Instructions For Form 940 - 2016 (Page 11 of 12) in pdf

To apply using the Online Payment Agreement Application,

In years when there are credit reduction states, you must

go to IRS.gov, click on Tools, then click on Online Payment

include liabilities owed for credit reduction with your

TIP

Agreement.

fourth quarter deposit. You may deposit the anticipated

Under an installment agreement, you can pay what you owe

extra liability throughout the year, but it isn't due until the due

in monthly installments. There are certain conditions you must

date for the deposit for the fourth quarter, and the associated

meet to enter into and maintain an installment agreement, such

liability should be recorded as being incurred in the fourth

as paying the liability within 24 months, and making all required

quarter.

deposits and timely filing tax returns during the length of the

agreement.

17. Total Tax Liability for the Year

If your installment agreement is accepted, you will be charged

Your total tax liability for the year must equal line 12. Copy the

a fee and you will be subject to penalties and interest on the

amount from line 12 onto line 17.

amount of tax not paid by the due date of the return.

Part 6: May We Speak With Your

15. Overpayment

ThirdParty Designee?

If line 13 is more than line 12, enter the difference on line 15.

If you want to allow an employee, your paid tax preparer, or

line 13

another person to discuss your Form 940 with the IRS, check the

– line 12

“Yes” box. Then enter the name and phone number of the

person you choose as your designee. Be sure to give us the

line 15

specific name of a person — not the name of the firm that

prepared your tax return.

Have your designee select a five-digit Personal Identification

If you deposited more than the FUTA tax due for the year, you

Number (PIN) that he or she must use as identification when

may choose to have us either:

talking to the IRS about your form.

Apply the refund to your next return, or

Send you a refund.

By checking “Yes,” you authorize us to talk to your designee

about any questions that we may have while we process your

Check the appropriate box in line 15 to tell us which option

return. Your authorization applies only to this form, for this year;

you select. If you don't check either box, we will automatically

it doesn't apply to other forms or other tax years.

refund your overpayment, less any amount we apply to any past

You’re authorizing your designee to:

due tax account shown in our records under your EIN.

Give us any information that is missing from your return,

If line 15 is less than $1, we will send you a refund or apply it

Ask us for information about processing your return, and

to your next return only if you ask for it in writing.

Respond to certain IRS notices that you have shared with

Part 5: Report Your FUTA Tax

your designee about math errors and in preparing your return.

We won't send notices to your designee.

Liability by Quarter Only if Line 12 is

You’re not authorizing your designee to:

More Than $500

Receive any refund check,

Bind you to anything (including additional tax liability), or

Otherwise represent you before the IRS.

Fill out Part 5 only if line 12 is more than $500. If line 12 is $500

or less, leave Part 5 blank and go to Part 6.

The authorization will automatically expire 1 year after the

due date for filing your Form 940 (regardless of extensions). If

16. Report the Amount of Your FUTA Tax

you or your designee want to end the authorization before it

Liability for Each Quarter

expires, write to the IRS office for your location using the Without

a payment address under Where Do You File.

Enter the amount of your FUTA tax liability for each quarter on

lines 16a–d. Don't enter the amount you deposited. If you had no

If you want to expand your designee's authorization or if you

liability for a quarter, leave the line blank.

want us to send your designee copies of your notices, see Pub.

947.

16a. 1

quarter (January 1 to March 31)

16b. 2

quarter (April 1 to June 30)

Part 7: Sign Here (Approved Roles)

16c. 3

quarter (July 1 to September 30)

16d. 4

quarter (October 1 to December 31)

You MUST Fill Out Both Pages of This 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.

On page 2 in Part 7, sign and print your name and title. Then

enter the date and the best daytime telephone number, including

area code, where we can reach you if we have any questions.

Example:

You paid wages on March 28 and your FUTA tax on those wages was $200.

Who Must Sign Form 940?

You weren't required to make a deposit for the 1st quarter because your

accumulated FUTA tax was $500 or less. You paid additional wages on June

The following persons are authorized to sign the return for each

28 and your FUTA tax on those wages was $400. Because your accumulated

type of business entity.

FUTA tax for the 1st and 2nd quarters exceeded $500, you were required to

Sole proprietorship—The individual who owns the

make a deposit of $600 by July 31.

business.

Partnership (including a limited liability company (LLC)

You would enter $200 in line 16a because your liability for the 1

quarter is

treated as a partnership) or unincorporated organization—

$200. You would also enter $400 in line 16b to show your 2

quarter liability.

A responsible and duly authorized partner, member, or officer

having knowledge of its affairs.

Instructions for Form 940 (2016)

Instructions For Form 940 - 2016 Page 11

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