Send your Form 940 to the IRS address for your state, not to your employer or your accountant

Form 940 is the federal unemployment tax return that employers file once a year. The IRS has a different mailing address for each state, and using the wrong one delays processing. You can also file electronically through approved software or a tax professional, which is faster and reduces errors.

The address you use depends on whether your state has a FUTA (Federal Unemployment Tax Act) credit reduction. Most states do not. If you are unsure, the IRS website lists which states have credit reductions, or you can call the IRS at 800-829-1040 and give them your state name.

Key Takeaways

  • Form 940 goes to an IRS address that varies by state, not to your employer or accountant's office.
  • You can mail a paper form, file electronically through IRS-approved software, or have a tax professional file on your behalf.
  • The filing important date is January 31 of the year after the tax year, though you can request an extension until February 10.
  • Electronic filing is faster and the IRS processes it within two to three weeks, while paper forms take four to six weeks.
  • If you file late, penalties start at 5 percent of the unpaid tax and increase the longer you wait.

Mailing addresses by state and credit reduction status

The IRS publishes the correct mailing address for Form 940 in the instructions that come with the form itself, updated each year. The address depends on whether your state has a credit reduction. States with credit reductions include Illinois, New Jersey, New York, and a few others that have borrowed from the federal unemployment fund.

For states without a credit reduction, the address is typically a regional IRS service center. For example, if you are in California, you mail to the Fresno, California address. If you are in Texas, you mail to the Austin address. The Form 940 instructions list the full address for your state with ZIP code.

Do not guess or use an address from a previous year. The IRS changes addresses occasionally. Open the current year's Form 940 instructions (available free on IRS.gov) and look for the section titled "Where to File" or "Mailing Address."

Filing electronically instead of mailing

Electronic filing is faster and more reliable than mailing. The IRS accepts Form 940 through FIRE (Filing Information Returns Electronically) if you file more than 250 forms per year, or through IRS e-Services if you file fewer. Most small employers use tax software or a tax professional instead, which handles the electronic submission for them.

Common tax software that accepts Form 940 includes TurboTax, H&R Block, and TaxAct. These programs guide you through the form, calculate the tax, and submit it electronically to the IRS. Processing time is usually two to three weeks, compared to four to six weeks for mailed paper forms.

If you use a tax professional or accountant, they will file electronically on your behalf. You do not need to mail anything yourself. Ask your accountant whether they charge a separate fee for Form 940 filing or include it in your payroll service.

important date and extensions

Form 940 is due on January 31 of the year following the tax year. For example, your 2023 Form 940 is due January 31, 2024. If you file electronically, the important date is the same. If you mail a paper form, it must be postmarked by January 31.

You can request an automatic extension until February 10 by filing Form 8109-B or by requesting it through your tax software. The extension gives you 10 extra days but does not extend the important date to pay any tax you owe. If you owe federal unemployment tax, it is due on January 31 regardless of whether you file the form late.

What happens if you file late

The IRS charges a failure-to-file penalty if Form 940 is not received by the important date. The penalty is 5 percent of the unpaid tax for each month or part of a month that the form is late, up to 25 percent. If the form is more than 60 days late, the minimum penalty is the smaller of $435 or 100 percent of the unpaid tax.

There is also a failure-to-pay penalty of 0.5 percent per month if you owe tax and do not pay by January 31. These penalties stack, so filing and paying late costs more than filing late alone. If you realize you will miss the important date, file as soon as you can and pay any tax owed when ready to reduce the penalty.

Common mistakes when mailing Form 940

The most common mistake is using an outdated address from a prior year or from a website that has not been updated. Always check the current year's Form 940 instructions. The second mistake is mailing to your state's unemployment office instead of the IRS. Your state does not process Form 940—only the IRS does.

A third mistake is not signing the form or not including the required schedules. Form 940 requires the signature of an officer of the company, usually the owner or a manager. If you have employees in more than one state, you must also file Schedule H with Form 940 to report tax by state.

If you mail the form and are unsure whether the IRS received it, you can call 800-829-1040 and provide your employer identification number (EIN). The IRS can confirm receipt within a few weeks of mailing.

Frequently Asked Questions

Can I mail Form 940 to my accountant's office instead of the IRS?

No. Form 940 must go directly to the IRS at the address listed in the form instructions. If your accountant files for you, they will mail it to the IRS or file it electronically on your behalf. You do not send it to them for them to forward.

What if I file Form 940 but forget to include Schedule H?

The IRS will contact you and ask you to file Schedule H. This delays processing but does not result in a penalty if you file it within 30 days of the IRS request. It is better to include it with your original Form 940 to avoid the delay.

Do I need to mail Form 940 if I had no employees during the year?

No. If you had no employees and paid no wages, you do not file Form 940. However, if you had even one employee for any part of the year, you must file, even if you paid them very little.

How do I know if my mailed Form 940 was received by the IRS?

Call the IRS at 800-829-1040 with your employer identification number (EIN). They can confirm receipt within a few weeks of mailing. If you file electronically, you receive a confirmation number when ready.

Can I file Form 940 online through IRS.gov?

The IRS does not have a direct online filing portal for Form 940 on their website. You must use IRS-approved tax software, FIRE if you file 250+ forms per year, or a tax professional. Tax software is the easiest option for most employers.