3.11.180  Allocated Tips (Cont. 1)

3.11.180.2 
Code and Edit Instructions

3.11.180.2.4 
Background of Penalty Assessments

3.11.180.2.4.1  (01-01-2014)
Applicable Penalties

  1. The Failure to File penalty and the penalty for Failure to Provide a Taxpayer Identification Number (TIN) apply not only to delinquent returns but also to returns that are filed in unprocessable condition and the employer does not respond to correspondence requesting the necessary information.

  2. The penalty generally is $100 for each information return that is not filed, or is not filed correctly, by the prescribed filing date, with a maximum penalty of $1,500,000 per year ($500,000 for certain small businesses with average annual gross receipts, over the most recent three year period, not in excess of $5,000,000). The penalty generally is reduced to:

    1. $60 for each failure to comply if the failure is corrected more than 30 days after the return was due, but on or before August 1 of the calendar year in which the return was due, with a maximum penalty of $500,000 per year ($200,000 for certain small businesses with average annual gross receipts, over the most recent year period, not in excess of $5,000,000).

    2. $30 for each failure to comply if the failure is corrected within 30 days after the date the return was due, with a maximum penalty of $250,000 per year ($75,000 for certain small businesses with average annual gross receipts, over the most recent three year period, not in excess of $5,000,000).

    Note:

    The penalty information was updated per Public Law (P.L.) 111-240 (H.R. 5297), Small Business Jobs Act of 2010.

  3. Intentional Disregard of Filing Requirements - If any failure to file a correct information return is due to intentional disregard of the filing and correct information reporting requirements, the penalty is at least $250 per information return with no maximum penalty.

  4. If an employer is required to file electronically but fails to do so and does not have an approved waiver (Form 8508, Request for Waiver From Filing Information Returns Electronically) on record, the employer will be subject to a penalty. See IRM 3.11.180.2.4.2, Penalty Information - Form 8508, Request for Waiver From Filing Information Returns Electronically, for additional information.

  5. No more than one penalty per return can be imposed even if there is more than one failure on the same information return. However, where a return is filed with multiple failures and the penalty amounts differ, the higher penalty should be imposed.

    1. For example, only one penalty may be imposed on a return which is filed both late and incomplete.

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  6. If an electronic file was submitted timely and is bad, the filer will have up to 60 days from the date the file was sent to transmit an acceptable file. If an acceptable file is not received within 60 days, then the taxpayer could be subject to late filing penalties. See the information below in regards to electronic Correction files and Replacement files.

    1. A Correction is an information return submitted by the transmitter to correct an information return that was previously submitted to and successfully processed by IRS/Information Returns Branch, but contained erroneous information.

      Note:

      Corrections should only be made to forms that have been submitted incorrectly, not the entire file.

    2. A Replacement is an information return file sent by the filer because the CHECK FILE STATUS option on the Filing Information Returns Electronically (FIRE) System indicated the original/correction file was bad. After the necessary changes have been made, the file must be transmitted through the FIRE System.

      Note:

      Filers should never transmit anything to IRS/Information Returns Branch as a Replacement file unless the CHECK FILE STATUS option on the FIRE System indicates the file is bad.

3.11.180.2.4.2  (01-01-2014)
Penalty Information - Form 8508, Request for Waiver From Filing Information Returns Electronically

  1. Form 8508 is a request for waiver from filing information returns electronically.

  2. If an employer is required to file electronically but fails to do so and does not have an approved waiver on record, the employer may be subject to a penalty of $100 per return in excess of the 250 returns.

  3. If employers are required to file original or corrected returns electronically, but such filing would create a hardship, they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns Electronically, to IRS - Information Returns Branch.

  4. Generally, only the employer may sign the Form 8508. A transmitter may sign if given power of attorney; however, a letter signed by the employer stating this fact must be attached to the Form 8508.

  5. A transmitter must submit a separate Form 8508 for each employer.

  6. All information requested on the Form 8508 must be provided to IRS for the request to be processed. Filers are encouraged to submit Form 8508 to IRS/Information Returns Branch at least 45 days before the due date of the returns.

  7. The waiver, if approved, will provide exemption from electronic filing for the current tax year only. Employers may not apply for a waiver for more than one tax year at a time.

  8. All requests for a waiver should be sent to the following address:
    Internal Revenue Service
    Information Returns Branch
    Attn. Extension of Time Coordinator
    240 Murall Drive, Mail Stop 4360
    Kearneysville, WV 25430.

  9. If a waiver request is approved, the transmitter should keep the approval letter on file.

  10. An approved waiver from filing Form 8027 electronically does not provide exemption from all filing. The employer must timely file Form 8027 on acceptable paper forms with the Cincinnati Submission Processing Campus (CSPC).

  11. The transmitter should also send a copy of the approved waiver to the CSPC where the paper returns are filed.

  12. For more information on filing Form 8027 electronically, see Publication 1239, Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, Electronically.

3.11.180.2.4.3  (01-01-2014)
Assessing the Penalty

  1. A photocopy of Form 8027, Form 8027-T (if the employer files for more than one establishment), and any other pertinent supporting documentation (e.g., extension approval letter, envelope, etc.) should be made if a penalty is being assessed. The photocopy will be used for penalty processing. The original will be used to continue normal processing.

  2. A photocopy of the envelope should also be made if the Form 8027 is delinquent.

  3. No more than one penalty per return can be imposed even if there is more than one failure on the same information return. However, where a return is filed with multiple failures and the penalty amounts differ, the higher penalty should be imposed.

    1. For example, only one penalty may be imposed on a return which is filed both late and incomplete.

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. The penalty is assessed on the Civil Penalty Module on IDRS using the employer's EIN on MFT 13. Enter Command Code REQ54 to bring up the ADJ54 screen. On the ADJ54 screen, input the following fields:

    1. Sequence Number (SEQ-NUM),

    2. Blocking Series (BLK) 53,

    3. Received Date (IRS-RCVD-DT),

    4. TC 290, with a zero (.00) amount (AMT),

    5. Hold Code (HOLD-CD) zero (0),

    6. Penalty Reference Number (CD) 638 and the amount (AMT) of the penalty,

    7. "Y" (Yes) in SOURCE-DOC-ATTACHED, and

    8. "8027" in REMARKS.

  5. If a Form 8027-T accompanies a Form 8027, use the employer's EIN and data (if present on Form 8027-T) to assess the penalty.

  6. The penalty for Failure to File is $100, $60, or $30 (depends when the return is received) per Form 8027 and is computed as: $100, $60, or $30 times the number entered in the Form 8027-T box that is labeled "Number of accompanying Forms 8027" .

    Note:

    See IRM 3.11.180.2.4, Background of Penalty Assessments, for additional information.

  7. Before assessing the penalty:

    1. Check for Employment Code "F" (Federal) using Command Code (CC) ENMOD, CC BMFOLE or CC INOLES. If present, do not assess the penalty.

    2. Check the Civil Penalty Module for previous assessments of the Failure to File penalty. Since this penalty cannot exceed the maximum amount of $1,500,000 ($500,000 for certain small businesses) annually, make the assessment for the amount of the penalty or the amount necessary to reach the annual limit, whichever is less.

      Note:

      See IRM 3.11.180.2.4, Background of Penalty Assessments, for additional information.

  8. Edit the penalty reference number and the amount of the penalty on the copy or complete Form 9860, Adjustment Input Document/Case History Sheet.

    Note:

    If you use Form 9860, do not edit the above information on the copy. Attach Form 9860 to the photocopy of Form 8027 (below the entity area) with the applicable fields completed (e.g., Tax Examiner Number, MFT 13, Tax Period, Sequence Number, Blocking Series 53, 290 with zero (.00) amount, Credit Reference 638, Amount, etc.).

  9. Create an IDRS source document consisting of the copy of Form 8027-T or Form 8027, if no transmittal was filed.

    Note:

    If assessing penalties on multiple Forms 8027 for the same EIN (same employer, different establishments), you MUST attach the Forms 8027 together and use one Form 9860 for the penalty assessment.

  10. Forward the IDRS source document to Files.

    Note:

    Refer to IRM 20.1.7, Penalty Handbook - Information Return Penalties, for specific procedures in regard to assessing penalties on Information Returns. Always use Reference Number 638, instead of numbers assigned to Information Return Processing (IRP).

  11. All penalty cases should be input on Integrated Data Retrieval System (IDRS) by November 2014.

3.11.180.2.4.4  (01-01-2014)
Replies to Penalty Assessment Notices

  1. An employer or establishment may respond to a CP 215, Civil Penalty Notice, or request that a penalty assessment be forgiven (e.g., penalty abatement request). A valid Taxpayer Identification Number (TIN) may be furnished and/or an explanation for filing late may be provided.

  2. If the penalty was charged because the employer did not respond to a request for necessary information and the employer or establishment resubmits the returns, check to see if the returns are processable.

    1. If the returns are processable, follow processing procedures.

    2. Route CP 215, Civil Penalty Notice response, correspondence related to a penalty assessment, and/or a penalty abatement request to Cincinnati Campus Compliance Collection Operation. Indicate whether the return is "processable" or "not processable" based on the information received.

3.11.180.2.5  (01-01-2014)
Late Replies

  1. Late replies may be received in response to Letter 1858C after the 45 day response period has expired. Therefore, the late reply must be worked without the original document.

  2. After the 45 day suspense period, the original return is pulled from the suspense file and, if processable, it is processed without complete information. See IRM 3.11.180.2.3 (8).

  3. Check the late reply for a completed Form 8027.

    1. If a complete Form 8027 is attached, follow processing procedures.

    2. If the original Form 8027 contained sufficient information and was processed when purged from the suspense file, mark the "Amended Return" check box on the corrected Form 8027.

    3. If no Form 8027 is attached but the letter contains the requested information, prepare a dummy Form 8027 and process.

    4. If there is insufficient information to prepare a dummy Form 8027, route to National Tip Reporting Compliance for special handling. See IRM 3.11.180.1 (13) and IRM 3.11.180.1 (14).

  4. See IRM 3.11.180.2.4, Background of Penalty Assessments, for penalty information.

3.11.180.2.6  (01-01-2014)
Unprocessable Documents

  1. Perfect all documents, if possible. Examine attachments and Form 8027-T, if present, for the information necessary to make a return processable.

  2. If unprocessable, initiate correspondence action when the document cannot be perfected from attachments or Form 8027-T.

    Exception:

    Employer and establishment name and address are missing or are illegible that correspondence is impossible, or correspondence was sent on the same issue, but the document is still unprocessable.

  3. If correspondence is impossible, follow guidelines for undeliverable or no response after 45 days. See IRM 3.11.180.2.3 (8).

  4. Route documents that cannot be perfected and processed to National Tip Reporting Compliance for special handling:
    Internal Revenue Service
    Attn. NTRCP - Mail Stop 5702A
    201 West Rivercenter Blvd.
    Covington, KY 41011

3.11.180.3  (01-01-2014)
Error Resolution

  1. See IRM 3.11.180.1, General Information, and IRM 3.11.180.2, Code and Edit Instructions, to become familiar with the Form 8027 and the procedures required to ensure the form is processable.

  2. You are not expected to review or redo the work of a Returns Analysis tax examiner, except in the resolution of an error of omission or commission which forced the return to the Error Register.

3.11.180.3.1  (01-01-2014)
Error Register

  1. Only errors will be printed on the register. More than one field will be printed when one field of data is inconsistent with another field.

  2. Each correction must use either Action Code 2, 6 or 7. Corrections are subject to validity checks. If a correction does not pass these checks, the record will reappear on the Error Register. See IRM 3.11.180.3.1.1, Action Codes.

  3. Electronic source documents will be identified by the presence of a Transmitter Control Code (TCC) literal and a 5 digit printed number. The source document for electronic returns is a computer generated transcript, which generates with the Error Register.

    Note:

    The computer generated transcript may not help resolve errors that are present. Correspondence may be needed. See IRM 3.11.180.3.3, Reject Register.

  4. Paper source documents will be identified by the presence of a Document Locator Number (DLN) literal and the 14 digit number. The source document is the actual Form 8027.

3.11.180.3.1.1  (01-01-2014)
Action Codes

  1. The following action codes are valid:

    Action Code Use to
    2 Delete the record from the Error Register and send the record to the Reject Register.
    6 Programming allows up to three (3) corrections on the register. Change one or more data fields. It is not necessary to change every field on the register when one or more fields are inconsistent, (e.g., an error in gross receipts may cause several other items to be inconsistent). A correction to gross receipts will cause the other inconsistencies to be dropped. An error in the state/ZIP code fields may cause both fields to be inconsistent. A change to the incorrect field will cause the inconsistency check to be corrected.

    Note:

    You can make up to three (3) corrections on the register, so do not make just one (1) correction and wait for it to loop to make the additional corrections.

    7 Indicate the data on the Error Register is to be accepted as is. Action Code 7 cannot be used to force an invalid character within a specific field (e.g., you cannot force bad data).

    Note:

    You can force a "0" for Line 5 with Action Code 7 if the form shows "0" .

  2. Only one Action Code must be entered on the Error Register to the left of the error sequence number to correct an error record.

  3. The above applies to both paper and electronic documents.

3.11.180.3.1.2  (01-01-2014)
Condition Codes

  1. There are two codes that may be used:

    1. Code "4" is entered when Lines 7a through 7c are blank and Line 7 is greater than zero. See IRM 3.11.180.2.1.19, Method of Allocation Boxes Lines 7a through 7c.

    2. Code "U" is entered when Line 8 is blank or zero. See IRM 3.11.180.2.1.20, Number of Directly Tipped Employees Line 8.

  2. The above applies to both paper and electronic documents.

3.11.180.3.1.3  (01-01-2014)
Error Reason Codes

  1. An Error Reason Code (ERC) will appear to the left of an element number on the Error Register when a consistency error exists.

  2. If no Error Reason Code is present, the element identified on the Error Register is invalid (e.g., alpha in a money field).

  3. Error Reason Codes:

    Error Reason Code (ERC) Generates when:
    SZ - Address inconsistency

    See IRM 3.11.180.3.2.5, ERC SZ - Establishment State, and IRM 3.11.180.3.2.6, ERC SZ - Establishment ZIP Code, for establishment.

    See IRM 3.11.180.3.2.21, ERC SZ - Employer State, and IRM 3.11.180.3.2.22, ERC SZ - Employer ZIP Code, for employer.
    Establishment (or employer) state and ZIP code are inconsistent.
    MA - Money amounts in Lines 1 through 5 are inconsistent

    See IRM 3.11.180.3.2.11.
    Line 2 is not greater than Line 1.
    Line 4c does not equal the sum of Line 4a and Line 4b≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Line 5 is not greater than each of Lines 1, 3, 4a, 4b and 4c.
    Line 5 is less than Line 2.
    AA - Allocation amounts are inconsistent Line 6 does not equal Line 5timesTip Rate≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    See IRM 3.11.180.3.2.12(1) through (7).
    Line 7 is significant but the allocation method (Line 7a, Line 7b or Line 7c) is not code 1, 2, 3, or 4.
    See IRM 3.11.180.3.2.13.
    AT - Lines 4c, 6 and 7 are inconsistent

    See IRM 3.11.180.3.2.12.
    Line 6 is equal to or less than Line 4c, and Line 7 is not equal to zero.
    Line 6 is greater than Line 4c, and Line 7 is not equal to the difference between Line 6 and Line 4c, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    13 - Invalid correction An invalid correction is attempted or a correction did not take.
  4. Error Reason Codes may be combined.

    Example:

    Codes MA and AA may be combined if both are true of the same elements.

  5. See IRM 3.11.180.3.2 for specific field action.

3.11.180.3.1.4  (01-01-2014)
Element Numbers

  1. The chart below provides the element numbers as they appear on the Error Register, their description and where it is located on the Form 8027.

    Element Number Item Description Location on the
    Form 8027
    01 BLOCK DLN Center top area
    02 SERIAL NUMBER Center top area
    03 AMENDED DOC CODE Dotted area of Line 1
    04 NAME OF ESTABLISHMENT Establishment area
    05 CITY - ESTABLISHMENT Establishment area
    06 STATE - ESTABLISHMENT Establishment area
    07 ZIP CODE - ESTABLISHMENT Establishment area
    08 NAME OF EMPLOYER Employer area
    09 EIN Right upper area
    10 ESTABLISHMENT TYPE CODE Right upper area
    11 ESTABLISHMENT NUMBER Right of Employer area
    12 CHARGED TIPS Line 1
    13 CHARGE RECEIPTS Line 2
    14 SERVICE CHARGES Line 3
    15 INDIRECT TIPS Line 4a
    16 DIRECT TIPS Line 4b
    17 TOTAL TIPS Line 4c
    18 GROSS RECEIPTS Line 5
    19 GROSS RECEIPTS TIMES TIP RATE PERCENTAGE (Calculation line) Line 6
    20 TIP RATE PERCENTAGE Line 6 (Center)
    21 ALLOCATED TIPS Line 7
    22 ALLOCATION METHOD Line 7a, Line 7b, or Line 7c
    23 NUMBER OF EMPLOYEES Line 8
    24 TAX YEAR Right upper area
    25 SPECIAL RETURN CODE Left of the check boxes for Amended Return and Final Return (as close to that area as possible)
    26 RECEIVED DATE Center area
    27 STREET - ESTABLISHMENT Establishment area
    28 STREET - EMPLOYER Employer area
    29 CITY - EMPLOYER Employer area
    30 STATE - EMPLOYER Employer area
    31 ZIP CODE - EMPLOYER Employer area

  2. Element numbers appear on the Error Register to the right of the Error Reason Codes (ERC).

3.11.180.3.2  (01-01-2014)
Error Correction - Specific Field Action

  1. Enter the field correction immediately to the right of the field on the Error Register.

  2. Enter the appropriate Action Code to the left of the error sequence number on the Error Register.

  3. All money amount fields (Lines 1 through 7) are numeric or blank except for Line 6, which may contain an alpha "X" .

    1. No negative amounts will be allowed.

    2. No commas or decimals should be entered.

    3. All money amounts are in dollars only.

    4. Do not code any leading zeros.

3.11.180.3.2.1  (01-01-2014)
Block Document Locator Number (Element 01) and Serial Number (Element 02)

  1. Form 8027 will be blocked in groups of 100. However, short blocks are acceptable since forms may be pulled for correspondence during Code and Edit.

  2. A correction on the first document DLN will cause the block DLN to dupe throughout the rest of the block.

  3. The following is a description of each element of the DLN that will print out as Element 01 (11 positions).

    1. Positions 1-2, Service Center Code "17" .

    2. Positions 3, Tax Class "5" .

    3. Positions 4-5, Document Code "57" .

    4. Positions 6-8, Julian Date, valid range is "001" to "366" .

    5. Positions 9-11, Block Number "000-499" .

  4. Make the necessary corrections to the DLN so it conforms to the above. The Serial Number of the DLN is Element 02 on the Error Register. The Year Digit is computer generated.

  5. Additional corrections may be entered at the same time the DLN correction is made. If a DLN correction is made to the first document of the block, the correction, with Action Code 6, will be duped throughout the block. Only one Action Code per document may be entered for a given pass.

  6. Serial Numbers will not change when the DLN is duped. A separate correction is required to change the Serial Number (Element 02 - two positions). The Serial Number should be in sequence, but does not have to be consecutive. For example, a sequence of "00" , "04" and "07" is acceptable.

3.11.180.3.2.2  (01-01-2014)
Amended Document Code - Element 03

  1. The Amended Document Code (Element 03) may contain one position, must be blank or an alpha "G" .

  2. Enter "G" if:

    1. The "Amended Return" check box is marked, or

    2. The word, "supplemental" , "duplicate" or "additional" is written on the return or an attachment, or

    3. There is positive indication that the employer/establishment filed previously.

3.11.180.3.2.3  (01-01-2014)
Name of Establishment - Element 04

  1. The establishment name may contain 40 characters and cannot be all blanks. Only alpha (A-Z) and numeric (0-9) characters are allowed.

  2. The employer name should be entered if no establishment name is given.

  3. The employer’s name may be found on:

    1. Form 8027-T (if present) or on other Form 8027 included in the employer's submission,

    2. The return envelope, if attached to the submission, or

    3. Through IDRS research.

3.11.180.3.2.4  (01-01-2014)
Establishment City - Element 05

  1. The City may contain 25 characters and must be all alphas. Edit out hyphens as blanks.

  2. Do not use major city codes.

  3. Use the employer’s city if blank. Search attachments as instructed under "Name of Establishment" above.

3.11.180.3.2.5  (01-01-2014)
ERC SZ - Establishment State - Element 06

  1. Establishment State (Element 06) is two characters.

  2. Error Reason Code SZ will appear on the Error Register if the Establishment State (Element 06) is inconsistent with the ZIP code.

  3. A valid state is necessary for processing. Do not use Action Code 7.

  4. If the establishment's state is blank, use the employer's state. Search attachments as instructed under "Name of Establishment" above.

  5. If the establishment has a foreign address, reject the document using Action Code 2. Route the Form 8027 to National Tip Reporting Compliance for special handling. See IRM 3.11.180.1 (13) and IRM 3.11.180.1 (14). Reporting is required only for establishments located in the 50 states and the District of Columbia.

  6. If necessary, See Exhibit 3.11.180-3, State Code / ZIP Code Range / EIN Prefix, and use the valid two alpha state code.

3.11.180.3.2.6  (01-01-2014)
ERC SZ - Establishment ZIP Code - Element 07

  1. Error Reason Code SZ will appear on the Error Register if the Establishment ZIP Code (Element 07) is inconsistent with the state.

  2. The ZIP code must be five or nine numerics. The last four positions must be either all blanks or all numerics.

  3. The first three digits must be in the valid range of ZIP codes for the state. See Exhibit 3.11.180-3, State Code / ZIP Code Range / EIN Prefix, and determine the valid ZIP code range for the state.

  4. If the ZIP code is missing, see Exhibit 3.11.180-4, State Codes and ZIP Codes Perfection Chart.

  5. If both the city and state are valid, but the ZIP code is missing and cannot be determined, use Action Code 7.

3.11.180.3.2.7  (01-01-2014)
Name of Employer - Element 08

  1. The Name of Employer (Element 08) may contain 40 characters and cannot be all blanks. Only alpha (A-Z) and numeric (0-9) characters are allowed.

  2. The name must have at least one alpha or one numeric character.

  3. If missing, search for the employer’s name on:

    1. Form 8027-T (if present) or on other Form 8027 included in the employer's submission,

    2. The return envelope, if attached to the submission, or

    3. If not found, research IDRS using EIN.

3.11.180.3.2.8  (01-01-2014)
Employer Identification Number (EIN) - Element 09

  1. Employer Identification Number (Element 09) must be nine numerics, or it may have a valid EIN prefix in the first two positions followed by seven (7) periods.

    Note:

    Valid EIN prefixes are 01-06, 10-16, 20-27, 30-48, 50-68, 71-77, 80-88, 90-95, 98-99.

  2. Research attachments and/or IDRS to correct an invalid EIN (containing alphas, spaces, invalid EIN prefix, etc.).

  3. If EIN cannot be determined, correspond with the employer using Letter 1858C. If undeliverable or no response is received after 45 days:

    1. Write "Failure to Provide TIN" in the upper left margin/side of the return.

    2. Penalty Assessment - Failure to Provide a TIN. The penalty for Failure to Provide a Taxpayer Identification Number (TIN) must be assessed. See IRM 3.11.180.2.4, Background of Penalty Assessments.

    3. See Exhibit 3.11.180-3, State Code / ZIP Code Range / EIN Prefix. Determine the correct EIN prefix.

    4. Enter the two-digit code followed by seven (7) periods and continue processing.

3.11.180.3.2.9  (01-01-2014)
Establishment Type Code - Element 10

  1. One box should be checked to describe the type of service the establishment provides.

  2. Use the following chart to determine correct code:

    Box(es) checked Code
    1 1
    2 2
    3 3
    4 4
    None 2
    1 and 4 1
    3 and 4 3
    1, 2, and 3 2
    1 and 2 2
    1 and 3 2
    2 and 3 2
    2 and 4 2

3.11.180.3.2.10  (01-01-2014)
Establishment Number - Element 11

  1. Establishment Number (Element 11) may contain five numerics. Each establishment number must be unique for each establishment. Breaks in the sequence numbers are allowed.

  2. If blank or a duplicate, sequentially number or renumber. Do not use leading zeros.

3.11.180.3.2.11  (01-01-2014)
ERCs AA/AT/MA -
Money Amounts
Lines 1 through 5 -
Elements 12 - 18

  1. Elements 12 through 18 may contain 10 numerics and are dollars only.

  2. Error Reason Code MA will appear on the Error Register if:

    1. Line 2 is not greater than Line 1.

    2. Line 4c does not equal the total of Line 4a and Line 4b ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Line 5 is not greater than each of Lines 1, 3, 4a, 4b and 4c.

    4. Line 5 is less than Line 2.

    Note:

    See IRM 3.11.180.2.1.14, Money Amounts Lines 1 through 5, for additional information.

  3. Establishments report amounts on Lines 1 through 5.

  4. An amount is required for Line 5. Lines 1 through 4c may be blank.

  5. Line 2 must be greater than the amount reported on Line 1.

    If Then
    Line 2 is not greater than Line 1 Use Letter 1858C to correspond with the employer. See IRM 3.11.180.2.3, Correspondence Preparation.
    No reply or undeliverable 1. Penalty Assessment - Inconsistent Return. Write "No Response - Inconsistent Return" in the upper left margin/side of the return. Assess the Failure to File penalty. See IRM 3.11.180.2.4, Background of Penalty Assessments.

    2. Enter a "1" in Element 13 (Line 2) if there is no amount present.

    3. Use Action Code 7 to clear the register.

  6. Line 3 may be zero or blank.

  7. If amounts are present for Lines 4a or 4b and Line 4c is blank, correct as follows:

    1. Add Line 4a and Line 4b. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Correspond using Letter 1858C to inform the employer of any change that is made to Line 4c. See IRM 3.11.180.2.3, Correspondence Preparation

  8. If an amount is present on Line 4a only or Line 4b only and Line 4c is greater than (or less than) Line 4a or Line 4b (whichever is applicable), correct as follows:

    If there is an amount on And Then
    Line 4a only A greater amount on Line 4c, Enter the difference between the two lines on Line 4b.
    Line 4b only A greater amount on Line 4c, Use Letter 1858C to correspond with the employer. See IRM 3.11.180.2.3, Correspondence Preparation.
    Line 4a only A lesser amount on Line 4c, Use Letter 1858C to correspond with the employer. See IRM 3.11.180.2.3, Correspondence Preparation.
    Line 4b only A lesser amount on Line 4c, Use Letter 1858C to correspond with the employer. See IRM 3.11.180.2.3, Correspondence Preparation.

  9. If an amount is present on Line 4c only (Line 4a and Line 4b are blank), use Letter 1858C to correspond with the employer. See IRM 3.11.180.2.3, Correspondence Preparation.

  10. If an amount is present for Line 1 but no amounts are present on Lines 4a, 4b or 4c, correspond. See IRM 3.11.180.2.3, Correspondence Preparation.

    1. If undeliverable or no response is received after 45 days, enter Action Code 7. Lines 4a, 4b and 4c may all be zero or blank.

  11. Check the amount for Line 5.

    If Then
    The amount for Line 5 is missing, or Line 5 is not greater than each amount on Lines 1, 3, 4a, 4b, and 4c, or Line 5 is less than Line 2. Correspond using Letter 1858C to request the correct information from the employer.
    No reply or undeliverable 1. Penalty Assessment - Inconsistent Return. Write "No Response - Inconsistent Return" in the upper left margin/side of the return. Assess the Failure to File penalty. See IRM 3.11.180.2.4, Background of Penalty Assessments.

    2. If all receipts including tips are "charged" , and Lines 2 and 5 are equal, add ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Otherwise, use Action Code 7 to clear register.

  12. Error Reason Codes AA and AT - See IRM 3.11.180.3.2.12.

3.11.180.3.2.12  (01-01-2014)
ERCs AA/AT -
Money Amounts
Lines 6 and 7 -
Elements 19 - 21

  1. Elements 19 through 21 may contain 10 numerics and are dollars only.

  2. Error Reason Code AA will appear on the Error Register if the IRS computed amount exceeds Line 6≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. When there is a discrepancy between the IRS figure and that of the employer, Elements 18, 19, and 20 will print along with Error Reason Code AA. Check for transcription and taxpayer errors. Correct accordingly.

  4. If other than a calendar year, an "X" should be found on Line 6.

  5. Generally, Line 6 will equal Line 5 times 8 percent (%) or the percentage allowed in the IRS determination letter. The acceptable range is 2% to 8%.

  6. The employer may use a lower percentage only when special permission is received from the IRS. The lower percentage will be entered in the center of Line 6 (Element 20).
    Note: If the Form 8027 has any of the following notations (including 2011 and prior):

    • Under TRDA/Tip Rate Determination Agreement,

    • Under GITCA/Gaming Industry Tip Compliance Agreement,

    • Under TRAC/Tip Reporting Alternative Commitment,

    • Under Revenue Procedure (Rev. Proc.) 2007-32,

    • Under Revenue Procedure (Rev. Proc.) 2003–35; mail to:
      Internal Revenue Service
      Attn. NTRCP/TW
      110 City Parkway
      Las Vegas, NV 89106

    Note:

    Following receipt of Forms 8027, the National Tip Reporting Compliance Analyst will separate out all Forms 8027 that were submitted by Indian tribal government entities and mail them to the Indian Tribal Government (ITG) Tip Coordinator at the following address:
    Internal Revenue Service
    MS 7200 PHX: ITG Tip Coordinator
    4041 N Central Ave Ste 112
    Phoenix, AZ 85012

    1. When a rate lower than the 8% allocation rate is used, be sure that an IRS determination letter, allowing the lower percentage rate, is attached.

      Note:

      National Tip Reporting Compliance Program (NTRCP) is requesting a copy of any Determination Letter (DL) received in Submission Processing. Make a copy of the DL, notate the EIN (if not already indicated) and send it to following address:
      Internal Revenue Service
      Attn. NTRCP - Mail Stop 5702A
      201 West Rivercenter Blvd.
      Covington, KY 41011

    2. Failure to have a determination letter attached requires correspondence using Letter 1858C. If undeliverable, no response, or correspondence is unsuccessful, recalculate the allocation amount using the 8% rate. Correspond using Letter 1858C to inform the employer that the standard 8% rate has been used.

  7. If the return shows a percentage rate that is higher than 8%, disregard it and use the standard 8% rate.

  8. If the IRS computation exceeds Line 6, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the percentage rate has been verified, correct the employer's figure.

  9. Error Reason Code AT will appear on the Error Register if:

    1. Line 6 is equal to or less than Line 4c, and Line 7 is not equal to zero.

    2. Line 6 is greater than Line 4c, and Line 7 is not equal to the difference between Lines 6 and 4c, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  10. If there is a discrepancy between Lines 4c, 6 and 7, the amounts will print along with Error Reason Code AT. If these fields appear as errors on the Error Register, compare the Form 8027 with the Error Register to be sure all figures were transcribed accurately.

  11. If other than a calendar year, an "X" should be found on Line 6.

  12. If Line 6 has no amount or "zero" and Line 7 has an amount, enter an "X" on Line 6 and the register.

  13. If Line 6 is less than or equal to Line 4c, Line 7 must be zero.

  14. If Line 6 is more than Line 4c, the difference is entered on Line 7. Correct Line 7 or compute the difference if no entry is present.

    Note:

    If you make a correction to Line 4c, Line 5, or Line 6, also make any necessary correction to Line 7. Correspond using Letter 1858C to notify the employer of any adjustment.

3.11.180.3.2.13  (01-01-2014)
ERC AA - Method of Allocation, Lines 7a through 7c - Element 22

  1. Method of Allocation, Lines 7a through 7c (Element 22) may contain one position.

  2. Error Reason Code AA will appear on the Error Register if Line 7 is significant but the allocation method (Line 7a, 7b or 7c) is not code 1, 2, 3, or 4.

  3. If Line 7 is greater than zero, one of three methods of allocation must be checked. Enter:

    1. "1" if Line 7a is checked.

    2. "2" if Line 7b is checked.

    3. "3" if Line 7c is checked and a Good-Faith Agreement is attached.

  4. If Line 7c is checked and a Good-Faith Agreement is not attached:

    1. Correspond using Letter 1858C to request a copy from the employer.

    2. If undeliverable or no response is received, use Condition Code "4" . Correspond using Letter 1858C to inform the employer that the agreement will not be reflected in the account information.

  5. If the employer made multiple entries, enter a code in Element 22 according to the following priority:

    1. "3" for Line 7c, if a Good-Faith Agreement is attached.

    2. "1" for Line 7a, if checked with another box.

    3. "2" for Line 7b, if checked with other than Line 7a or Line 7c with a Good-Faith Agreement attached.

  6. If the employer made no entry in Lines 7a through 7c, use Condition Code "4" .

  7. If Line 7 is blank, edit a zero. Circle out any entries in Line 7a, Line 7b or Line 7c.

3.11.180.3.2.14  (01-01-2014)
Total Number of Directly Tipped Employees Line 8 - Element 23

  1. Total Number of Directly Tipped Employees Line 8 (Element 23) may contain four positions.

  2. A number greater than zero must be entered in Line 8.

  3. If Line 8 is zero or blank, "U" code the register.

3.11.180.3.2.15  (01-01-2014)
Tax Year - Element 24 (4 Positions)

  1. Valid tax year is 2013 or 2012.

  2. If the tax year is 2011 or prior, use Action Code 2 to reject the document.

  3. All 2011 and prior Forms 8027 should be sent to the following address; unless the form meets the criteria in IRM 3.11.180.1 (13).
    Internal Revenue Service
    Attn. NTRCP - Mail Stop 5702A
    201 West Rivercenter Blvd.
    Covington, KY 41011

  4. If a Form 8027 is an early (future tax year) filed return, check the return and attachments for the correct tax period. Correct any coding or transcription errors.

    1. For non-final returns, if the tax period is more than three months but less than one year from the current date, correspond for confirmation of the tax year.

    2. If the return is a "Final" , use Action Code 2 to reject the document and hold the return until the next processing year.

3.11.180.3.2.16  (01-01-2014)
Special Return Code - Element 25

  1. The Special Return Code (SRC) must be blank or one alpha character. The alpha character is edited to the left of the "Final Return" check box (as close to that area as possible).

  2. The valid alpha codes are:

    1. "F" - Final return (e.g., "Final Return" check box checked) with money amounts.

    2. "N" - Final return with no money amounts or "Not Liable" return with no money amounts.

  3. Leave blank, if none of the above applies.

3.11.180.3.2.17  (01-01-2014)
Received Date - Element 26

  1. The received date must be present if Form 8027 is delinquent.

  2. When present, the received date must contain eight numerics in MMDDYYYY format. See IRM 3.11.180.2.1.3 for procedures.

    Note:

    Per the programming for the received date format, Integrated Submission and Remittance Processing (ISRP) transcribers enter six (6) numerics (MMDDYY) at initial input. When the ISRP transcriber hits the field release, it displays as eight (8) numerics (MMDDYYYY).

  3. If a received date is present on a timely filed return, Code and Edit is instructed to circle it out. If Code and Edit did not circle out the received date on a timely filed return, delete the register and reinput the return to correct it.

  4. If a received date issue continues to loop, delete the register and reinput the return. If you still have problems, contact the appropriate people (e.g., Planning and Analysis Analyst, Headquarters Analyst, Headquarters Programmer, etc.) for assistance.

3.11.180.3.2.18  (01-01-2014)
Establishment Street - Element 27

  1. Establishment Street (Element 27) must contain more than one alpha character and a maximum of 35 characters.

  2. If the establishment address is blank, use the employer's address.

3.11.180.3.2.19  (01-01-2014)
Employer Street - Element 28

  1. Employer Street (Element 28) must contain more than one alpha character and a maximum of 35 characters.

  2. If the street address is missing, search for the address on:

    1. Form 8027-T (if present) or on other Form 8027 included in the employer's submission,

    2. The return envelope, if attached to the submission, or

    3. If not found, research IDRS using EIN.

3.11.180.3.2.20  (01-01-2014)
Employer City - Element 29

  1. The City must be all alphas and a maximum of 25 characters.

  2. Do not use major city codes.

  3. If the city is missing, search for the address on:

    1. Form 8027-T (if present) or on other Form 8027 included in the employer's submission,

    2. The return envelope, if attached to the submission, or

    3. If not found, research IDRS using EIN.

3.11.180.3.2.21  (01-01-2014)
ERC SZ - Employer State - Element 30

  1. Error Reason Code SZ will generate if the state is inconsistent with the ZIP code.

  2. A valid state (two character code) is required for processing. Do not use Action Code 7.

  3. If the state is missing, search for the address on:

    1. Form 8027-T (if present) or on other Form 8027 included in the employer's submission,

    2. The return envelope, if attached to the submission, or

    3. If not found, research IDRS using EIN.

  4. Use the valid two alpha character state code. See Exhibit 3.11.180-3, State Code / ZIP Code Range / EIN Prefix.

3.11.180.3.2.22  (01-01-2014)
ERC SZ - Employer ZIP Code - Element 31

  1. Error Reason Code SZ will generate if the ZIP code is inconsistent with the state.

  2. The ZIP code must be five or nine numerics. The last four positions must be either all blanks or all numerics.

  3. The first three digits must be in the valid range of ZIP codes for the state. See Exhibit 3.11.180-3, State Code / ZIP Code Range / EIN Prefix, to determine the valid ZIP code range for the state.

  4. If the ZIP code is missing, see Exhibit 3.11.180-4, State Codes and ZIP Codes Perfection Chart.

  5. If both the city and state are valid, but the ZIP code is missing and cannot be determined, use Action Code 7.

3.11.180.3.3  (01-01-2014)
Reject Register

  1. Records will be rejected from the Error Register when errors cannot be resolved from the Form 8027 submission. In some cases, correspondence will be needed. In other cases, the record will be considered unprocessable.

  2. If correspondence is needed, prepare a Correspondence Action Sheet (CAS) to issue Letter 1858C, Information Return of Tip Income (Form 8027) Incomplete for Processing.

  3. Prepare the Correspondence Action Sheet, enter Action Code 2 on the register and route the return and the CAS to the Correspondence Team.

  4. After the letter has been issued, the return will be filed in the Correspondence Team to await reply.

  5. Allow 45 days for a reply.

  6. When the reply is received, the Correspondence Team will associate the reply with the return.

  7. Line out the DLN on the return, and prepare for reinput and renumbering.

    1. Electronic source documents will be numbered with a (TCC) Transmitter Control Code.

    2. Prepare a "dummy" Form 8027. Use the Form 8027 transcripts for reinput of electronic documents.

    3. Any correspondence from the employer providing additional information should also be incorporated.

  8. If undeliverable or no response is received after 45 days, examine the return to determine if it is possible to force post the document. See IRM 3.11.180.2.3 (8) and IRM 3.11.180.2.3 (10).

  9. If a document is unprocessable and cannot be perfected based on the information provided in the No Reply Chart, route it to National Tip Reporting Compliance for special handling. See IRM 3.11.180.1 (13) and IRM 3.11.180.1 (14). See IRM 3.11.180.3.5.

3.11.180.3.4  (01-01-2014)
Generated "Unpostable" Listing

  1. The "Unpostable" listing is generated in the same format as the Reject Register, except there is no error sequence number. The "Unpostable" listing is titled, Tip Income Form 8027 Unpostable Register.

  2. An unpostable listing will generate when a return tries to post but it matches a return on either the input file or posted file in the following fields:

    • EIN

    • Type of Establishment

    • Money amounts on Lines 4c and 5.

  3. A transcript will be printed for the posted record to compare data with the unpostable return.

    1. If the transcript and the return have the same establishment name and tax year indicating the establishment filed twice, check the data on both returns. If the data is the same on both returns, annotate the listing as "Duplicate Processing" . Do not reinput return.

    2. If there are different establishment names shown on the transcript and the return, check data on both returns. If it appears that the filer simply split the money amounts between establishments, use Letter 1858C to correspond with the employer. Explain that this is not acceptable. If no reply, or the employer does not comply, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.11.180.2.4, Background of Penalty Assessments. Reinput the document after ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. If there are duplicate Forms 8027 on the unpostable listing and no transcript is printed, reinput one of the duplicates.

    4. If there are multiple unpostables for the same EIN and no transcripts are generated, check to see if the returns are being filed as "not liable" for different establishments. Since these will match on EIN, Type of Establishment, and money amounts on Lines 4c and 5 (none), they will unpost even though they are not true duplicates. Reinput one of these returns and route the others to National Tip Reporting Compliance for special handling. See IRM 3.11.180.1 (13) and IRM 3.11.180.1 (14). Notate that duplicate forms were submitted with the same EIN. These documents will not post because they will be duplicates of the reinput return.

  4. There is no difference between the paper and electronic "Unpostable" format. However, an electronic unpostable will generate two transcripts - one for the previously posted record and one for the record attempting to post, in lieu of a paper Form 8027.

  5. For electronic source documents, if an "Unpostable" listing is generated, it is possible that the electronic document was processed twice. Contact the Planning and Analysis (PA) Staff to research if this situation occurs.

3.11.180.3.5  (01-01-2014)
Uncorrectable Unprocessable Documents

  1. Examine the document to ensure there is no procedure that will force the document through processing without the required field data. See IRM 3.11.180.2.3 (10) for guidelines on "No Replies" .

  2. Route any uncorrectable unprocessable document to National Tip Reporting Compliance for special handling if:

    1. The document is deemed uncorrectable because the return cannot be perfected from attachments or Form 8027-T,

    2. No response has been received from the employer or establishment, or corresponding is not possible due to incomplete address information, and

    3. Guidelines provided in the No Reply Chart were followed.

      Note:

      For special handling address procedures, see IRM 3.11.180.1 (13) and IRM 3.11.180.1 (14).

Exhibit 3.11.180-1 
Form 8027, Transcription Lines

This image is too large to be displayed in the current screen. Please click the link to view the image.
Element Number Item Description Location on the
Form 8027
01 BLOCK DLN Center top area
02 SERIAL NUMBER Center top area
03 AMENDED DOC CODE Dotted area of Line 1
04 NAME OF ESTABLISHMENT Establishment area
05 CITY - ESTABLISHMENT Establishment area
06 STATE - ESTABLISHMENT Establishment area
07 ZIP CODE - ESTABLISHMENT Establishment area
08 NAME OF EMPLOYER Employer area
09 EIN Right upper area
10 ESTABLISHMENT TYPE CODE Right upper area
11 ESTABLISHMENT NUMBER Right of Employer area
12 CHARGED TIPS Line 1
13 CHARGE RECEIPTS Line 2
14 SERVICE CHARGES Line 3
15 INDIRECT TIPS Line 4a
16 DIRECT TIPS Line 4b
17 TOTAL TIPS Line 4c
18 GROSS RECEIPTS Line 5
19 GROSS RECEIPTS TIMES TIP RATE PERCENTAGE (Calculation line) Line 6
20 TIP RATE PERCENTAGE Line 6 (Center)
21 ALLOCATED TIPS Line 7
22 ALLOCATION METHOD Line 7a, Line 7b, or Line 7c
23 NUMBER OF EMPLOYEES Line 8
24 TAX YEAR Right upper area
25 SPECIAL RETURN CODE Left of the check boxes for Amended Return and Final Return (as close to that area as possible)
26 RECEIVED DATE Center area
27 STREET - ESTABLISHMENT Establishment area
28 STREET - EMPLOYER Employer area
29 CITY - EMPLOYER Employer area
30 STATE - EMPLOYER Employer area
31 ZIP CODE - EMPLOYER Employer area

Exhibit 3.11.180-2 
Form 8027-T

This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.11.180-3 
State Code / ZIP Code Range / EIN Prefix

Prior to 2001, the first two digits of an EIN (the EIN Prefix) indicated the business was located in a particular geographic area. In 2001, EIN assignment was centralized, although all campuses can assign an EIN, if necessary.

As a result of the centralization effort, the EIN Prefix no longer has the same significance. The EIN Prefix now only indicates which campus assigned the EIN. Each campus has certain prefixes available for use, as well as prefixes that are solely for use by the online application and the Small Business Administration.

State Code State ZIP Code Range Area Office EIN Prefix
AL Alabama 350-369 Birmingham 63
AK Alaska 995-999 Anchorage 92
AZ Arizona 850-865 Phoenix 86
AR Arkansas 716-729 Little Rock 71
CA California 900-961 (except 909) Laguna Niguel
N. Highlands
San Jose
Oakland
Los Angeles
33
68
77
94
95
CO Colorado 800-816 Denver 84
CT Connecticut 060-069 Hartford 06
DE Delaware 197-199 Wilmington 51
DC District of Columbia 200, 202-205 Baltimore 52
FL Florida 320-339, 341, 342, 344, 346, 347, 349 Jacksonville
Fort Lauderdale
59
65
GA Georgia 300-319, 399 Atlanta 58
HI Hawaii 967-968 Honolulu 99
ID Idaho 832-838 Boise 82
IL Illinois 600-629 Chicago
Springfield
36
37
IN Indiana 460-479 Indianapolis 35
IA Iowa 500-528 Des Moines 42
KS Kansas 660-679 Wichita 48
KY Kentucky 400-427 Louisville 61
LA Louisiana 700-714 New Orleans 72
ME Maine 039-049 Augusta 01
MD Maryland 206-219 Baltimore 52
MA Massachusetts 010-027, 055 Boston 04
MI Michigan 480-499 Detroit 38
MN Minnesota 550-567 St. Paul 41
MS Mississippi 386-397 Jackson 64
MO Missouri 630-658 St. Louis 43
MT Montana 590-599 Helena 81
NE Nebraska 680-693 Omaha 47
NV Nevada 889-898 Las Vegas 88
NH New Hampshire 030-038 Portsmouth 02
NJ New Jersey 070-089 Newark 22
NM New Mexico 870-884 Albuquerque 85
NY New York 004, 005, 100-149 Brooklyn
Manhattan
Albany
Buffalo
11
13
14
16
NC North Carolina 270-289 Greensboro 56
ND North Dakota 580-588 Fargo 45
OH Ohio 430-459 Cincinnati
Cleveland
31
34
OK Oklahoma 730-732
734-749
Oklahoma City 73
OR Oregon 970-979 Portland 93
PA Pennsylvania 150-196 Philadelphia
Pittsburgh
23
25
RI Rhode Island 028-029 Providence 05
SC South Carolina 290-299 Columbia 57
SD South Dakota 570-577 Aberdeen 46
TN Tennessee 370-385 Nashville 62
TX Texas 733, 750-799, 885 Austin
Dallas
Houston
74
75
76
UT Utah 840-847 Salt Lake City 87
VT Vermont 050-054, 056-059 Burlington 03
VA Virginia 201, 220-246 Richmond 54
WA Washington 980-994 (except 987) Seattle 91
WV West Virginia 247-268 Parkersburg 55
WI Wisconsin 530-549 Milwaukee 39
WY Wyoming 820-831 Cheyenne 83

Exhibit 3.11.180-4 
State Codes and ZIP Codes Perfection Chart

State Codes and ZIP Codes Perfection Chart
State Code State or Area ZIP State Code State or Area ZIP
AA America-Atlantic 34001 MS Mississippi 38601
AE America-Europe 09001 MO Missouri 63001
AP America-Pacific 96201 MT Montana 59001
AL Alabama 35001 NE Nebraska 68001
AK Alaska 99501 NV Nevada 88901
AZ Arizona 85001 NH New Hampshire 03001
AR Arkansas 71601 NJ New Jersey 07001
CA California 90001 NM New Mexico 87001
CO Colorado 80001 NY New York 00501
CT Connecticut 06001 NC North Carolina 27001
DE Delaware 19701 ND North Dakota 58001
DC District of Columbia 20001 OH Ohio 43001
FL Florida 32001 OK Oklahoma 73001
GA Georgia 30001 OR Oregon 97001
HI Hawaii 96701 PA Pennsylvania 15001
ID Idaho 83201 RI Rhode Island 02801
IL Illinois 60001 SC South Carolina 29001
IN Indiana 46001 SD South Dakota 57001
IA Iowa 50001 TN Tennessee 37001
KS Kansas 66001 TX Texas 75001
KY Kentucky 40001 UT Utah 84001
LA Louisiana 70001 VT Vermont 05001
ME Maine 03901 VA Virginia 20101
MD Maryland 20601 WA Washington 98001
MA Massachusetts 01001 WV West Virginia 24701
MI Michigan 48001 WI Wisconsin 53001
MN Minnesota 55001 WY Wyoming 82001

Exhibit 3.11.180-5 
Attachment Guide

If And Then
Form 8027 Single Establishment Form 8027-T is not present, If attachments are present, arrange as follows:
1. Form 8027
2. Determination Letter
3. Good-Faith Agreement
4. Copy of Form 8809 or filing extension approval Letter 2519 (CG)
5. Explanation for late filing.
Form 8027 Single Establishment Form 8027-T is present, Attach Form 8027-T behind Form 8027 and arrange any other attachments as indicated above.
Form 8027 Multiple Establishments Form 8027-T is present, Arrange as follows:
1. Form 8027 (first in group)
2. Form 8027-T
3. If used for more than one establishment:
  1. Determination Letter

  2. Good-Faith Agreement

  3. Copy of Form 8809 or filing extension approval Letter 2519 (CG)

  4. Explanation for late filing


4. Form 8027 (in Establishment Number order, if present)
Note: Attachments that are for a particular establishment should be attached behind that Form 8027.
Original Form 8508, Request for Waiver From Filing Information Returns Electronically,   Route to:
Internal Revenue Service
Information Returns Branch
Attn. Extension of Time Coordinator
240 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430.
Copy of Form 8508 Attached to Form 8027 and/or Form 8027-T, Keep attached. See IRM 3.11.180.2.4.2, Penalty Information - Form 8508, Request for Waiver From Filing Information Returns Electronically.
Original Form 8809, Request for Extension of Time to File,   Route to:
Internal Revenue Service
Information Returns Branch
Attn. Extension of Time Coordinator
240 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430.
Copy of Form 8809 Attached to Form 8027 and/or Form 8027-T, Keep attached. See IRM 3.11.180.2.1.3.1, Form 8809, Request for Extension of Time to File.
Determination Letter (DL), Attached to Form 8027 and/or Form 8027-T,
  1. Keep original attached.

  2. Make a copy of the DL, notate the EIN (if not already indicated) and send it to following address:
    Internal Revenue Service
    Attn. NTRCP/TW
    110 City Parkway
    Las Vegas, NV 89106

  3. See IRM 3.11.180.1.3(2).

Good-Faith Agreement, Attached to Form 8027 and/or Form 8027-T, Keep attached.
Letter 2519 (CG), Attached to Form 8027 and/or Form 8027-T, Keep attached.
Explanation for late filing, Attached to Form 8027 and/or Form 8027-T, Keep attached.
Gaming Industry Tip Compliance Agreement (GITCA), Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP/TW
110 City Parkway
Las Vegas, NV 89106
Tip Reporting Alternative Commitment (TRAC), Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP/TW
110 City Parkway
Las Vegas, NV 89106
Tip Rate Determination Agreement (TRDA), Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP/TW
110 City Parkway
Las Vegas, NV 89106
Revenue Procedure (Rev. Proc.) 2007-32 (Gaming Industry Tip Compliance Agreement (GITCA)), Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP/TW
110 City Parkway
Las Vegas, NV 89106
Revenue Procedure (Rev. Proc.) 2003-35 (Gaming Industry Tip Compliance Agreement (GITCA)), Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP/TW
110 City Parkway
Las Vegas, NV 89106
Form W-2,   Detach and consult with your manager for disposition instructions.
List of establishments,   See IRM 3.11.180.1.4(9).
Requests for forms,   See IRM 3.11.180.1.4(11).
CP 215 - Civil Penalty Notice response and/or
Correspondence related to a penalty assessment or a penalty abatement request,
  See IRM 3.11.180.2.4.4.
Petitions to Reduce the Tip Rate and
User Fee (payment),
 
1. See IRM 3.11.180.1.4(12).
2. Copy any current Form 8027 (tax year 2013 or tax year 2012) and process original.
Envelope,   1. Check envelope for remittance.
2. If found, immediately hand carry to your manager.
Response to Letter 1858C,   Keep attached and edit based on the information provided.
Request for Acknowledgement   Keep attached. No action required.
Correspondence related to IRS requesting Form 8027 to be filed for multiple years, Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Correspondence related to IRS requesting Form 8027 to be filed for multiple years,   Route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Form 14196 (Filing Statement) and/or Correspondence related to Form 14196, Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Form 14196 (Filing Statement) and/or Correspondence related to Form 14196,   Route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Letter 3267 (Delinquent 8027 Letter) and/or Correspondence related to Letter 3267, Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Letter 3267 (Delinquent 8027 Letter) and/or Correspondence related to Letter 3267,   Route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Letter 4639 (Delinquent 8027 Letter (2)) and/or Correspondence related to Letter 4639, Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Letter 4639 (Delinquent 8027 Letter (2)) and/or Correspondence related to Letter 4639,   Route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Letter 4640 (Incomplete 8027 Letter) and/or Correspondence related to Letter 4640, Attached to Form 8027 and/or Form 8027-T, Keep attached and route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Letter 4640 (Incomplete 8027 Letter) and/or Correspondence related to Letter 4640,   Route to:
Internal Revenue Service
Attn. NTRCP - Mail Stop 5702A
201 West Rivercenter Blvd.
Covington, KY 41011
Unrelated, unanswered correspondence No action has been taken, Detach and route to the appropriate area.

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