Filing Your Return(s) and Paying Taxes
IRS e-file

940 E-FILE AND 940 OLF (ON-FILLING)

Under IRS e-file for Business there are two options forelectronically filing Form 940 Employer's Federal Unemployment (FUTA TaxReturn): 940e-file and 940OLF (On-line Filing). Both are similar to the941e-file and 941OLF options. There is no 940TeleFile at this time.

The 940e-file program is an IRS e-file option designed forthe electronic filing of Form 940, by Reporting Agents filing Form 940 returnson behalf of business taxpayers. The 940e-file program requires Reporting Agentsinterested in participating in the program to submit a paper Letter ofApplication (LoA) to the Application Processing Center at the Austin SubmissionProcessing Center in Austin, Texas. After the LoA is processed, the ReportingAgent will receive a Personal Identification Number (PIN) to be used to sign thereturns being filed.

The 940OLF program is an IRS e-file option designed tofacilitate the electronic filing of Form 940, by business taxpayers submittingone or more Form 940 for themselves to IRS using approved Third PartyTransmitters. The 940OLF program requires participants to file an electronic LoA,available in the 940OLF tax preparation software package, through a designatedtransmitter. After the LoA is processed, the business taxpayer will receive aPersonal Identification Number (PIN) to be used to sign the return(s) beingfiled.

The 940e-file and 940OLF programs conduct security checks,send electronic acknowledgements and build records to be processed by currentIRS computer systems. The returns are transmitted nationwide via dial-up phonelines and menu driven software directly to the IRS where they are processed atthe Tennessee Computing Center (TCC) or the Austin Service Center.

The benefits of filing Form 940 electronically are:

Confidence

• Returns processed quickly with few errors (less than 1%).
• Electronic security ensures the confidentiality of taxpayer data.

Speed

• Processing time reduced to one week.
• Acknowledgment records returned within 48 hours.
• No paperwork delays.
• Porto accommodationInformation quickly available to IRS Customer Service sites.

Flexibility

• Electronic signature means less paperwork.
• Accepts balance due, refund, and even balance returns.

IRS Publication 3715 provides the Technical Specificationsfor the 940e-file and 940OLF programs. The specifications for Form 940EZ are notavailable at this time (tax year 2000) but will be developed in the future.Taxpayers who currently file Form 940EZ may want to consider using one of theelectronic filing options described in this document for filing Form940.