These are errors and rejects every filer can get when sending information returns to IRIS, whether through the free IRIS Taxpayer Portal or through filing software. IRIS reports each one on the acknowledgment by rule number.
Form 8027 business rules
Besides the rules on this page, IRIS checks the issuer and contact rules for its submission; those are on the cross-form error code pages.
In the tax year 2026 rule set: 13 reject. A reject stops the submission; a report error is accepted with errors and counts as filed; past an unpublished threshold, report errors reject the submission. The descriptions are our own summaries; your acknowledgment gives the rule number.
| Rule | Severity | What it checks |
|---|---|---|
| F8027001 | Reject | If the tip rate times gross receipts is more than total tips reported, allocated tips must be more than zero. |
| F8027002 | Reject | If total tips reported are at least the tip rate times gross receipts, allocated tips must be zero. |
| F8027003 | Reject | Total tips reported must equal indirect tips plus direct tips. |
| F8027004 | Reject | Charge receipts showing tips must be more than the charged tips. |
| F8027006 | Reject | Exactly one of the credit or debit card payment boxes (yes or no) must be checked. |
| F8027007 | Reject | Indirect tips and direct tips each cannot be more than total tips reported. |
| F8027008 | Reject | Gross receipts must be more than each of the tip and charge amounts on the form, except that when card payments are accepted, gross receipts can equal charge receipts showing tips. |
| F8027009 | Reject | The tip rate amount must equal gross receipts times the tip rate. |
| F8027010 | Reject | The tip rate cannot be less than 2%. |
| F8027011 | Reject | If the hours-worked allocation method is used, the average number of employee hours must be more than zero. |
| F8027012 | Reject | If tips are allocated, exactly one allocation method must be checked: hours worked, gross receipts or good-faith agreement. |
| F8027013 | Reject | If card payments are accepted, charged tips and charge receipts showing tips are both required. |
| F8027014 | Reject | If a tip rate other than zero is used, the IRS determination letter must be attached (its description must begin with "Determination Letter"). |
Elements of Form8027Detail
Each Form 8027 return is one Form8027Detail record in a submission of group 4. The table lists its 31 elements in schema order for tax year 2026: whether each is required, and the format IRIS accepts. Element names are the ones the IRS uses in its IRIS ATS examples and Publication 5718; the IRS revises the schema each year.
| Element | Required | Format |
|---|---|---|
TaxYr | Required | Four-digit year |
RecordId | Required | Whole number, up to 8 digits |
VoidInd | Required | 1 (yes) or 0 (no) |
AmendedInd | Required | 1 (yes) or 0 (no) |
FinalReturnInd | Required | 1 (yes) or 0 (no) |
PrevSubmittedEstablishmentGrp | Optional | Group of elements |
EstablishmentGrp | Required | Group of elements |
FoodOrBeverageEstabTypeCd | Required | One of: 1, 2, 3, 4 |
EstablishmentNumTxt | Required | Text, up to 5 characters |
CreditDebitCardPaymentYesInd | Required | 1 (yes) or 0 (no) |
CreditDebitCardPaymentNoInd | Required | 1 (yes) or 0 (no) |
VolTipAgreementYesInd | Required | 1 (yes) or 0 (no) |
VolTipAgreementNoInd | Required | 1 (yes) or 0 (no) |
TotalChargedTipsAmt | Required | Amount, zero or more, up to 2 decimal places |
TotChargedRcptsShowTipsAmt | Required | Amount, zero or more, up to 2 decimal places |
TotSrvcChrgsLessSpcfdPdWgsAmt | Required | Amount, zero or more, up to 2 decimal places |
TotalIndirectTipsAmt | Required | Amount, zero or more, up to 2 decimal places |
TotalDirectTipsAmt | Required | Amount, zero or more, up to 2 decimal places |
TotalTipsReportedAmt | Required | Amount, zero or more, up to 2 decimal places |
GrossReceiptsAmt | Required | Amount, zero or more, up to 2 decimal places |
TipRt | Required | Decimal, up to 4 decimal places |
TipPctRtMultGrossRcptsAmt | Required | Amount, zero or more, up to 2 decimal places |
IRBinaryAttachmentInd | Required | 1 (yes) or 0 (no) |
IRBinaryAttachment | Optional | Group of elements |
AllocatedTipsAmt | Required | Amount, zero or more, up to 2 decimal places |
HoursWorkedMethodInd | Required | 1 (yes) or 0 (no) |
AverageEmployeeHoursCnt | Optional | Whole number, zero or more |
GrossReceiptsMethodInd | Required | 1 (yes) or 0 (no) |
GoodFaithAgreementInd | Required | 1 (yes) or 0 (no) |
DirectlyTippedEmployeesCnt | Required | Whole number, zero or more |
JuratSignatureGrp | Required | Group of elements |