Does Form 8027 apply to food trucks, catering services, or delivery-only businesses?
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- IRS Form 8027
IRS Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, generally does not apply to food trucks, catering companies, or delivery-only businesses. However, certain conditions may trigger reporting, depending on how the business operates. Here’s what you need to know.
Form 8027 Requirements
Form 8027 applies to large food or beverage establishments if both of the following apply:
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Food or beverages are provided for on-premises consumption.
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Tipping is customary for employees.
The on-premises consumption test is the key factor.
Food Trucks
🚫 Does Not Apply
Food trucks usually serve food to go and rarely provide designated seating for on-site consumption. Since tipping is not customary in most food truck operations and food is consumed off-site, Form 8027 is not required.
Catering Services
🚫 Does Not Apply
Catering businesses provide food and beverage service at external events. Because catering does not involve on-premises consumption at the employer’s facility, Form 8027 is generally not required.
Delivery-Only Businesses
🚫 Does Not Apply
Delivery-only businesses, including restaurants that only provide takeout or delivery, do not meet the on-premises test. Tips collected electronically or for delivery drivers are outside the scope of Form 8027 reporting.
When Form 8027 Might Apply
Form 8027 could apply if a food truck, catering service, or delivery company also operates a physical location where food is consumed on the premises.
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Example: A food truck with an adjacent seating area or a catering business that also runs a dine-in restaurant.
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In this case, the on-premises requirement may be satisfied, potentially making the business subject to Form 8027 filing if it also qualifies as a large food or beverage establishment.
Threshold for Large Establishments
For Form 8027 to apply, a business must:
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Employ more than 10 employees who together work more than 80 hours per day.
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Be in the food or beverage industry where tipping is a standard practice.
Conclusion
In most cases, Form 8027 does not apply to food trucks, catering companies, or delivery-only restaurants because they lack on-premises consumption. However, businesses with mixed operations—such as a food truck with a seating area—should carefully evaluate their compliance obligations.
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