Page 201 - BusinessStructures & Forms

10:54 - 29-Nov-2022
Page 13 of 15
Fileid: … tions/i940/2022/a/xml/cycle05/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
agreement online. You can apply for an installment of lines 16a through 16c from line 17 and enter the result
agreement online if: on line 16d.
• You can't pay the full amount shown on line 14,
• The total amount you owe is $25,000 or less, and Example
• You can pay the liability in full in 24 months. You paid wages on March 28 and your FUTA tax on those wages was
To apply using the Online Payment Agreement $200. You weren't required to make a deposit for the 1st quarter
Application, go to IRS.gov/OPA. because your accumulated FUTA tax was $500 or less. You paid
Under an installment agreement, you can pay what you additional wages on June 28 and your FUTA tax on those wages was
$400. Because your accumulated FUTA tax for the 1st and 2nd
owe in monthly installments. There are certain conditions quarters exceeded $500, you were required to make a deposit of
you must meet to enter into and maintain an installment $600 by July 31.
agreement, such as paying the liability within 24 months,
and making all required deposits and timely filing tax You would enter $200 on line 16a because your liability for the 1
st
returns during the length of the agreement. quarter is $200. You would also enter $400 on line 16b to show your
If your installment agreement is accepted, you will be 2 quarter liability.
nd
charged a fee and you will be subject to penalties and
interest on the amount of tax not paid by the due date of
the return. In years when there are credit reduction states,
15. Overpayment TIP you must include liabilities owed for credit
reduction with your fourth quarter deposit. You
If line 13 is more than line 12, enter the difference on may deposit the anticipated extra liability throughout the
line 15. year, but it isn't due until the due date for the deposit for
the fourth quarter, and the associated liability should be
line 13 recorded as being incurred in the fourth quarter.
– line 12 17. Total Tax Liability for the Year
line 15
Your total tax liability for the year must equal line 12. Copy
the amount from line 12 onto line 17.

If you deposited more than the FUTA tax due for the Part 6: May We Speak With Your
year, you may choose to have us either: Third-Party Designee?
• Apply the refund to your next return, or
• Send you a refund. If you want to allow an employee, your paid tax preparer,
Check the appropriate box on line 15 to tell us which or another person to discuss your Form 940 with the IRS,
option you select. Check only one box on line 15. If you check the “Yes” box. Then, enter the name and phone
don’t check either box or if you check both boxes, we will number of the person you choose as your designee. Be
generally apply the overpayment to your next return. sure to give us the specific name of a person—not the
Regardless of any box you check or don’t check, we may name of the firm that prepared your tax return.
apply your overpayment to any past due tax account that Have your designee select a five-digit personal
is shown in our records under your EIN. identification number (PIN) that they must use as
If line 15 is less than $1, we will send you a refund or identification when talking to the IRS about your form.
apply it to your next return only if you ask for it in writing. By checking “Yes,” you authorize us to talk to your
Part 5: Report Your FUTA Tax designee about any questions that we may have while we
Liability by Quarter Only if Line 12 Is process your return. Your authorization applies only to this
form, for this year; it doesn't apply to other forms or other
More Than $500 tax years.

Fill out Part 5 only if line 12 is more than $500. If line 12 is You’re authorizing your designee to:
$500 or less, leave Part 5 blank and go to Part 6. • Give us any information that is missing from your return,
• Ask us for information about processing your return,
16. Report the Amount of Your FUTA Tax and
Liability for Each Quarter • Respond to certain IRS notices that you have shared
Enter the amount of your FUTA tax liability for each with your designee about math errors and in preparing
your return. We won't send notices to your designee.
quarter on lines 16a–d. Don't enter the amount you
deposited. If you had no liability for a quarter, leave the You’re not authorizing your designee to:
line blank. • Receive any refund check,
16a. 1 quarter (January 1 to March 31) • Bind you to anything (including additional tax liability),
st
16b. 2 quarter (April 1 to June 30) or
nd
16c. 3 quarter (July 1 to September 30) • Otherwise represent you before the IRS.
rd
16d. 4 quarter (October 1 to December 31) The authorization will automatically expire 1 year after
th
To figure your FUTA tax liability for the fourth quarter, the due date for filing your Form 940 (regardless of
complete Form 940 through line 12. Then, copy the extensions). If you or your designee want to end the
amount from line 12 onto line 17. Lastly, subtract the sum authorization before it expires, write to the IRS office for
Instructions for Form 940 (2022) -13-