File Form 940 with the IRS, not your state

Form 940 goes to the Internal Revenue Service (IRS) in Iowa, regardless of which states you operate in. You do not file it with your state unemployment office. The IRS processes federal unemployment tax (FUTA) separately from state unemployment tax, and the two have different filing addresses and deadlines.

Your state unemployment tax return — usually Form UC-2 or a state-specific equivalent — goes to your state's labor department or revenue office. That is a separate filing. Many employers confuse the two because they happen in the same tax year, but they are distinct documents sent to different agencies.

The payment for Form 940 also goes to the IRS, either electronically or by check. If you owe state unemployment tax, that payment goes to your state separately.

Key Takeaways

  • Form 940 and payment go to the IRS in Iowa; your state unemployment tax return and payment go to your state labor or revenue office.
  • The IRS address for Form 940 is Department of the Treasury, Internal Revenue Service, Attn: Form 940, Iowa City, IA 52240.
  • You can pay electronically through the IRS Electronic Federal Tax Payment System (EFTPS) or by check mailed with Form 940.
  • Form 940 is due January 31 of the year following the tax year; if you deposited all FUTA tax on time, you have until February 10 to file.
  • If you miss the deadline, file as soon as you can and include a check for the full amount owed plus any penalties the IRS calculates.

Mailing Form 940 by check to the IRS

If you are paying by check, mail Form 940 and your payment together to the IRS address in Iowa. Write your employer identification number (EIN) on the check, and include a cover letter stating that the check is payment for Form 940 for the tax year you are filing.

The mailing address is:

Department of the Treasury Internal Revenue Service Attn: Form 940 Iowa City, IA 52240

Mail your Form 940 and check together, not separately. The IRS matches payments to returns by EIN and tax year, so sending them at the same time reduces the chance of a delay or mismatch. Use certified mail or a tracked service if you want proof of delivery.

Processing time for mailed returns is typically four to six weeks. During tax season (January through April), processing can take longer. If you need confirmation that the IRS received your return, you can call the IRS at 800-829-1040 after six weeks and provide your EIN and tax year.

Paying electronically through EFTPS

EFTPS (Electronic Federal Tax Payment System) is the IRS's online payment platform. You can schedule a payment for any date, and the IRS withdraws the money directly from your bank account. This method is faster than mailing a check and gives you immediate confirmation of payment.

To use EFTPS, you must enroll first. Go to www.eftps.gov and select "Enroll Now." You will need your EIN, Social Security number (if you are a sole proprietor), and bank account information. Enrollment takes about five minutes, and you can make your first payment the same day.

When you schedule a payment through EFTPS, select "Form 940" as the tax type and enter the amount you owe. You can schedule the payment for the same day or up to 120 days in advance. The IRS recommends scheduling payment by January 31 (or February 10 if you deposited all FUTA tax on time) to avoid penalties.

After you pay through EFTPS, file Form 940 separately by mail or through a tax professional. EFTPS processes the payment only; it does not file the return itself. Keep your EFTPS confirmation number for your records.

Filing Form 940 electronically through a tax professional or software

If you use payroll software, accounting software, or a tax professional, they can file Form 940 electronically on your behalf. Electronic filing is faster than mailing and reduces errors because the software validates the form before sending it to the IRS.

When you file electronically, you still need to pay separately. Most tax professionals will ask you to pay through EFTPS or provide a check. Some payroll services (like ADP or Gusto) allow you to pay directly through their platform, which then routes the payment to the IRS.

Electronic filing typically takes one to two weeks for the IRS to acknowledge receipt. You will receive a confirmation number that you should keep for your records. If there are errors, the IRS will contact you by mail, usually within 30 days.

What to do if you file late or owe penalties

If you miss the January 31 deadline (or February 10 if you deposited all FUTA tax on time), file Form 940 as soon as you can. The IRS charges a failure-to-file penalty of 5% per month (up to 25%) and a failure-to-pay penalty of 0.5% per month (up to 25%) on any unpaid tax.

When you file late, include a check for the full amount owed: the original tax, plus the penalties the IRS will calculate. You do not need to calculate the penalties yourself; the IRS will do that and send you a bill if the amount you paid is short. It is better to overpay slightly than to underpay and receive a follow-up notice.

If you cannot pay the full amount, you can request a payment plan through the IRS. Call 800-829-1040 or set up an installment agreement online at www.irs.gov. The IRS will continue to charge interest and penalties while you pay, but a payment plan stops the failure-to-pay penalty from growing.

Tracking your Form 940 after filing

If you filed by mail, you can check the status of your return by calling the IRS at 800-829-1040 after six weeks. Have your EIN and tax year ready. The IRS will tell you whether they received your return and whether any issues have been flagged.

If you filed electronically or through a tax professional, you will receive a confirmation number. Keep this number and use it to track your return. The IRS does not send a separate acknowledgment letter for Form 940; the confirmation number is your proof of filing.

If you paid through EFTPS, log back into your account to see the status of your payment. EFTPS shows whether the payment was processed and the date it was withdrawn from your account. This is separate from the filing status, so confirm both the payment and the return were received.

State unemployment tax filing is separate

After you file Form 940 with the IRS, you must also file your state unemployment tax return with your state's labor or revenue office. Each state has its own form, deadline, and payment address. Some states call it Form UC-2; others use different names.

State deadlines vary. Most states require filing by January 31 or February 28, but some have different dates. Check your state's labor department website or your state unemployment tax notice to confirm the deadline for your state.

State unemployment tax payments go to your state, not the IRS. Some states allow electronic payment through their website; others require a check mailed to a state address. Do not send your state payment to the IRS address in Iowa — it will be returned or misapplied.

Frequently Asked Questions

Can I file Form 940 and pay at the same time through the IRS website?

No. The IRS does not have a single online portal where you file Form 940 and pay together. You must file by mail or through a tax professional, and pay separately through EFTPS, by check, or through your payroll service. This separation is intentional — it allows the IRS to process payments and returns on different schedules.

What if I file Form 940 but forget to include my payment?

The IRS will process your return and send you a bill for the amount owed, plus penalties and interest. File the return anyway; do not wait until you have the money. Once the IRS receives your return, they will calculate exactly what you owe and give you time to pay. Penalties are smaller if you file on time but pay late than if you file late.

Do I need to file Form 940 if I had no employees?

No. Form 940 is only required if you paid wages to employees during the year. If you are a sole proprietor with no employees, or if you only paid yourself, you do not file Form 940. Check your state's rules separately — some states require a state unemployment tax return even if you had no employees.

Can I file Form 940 and my state unemployment tax return at the same time?

No. Form 940 goes to the IRS; your state return goes to your state. They have different addresses, deadlines, and payment methods. File both, but send them to the correct agencies. Sending your state return to the IRS address will delay processing.

What happens if the IRS loses my Form 940 in the mail?

If you mailed Form 940 by certified mail and the IRS does not acknowledge receipt after six weeks, call 800-829-1040 with your tracking number. The IRS will search for your return. If it was lost, you can file a replacement return. Keep your certified mail receipt and EFTPS confirmation (if you paid electronically) as proof you filed on time.