Employer's Annual Information Return of Tip Income in Tulsa, Oklahoma (2026)
Failure to submit the Employer's Annual Information Return of Tip Income can trigger IRS correspondence, delaying tax refunds and potentially leading to penalties. In Tulsa, Oklahoma, this required report—also called a Form 8027—is filed annually with the Internal Revenue Service. The form has 48 fields, with no government filing fee. ApronPrep auto-fills 40 of those fields, pulling data from other applications you've started. Most applicants complete this in under 15 minutes with ApronPrep, which auto-fills 40 of 48 fields.
Analyzed from Employer's Annual Information Return of Tip Income
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Why You Need a Employer's Annual Information Return of Tip Income
You are legally required to file IRS Form 8027, the Employer's Annual Information Return of Tip Income, if you operate a large food or beverage establishment in Tulsa, Oklahoma, where tipping is customary. This federal mandate is rooted in the Internal Revenue Code (Title 26, Section 6053(c)) and enforced by the Internal Revenue Service. The law requires employers with 10 or more employees on a typical business day to report total tips and allocated amounts to ensure all tip income is properly recorded for payroll tax purposes. It is a key IRS document for reconciling cash tip declarations with credit card gratuities.
Failing to file or filing an incorrect Form 8027 triggers specific penalties from the IRS, which apply to your business regardless of location in Tulsa. Common consequences include:
- Failure-to-file penalties: 5% of the unpaid tax for each month (or part of a month) your return is late, up to a maximum of 25%.
- Failure-to-pay penalties: 0.5% of the unpaid tax per month, plus interest accrued on the unpaid balance.
- Increased audit risk: Inconsistent or missing tip reporting can trigger a payroll tax audit, leading to assessments for back taxes, penalties, and interest.
- Operational and legal risk: While not a local "cease-and-desist," unresolved federal tax liabilities can lead to IRS levies on your business bank accounts or criminal prosecution for willful tax evasion or fraud.
Legal code: Internal Revenue Code (Title 26)
Recent update: For the 2026 tax year, the IRS has not announced major changes to Form 8027; employers should confirm the final version and instructions on IRS.gov when filing for the 2025 calendar year.
Who Needs a Employer's Annual Information Return of Tip Income?
| Type | Required | Notes |
|---|---|---|
| Restaurant (Full-Service) | Required | Required if employees report more than $20 per month in tips, as they are classified as tipped employees under IRS rules, necessitating Form 8027 filing per Internal Revenue Code §6053. |
| Bar / Nightclub | Required | Required; bartenders and servers are considered tipped employees, and the establishment must file if it serves food or drink and has more than 10 employees on a typical day, per IRS Publication 1244. |
| Food Truck | Not Required | Typically exempt unless it employs servers who customarily receive tips; most fast-service food trucks do not meet the 'tipped employee' criteria for mandatory Form 8027 filing. |
| Coffee Shop / Café | Not Required | Often exempt unless it operates with a full-service, sit-down model where employees regularly receive tips; counter-service with a tip jar does not trigger the Form 8027 requirement. |
See which restaurant types need this requirement — and which don't.
See Full Requirements →Field-by-Field Guide (48 Fields)
40 of 48 auto-filledAmended Return
checkboxCheck this box only if you are submitting Form 8027 to correct information reported on a previously filed Form 8027 for the same tax year; you must also attach a statement explaining the changes.
COMMON MISTAKE: Incorrectly checking this box for an original filing, which the IRS may treat as a duplicate and delay processing.
Final Return
checkboxCheck this box if this is the last Form 8027 you will file because your business ceased food and beverage operations permanently or no longer meets the large food or beverage establishment criteria.
COMMON MISTAKE: Checking this box for a seasonal closure or temporary pause in operations, which does not qualify as a 'final' return.
Type: Alcoholic Beverages
checkboxCheck this box if your establishment's principal business is the sale of alcoholic beverages and food sales are incidental (10% or less of total gross receipts).
COMMON MISTAKE: Selecting this category when food sales exceed 10% of gross receipts, which may lead to an audit if your establishment is misclassified.
Type: Meals Other Than Evening
checkboxCheck this box if your establishment primarily serves meals during breakfast, brunch, or lunch hours and employs more than 10 employees on a typical business day.
COMMON MISTAKE: Confusing this with 'Evening Meals Only'; select based on your primary meal service period.
Type: Evening and Other Meals
checkboxCheck this box if your establishment serves both evening meals and other meals (like lunch) and employs more than 10 employees on a typical business day.
COMMON MISTAKE: Selecting multiple type checkboxes; only one establishment type should be selected.
Type: Evening Meals Only
checkboxCheck this box if your establishment's principal business is serving evening meals (typically dinner) and employs more than 10 employees on a typical business day.
Accepts Credit Cards: Yes
checkboxCheck 'Yes' if any tips at your establishment were charged to credit or debit cards during the tax year, as this affects the tip allocation calculation.
COMMON MISTAKE: Incorrectly selecting 'No' when credit card tips were processed, which can invalidate your reported tip data and allocation.
Accepts Credit Cards: No
checkboxCheck 'No' only if all tips at your establishment were received in cash or by other non-card methods for the entire tax year.
COMMON MISTAKE: Selecting 'No' when you accept cards, as this is a direct contradiction that flags the return for review.
Line 7c: Allocation Method - Good Faith Agreement
checkboxCheck this box if you allocated tips using a written, good-faith agreement between you and your employees, as defined in IRS Revenue Procedure 2013-29.
COMMON MISTAKE: Selecting this without having a valid, documented agreement in place, which can lead to penalties for underreported tip income.
Line 7b: Allocation Method - Gross Receipts
checkboxCheck this box if you allocated tips using the gross receipts method, which is required when reported tips are less than 8% of your establishment's gross receipts.
COMMON MISTAKE: Using the gross receipts method incorrectly when a good-faith agreement is in effect, or miscalculating the 8% threshold.
ApronPrep auto-fills 40 of 48 fields from a single compliance interview — no re-typing, no guessing what the government expects.
Top 5 Employer's Annual Information Return of Tip Income Mistakes
1. Reporting Aggregate Data Without a Form 8027
Entering total annual tip income for all employees without attaching IRS Form 8027 (Employer’s Annual Information Return of Tip Income and Allocated Tips) leads to immediate rejection by the IRS. The Oklahoma Department of Revenue also requires this form for state reconciliation. You must complete and file Form 8027 separately each year for each establishment. Failure to attach it adds 4-6 weeks to your processing timeline, as the IRS will issue a notice of incomplete filing.
2. Incorrectly Listing the Establishment's Legal Name and Address
Using a DBA (Doing Business As) name instead of the LLC or corporation's registered legal name on Form 8027, or entering a manager’s office address instead of the restaurant's physical address, triggers a mismatch with IRS and Oklahoma business registrations. For example, entering "Joe's BBQ Shack" when your legal entity is "Smith Hospitality LLC" causes a rejection. This mistake delays verification by 2-3 weeks and can lead to penalties under IRS Section 6721 for an incorrect information return.
3. Miscalculating the 8% Tip Rate Test
Form 8027 requires you to report whether the total tips reported by employees equaled at least 8% of your gross food and beverage sales. Many owners incorrectly use net sales or include non-food revenue, or they forget to perform the calculation altogether. If the 8% test is not met, you must allocate tips. An incorrect or omitted calculation is a common reason for IRS inquiries, which can add 3-4 weeks to your resolution timeline and potentially lead to allocated tip assessments.
Skip the Paperwork on Your Employer's Annual Information Return of Tip Income
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Employer's Annual Information Return of Tip Income by City in Oklahoma
| City | Fee Range | Timeline |
|---|---|---|
| Norman | ||
| Oklahoma City | ||
| Tulsa |
Timeline: Complete and submit by February 28th annually
Gather and verify employee tip allocation records
Collect your payroll records for the entire calendar year. You must have the Form 8027 worksheets or equivalent for each establishment and month, detailing gross receipts, charged tips, and tip allocations. The IRS requires employers to allocate tips to employees who didn't report enough if total reported tips are less than 8% of gross receipts. Prepare the Form W-2 for each employee with final tip income amounts. The most common trip-up is using incorrect gross receipt figures or failing to perform the 8% allocation calculation.
Complete IRS Form 8027
Fill out the Employer's Annual Information Return of Tip Income using the verified records. For establishments in Oklahoma, you must list the establishment's physical address and EIN. Key fields include total gross receipts, total charged tips, and the required tip allocation. The IRS reports this form contains approximately 40 fields; ApronPrep auto-fills business identification data. Prepare the transmittal Form 8027-T if filing for multiple establishments. A critical mistake is entering monthly data in the annual summary section, which will cause a rejection.
Submit return to the IRS
File your completed Form 8027 (and Form 8027-T if applicable) with the Internal Revenue Service by the mandatory deadline of February 28th of the following year. The IRS accepts electronic filing through the Modernized e-File (MeF) system for this form, which is recommended. You can also mail paper forms to the IRS Ogden Submission Processing Center. Submissions after February 28th are subject to penalties, even if the deadline for providing employee W-2s is later.
Other Requirements You'll Need
This is one of 13 requirements for opening a restaurant in Oklahoma.
ADA Compliance Self-Certification
federal
Alarm System Permit/Registration
local
Application for Employer Identification Number
federal
Articles of Organization (LLC) or Articles of Incorporation (Corporation)
state
See all co-required forms and how they connect to your compliance dossier.
See All RequirementsThe processing timeline varies significantly, typically depending on when the IRS receives the submission. For the Employer's Annual Information Return of Tip Income (Form 8027), there is no specific approval notice; the IRS processes the information and may contact you only if there are discrepancies. It's critical to file by the annual deadline (February 28, or the last day of February if filing electronically) to avoid late-filing penalties. Not legal advice.
There are no government filing fees for submitting this federal form to the IRS. However, failing to file on time or reporting errors can trigger IRS penalties, which are financial costs. This requirement is separate from local obligations like obtaining a City Business License/Registration from Tulsa, which has its own fees. Always verify current requirements with the IRS.
No, this return cannot be 'transferred.' The Form 8027 is filed annually for a specific Employer Identification Number (EIN) and establishment. If you move your business, you file the return for that tax year reporting data from the new location. A change of address for your EIN must be reported separately to the IRS, distinct from other local permits like a Tulsa Certificate of Occupancy. Contact the IRS to update your business address.
You file it annually, by February 28th of the year following the calendar year reported (or March 31st if filing electronically). There is no 'renewal' in the traditional sense—it's a recurring annual reporting obligation for food and beverage establishments where tipping is customary. Missing the annual deadline can result in penalties calculated per return, per month it is late.
There is no physical 'inspection' for this form. Compliance is verified through IRS document matching and potential audits. The IRS compares the tip income you report on Form 8027 against tips employees report on their W-2s and your business income. An IRS audit related to this form would be a review of your financial records, not an onsite visit like those required for health permits or a Tulsa City Food License. Not legal advice.
About This Data
This guide is generated from ApronPrep's compliance dossier system, which uses 53 parallel AI authority experts to discover requirements, then downloads actual forms and generates field-level intelligence for each one.
For Oklahoma specifically, we have analyzed compliance dossiers for 3 cities (Norman, Oklahoma City, Tulsa), generating Rich FILs (Form Intelligence Layers) with 48 form fields analyzed for this requirement. Fee data is sourced from actual county department fee schedules, not estimates.
Our data is verified against official government sources and updated when regulatory changes are detected. If you find an error, please report it — accuracy is our core commitment.
Sources
- Internal Revenue Code (Title 26)
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