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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

business.

•

information above line A is properly completed.)

Corporation - The president, vice president, or other

principal officer.

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.

company.

•

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

been filed.

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

Revenue law.

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

Attorney.

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Instructions For Form 940 - Employer'S Annual Federal Unemployment (Futa) Tax Return - 2003 Page 6

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