Pub 1239

Pub 1239.pdf

Employer’s Annual Information Return of Tip Income and Allocated Tips

Pub 1239

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Publication 1239
Specifications for Electronic Filing of Form 8027,
Employer's Annual Information Return of Tip Income
and Allocated Tips
For Tax Year 2020

Publication 1239 (Rev. 10-2020) Catalog Number 63938N Department of the Treasury Internal Revenue Service www.irs.gov

Table of Contents
PUBLICATION 1239 ..................................................................................................................... 1
Part A. | Introduction and General Information ......................................................................... 4
Sec. 1 Introduction and General Information ................................................................................. 5
Sec. 2 Purpose .............................................................................................................................. 5
Sec. 3 What’s New for Tax Year 2020 ........................................................................................... 5
Sec. 4 Communicating with the IRS .............................................................................................. 6
Sec. 5 Additional Resources .......................................................................................................... 6
Sec. 6 Filing Requirements, Retention Requirements, Due Dates, and Extensions ...................... 7
.01

Filing Requirements ............................................................................................................ 7

.02

Allocation of Tips – Lower Rate and Good-Faith Agreements ............................................ 7

.03

Retention Requirements ..................................................................................................... 8

.04

Due Date ............................................................................................................................. 8

.05

Extensions .......................................................................................................................... 8

Sec. 7 Form 8508, Request for Waiver from Filing Information Returns Electronically.................. 9
Sec. 8 Penalties Associated with Information Returns ................................................................... 9
Sec. 9 Corrected Returns ............................................................................................................ 10
Sec. 10 Definition of Terms.......................................................................................................... 10
Sec. 11 State Abbreviations ........................................................................................................ 12
Part B. | Data Communication .................................................................................................. 13
Sec. 1 Form 4419, Application for Filing Information Returns Electronically ................................ 14
.01

Form 4419, Application for Filing Information Returns Electronically ............................... 14

.02

Mandate to Electronically File Form 4419......................................................................... 14

.03

Application Approval ......................................................................................................... 14

.04

Revise Current TCC Information....................................................................................... 15

.05

Do I Need More than One TCC? ...................................................................................... 15

.06

Deleted TCC ..................................................................................................................... 15

Sec. 2 User ID, Password and PIN Requirements....................................................................... 15
Sec. 3 Secret Phrase ................................................................................................................... 16
Sec. 4 Connecting to FIRE .......................................................................................................... 17
Sec. 5 Electronic Specifications ................................................................................................... 20
Sec. 6 Electronic Submissions..................................................................................................... 21
.01

Electronic Submissions ..................................................................................................... 21

.02

File Definitions .................................................................................................................. 21

.03

Submission Responses .................................................................................................... 21

Sec. 7 Test Files .......................................................................................................................... 22
Sec. 8 Accuracy of Data and Common Problems ........................................................................ 22
.01

Accuracy ........................................................................................................................... 22

.02

Common Problems ........................................................................................................... 24

Part C. | Record Format Specifications and Record Layouts ................................................ 26
Sec. 1 General ............................................................................................................................. 27
Sec. 2 Record Format .................................................................................................................. 27
Sec. 3 Record Layout .................................................................................................................. 34
Part D. | Extension of Time ....................................................................................................... 36
Sec. 1 Extension of Time ............................................................................................................. 37
Part E. | Exhibits ........................................................................................................................ 42
Exhibit 1 Publication 1239 Tax Year 2020 Revision Updates ...................................................... 43

Part A. | Introduction and General Information

Sec. 1 Introduction and General Information
This publication outlines the communication procedures, record format, validation criteria, and errors associated with the
electronic filing of Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips.
The file specifications and record layouts should be used in conjunction with the following:
•

Instructions for Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips

Sec. 2 Purpose
The purpose of this publication is to provide the specifications for electronically filing Form 8027, Employer’s Annual
Information Return of Tip Income and Allocated Tips, with the Internal Revenue Service. This publication provides
information to help the taxpayer prepare and transmit current and prior year information returns electronically.
Generally, the boxes on the paper forms correspond with the fields used for the electronic file; however, if the
form and field instructions do not match, the guidance in this publication supersedes the form instructions.
Electronic reporting of information returns eliminates the need for electronic filers to file paper documents with
the IRS. Do not send paper forms to the IRS for any forms filed electronically as this will result in duplicate filing
which may result in penalty notices.

Sec. 3 What’s New for Tax Year 2020
Updates to Publication 1239 after August 30, 2020, are listed in Part E. Exhibit 1, Publication 1239 Tax Year 2020
Revision Updates.
1.

Publication 1239 is updated to reflect the current four-digit reporting year, 2020.

The Payment Year must be updated with the four-digit reporting year of 2020, unless reporting prior year
data.

3. Filing Information Returns Electronically (FIRE) System Availability:

FIRE Production System Availability
Down for annual updates

From:
December 4, 2020, 6 p.m. ET

Through:
January 5, 2021

Controlled launch

January 6, 2021, 8 a.m. ET

January 8, 2021, 12 p.m. ET

Available

January 8, 2021, 12 p.m. ET

Available 24 hours a day until
end of year updates. Date to be
determined and will be available
on the FIRE webpage.

FIRE Test System Availability
From:

Through:

Down for updates
Available

October 26, 2020
November 3, 2020

November 2, 2020
December 4, 2020, 6 p.m. ET

Down for annual updates

December 4, 2020, 6 p.m. ET

Available

January 4, 2021, 8 a.m. ET

January 4, 2021
Date to be determined and will be
available on the FIRE webpage.

Note: FIRE Systems (Production and Test) maintenance is every Wednesday and Sunday from 2 a.m. ET to
5 a.m. ET.

4. Form 4419, Application for Filing Information Returns Electronically – Submit Form 4419 by November 1st of the
year before information return(s) are due to ensure you are ready to electronically file. Forms 4419 received after
November 1st may not be processed in time to meet your electronic filing needs. Allow 45 days for processing.

Sec. 4 Communicating with the IRS
The Technical Services Operation (TSO) is available to payers, transmitters, and employers at the numbers listed below.
When you call you will be provided guidance to essential elements pertaining to technical aspects for electronic filing
through the FIRE Systems, self-help resources, and referrals to tax law topics on IRS.gov. Below are some examples of
essential elements.
•
•
•
•
•

Form identification
How to obtain a form
Related publications for a form or topic
Electronic filing of information returns
FIRE file status information and guidance

Contact TSO Monday through Friday, 8:30 a.m. – 5:30 p.m. ET. Listen to all options before making your selection.
•
•
•

866-455-7438 (toll-free)
304-263-8700 (International) (Not toll-free)
304-579-4827 for Telecommunications Device for the Deaf (TDD) (Not toll-free)

The IRS address for filing information returns electronically is fire.irs.gov. The address to send a test file
electronically is fire.test.irs.gov.
Questions regarding the filing of information returns and comments/suggestions regarding this publication can be
emailed to [email protected]. When you send emails concerning specific file information, include the company name and
the electronic filename or Transmitter Control Code (TCC). Do not include tax identification numbers (TINs) or
attachments in email correspondence because electronic mail is not secure.

Sec. 5 Additional Resources
The following are additional resources and information available for information returns:
•
•
•

Information for electronic filing of Form 8027 is available at www.irs.gov using Keywords "Form 8027
Resources.”
Information Returns resources are found using Keywords "Information Return Reporting.”
Tax Topic 761 at IRS.gov provides information for Tips - Withholding and Reporting.

Sec. 6 Filing Requirements, Retention Requirements, Due Dates, and Extensions
.01 Filing Requirements
Employers must annually report to the IRS receipts and tips from their large food or beverage establishments.
Employers use Form 8027 to report that information. In addition, employers use Form 8027 to determine if the
employer must allocate tips for tipped employees. Filers of Form 8027 may be required to file electronically.
Treasury Regulation Section 301.6011-2 provides that any person, including a corporation, partnership, individual
estate, or trust, who is required to file 250 or more information returns, must file such returns electronically. If you
are required to file electronically, and this requirement causes an undue hardship, see Part A. Sec 7, Form 8508,
Request for Waiver from Filing Information Returns Electronically.
All filing requirements apply individually to each reporting entity as defined by its separate taxpayer identification
number (TIN). For example, if a corporation with several branches or locations uses the same employer
identification number (EIN), the corporation must aggregate the total volume of returns to be filed for that EIN and
apply the filing requirements to each type of return accordingly.
Caution: If you are required to file 250 or more information returns of any one type, you must file electronically. The
Taxpayer First Act of 2019, enacted July 1, 2019, authorized Treasury and the IRS to issue regulations that reduce the
250-return requirement for 2021 tax-year returns. If those regulations are issued and if they are effective for 2021 tax-year
returns required to be filed in 2022, we will post an article at www.irs.gov explaining the change. Until regulations are
issued, however, the number remains at 250, as reflected in this publication. If you are required to file electronically but
fail to do so, and you do not have an approved waiver, you may be subject to a penalty. For more information, see part F
in the General Instructions for Certain Information Returns.

.02 Allocation of Tips – Lower Rate and Good-Faith Agreements
Employers can request a lower rate (but not lower than two percent) for tip allocation purposes by submitting a
petition to the IRS, see Sec. 31.6053-3(h) of the Employment Tax Regulations. Detailed instructions for requesting
a lower rate and the address to send the petition for a lower rate can be found in the Instructions for Form 8027. The
IRS will issue a determination letter to notify the employer when, and for how long, a reduced rate is effective.
An allocation may be made under a good-faith agreement between an employer and its employees. See Sec.
31.6053- 3(e) of the Employment Tax Regulations and the Instructions for Form 8027 for requirements and details.
If a lower rate is used on Form 8027 based on the IRS determination letter, a copy of the determination letter must be
submitted within three business days of the accepted date of the electronically filed Form 8027. Fax the determination
letter to 855-309-9361 or mail a copy of the letter to:
Internal Revenue Service
Attn: ICO ERS M/S 6121
1973 N Rulon White Blvd.
Ogden, UT 84404
In the fax transmittal or cover letter, filers must include the words “Form 8027 attachment(s)” and the following
information from the applicable Form 8027:
•
•
•
•
•
•

Name of establishment
Name of employer
EIN
Establishment number
Transmitter Control Code (TCC)
Tax year

.03 Retention Requirements
Payers should retain a copy of the information returns (or have the ability to reconstruct the data) for at least
three years from the filing due date.

.04 Due Date
Paper Form 8027 returns must be filed by March 1, 2021.
Electronically filed Form 8027 must be filed by March 31, 2021.

.05 Extensions
A 30-day automatic extension of time to file Form 8027 may be submitted by creating and transmitting an
electronic file or fill-in form on the FIRE Production System, or submitting a paper Form 8809.
An additional 30-day extension of time to file Form 8027 may be requested before the expiration of the initial 30-day
extension. Additional 30-day extension requests must be submitted on a paper Form 8809. Select a checkbox on
Form 8809 under Line 7 that describes the need for an extension (Required). Form 8809 must be signed by the
filer/transmitter or a person who is duly authorized to sign a return. Regulations Section 1.6081-8(d)(2).
Approval letters will not be issued for the automatic, additional 30-day, and non-automatic extension requests. Payer/filer
will receive incomplete or denial letters when applicable.
Extension of Time requests submitted through the FIRE System (Production) will require the entry of your FIRE
account PIN.
For additional information, refer to Part D. Extension of Time.

Sec. 7 Form 8508, Request for Waiver from Filing Information Returns
Electronically
If an employer is required to file original or corrected returns electronically and the requirement creates an undue
hardship, a waiver may be requested by filing Form 8508, Request for Waiver from Filing Information Returns
Electronically, with the IRS.
Filers are encouraged to file Form 8508 with the IRS at least 45 days before the due date of the returns, but no later
than the due date of the returns for which the waiver is being requested. The IRS does not process waiver requests
until January 1st of the calendar year in which the returns are due.
Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth under
Treasury Regulation Section 301.6011-2(c) (2). Allow a minimum of 30 days for the IRS to respond to a waiver
request.
An approved waiver will provide exemption from electronic filing for the current tax year only and employers may not
apply for a waiver for more than one tax year. An approved waiver does not provide exemption from filing. If a
waiver is approved, the payer/filer must timely file Form 8027 on acceptable paper forms with the appropriate IRS
Submission Processing Center.
If a waiver request is approved, keep the approval letter on file. Include a copy of the approved waiver when filing paper
Forms 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips.
Fax completed Form 8508 to:
Fax: 866-477-0572 (International 304-589-4151)

Sec. 8 Penalties Associated with Information Returns
Generally, the following penalties apply to the person required to file information returns. The penalties apply to both
paper and electronic filers:
•

Failure to File Correct Information Returns by the Due Date (Section 6721) - If you fail to file a
correct information return by the due date and you cannot show reasonable cause, you may be subject
to a penalty.

•

Failure to Furnish Correct Payee Statements (Section 6722) - If you fail to provide correct payee
statements and you cannot show reasonable cause, you may be subject to a penalty.

•

Failure to File Electronically (Section 6721) - If you are required to file electronically but fail to do so,
and you don’t have an approved waiver on record, you may be subject to a penalty.

Refer to General Instructions for Certain Information Returns for additional information on penalty specifications and
guidelines.

Sec. 9 Corrected Returns
If an information return was successfully processed by the IRS and you identify an error with the file after the IRS
accepted the file and it is in "Good, Released" status, you need to file a corrected return. Do not file the Original file
again as this may result in duplicate reporting. File only the returns that require corrections. Do not code information
returns omitted from the original file as corrections. If you omitted an information return, it should be filed as an
original return.
Note: The standard correction process will not resolve duplicate reporting. Complete all fields of the corrected
return.
Caution: If you are required to file 250 or more information returns of any one type, you must file electronically. The
Taxpayer First Act of 2019, enacted July 1, 2019, authorized Treasury and the IRS to issue regulations that reduce the 250return requirement for 2021 tax-year returns. If those regulations are issued and if they are effective for 2021 tax-year
returns required to be filed in 2022, we will post an article at www.irs.gov explaining the change. Until regulations are issued,
however, the number remains at 250, as reflected in this publication. If you are required to file electronically but fail to do so,
and you do not have an approved waiver, you may be subject to a penalty. For more information, see part F in the 2021
General Instructions for Certain Information Returns.
The filer or transmitter must furnish corrected statements to recipients as soon as possible. If a filer or transmitter
discovers errors that affect a large number of recipients, contact the IRS at 866-455-7438 (toll-free). Send
corrected returns to the IRS and notify the recipients.
If corrected returns are not filed electronically, they must be filed on official forms or acceptable substitute forms.
Substitute forms that have been previously approved by the IRS, or computer-generated forms that are exact
facsimiles of the official form (except for minor page size or print style deviations), may be used without obtaining
IRS approval before using the form.
Employers may send corrected paper Forms 8027 to the IRS. If filing more than one paper Form 8027, attach a
completed Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to
the Forms 8027. Mail paper Forms 8027 to the address in the Instructions for Form 8027.

Sec. 10 Definition of Terms
Element

Description

10-Employee Test

An employer is considered to have normally employed more than ten
employees on a typical business day during the preceding 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 or 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 or
beverage operations were the least, equals more than 80 hours.

Correction

A correction is an information return submitted by the employer/transmitter to
correct an information return that was previously submitted to and successfully
processed by the IRS but contained erroneous information.

EIN

A nine-digit identification number, which has been assigned by the IRS
to the reporting entity.

Employee Hours Worked

The average number of employee hours worked per 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.

DESCRIPTION
ELEMENT

Employer

The entity or individual required to report the information. Use the
same name and EIN used on Forms W-2 and Forms 941. If the
employer uses a Certification of Professional Employer
Organization (CPEO), the name and EIN of the employer on the
Form 8027 will not match the name and EIN on the Form 941. The
CPEO name and EIN will be listed on the Form 941. The food and
beverage employer should be listed on the Schedule R that is filed

File

For the purpose of this publication, a file is the Form 8027
information submitted electronically by an employer or transmitter.

Large Food or Beverage
Establishment

A food or beverage operation that provides food or beverage for
consumption on the premises; where tipping is a customary
practice; and where there are normally more than ten employees
who work more than 80 hours on a typical business day during
the preceding calendar year (See “10-Employee Test”).

Replacement

A replacement is an information return file sent by the employer/
transmitter because of errors encountered while processing the
filer’s original file or correction file.

Transmitter

The person preparing electronic file(s). This may be the employer
or an agent of the employer.

Transmitter Control Code (TCC)

A five-character alphanumeric code assigned by the IRS to the
transmitter prior to electronically filing. This number is inserted in
the record and must be present in all files submitted electronically
through the FIRE System. An application (Form 4419) must be
filed with the IRS to receive this number.

Sec. 11 State Abbreviations
The following state and U.S. territory abbreviations are to be used when developing the state code portion of the
address fields.

State

Table 1: State & U.S. Territory Abbreviations
Code
State
Code

State

Code

Alabama

Kentucky

Ohio

Alaska

Louisiana

Oklahoma

American Samoa

Maine

Oregon

Arizona

Maryland

Pennsylvania

Arkansas

Massachusetts

Puerto Rico

California

Michigan

Rhode Island

Colorado

Minnesota

South

Connecticut

Mississippi

South Dakota

Delaware

Missouri

Tennessee

District of Columbia

Montana

Texas

Florida

Nebraska

Utah

Georgia

Nevada

Vermont

Guam

New Hampshire

Virginia

Hawaii

New Jersey

Idaho

New Mexico

Washington

Illinois

New York

West Virginia

Indiana

North Carolina

Wisconsin

Iowa

North Dakota

Wyoming

Kansas

No. Mariana Islands

U.S. Virgin Islands

Filers must adhere to the city, state, and ZIP Code format for U.S. addresses. This also includes American Samoa,
Guam, and the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
Note: Form 8027 is required only for establishments in the 50 states or the District of Columbia.

Part B. | Data Communication

Sec. 1 Form 4419, Application for Filing Information Returns Electronically
.01 Form 4419, Application for Filing Information Returns Electronically
All transmitters who file information returns electronically through the FIRE System are required to request
authorization to file electronically by submitting Form 4419, Application for Filing Information Returns Electronically.
Additionally, to transmit files electronically through FIRE, you must have software, a service provider, or an in-house
programmer that will create the file in the proper format per the requirements and record layouts in this publication.
Note: A scanned or PDF copy will not be accepted.
Due Date: Submit Form 4419 by November 1st of the year before information return(s) are due to ensure you are ready to
electronically file. Form 4419 received after November 1st may not be processed in time to meet your electronic filing
needs. Allow 45 days for processing.

.02 Mandate to Electronically File Form 4419
Form 4419 must be electronically filed when requesting an original TCC. Submit an online Fill-in Form 4419 located within
the FIRE System at fire.irs.gov. Guidelines are provided below:
•

Select Log On or Create New Account.

•

Under the main menu, select “Fill-in Form 4419.”

•
•

Review the “Important Notes” screen to ensure that you have the correct information to proceed and
Ensure you are authorized to complete and sign the application:
This application must be completed and submitted by: (a) the owner, if the applicant is a sole proprietorship, (b) the
president, vice president, or other principal officer, if the applicant is a corporation, (c) a responsible and duly
authorized member or officer having knowledge of its affairs, if the applicant is a partnership, government entity, or
other unincorporated organization, or (d) the fiduciary, if the applicant is a trust or an estate.

The FIRE System is down for annual updates from December 4, 2020 through January 5, 2021. Fill-In Form 4419 cannot be
submitted during this period. Submit your Fill-In Form 4419 early to be ready to timely transmit through the FIRE System.
Only submit a paper Form 4419 when you have an existing Transmitter Control Code (TCC) to:
•
•

Revise current TCC information. Refer to .04 Revise Current TCC Information.
Request an additional TCC for a form type that you currently have an active TCC or for another form type listed on
Form 4419 Block 7. Refer to .05 Do I Need More than One TCC? Provide a reason an additional TCC is necessary.

.03 Application Approval
If your application is approved, a five-character alphanumeric TCC is assigned to your business. An approval letter will be
issued to the address listed on Form 4419 informing you of your TCC. Allow 45 days for processing. A TCC will not be
issued over the phone or via email. If you do not receive a TCC within 45 days, contact the IRS. Refer to Part A. Sec. 4,
Communicating with the IRS.
Electronically filed returns may not be transmitted through FIRE until Form 4419 has been approved and a TCC has
been assigned. Reminder: You must have software that meets the requirements and record layouts in this publication
or a service provider that will create the file in the proper format.
Form 4419 is subject to review before approval to transmit electronically is granted. The IRS issues correspondence if
additional documentation is required. Once a transmitter is approved to file electronically, it is not necessary to reapply
unless:
• Payer has discontinued filing electronically for two consecutive years.
• Payer’s files were transmitted in the past by a service bureau using the service bureau’s TCC, but now the payer
has computer equipment compatible with that of the IRS and wishes to prepare the files.
The IRS has the authority to revoke the TCC and terminate the release of transmitted files.

.04 Revise Current TCC Information
Transmitters should notify the IRS of any changes to their TCC information. Submit paper Form 4419 to update a previously
approved Form 4419 for the following information:
• Legal name and address
• Person to contact or contact information
If your business has been assigned a new EIN, you are required to submit a Fill-in Form 4419 on the FIRE
System at fire.irs.gov for assignment of a new TCC.
Refer to Form 4419 Instructions.

.05 Do I Need More than One TCC?
No. Only one Transmitter Control Code (TCC) is required if you are only filing Form 8027. The TCC is used to catalog files as
they are received. The Form 8027 requires a single TCC; therefore only submit one Form 4419. There is no need to request
an additional TCC.
An additional TCC is required for each of the following types of returns:
•
•
•

Forms 1097,1098, 1099, 3921, 3922, 5498, and W-2G (See Publication 1220)
Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding
Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits

The IRS encourages transmitters who file for multiple payers to submit one application and use the assigned TCC for all
payers. The purpose of the TCC is to identify the transmitter of the file. You may transmit files for as many companies as
you need under the one TCC. The information return data will be contained in the file itself. While not encouraged,
additional TCCs can be issued to payers with multiple TINs. Transmitters cannot use more than one TCC in a file. Each
TCC must be reported in separate transmissions.
Some service bureaus will transmit files using their TCC, while others will require filers to obtain a TCC of their own. Payers
should contact their service bureau for further information.
Refer to Form 4419 Instructions.

.06 Deleted TCC
Your TCC will remain valid as long as you transmit information returns or requests for extension of time to file
information returns electronically through the FIRE System. If you do not use your TCC for two consecutive years,
your TCC will be deleted. A deleted TCC cannot be reactivated. You will need to submit a new Form 4419.

Sec. 2 User ID, Password and PIN Requirements
You must establish a FIRE account before you can transmit files through the FIRE Systems (Production and Test). The
system will prompt you to create your User ID, password, and a 10-digit Personal Identification Number (PIN). Each user
should create their individual FIRE account and login credentials. Multiple FIRE accounts can be created under one
TCC.
The FIRE Production System and the FIRE Test System are two different sites that do not communicate with each other.
If you plan on sending a production file and a test file, you will need an account on each system.
User ID
You will need to supply the name you intend to use as your User ID. If you wish to use special characters in your User
ID, the following are allowed: _, /, @, -, period, comma, and space.

FIRE Password
FIRE passwords must be a minimum of 8 characters and are limited to a maximum of 20 characters. Passwords must
contain at least 1 uppercase letter, 1 lowercase letter, 1 number and one of the following special characters
#?!@$%^&*.,’- and cannot contain the User ID or User Name. The FIRE System will require you to change your
password every 90 days or at the first logon attempt after that time period. Additionally, the previous 24 passwords cannot
be used.
For all passwords, it is the user’s responsibility to remember the password and not allow the password to be
compromised.
FIRE PIN
All FIRE accounts are required to have a valid 10-digit PIN. If you fail to establish a valid PIN, you will continue to receive
prompts until you do. PINs are required to be 10 unique numbers. The FIRE System will not allow a PIN that:
• Consists of all the same numbers, example 1111111111
• Is sequential in ascending or descending order, examples 0123456789 or 9876543210
• Contains alpha characters
Established accounts that do not meet the criteria will be prompted to update their PIN when they log into the FIRE
System.
You must enter the PIN each time you electronically send an Original, Corrected, or Replacement file. Authorized
agents or transmitters may enter their PIN; however, the payer/filer is responsible for the accuracy of the returns and
will be liable for penalties for failure to comply with filing requirements.
If you enter an incorrect PIN three times, you will be locked out of submitting files for a 24-hour period.
If you are submitting files for more than one TCC, it is not necessary to create a separate User ID and password for
each TCC.

Sec. 3 Secret Phrase
FIRE accounts require the user to establish a secret phrase to assist in resetting passwords for FIRE Systems
(Production and Test).
You will be prompted to create the secret phrase at the same time you create your User ID, Password, and PIN. If you
already have a FIRE System account (Production and Test) but don’t have a secret phrase, you will be prompted to create
one the first time you log into the system. If you fail to establish a valid secret phrase, you will continue to receive prompts
until you do.
•
•
•
•
•

At the ‘Create FIRE System Account Secret Phrase screen’, all fields with an asterisk (*) are required fields.
Your secret phrase must be 8 to 20 characters with one uppercase, one lowercase, one numeric, and one
special character with no spaces. The following special characters are allowed: #?!@$%^&.,’-.
Secret phrase cannot contain the User ID or User name.
Enter the validation code (CAPTCHA) exactly as shown in the text box and click ‘Create’.
If all data entered was valid, you will receive the message, “Your Secret Phrase has been successfully created!”.

Resetting your FIRE Password - If you have a FIRE System account (Production and Test) with an established secret
phrase and forgot your password, you may reset your password by using your established secret phrase.
•
•

At the FIRE System Log on Screen, click on ‘Forgot Password’.
At the FIRE System ‘Forgot Password’ screen, enter all the required information and click ‘Login’. You will then
be prompted to ‘Change Your Password’ with the specified criteria.

Once logged into the FIRE System, you have the option to ‘Change Secret Phrase’ if needed.
Note: If you exceed the number of allowed login attempts with the secret phrase, you will be prompted to call the IRS
for a secret phrase reset.

Sec. 4 Connecting to FIRE
Connect to the FIRE Production System by accessing fire.irs.gov. The available dates for FIRE Systems (Production
and Test) are provided in the chart below:

FIRE Production System Availability
Down for annual updates

From:
December 4, 2020, 6 p.m. ET

Through:
January 5, 2021

Controlled launch

January 6, 2021, 8 a.m. ET

January 8, 2021, 12 p.m. ET

Available

January 8, 2021, 12 p.m. ET

Available 24 hours a day until end
of year updates. Date to be
determined and will be available on
the FIRE webpage.

FIRE Test System Availability
Down for updates
Available
Down for annual updates

From:
October 26, 2020
November 3, 2020
December 4, 2020, 6 p.m. ET

Available

January 4, 2021, 8 a.m. ET

Through:
November 2, 2020
December 4, 2020, 6 p.m. ET
January 4, 2021
Date to be determined and will be
available on the FIRE webpage.

Note: FIRE Systems (Production and Test) maintenance is every Wednesday and Sunday from 2
a.m. ET to 5 a.m. ET.
Note: The FIRE Production System and the FIRE Test System do not communicate. You must create and maintain a
separate account for each FIRE System.

Follow the table below to connect to the FIRE system.

Connecting to the FIRE System

1st Time Connection to FIRE Production

Returning User to FIRE Production and Test Systems:

and Test Systems:
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•
•
•
•
•
•
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Click “Create New Account”
Fill out the registration form and click “Submit”
Create User ID
Create and verify password
Create and verify the Secret Phrase
Click “Create”
If the message “Account Created”
is received, click “OK”
Create and verify the 10-digit self-assigned PIN
Click “Submit”
If the message “Your PIN has been
successfully created!” is received, click
“OK”
Read the bulletin(s) and/or Click “Continue”

Note: If you are using SPAM filtering software,
configure it to allow an email from [email protected]
and [email protected].

•
•
•

Click “Log On”
Enter the User ID (not case sensitive)
Enter the Password (case sensitive)

•

Read the bulletin(s) and/or select “Continue”
Password Criteria

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•
•
•
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Must contain a minimum of 8 characters
Limited to a maximum of 20 characters
Must contain at least one special
character #?!@$%^&*.,'Must contain at least one upper case letter
(alpha character)
Must contain at least one lower case letter
(alpha character)
Must contain at least one number
(numeric character)
Passwords must be changed every 90 days;
the previous 24 passwords cannot be used
Passwords cannot contain the User ID or
User Name

Note: If you have a FIRE System account (Production and
Test) with an established Secret Phrase and forgot your
password, you may reset your password by using your
established Secret Phrase. Refer to Part B. Sec. 3, Secret
Phrase.

Uploading Files to FIRE
Filers may upload a file to the FIRE System by taking the following actions:
• After logging in, go to the Main Menu
• Select “Send Information Returns”
• Enter the TCC
• Enter the TIN
• “Submit”
• Verify and update company information as appropriate and/or click “Accept”. (The system will display the
company name, address, city, state, ZIP code, telephone number, contact and email address. This
information is used to email the transmitter regarding the transmission.)
• Select one of the following:
• Original file
• Replacement file
• Correction file
• Test File (This option will only be available on the FIRE Test System at fire.test.irs.gov).
• Enter the 10-digit PIN
• “Submit”
• “Browse” to locate the file and open it
• “Upload”
Note: When the upload is complete, the screen will display the total bytes received and display the name of the
file just uploaded. It is recommended you print the page for your records. If this page is not displayed on your
screen, we probably did not receive the file. To verify, go to “Check File Status” option on the main menu. We
received the file if the file name is displayed and the count is equal to ‘0’ and the results indicate “Not Yet
Processed.”

Checking the Status of Your File
It is the transmitter’s responsibility to check the status of submitted files. If you do not receive an email
within two business days or if you receive an email indicating the file is bad:
• Log back into the FIRE System
• Select “Main Menu”
• Select “Check File Status” – The default selection to the File Status drop down is, “All Files.”
When “All Files” is selected, a valid date range is required. The date range cannot exceed three months.
• Enter the TCC
• Enter the TIN and “Search”
Note: During peak filing periods, the timeframe for returning file results may be more than two days.

File Status Results:
• Good, Not Released — The filer is finished with this file if the “Count of Payees” is correct. The
file is automatically released after ten calendar days unless the filer contacts the IRS within this
timeframe.
• Good, Released — The file has been released for IRS processing.
• Bad — The file has errors. Click on the filename to view the error message(s), fix the errors, and
resubmit the file timely as a “Replacement” file.
• Not Yet Processed – The file has been received, but results are not available. Check back in a few
days.

Sec. 5 Electronic Specifications
.01 FIRE System
The FIRE System is designed exclusively for electronic filing of Forms 1042-S, 1097, 1098, 1099, 3921, 3922, 5498,
8027, 8955-SSA and W-2G. Electronic files are transmitted through the FIRE Production System at fire.irs.gov. The
electronic filing of information returns is not affiliated with any other IRS electronic filing programs. Filers must obtain
separate approval to participate in different programs.
The FIRE Production System does not provide fill-in forms, with the exception of:

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Form 8809, Application for Extension of Time to File Information Returns
Form 4419, Application for Filing Information Returns Electronically (FIRE)

Filing Forms 8027 through the FIRE Production System (originals and corrected) is the method of filing for filers mandated
to file electronically. Filers are encouraged to send information returns electronically even if they are not required to do
so. Filers who have prepared their information returns in advance of the due date can submit their file any time after the
end of the calendar year.
Prior year data may be submitted; however, each tax year must be submitted in a separate file transmission. For
prior year data, enter the tax year being reported in field positions 375-378, and enter a “P” in field position 379 to
indicate the file contains prior year data.

.02 FIRE System Internet Security Technical Standards
FIRE System Internet Security Technical Standards are:

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HTTPS1.1 Specification
TLS 1.2 is implemented using SHA and RSA 1024 bits during the asymmetric handshake.

Sec. 6 Electronic Submissions
.01 Electronic Submissions
The FIRE System is available for electronic submissions 24 hours a day. For dates of availability, refer to Part B. Sec. 4,
Connecting to FIRE .
Standard ASCII code is required for all files. The time required to transmit files varies depending upon your type of
connection to the internet.
The acceptable file size for the FIRE Systems cannot exceed one million records per file. If the file exceeds the limit,
the file will be rejected. We recommend you visit the Filing Information Returns Electronically (FIRE) website at
fire.irs.gov for the latest system status, updates, and alerts.
When sending electronic files larger than 10,000 records, data compression is encouraged. The time required to
transmit a file can be reduced up to 95 percent by using compression.
•

WinZip and PKZIP are the only acceptable compression packages. The IRS cannot accept self-extracting
zip files or compressed files containing multiple files.

Transmitters may create files using self-assigned filename(s). However, the FIRE System will assign a unique
filename. Record the FIRE filename from the "Check File Status" page as it is required when assistance is needed.
The FIRE filename consists of:
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Submission type (Original, Correction, Replacement, and Test)
TCC
Four-digit sequence number. The sequence number will be increased for every file sent. For example, if this
is the first original file for the calendar year and the TCC is 44444, the IRS assigned filename would be
ORIG.44444.0001.

.02 File Definitions
It is important to distinguish between the specific types of files:
Original file — Contains information returns that have not been previously reported to the IRS.
Correction file — Contains corrections for information returns successfully processed by the IRS with a status of
“Good, Released” and you then identified an error with the file. Correction files should only contain records that
require a correction, not the entire file.
Replacement file — A Replacement file is sent when a "Bad" status is received. After the necessary changes have
been made, transmit the entire file through the FIRE Production System as a Replacement file.
Test File — Contains data that is formatted to the specifications in the Publication 1239 and can only be sent through
the FIRE Test System at fire.test.irs.gov. Do not transmit live data in the FIRE Test System.

.03 Submission Responses
The results of your electronic transmission(s) will be sent to the email address that was provided on the “Verify your Filing
Information” screen within two days after a file has been submitted. If using email-filtering software, configure software to
accept email from [email protected] and [email protected].
Note: Processing delays may occur during peak filing timeframes and you may not get results within 2 business days.
If a file is bad, the transmitter must return to fire.irs.gov or fire.test.irs.gov to identify the errors. At the main menu, select
“Check File Status".

If a file is "Bad", make necessary changes and resubmit as a Replacement file. You have 60 days from the original
transmission date to send a good Replacement file.
Note: If an acceptable Replacement file is received within 60 days, the transmission date for the Original file will be used
for penalty determination. Original files submitted after the due date or acceptable Replacement files sent beyond the 60
days may result in a late filing penalty.
If the file is good, it is released for mainline processing after ten calendar days from receipt. Contact the IRS by
telephone at 866-455-7438 within the ten-day timeframe to stop processing. When you call, you must indicate if
you want the file “Closed” or “Made Bad” so that you can send a Replacement file. You will need your TCC and
employer identification number (EIN).

Sec. 7 Test Files
Transmitters 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. See Part B. Sec. 4, Connecting to FIRE.
The IRS will check the file to ensure it meets the specifications in this publication. Current filers may send a test file to
ensure the software reflects all required programming changes; however, not all validity, consistency, or math error
tests will be conducted.
Provide a valid email address on the “Verify Your Filing Information” page. You will be notified of your file acceptance
by email within two days of submission. When using email-filtering software, configure software to accept email from
[email protected] and [email protected].
It is the transmitter's responsibility to check the results of the submission. See Part B. Sec. 4, Connecting to FIRE Checking the Status of Your File.
Note: During peak filing periods, the timeframe for returning file results may be more than two days.
The following results will be displayed:
“Good, Federal Reporting” — The test file is good for federal reporting.
“Bad” — The test file contains errors. Click on the filename for a list of the errors.
“Not Yet Processed” — The file has been received, but results are not available. Check back in a few days.

Sec. 8 Accuracy of Data and Common Problems
.01 Accuracy
The IRS validates the accuracy of data reported on Form 8027. All “required” fields in the record layout must contain valid
information. If the IRS identifies an error, filers will be notified of the error and must send a replacement file.
Review the following information below along with the record layout information found in Part C to ensure the data
contained in the required fields is accurate:
•

Field Positions 114-122 — Establishment ZIP Code — The address for the establishment must agree with
the state and ZIP Code. If there are inconsistencies or if the ZIP Code does not agree with the address, it will
result in a file status of “Bad”.

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Field Positions 260-271 — Charged Receipts — must exceed Charged Tips (field positions 248-259). This
includes credit or debit card charges, or other credit arrangements, and charges to a hotel room unless the
employer’s normal accounting practice excludes charges to a hotel room and the employer applies such exclusion
consistently for a given large food or beverage establishment. Do not include any state or local taxes in the
amount reported.

•

Field Positions 284-295 - Indirect Tips Reported and Field Positions 296-307- Direct Tips Reported —
should 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. For example: In figuring the tips you should report for 2019, don't include tips received by
employees in December 2018, but not reported until January 2019. However, include tips received by employees
in December 2019, but not reported until January 2020.

•

Field Positions 308-319 — Total Tips Reported — must equal the combined amount of the Indirect
Tips Reported (field positions 284-295) and Direct Tips Reported (field positions 296-307). Generally,
an employer would have allocated tips if the Total Tips Reported were less than the Tip Percentage
Rate Times Gross Receipts (field positions 332-343). Enter the difference as Allocated Tips (field
positions 348-359).

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Field Positions 320-331 — Gross Receipts — must exceed all other monetary amounts with the exception
that Gross Receipts could equal Charged Receipts if all transactions were conducted on charge or debit
cards. It should not include 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 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).

•

Field Positions 332-343 — Tip Percentage Rate Times Gross Receipts — must equal the Gross
Receipts times the Tip Rate. Normally, the Tip Rate is 8 percent. The Tip Rate must be entered as 0800 in
positions 344- 347 unless the IRS has issued a determination letter at a lower rate.

.02 Common Problems
Item

Issue

Resolution

You have not received a file status
email.

To receive emails concerning files, processing results, reminders
and notices, set the SPAM filter to receive email from [email protected]
and [email protected].
Check the File Status to ensure your information was transmitted.
Check “Verify Your Filing Information” page in your FIRE
account to ensure the correct email address is displayed.

You do not know the status of
your submission.

Generally, the results of a file are posted to the FIRE System
within two days. If the correct email address was provided on the
“Verify Your Filing Information” screen when the file was uploaded,
an email will be sent regarding the File Status. If the results in the
email indicate “Good, Not Released” and the “Count of Payees” is
correct, the filer is finished with this file. If any other results are
received, follow the instructions in the “Check File Status” option. If
the file contains errors, get an online listing of the errors. If the file
status is good, but the file should not be processed, filers should
contact the IRS within ten calendar days from the transmission of
the file. You must state if you want the file made bad or closed.

You received a file status of “Bad”.

You received an error that more
than one file is compressed within
the file.

Only compress one file at a time. For example, if there are ten
uncompressed files to send, compress each file separately and
send ten separate compressed files.

You resent your entire file as a
Correction after only a few changes
were made.

Only send those returns that need corrections; not the entire file.
See Part A. Sec. 9, Corrected Returns.

You received an error that the file
submitted was in EBCDIC format.

All files submitted electronically must be in standard ASCII code.

You receive a TCC/TIN mismatch
error when entering your TCC/TIN
combination in your FIRE
Account.

Enter the TIN of the company assigned to the TCC.

Transmitter sent the wrong file.

Contact the IRS at 866-455-7438 (toll-free). The IRS may be able to
stop the file before it is processed. Listen to all options before making
your selection.

Item

Issue

Resolution

You sent a file that is in the
"Good, Not Released" status and
you want to send a different file in
place of the previous one.

Contact the IRS at 866-455-7438 (toll-free) to identify options available.
The IRS may be able to close the file or change the status to "Bad".
Listen to all options before making your selection.

You sent a file in PDF format.

All files submitted electronically must be in standard ASCII code. If you
have software that is supposed to produce this file, contact the software
company to see if their software has the ability to produce a file in the
proper format.

Part C. | Record Format Specifications and Record Layouts

Sec. 1 General
If the file does not meet the specifications described in this section, the IRS will request a replacement file. Filers are
encouraged to submit a test prior to submitting the actual file.
All alpha characters must be in upper case.
Do not use decimal points (.) to indicate dollars and cents. Payment Amount Fields must be all numeric characters. If
the field is not used, fill with zeros (0).
Note: The only allowable characters in the name and address fields are alphas, numerals, and blanks.
Punctuation marks such as periods, hyphens, ampersands, slashes, and commas are not allowed and
will cause the file to be rejected. For example, O’ Hurley’s Bar & Grill, 210 N. Queen St., Suite #300 must be
entered as OHURLEYS BAR GRILL 210 N QUEEN ST SUITE 300.

Sec. 2 Record Format
FORM 8027 RECORD FORMAT

Field
Position

Field Title

Length

Field Description and Information

Establishment
Type

Required. This single digit indicator identifies the kind of establishment.
Enter the number which best describes the type of establishment, as shown
below:
Indicator

Usage

An establishment that serves evening meals only (with or
without alcoholic beverages)

An establishment that serves evening meals and other meals
(with or without alcoholic beverages)

An establishment that serves only meals other than
evening meals (with or without alcoholic beverages)

An establishment that serves food, if at all, only as an
incidental part of the business of serving alcoholic beverages

2-6

Establishment
Numbers

Required. Enter a five-digit number to identify individual establishments of
an employer reporting under the same EIN. If you own more than one
establishment, give each a unique number and complete a separate Form
8027 for each. Once you assign a number to an establishment, always use
the same number for that establishment each year. If you close an
establishment, do not use the number you assigned to it for another
establishment. We recommend numbering your establishments
consecutively, starting with 00001 and progressing in numerical sequence
(that is, 00002, 00003, 00004, 00005) until you have assigned each
establishment a number.

7-46

Establishment
Name

Required. Enter the name of the establishment.
Allowable characters are alphas, numerals, and blanks.
Left justify the information and fill unused positions with blanks.

Field
Position

Field Title

Length

Field Description and Information

47-86

Establishment
Street Address

Required. Enter the address of the establishment. The street address
should include the number, street, apartment or suite number (use a post
office box only if mail is not delivered to a street address).
Allowable characters are alphas, numerals, and blanks.
Left justify the information and fill unused positions with blanks.

87-111

Establishment
City

Required. Enter the city, town or post office.
Allowable characters are alphas, numerals, and blanks.
Left justify the information and fill unused positions with blanks.

112-113

Establishment
State

Required. Enter the state code from the State & U.S. Territory
Abbreviations table in Part A. Sec 11, State Abbreviations.

114-122

Establishment
ZIP Code

Required. Enter the complete nine-digit ZIP Code of the establishment. Numeric
characters only.
Left justify the five-digit ZIP Code and fill the remaining four positions with
blanks when only entering a five-digit ZIP Code.

123-131

Employer
Identification
Number

Required. Enter the nine-digit number assigned to the employer by the
IRS. Do not enter hyphens, alphas, all 9s or all zeros.
Numeric characters only.

132-171

Employer
Name

Required. Enter the name of the employer as it appears on Form 941. Any
extraneous information must be deleted.
Allowable characters are alphas, numerals and blanks.
Left justify the information and fill unused positions with blanks.

172-211

Employer
Street
Address

Required. Enter the mailing address of the employer. The street address
should include the number, street, apartment, or suite number (use a post
office box only if mail is not delivered to a street address).
Allowable characters are alphas, numerals, and blanks.
Left justify the information and fill unused positions with blanks.

212-236

Employer City

Required. Enter the city, town, or post office.
Allowable characters are alphas, numerals, and blanks.
Left justify the information and fill unused positions with blanks.

237-238

Employer State

Required. Enter the state code from the State & U.S. Territory
Abbreviations table in Part A. Sec. 11, Table 1.

239-247

Employer ZIP
Code

Field
Position

Field Title

Length

Field Description and Information

248-259

Charged Tips

Required. Enter the total amount of tips that are shown on charge receipts
for the calendar year.
Numeric characters only. Do not enter decimal points, dollar signs, or
commas. Enter amounts in U.S. dollars and cents.
The right-most two positions represent cents. Right justify information and
fill unused positions with zeros. Enter zeros if this field is not utilized.

260-271

Charged
Receipts

Required. Enter the total sales for the calendar year other than carry-out
sales or sales with an added service charge of ten percent or more, that are
on charge receipts with a charged tip shown. See Part B. Sec. 8, Accuracy
of Data and Common Problems for information that is more detailed.
Numeric characters only. Do not enter decimal points, dollar signs, or
commas. Enter amounts in U.S. dollars and cents.
The right-most two positions represent cents. Right justify information and
fill unused positions with zeros. If this field is not utilized, enter zeros.

272-283

Service
Charges Less
Than 10
Percent

Required. Enter the total amount of service charges less than 10 percent
added to customers’ bills and distributed to your employees for the calendar
year. Service charges added to the bill are not tips since the customer does
not have a choice. Service charges are treated as wages when distributed to
the employees and are included on Form W-2.
Numeric characters only. Do not enter decimal points, dollar signs, or commas.
Amount must be entered in U.S. dollars and cents.
The right-most two positions represent cents. Right justify information and
fill unused positions with zeros. If this field is not utilized, enter zeros.

284-295

Indirect
Tips
Reported

Required. Enter the total amount of tips reported by indirectly tipped
employees (e.g., bussers, service bartenders, cooks) for the calendar year.
For more detailed information, see Part B. Sec. 8, Accuracy of Data and
Common Problems.
Numeric characters only. Do not enter decimal points, dollar signs, or commas.
Amount must be entered in U.S. dollars and cents.
The right-most two positions represent cents. Right justify information and
fill unused positions with zeros. If this field is not utilized, enter zeros.

296-307

Direct Tips
Reported

Required. Enter the total amount of tips reported by directly tipped employees
(e.g., servers, bartenders) for the calendar year. For more detailed information,
see Part B. Sec.8, Accuracy of Data and Common Problems.
Numeric characters only. Do not enter decimal points, dollar signs, or commas.
Amount must be entered in U.S. dollars and cents.
The right-most two positions represent cents. Right justify information and
fill unused positions with zeros. If this field is not utilized, enter zeros.

Field
Position

Field Title

Length

Field Description and Information

308-319

Total Tips
Reported

Required. Enter the total amount of tips reported by all employees (both
indirectly tipped and directly tipped) for the calendar year. For more detailed
information, see Part B Sec. 8, Accuracy of Data and Common Problems.
Numeric characters only. Do not enter decimal points, dollar signs, or commas.
Amount must be entered in U.S. dollars and cents.
The right-most two positions represent cents. Right justify information and
fill unused positions with zeros. If this field is not utilized, enter zeros.

320-331

Gross Receipts

Required. Enter the total gross receipts from the provision of food and
beverages for this establishment for the calendar year. Do not include receipts
for carryout sales or sales with an added service charge of 10 percent or more.
For more detailed information, see Part B. Sec. 8, Accuracy of Data and
Common Problems.
Numeric characters only. Do not enter decimal points, dollar signs, or commas.
Amount must be entered in U.S. dollars and cents.
The right-most two positions represent cents. Right justify information and
fill unused positions with zeros. If this field is not utilized, enter zeros.

332-343

Tip
Percentage
Rate Times
Gross
Receipts

Required. Enter the amount determined by multiplying Gross Receipts for the
year (field positions 320-331) by the Tip Percentage Rate (field positions 344347). For example:
Value of Gross Receipts

=000045678900

Tip Percentage Rate

=0800

multiply
45678900 by.0800

=3654312

enter
000003654312
If tips are allocated using other than the calendar year, enter zeros; this
may occur if you allocated tips based on a pay period or on a quarterly
basis.
For more detailed information, see Part B. Sec. 8, Accuracy of Data and
Common Problems.
Numeric characters only. Do not enter decimal points, dollar signs, or commas.
Amount must be entered in U.S. dollars and cents.
The right-most two positions represent cents. Right justify information and
fill unused positions with zeros. If this field is not utilized, enter zeros.
344-347

Tip
Percentage
Rate

Required. Enter 8 percent (as 0800) unless a lower rate has been granted
by the IRS. A copy of the determination letter must follow the electronic
submission. See Part A Sec. 6, .02 Allocation of Tips.
Numeric characters only. Do not enter decimal points, dollar signs, or commas.

348-359

Allocated Tips

Required. If the Tip Percentage Rate times Gross Receipts (field
positions 332-343) is greater than Total Tips Reported (field positions
308-319), 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. For more detailed
information, see Part B. Sec. 8, Accuracy of Data and Common
Problems.
Numeric characters only. Do not enter decimal points, dollar signs, or commas.
Amount must be entered in U.S. dollars and cents.
The right-most two positions represent cents. Right justify information and
fill unused positions with zeros. If this field is not utilized, enter zeros.

Field
Position

Field Title

Length

Field Description and Information

360

Allocation
Method

Required. Use the following list to enter the allocation method used for
Allocated Tips (field positions 348-359).
Indicator

Usage

allocated tips are equal to zero

allocation based on hours worked

allocation based on gross receipts

allocation based on a good-faith agreement

361-364

Number of
Directly Tipped
Employees

Required. Enter the total number of directly tipped employees who worked at
the establishment during the calendar year. This is the cumulative total number
(must be greater than zero) of directly tipped employees employed by the
establishment at any time during the calendar year.
Numeric characters only.
Right justify information and fill unused positions with zeros.

365-369

Transmitter
Control
Code (TCC)

Required. Enter the five-digit Transmitter Control Code assigned by the IRS.
Alpha and numeric characters.

370

Corrected
8027 Indicator

Required. Enter blank for an original return. Enter “G” for a corrected return. A
corrected return must be a completely new return replacing the original return.
Alpha character only.

371

Final Return
Indicator

Required. Enter the appropriate code:
Code

Usage

This is the last time the employer will file Form 8027

This is not the last time the employer will file Form 8027

Do not enter a blank.
372

Charge
Code
Indicator

Required. Enter the appropriate code:
Code
1
2

Usage
Your establishment accepts credit cards, debit cards or
other charges.
Your establishment does not accept credit cards, debit
cards or other charges.

373-374

Blank

Enter blanks.

375-378

Tax Year

Required. Enter the four-digit tax year. Numeric characters only.

379

Prior Year
Indicator

Required. Enter a “P” only if reporting prior year data; otherwise, enter a blank.
Alpha character only.

380

Test File
Indicator

Required for test files only. Enter “T” if this is a test file; otherwise, enter a
blank.

381-410

Reserved

Enter blanks.

Field
Position

Field Title

Length

Field Description and Information

411-418

Record
Sequence
Number

Required. Enter the number of the record as it appears within the file.
The first record in the file will be “1” and each record thereafter must be
increased by one in ascending numerical sequence, i.e. 2, 3, 4, etc. For
example, the first record in the file would appear as “00000001”, followed
by “00000002”, “00000003” and so on until the final record of the file.
Right justify numbers with leading zeros in the field.

419-420

Blank

Enter blanks or CR/LF characters.

Sec. 3 Record Layout
Form 8027 — Record Layout

Establishment Type

Establishment
Numbers

Establishment Name

2-6

7-46

Establishment State

Establishment ZIP
Code

112-113
Employer City

212-236
Service Charges
Less Than 10
Percent
272-283
Tip Percentage Rate
Times Gross
Receipts

332-343
Transmitter Control
Code (TCC)

365-369

114-122
Employer State

237-238

Indirect
Tips
Reported
284-295

Tip Percentage Rate

344-347
Corrected
8027
Indicator
370

Employer
Identification
Number
123-131
Employer ZIP Code

239-247

Direct Tips Reported

296-307

Allocated Tips

348-359

Final Return Indicator

371

Establishment Street
Address
47-86

Employer Name
132-171
Charged Tips

248-259

Total Tips Reported

308-319

Allocation Method

360
Charge Card
Indicator

372

Establishment City
87-111
Employer
Street
Address
172-211
Charged Receipts

260-271

Gross Receipts

320-331

Number of Directly
Tipped Employees

361-364

Blank

373-374

Tax Year

Prior Year Indicator

Test File Indicator

Reserved

Record Sequence
Number

375-378

379

380

381-410

411-418

Blank or CR/LF
419-420

Part D. | Extension of Time

Sec. 1 Extension of Time
.01 Application for Extension of Time to File Information Returns (30-day automatic)
An application for extension of time to file information returns covered by Form 8809 must be filed by the due date of
the return for which the extension is being requested. A separate extension application is required for each payer/filer.
Form W-2 and Form 1099-NEC reporting Nonemployee Compensation can only request a non-automatic extension of
time and must be filed on paper Form 8809. An automatic 30-day extension is not available. Treasury Decision (TD)
9838.
The IRS encourages the payer/filer community to utilize electronic filing via the FIRE production system (options listed
below) in lieu of the paper Form 8809. There are three methods for filing a request for an extension of time to file
information returns:
Method
Electronic File Transmission
Note: A TCC is required.
Refer to Part B. Sec. 1, Form
4419, Application for Filing
Information Returns
Electronically

How To
A request for a 30-day automatic extension
of information returns may be filed
electronically by transmitting an electronic
extension file. Files must be formatted based
on the Extension of Time Record Layout.
Scanned or PDF documents will not be
accepted.

Notification
Transmitters requesting an
extension of time via an
electronic file will receive the file
status results online.

Note: This option cannot be used to request
non-automatic extensions for Forms W-2,
Form 1099-NEC, and additional 30-day
extensions. Refer to Form 8809 instructions.

Online submission of
Extension of Time to File
Information Returns

Fill-in Form 8809 may be completed online
via the FIRE Production System at
fire.irs.gov. From the Main Menu click
“Extension of Time Request” and then click
“Fill-in Extension Form”. In order to complete
the submission, enter your valid 10-digit PIN.
Refer to Sec. 4 Connecting to FIRE.
Note: This option cannot be used to request
non-automatic extensions for Forms W-2,
Form 1099-NEC, and additional 30-day
extensions. Refer to Form 8809
instructions.

Forms 8809 completed online
receive an instant
acknowledgement on screen if
forms are completed properly and
timely.

Paper submissions of Form
8809, Application for
Extension of Time to File
Information Returns

Form 8809 is available on
www.irs.gov/forms-pubs.
Note:
• Extension requests submitted on
an obsolete Form 8809 will not be
accepted.
• Mailing address:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0209
• Faxing is no longer an option.

Approval letters will not be issued
for automatic and additional 30-day
extension requests and
non-automatic extension requests.
Payer/filer will receive incomplete or
denial letters when applicable.

Electronic file processing results will be sent via email if a valid email address was provided on the “Verify Your
Filing Information” screen. If you are using email filtering software, configure software to accept email from
[email protected] and [email protected].
If the request for extension of time to file an information return is received beyond the due date of the
information return, the request will be denied. For more information on extension requests and requesting an
additional extension of time, see Form 8809, Application for Extension of Time to File Information Returns.
To create the file used to submit extensions of time via electronic file transmission method, the transmitter must have
an active Transmitter Control Code (TCC) and submit files containing only one TCC.
Extension of Time requests submitted through the FIRE System (Production and Test) will require the entry of your
FIRE account PIN.
Note: Do not electronically transmit tax year 2020 extension requests before January 10, 2021. If an alert is posted on the
FIRE webpage indicating the system is available before then, you may transmit extension requests.
.01 Extension of Time Record Layout
The following Record Layout contains the specifications to create a file to transmit extensions of time requests
electronically that include:
•
•

Required 200-byte format.
General Field Description with information to assist in completing each field.

Record Layout for Extension of Time
Field
Position

Field Title

Length

General Field Description

1-5

Transmitter Control
Code

Required. Enter the five-character alphanumeric
Transmitter Control Code (TCC) issued by the
IRS. Only one TCC per file is acceptable.

Note: Positions 6 through 187 should contain information about the payer or employer for whom the extension
of time to file is being requested. Do not enter transmitter information in these fields.

6-14

Payer TIN

Required. Enter the valid nine-digit EIN or SSN
assigned to the payer. Do not enter blanks, hyphens or
alpha characters. All zeros, ones, twos, etc., will have
the effect of an incorrect TIN. For foreign entities that
are not required to have a TIN, this field may be blank;
however, the Foreign Entity Indicator in position 187
must be set to “X”.

15-54

Payer Name

Required. Enter the name of the payer whose TIN
appears in positions 6-14. Left justify the
information and fill unused positions with blanks.

55-94

Second Payer
Name

Required. If additional space is needed, this field
may be used to continue name line information.
Otherwise, enter blanks. Example: c/o First National
Bank. Left justify information and fill unused positions
with blanks.

Field
Position

Field Title

Length

General Field Description

95-134

Payer Address

Required. Enter the payer’s address. The street
address should include the number, street,
apartment, suite number, or P.O. Box if mail is not
delivered to a street address. Left justify information
and fill unused positions with blanks.

135-174

Payer City

175-176

Payer State

Required. Enter the payer’s city, town, or post office.
Left justify information and fill unused positions with
blanks.
Required. Enter the payer’s valid U.S. Postal Service
state abbreviation. Refer to Part A Sec. 11, State &
U.S. Territory Abbreviations .

177-185

Payer ZIP Code

Required. Enter the payer’s ZIP Code. If using a fivedigit ZIP Code, left justify the information and fill
unused positions with blanks. Numeric characters

186

Document Indicator
(See Note below)

Required. From the table below, enter the
appropriate document code that indicates the form
for which an extension of time is being requested.
Document
Code
1097-BTC, 1098, 1098-C,
2
1098-E, 1098-F, 1098-T, 1098-Q,
1099-A, 1099-B, 1099-C,
1099-CAP, 1099-DIV, 1099-G,
1099-INT, 1099-K, 1099-LTC,
1099-LS, 1099-MISC, 1099-NEC, 1099OID, 1099- PATR, 1099-Q, 1099-R,
1099- S, 1099-SA, 1099-SB, 3921,
3922, or W-2G

5498

1042-S

8027

5498-SA

5498-ESA

1095-B

1094/1095-C

Note: Do not enter any other values in this field. Submit a
separate record for each document. For example, when
requesting an extension for Form 1099-INT and Form
5498 for the same payer, submit one record with “2”
coded in this field and another record with “3” coded in
this field. When requesting an extension for Form 1099DIV and Form 1099-MISC for the same payer, submit one
record with “2” coded in this field.
Note 2: Extension requests for Form 1099-MISC
reporting NEC in Box 7 are non- automatic extensions
and must be submitted on paper Form 8809.

Field
Position

Field Title

Length

General Field Description

187

Foreign Entity Indicator

Enter “X” if the payer is a foreign entity.

188-198

Blank

Enter blanks.

199-200

Blank

Enter blanks or carriage return/line feed (CR/LF) characters.

Extension of Time Record Layout

Transmitter
Control Code

1-5

Payer State

175-176

Payer TIN

Payer Name

Second Payer
Name

6-14

15-54

55-94

Payer ZIP Code

Document
Indicator

Foreign Entity
Indicator

177-185

186

187

Payer Address

95-134

Blank

188-198

Payer City

135-174

Blank or CR/LF

199-200

Part E. | Exhibits

Exhibit 1 Publication 1239 Tax Year 2020 Revision Updates
Date

Location

Update

No updates at this time.

File Type	application/pdf
File Title	Publication 1239 (Rev. 10-2020)
Subject	Specifications for Electronic Filing of Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips
Author	SE:W:CAS:EPSS:OS:PM
File Modified	2020-10-22
File Created	2020-10-22