TAP S05-045

Revising Form 940, Unemployment Tax Form

Statement of Issue:

Form 940, Employer's Annual Federal Unemployment Tax Form, is unclear and difficult to complete.

Proposal:

The Office of Taxpayer Burden Reduction (OTBR) and TAP worked to revise Form 940, Employer's Annual Federal Unemployment Tax Form, to make it clear and easy to complete. This follows the redesign of Form 941, Employer's Quarterly Federal Tax Return. TAP recommended that the instructions for Form 940 be included with the Form, not separately, to be more accessible. TAP also recommended revising the worksheet on the Form and combining Form 940 and Form 940EZ.

Response Notes: