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Where Do I Mail My Form 940?

Alright, let’s cut to the chase. Submitting your Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, might seem like a simple task, but getting the address wrong can lead to delays and potential penalties. The mailing address for Form 940 depends entirely on where your business is located and whether you’re including a payment. Don’t just guess! Refer to the most current instructions on the IRS website to find the precise address for your state and payment scenario. We’ll provide some examples below, but always double-check against the IRS’s most updated information.

Understanding Form 940 and Its Importance

What Exactly Is Form 940?

Form 940 is the Employer’s Annual Federal Unemployment (FUTA) Tax Return. Employers use it to report their annual FUTA tax liability. This tax, distinct from state unemployment taxes, funds unemployment compensation benefits for workers who have lost their jobs. Almost all employers, even those with just one employee, have to file.

Why is Filing the Correct Address So Critical?

Think of the IRS as a highly organized (and potentially unforgiving) machine. Missing or incorrect information, including an incorrectly addressed envelope, throws a wrench in the works. It can lead to:

Processing Delays: Your return gets misrouted, taking longer to process.
Penalties: The IRS might assess penalties for late filing, even if you mailed it on time but to the wrong address.
Audit Flags: Inconsistent filing can trigger a closer look at your business records.

Finding the Right Mailing Address for Form 940

The IRS uses different lockbox addresses based on your location and whether you’re including a payment. Here’s the breakdown:

No Payment Enclosed: If you’re filing Form 940 and not including a payment (because you’ve paid all your FUTA taxes throughout the year or are paying electronically), you’ll use a specific lockbox address for your state.
Payment Enclosed: If you are including a payment (check or money order), the address will be different than if you’re filing without a payment. The IRS uses lockboxes to efficiently process payments.

Important: Always check the official IRS Instructions for Form 940 for the most up-to-date addresses. Addresses can and do change.

Examples of Mailing Addresses (Illustrative Only – Verify with IRS!)

These are EXAMPLES ONLY. Do NOT use these without verifying on the IRS website:

Let’s say your principal business location is in Georgia, and you are not including a payment:

Department of the Treasury Internal Revenue Service Kansas City, MO 64999

Now, let’s say your principal business location is in Georgia, and you are including a payment:

Internal Revenue Service P.O. Box 931100 Atlanta, GA 31193

Notice the difference? Using the wrong address will cause problems.

How to Find the Correct Address on the IRS Website

Go to the IRS website (IRS.gov).
Search for Form 940 Instructions.
Download the most recent version of the instructions (it’s usually a PDF).
Scroll down to the section titled “Where To File.”
Find your state in the table and note the correct address based on whether you are including a payment.

Tips for Mailing Your Form 940

Double-Check Everything: Before sealing the envelope, verify the address, your Employer Identification Number (EIN), and all figures on the form.
Use First-Class Mail: Ensure your return arrives promptly.
Consider Certified Mail: For peace of mind, use certified mail with return receipt requested. This provides proof that the IRS received your return. Keep the receipt with your tax records.
Keep a Copy: Always make a copy of your completed Form 940 for your records.
File Electronically: If possible, consider e-filing. This is often faster, more accurate, and eliminates the need to worry about mailing addresses.

FAQs: Demystifying Form 940 and Filing Procedures

1. What is the deadline for filing Form 940?

The deadline is January 31st of the year following the calendar year to which the return relates. However, if you deposited all FUTA taxes when due, you may file Form 940 by February 10th.

2. What happens if I file Form 940 late?

The IRS may impose a failure-to-file penalty. The penalty is typically calculated as a percentage of the unpaid tax for each month or part of a month the return is late, up to a maximum percentage.

3. What happens if I pay my FUTA tax late?

The IRS may impose a failure-to-pay penalty. This penalty is also calculated as a percentage of the unpaid tax.

4. Can I file Form 940 electronically?

Yes, the IRS encourages e-filing Form 940. You can use IRS-approved e-file providers or tax preparation software.

5. What if I made a mistake on my Form 940?

File an amended return using Form 940-X, Amended Annual Federal Unemployment (FUTA) Tax Return.

6. How do I get an Employer Identification Number (EIN)?

You can apply for an EIN online through the IRS website. It’s free and relatively quick.

7. What wages are subject to FUTA tax?

Generally, the first $7,000 you pay to each employee during the calendar year is subject to FUTA tax.

8. What is the current FUTA tax rate?

The FUTA tax rate is generally 6.0%. However, employers typically receive a credit of up to 5.4% for state unemployment taxes paid, making the effective FUTA tax rate 0.6%.

9. How often do I need to deposit FUTA taxes?

If your FUTA tax liability is more than $500 for the year, you must deposit the tax quarterly. If it’s $500 or less, you can pay it with your Form 940 when you file.

10. How do I deposit FUTA taxes?

You can deposit FUTA taxes electronically using the Electronic Federal Tax Payment System (EFTPS).

11. What if I have employees in multiple states?

You’ll generally pay FUTA tax based on the location of your principal place of business. Consult IRS publications for specific guidance on multi-state employers.

12. I’m a small business owner; is Form 940 something I can handle myself, or should I hire a professional?

While many small business owners successfully manage Form 940 filings themselves, it depends on your comfort level with tax regulations and your available time. If you find the process confusing or overwhelming, or if you’re concerned about making mistakes, consulting with a tax professional is a wise investment. They can ensure accurate and timely filing, potentially saving you money and headaches in the long run. They can also help you navigate the complexities of employment taxes, which can be especially valuable as your business grows.

In Conclusion

Mailing your Form 940 to the correct address is paramount for avoiding penalties and ensuring proper processing. Always verify the address with the IRS instructions before mailing. E-filing and paying electronically are also efficient and secure alternatives. By staying informed and organized, you can confidently manage your FUTA tax obligations. Remember, consulting a tax professional is always an option if you need assistance!