Is it mandatory to provide an explanation to file Form 940 Amendment?

Last modified 4/12/2023 5:36:35 AM EST

Yes, you need to provide an explanation when you file a Form 940 amendment. Form 940-X, Adjusted Employer's Annual Federal Unemployment (FUTA) Tax Return, which is used to file the amendment, requires you to provide a detailed explanation of the changes you are making to the original Form 940.

The explanation should include the reason for the changes and any supporting documentation that backs up your claim. For example, if you made an error when reporting wages and need to correct it, you would need to provide documentation such as payroll records or a W-2 form to support the change.

Providing a clear and detailed explanation of the changes you are making will help ensure that the IRS understands why you are filing the amendment and can process it quickly and accurately. It's always a good idea to consult with a tax professional or the IRS if you have questions or need assistance with filing a Form 940 amendment.