are posted to the FIRE System within ten business days. It is your responsibility to verify file acceptability and, if the file contains errors, you can get an online listing of the errors. Date received and number of payee records are also displayed.
3. Incorrect file is not replaced timely.
If your file is bad, correct the file and timely resubmit as a replacement.
4. Transmitter compresses several files into one.
Only compress one file at a time. For example, if you have 10 uncompressed files to send, compress each file separately and send 10 separate compressed files.
5. Transmitter sends a file and File Status indicates that the file is good, but the transmitter wants to send a replacement or correction file to replace the original/correction/replacement file.
Once a file has been transmitted, you cannot send a replacement file unless File Status indicates the file is bad (1-2 business days after file was transmitted). If you do not want us to process the file, you must first contact us at 304-263-8700 to see if this is a possibility. However, this will count as a replacement. (See Part A, Sec. 11, for the definition of replacement.)
6. Transmitter sends an original file that is good, then sends a correction file for the entire file even though there are only a few changes.
The correction file, containing the proper coding, should only contain the records needing correction, not the entire file.
7. File is formatted as EBCDIC.
All files submitted electronically must be in standard ASCII code.
Part D. Miscellaneous Information
Section 1. Addresses for Martinsburg Computing Center
To submit an application to file, Form 4840, correspondence, and magnetic media files, use the following:
Mailing by U. S. Postal Service, truck or air freight:
IRS-Martinsburg Computing Center
Information Reporting Program
240 Murall Drive
Kearneysville, WV 25430
To submit magnetically filed and paper extension and waiver
requests, use the following address:
Mailing by U.S. Postal Service, truck or air freight:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430
Section 2. Telephone Numbers for Contacting IRS/MCC
Information Reporting Program Call Site: 304-263-8700
Telecommunication Device for the Deaf (TDD): 304-267-3367
Between 8:30 a.m. and 4:30 p.m. Eastern Time
Monday through Friday
Electronic Filing via FIRE -- 1-304-262-2400
Information Returns FAX Machine: 304-264-5602
- Institutional AuthorsInternal Revenue Service
- Cross-Reference26 CFR 601.602: Tax forms and instructions.
- Code Sections
- Subject Areas/Tax Topics
- Index Termstips, reportingfiling, electronic
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-29660 (24 original pages)
- Tax Analysts Electronic Citation2000 TNT 224-8