Part 5: Report Your FUTA Tax Liability
You are not authorizing your designee to:
•
Receive any refund check,
by Quarter Only if Line 12 Is More
•
Bind you to anything (including additional tax liability), or
Than $500
•
Otherwise represent you before the IRS.
Fill out Part 5 only if line 12 is more than $500. If line 12 is
The authorization will automatically expire 1 year after the
$500 or less, leave Part 5 blank and go to Part 6.
due date for filing your Form 940 (regardless of extensions). If
you or your designee want to end the authorization before it
16. Report the amount of your FUTA tax liability
expires, write to the IRS office where the return was filed.
for each quarter
However, if the return was originally filed with a payment, use
the Without a payment address.
Enter the amount of your FUTA tax liability for each quarter on
lines 16a-d. Do not enter the amount you deposited. If you had
no liability for a quarter, leave the line blank.
If you want to expand your designee’s authorization or if you
want us to send your designee copies of your notices, see Pub.
16a. 1
st
quarter (January 1 to March 31).
947, Practice Before the IRS and Power of Attorney.
nd
16b. 2
quarter (April 1 to June 30).
rd
16c. 3
quarter (July 1 to September 30).
Part 7: Sign Here
16d. 4
th
quarter (October 1 to December 31).
You must fill out both pages of the form and
To figure your FUTA tax liability for the fourth quarter, complete
sign it
Form 940 through line 12. Then copy the amount from line 12
onto line 17. Lastly, subtract the sum of lines 16a through 16c
Failure to sign will delay the processing of your return.
from line 17 and enter the result on line 16d.
In Part 7, sign and print your name and title. Then enter the
Example:
date and the best daytime telephone number, including area
You paid wages on March 28 and your FUTA tax on those wages was
code, where we can reach you if we have any questions.
$200. You were not required to make a deposit for the 1st quarter
because your accumulated FUTA tax was $500 or less. You paid
additional wages on June 28 and your FUTA tax on those wages was
Who must sign Form 940?
$400. Because your accumulated FUTA tax for the 1st and 2nd
Form 940 must be signed as follows.
quarters exceeded $500, you were required to make a deposit of $600
•
Sole proprietorship — The individual who owns the
by July 31.
business.
•
st
You would enter $200 in line 16a because your liability for the 1
Partnership (including a limited liability company (LLC)
nd
quarter is $200. You would also enter $400 in line 16b to show your 2
treated as a partnership) or unincorporated organization —
quarter liability.
A responsible and duly authorized member or officer having
knowledge of its affairs.
•
Corporation (including an LLC treated as a corporation)
17. Total tax liability for the year
— The president, vice president, or other principal officer.
•
Your total tax liability for the year must equal line 12. Copy the
Single member LLC treated as a disregarded entity —
amount from line 12 onto line 17.
The owner of the LLC.
•
Trust or estate — The fiduciary.
Part 6: May We Speak With Your
If you have filed a valid power of attorney, your duly
authorized agent may also sign your Form 940.
Third-Party Designee?
If you want to allow an employee, your paid tax preparer, or
Part 8: For Paid Preparers Only
another person to discuss your Form 940 with the IRS, check
the “Yes” box. Then enter the name of the person you choose
(optional)
as your designee. Be sure to give us the specific name of a
person — not the name of the firm that prepared your tax
Paid preparers may choose to fill out Part 8 if they were paid to
return.
prepare this return and are not an employee of the business
that is filing the return. Do not fill out Part 8 if you are filing the
Have your designee select a 5-digit Personal Identification
return as a reporting agent and have a valid Form 8655,
Number (PIN) that he or she must use as identification when
Reporting Agent Authorization, on file with the IRS.
talking to IRS about your form.
You are not required to complete this section.
By checking “Yes”, you authorize us to talk to your designee
about any questions that we may have while we process your
If you are a paid preparer and you choose to fill out
return. Your authorization applies only to this form, for this year;
Part 8, sign in the space provided. Give the employer the return
it does not apply to other forms or other tax years.
to file with IRS and include a copy of the return for the business’
records.
You are authorizing your designee to:
•
Write your social security number (SSN) or your Preparer
Give us any information that is missing from your return,
Tax Identification Number (PTIN) in the spaces provided.
•
Ask us for information about processing your return, and
Include your complete address.
•
Respond to certain IRS notices that you have shared with
your designee about math errors and in preparing your return.
If you work for a firm, write the firm’s name and the EIN of
We will not send notices to your designee.
your firm.
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