Form 940
Form 940 Will Be Much Improved for Tax Year 2006(Reprinted from the Fall 2006 issue of SSA/IRS Reporter, a Newsletter for Employers.)
Payroll professionals and business owners filing Form 940, Annual Federal Unemployment (FUTA) Tax Return, for 2006 (due by 1/31/2007) will notice
a big difference in the form and instructions. The IRS has completely redesigned Form 940 to
be more user-friendly, reducing the burden for more than one million filers.
Many individuals and organizations have asked the IRS to change Form 940. Taxpayers often
struggle to determine which lines to complete and which to skip. In addition, they find it difficult to make computations and to fill in
explanations of exempt payments.
In May 2004, a team led by the IRS Office of Taxpayer Burden Reduction (TBR) began the process
of redesigning Form 940. IRS employment tax experts worked with representatives from other federal and state agencies, gathering input from
internal and external stakeholders to create a plain language form that is logical, easy to
follow, and compatible with optical scanning.
The new Form 940 incorporates the advantages
of Form 940-EZ (discontinued for tax year 2006) into a simplified form for all filers. Highlights include:
• A logical sequence from the taxpayer’s point of view;
• Eight separate parts with visual cues, breaking up the task into smaller steps;
• A new Schedule A for multistate employers or credit reduction situations;
• Check boxes instead of “A,B,C” questions; and
• No more need for handwritten explanations of
exempt payments.
Advance “vision drafts” of Form 940 and Form 940
Schedule A can be viewed on the “Vision Draft Forms” page of IRS.gov at www.irs.gov/businesses/
small/article/0,,id=146224,00.html. Please note that these versions are subject to further revision and should not be used for filing.
The IRS is committed to reducing unnecessary taxpayer burden and welcomes input from tax and payroll professionals, business owners,and the general public on opportunities to make it easier to comply with the tax laws. More information, including a link to Form 13285A, Reducing Tax Burden on America’s Taxpayers, can be found on the TBR page of IRS.gov, www.irs.gov/businesses/small/content/0,,id=146284,00.html.
Form 940 Will Be Much Improved for Tax Year 2006
(Reprinted from the Fall 2006 issue of SSA/IRS Reporter, a Newsletter for Employers.)
The information contained on this site should in no way be considered to be professional advice in the form of either tax, accounting, or legal service or consultation. You should always consult with a professional familiar with your individual circumstances before making any specific decisions related to accounting, tax, or legal matters.
Payroll professionals and business owners filing Form 940, Annual Federal Unemployment (FUTA) Tax Return, for 2006 (due by 1/31/2007) will notice
a big difference in the form and instructions. The IRS has completely redesigned Form 940 to
be more user-friendly, reducing the burden for more than one million filers.
Many individuals and organizations have asked the IRS to change Form 940. Taxpayers often
struggle to determine which lines to complete and which to skip. In addition, they find it difficult to make computations and to fill in
explanations of exempt payments.
In May 2004, a team led by the IRS Office of Taxpayer Burden Reduction (TBR) began the process
of redesigning Form 940. IRS employment tax experts worked with representatives from other federal and state agencies, gathering input from
internal and external stakeholders to create a plain language form that is logical, easy to
follow, and compatible with optical scanning.
The new Form 940 incorporates the advantages
of Form 940-EZ (discontinued for tax year 2006) into a simplified form for all filers. Highlights include:
• A logical sequence from the taxpayer’s point of view;
• Eight separate parts with visual cues, breaking up the task into smaller steps;
• A new Schedule A for multistate employers or credit reduction situations;
• Check boxes instead of “A,B,C” questions; and
• No more need for handwritten explanations of
exempt payments.
Advance “vision drafts” of Form 940 and Form 940
Schedule A can be viewed on the “Vision Draft Forms” page of IRS.gov at www.irs.gov/businesses/
small/article/0,,id=146224,00.html. Please note that these versions are subject to further revision and should not be used for filing.
The IRS is committed to reducing unnecessary taxpayer burden and welcomes input from tax and payroll professionals, business owners,and the general public on opportunities to make it easier to comply with the tax laws. More information, including a link to Form 13285A, Reducing Tax Burden on America’s Taxpayers, can be found on the TBR page of IRS.gov, www.irs.gov/businesses/small/content/0,,id=146284,00.html.
Form 940 Will Be Much Improved for Tax Year 2006
(Reprinted from the Fall 2006 issue of SSA/IRS Reporter, a Newsletter for Employers.)
The information contained on this site should in no way be considered to be professional advice in the form of either tax, accounting, or legal service or consultation. You should always consult with a professional familiar with your individual circumstances before making any specific decisions related to accounting, tax, or legal matters.
- Search for Payroll Services articles similar to "Form 940".
- Search all articles similar to "Form 940".
- List more Payroll Services articles.
