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you meet reasonable-cause criteria. Do not attach an

$ 9,000 Total FUTA wages for Employees A and B in 1

quarter

x .062 Tax rate

explanation when you file your Form 940.

$558 Your liability for the first quarter for Employees A and B

How Can You Amend a Return?

$4,000 Total FUTA wages subject to state unemployment tax

x .008 Tax rate (based on maximum credit of 5.4%)

You use the 2010 Form 940 to amend a return that you

$32 Your liability for the first quarter for Employee C

previously filed for 2010. If you are amending a return for a

previous year, use the previous year’s Form 940.

$558 Your liability for the first quarter for Employees A and B

Follow these steps:

+ 32 Your liability for the first quarter for Employee C

•

Use a paper return to amend a Form 940 filed under an

$590 Your liability for the first quarter for Employees A, B, and C

electronic filing program.

•

In this example, you must deposit $590 by April 30 because your liability for

Check the amended return box in the top right corner of Form

the 1

quarter is more than $500.

940, page 1, box a.

•

Fill in all the amounts that should have been on the original

form.

How Must You Deposit Your FUTA Tax?

•

Sign the form.

•

Attach an explanation of why you are amending your return.

During 2010 you may have deposited your FUTA tax

For example, tell us if you are filing to claim credit for tax paid to

electronically by using EFTPS or by depositing your tax with an

your state unemployment fund after the due date of Form 940.

•

authorized financial institution (for example, a commercial bank

File the amended return using the Without a payment

that is qualified to accept federal tax deposits). The financial

address (even if a payment is included) under Where Do You

institution will send IRS a record of your payment to credit to

File? on page 2.

your business account.

Completing Your Form 940

You must deposit your FUTA tax using EFTPS

IRS has issued proposed regulations that provide beginning

Follow these guidelines to correctly fill out the

January 1, 2011, you must deposit all depository taxes (such as

form.

employment tax, excise tax, and corporate income tax)

electronically using EFTPS. Under these proposed regulations,

To help us accurately scan and process your form, please

Forms 8109 and 8109-B, Federal Tax Deposit Coupon, cannot

follow these guidelines:

be used after December 31, 2010. To get more information or

•

Make sure your business name and EIN are on every page of

to enroll in EFTPS, visit the EFTPS website at

the form and any attachments.

or call 1-800-555-4477. You can also get Pub. 966, The Secure

•

If you type or use a computer to fill out your form, use a

Way to Pay Your Federal Taxes.

12-point Courier font, if possible.

If your business is new, IRS will automatically pre-enroll you

•

Make sure you enter dollars to the left of the preprinted

in EFTPS when you apply for an employer identification number

decimal point and cents to the right.

(EIN). Follow the instructions on your EIN package to activate

•

Do not enter dollar signs or decimal points. Commas are

your enrollment.

optional.

•

You may choose to round your amounts to the nearest dollar,

To make your EFTPS payments on time, you must

instead of reporting cents on this form. If you choose to round,

initiate the transaction at least 1 business day before the

you must round all entries. To round, drop the amounts under

date the deposit is due.

CAUTION

50 cents and increase the amounts from 50 to 99 cents to the

Same-day payment option. If you fail to initiate a deposit

next dollar. For example, $1.49 becomes $1.00 and $2.50

transaction on EFTPS at least 1 business day before the date a

becomes $3.00. If you use two or more amounts to figure an

deposit is due, you can still make your deposit on time by using

entry on the form, use cents to figure the answer and round the

the FTA (FEDERAL TAX APPLICATION). If you ever need the

answer only.

•

same-day payment method, you will need to make

If you have a line with the value of zero, leave it blank.

arrangements with your financial institution ahead of time. FTA

Employer Identification Number (EIN),

allows you to initiate the transaction and have the funds

transferred from your financial institution on the same day.

Name, Trade Name, and Address

Enrollment in EFTPS automatically enrolls you in FTA.

Instructions for using FTA are included in your EFTPS

enrollment package. Please check with your financial institution

Review your business information at the top of

regarding availability, deadlines, and costs. Generally, your

the form.

bank will charge you a fee for payments made this way.

If you pay a tax preparer to fill out Form 940, make sure the

Business taxpayers can use FTA even if not enrolled, but may

preparer shows your business name and EIN exactly as they

need help to have their financial institution use the proper

appear on the preprinted form we sent you or as assigned by

format for making the payment. The guidelines for financial

the IRS.

institutions for making payments using FTA can be found at

If you are using a copy of Form 940 that has your business

name and address preprinted at the top of the form, check to

How Can You Avoid Penalties and

make sure that the information is correct. Carefully review your

EIN to make sure that it exactly matches the EIN assigned to

Interest?

your business by the IRS. If any information is incorrect, cross it

out and type or print the correct information. See Tell us if you

Penalties and interest are assessed at a rate set by law on

change your name or address on page 5.

taxes paid late, returns filed late or incorrectly, insufficient

If you are not using a preprinted Form 940, type or print your

payments made, and failure to pay using EFTPS (when

EIN, name, and address in the spaces provided. You must

required).

enter your name and EIN here and on page 2. Enter the

You can avoid paying penalties and interest if you:

business (legal) name that you used when you applied for your

•

deposit or pay your tax when it is due, using EFTPS if

EIN on Form SS-4, Application for Employer Identification

required; and

Number. For example, if you are a sole proprietor, enter

•

file your completed Form 940 accurately and on time.

“Ronald Smith” on the Name line and “Ron’s Cycles” on the

If you receive a notice about penalty and interest after you

Trade Name line. Leave the Trade Name line blank if it is the

file this return, send us an explanation and we will determine if

same as your Name.

-4-

Instructions For Form 940 - Employer'S Annual Federal Unemployment (Futa) Tax Return - 2010 Page 4

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