Enter $1,950 from line H of the worksheet on Form
The Third Party Designee authorization automatically
940, Part II, line 6. This is the allowable credit for your
expires one year from the due date (without regard to
contributions to the state unemployment fund.
extensions) for filing your 2003 Form 940. If you or your
designee desire to terminate the authorization, a written
Line 9 — Balance due. Make your check or money
statement conveying your wish to revoke the
order payable to the “United States Treasury.” Write your
authorization should be submitted to the IRS Service
EIN, “Form 940,” and “2003” on your check or money
Center where the return was processed.
order. Enter the amount of your payment on Form 940-V
at the bottom of Form 940. If the employer information is
Signature. Form 940 must be signed as follows:
not preprinted on the payment voucher, enter the
Sole proprietorship - The individual owning the
requested information. (Make certain also that the entity
information above line A is properly completed.)
Corporation - The president, vice president, or other
If the amount on line 9 is under $1, you do not have to
Partnership or unincorporated organization - A
pay it. For payments over $100, see Depositing FUTA
responsible and duly authorized member or officer having
Tax on page 3.
knowledge of its affairs.
Line 10 — Overpayment. If the amount on line 10 is
Single member limited liability company treated as
under $1, we will send a refund or apply it to your next
a disregarded entity -The owner of the limited liability
return only on written request.
Trust or estate - The fiduciary.
Part III. Record of Quarterly Federal
The return may also be signed by a duly authorized
Unemployment Tax Liability
agent of the taxpayer if a valid power of attorney has
Complete this part only if your FUTA tax in Part II,
line 7, is over $100. To figure your FUTA tax for each
Privacy Act and Paperwork Reduction Act Notice.
quarter, multiply by .008 that part of the first $7,000 of
We ask for the information on this form to carry out the
each employee’s annual wages you paid during the
quarter. Enter the result in the space for that quarter.
Internal Revenue laws of the United States. We need it to
Your “Total for year” must equal your total FUTA tax
figure and collect the right amount of tax. Chapter 23,
shown in Part II, line 7.
Federal Unemployment Tax Act, of Subtitle C,
Employment Taxes, of the Internal Revenue Code
Record your FUTA tax based on when you pay wages,
imposes a tax on employers with respect to employees.
not on when you deposit it. For example, if you pay
This form is used to determine the amount of the tax that
wages on March 28, your FUTA tax on those wages is
you owe. Section 6011 requires you to provide the
$200, and you deposit the $200 on April 30, you would
requested information if you are liable for FUTA tax under
record that $200 in the first quarter, not in the second.
section 3301. Section 6109 requires you to provide your
Example. You had two employees and paid each
employer identification number (EIN). If you fail to provide
employee $4,000 in the first quarter, $5,000 in the
this information in a timely manner, you may be subject
second quarter, $5,000 in the third quarter, and $5,000 in
to penalties and interest.
the fourth quarter. (None of these payments were exempt
You are not required to provide the information
from FUTA tax.) For the first quarter, multiply .008 x
requested on a form that is subject to the Paperwork
$8,000 (the amount paid to both employees), and enter
Reduction Act unless the form displays a valid OMB
$64 in the space for the first quarter. For the second
control number. Books or records relating to a form or its
quarter, multiply .008 only by $6,000 ($3,000 for each
instructions must be retained as long as their contents
employee —the amount remaining to reach the $7,000
may become material in the administration of any Internal
maximum amount subject to FUTA tax for each
employee), and enter $48 in the space for the second
quarter. Because you paid each employee more than
Generally, tax returns and return information are
$7,000 by the end of the second quarter, enter zero in
confidential, as required by section 6103. However,
the space for the third and fourth quarters. Enter $112 in
section 6103 allows or requires the IRS to disclose or
the “Total for year” space.
give the information shown on your tax return to others
as described in the Code. For example, we may disclose
Third Party Designee. If you want to allow any
your tax information to the Department of Justice for civil
individual, corporation, firm, organization, or partnership
and criminal litigation, and to cities, states, and the
to discuss your 2003 Form 940 with the IRS, check the
District of Columbia for use in administering their tax
“Yes” box in the “Third Party Designee” section of the
laws. We may also disclose this information to Federal
return. Also, enter the name, phone number, and any five
and state agencies to enforce Federal nontax criminal
numbers the designee chooses as his or her personal
laws and to combat terrorism.
identification number (PIN). The authorization applies
only to the tax form upon which it appears.
The time needed to complete and file this form will
vary depending on individual circumstances. The
By checking the “Yes” box, you are authorizing the
estimated average time is: Recordkeeping, 13 hr., 52
IRS to call the designee to answer any questions relating
min.; Learning about the law or the form, 1 hr., 17
to the information reported on your tax return. You are
min.; Preparing and sending the form to the IRS,
also authorizing the designee to:
1 hr., 50 min.
Exchange information concerning your tax return with
the IRS and
If you have comments concerning the accuracy of
Request and receive written tax return information
these time estimates or suggestions for making this form
relating to your tax return including copies of specific
simpler, we would be happy to hear from you. You can
notices, correspondence, and account transcripts.
write to the Tax Products Coordinating Committee,
You are not authorizing the designee to receive any
Western Area Distribution Center, Rancho Cordova, CA
refund check, bind you to anything (including additional
95743-0001. Do not send the Form 940 to this office.
tax liability), or otherwise represent you before the IRS. If
Instead, see Where To File on page 2.
you want to expand the designee’s authorization or
desire automatic issuances of copies of notices, see
Pub. 947, Practice Before the IRS and Power of