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Amended Returns

If undeposited FUTA tax is over $100 on —

Deposit it

by —

Use a new Form 940-EZ to amend a previously filed

Form 940-EZ. Check the “Amended Return” box

March 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . April 30

above Part I. Enter all amounts that should have been

June 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 31

on the original return, and sign the form. Attach an

September 30 . . . . . . . . . . . . . . . . . . . . . . . . . October 31

explanation of the reasons for the amended return. File

December 31 . . . . . . . . . . . . . . . . . . . . . . . . . January 31

the amended return with the Internal Revenue Service

Center where you filed the original return. Do not mail

an amended Form 940-EZ (even if it includes a payment)

If any deposit due date falls on a Saturday,

to a P.O. box location.

TIP

Sunday, or legal holiday, you may deposit on the

next business day.

If you were required to file Form 940 but filed Form

940-EZ instead and you must correct an error, file the

How to deposit. If you are not required to use the

amended return on Form 940. See the Instructions for

Electronic Federal Tax Payment System (EFTPS) (see

Form 940.

Electronic deposit requirement below), you may use

either EFTPS or Form 8109, Federal Tax Deposit

Credit for Contributions Paid

Coupon, when you make each tax deposit. The IRS will

send you a book of deposit coupons when you apply for

to a State Fund

an employer identification number (EIN). Follow the

You get a credit for amounts you pay to a state (including

instructions in the coupon book. If you do not have Form

the District of Columbia, Puerto Rico, and the U.S. Virgin

8109, see section 11 in Circular E.

Islands) unemployment fund by January 31, 2002 (or

You must make your deposits with an authorized

February 11, 2002, if that is your Form 940-EZ due date).

financial institution (e.g., a commercial bank that is

This credit is reflected in the FUTA tax rate of .008 shown

qualified to accept Federal tax deposits). To avoid a

on line 6. See FUTA rate on page 1.

possible penalty, do not mail deposits directly to the IRS.

Records of your deposits will be sent to the IRS for

“Contributions” are payments that a state requires an

crediting to your business accounts.

employer to make to its unemployment fund for the

payment of unemployment benefits. However,

Electronic deposit requirement. You must make

contributions do not include:

•

electronic deposits of all depository taxes (such as

Any payments deducted or deductible from your

employment tax, excise tax, and corporate income tax)

employees’ pay.

•

using the Electronic Federal Tax Payment System

Penalties, interest, or special administrative taxes not

(EFTPS) in 2002 if:

included in the contribution rate the state assigned to

•

The total deposits of such taxes in 2000 were more

you.

•

than $200,000 or

Voluntary contributions you paid to get a lower

•

You were required to use EFTPS in 2001.

assigned rate.

The Electronic Federal Tax Payment System

(EFTPS) must be used to make electronic deposits. If

Be sure to enter your state reporting number on

you are required to make deposits using EFTPS and use

line B(2) at the top of the form. The IRS needs

Form 8109 instead, you may be subject to a 10%

this to verify your state contributions.

CAUTION

penalty.

Taxpayers who are not required to make electronic

Depositing FUTA Tax

deposits may voluntarily participate in EFTPS. To enroll

When to deposit. Although Form 940-EZ covers a

in or get more information about EFTPS, call

calendar year, you may have to make deposits of the tax

1-800-555-4477 or 1-800-945-8400.

before filing the return. Generally, deposit FUTA tax

For deposits made by EFTPS to be on time, you

quarterly if your FUTA tax exceeds $100. Determine your

must initiate the transaction at least one business

FUTA tax for each of the first three quarters by

day before the date the deposit is due.

multiplying by .008 that part of the first $7,000 of each

CAUTION

employee’s annual wages you paid during the quarter.

Not Liable for FUTA Tax?

If your FUTA tax for any of the first three quarters of

2001 (plus any undeposited amount of $100 or less from

If you receive Form 940-EZ and are not liable for FUTA

any earlier quarter) is over $100, deposit it by the last day

tax for 2001, write “Not Liable” across the front of the

of the first month after the end of the quarter. If it is $100

form, sign the form, and return it to the IRS.

or less, carry it to the next quarter; a deposit is not

required. If your FUTA tax for the fourth quarter (plus any

Penalties and Interest

undeposited amount from any earlier quarter) is over

Avoid penalties and interest by making tax deposits when

$100, deposit the entire amount by January 31, 2002. If it

due, filing a correct return, and paying all taxes when

is $100 or less, you can either make a deposit or pay it

due. There are penalties for late deposits, insufficient

with your Form 940-EZ by January 31, 2002. (If you

deposits, failure to deposit using EFTPS (when required),

deposit it by January 31, 2002, you may file Form 940-EZ

and late filing unless you can show reasonable cause. If

by February 11, 2002.)

you file late, attach an explanation to the return. There

The deposit due dates are shown in the following

are also penalties for willful failure to pay tax, make

chart:

returns, and for filing false or fraudulent returns.

-3-

Instructions For Form 940-Ez - Employer'S Annual Federal Unemployment (Futa) Tax Return - Internal Revenue Service - 2001 Page 3

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