Filing an unfiled 2014 Form 940 and resolving IRS issues may feel like a task you would rather avoid, but taking action is essential. Form 940, also known as the Employer’s Annual Federal Unemployment (FUTA) Tax Return, is a required filing for many businesses that paid wages in 2014. This form helps the government collect funds for unemployment benefits, which provide temporary assistance to workers who have lost their jobs. If you did not file your 2014 tax return, you still have an obligation to do so, even though more than a decade has passed.

Many business owners assume that old income tax returns or payroll filings “expire” after a certain number of years. While that may be true for some types of taxes, the IRS does not start the statute of limitations until you submit a return. If your 2014 tax return is still missing, the agency can continue to issue notices, assess penalties, and charge daily interest. These extra costs can add up to a significant amount of money over time, leaving you with a much larger balance than the original tax owed. Sometimes, the IRS may even file a substitute return on your behalf, which rarely includes the deductions or credits you could claim.

This guide is designed to help you understand how to bring your unfiled 2014 FUTA return into compliance. We will walk through the steps to prepare, file, and mail the correct 2014 forms; show you how to determine the exact payment you owe; explain potential penalties and relief programs like penalty abatement; and outline payment plans and other options for handling tax debt. By the end, you will have a clear roadmap to address your IRS issues and confidently move forward.

What Is Form 940? 

If you owned a business with employees during the 2014 tax year, you may have been required to file Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return. This form reports and pays the federal unemployment tax, which funds unemployment benefits for workers who lose their jobs. Even though FUTA is a federal program, it works hand in hand with state taxation and revenue departments to support unemployed workers.

Understanding the Employer’s Annual Federal Unemployment (FUTA) Tax Return

• Form 940 is the Employer’s Annual Federal Unemployment (FUTA) Tax Return. It is the form businesses use to report and pay their yearly federal unemployment taxes.
  
  
• The purpose of the FUTA tax is to support unemployment benefits. These funds provide temporary financial assistance to workers who lose their jobs through no fault of their own.
  
  
• The IRS reviews the information on your Form 940 to confirm compliance. By filing, you show that your business has met its federal unemployment tax obligations.
  
  
• Employers must prepare and file this tax return once every year. Filing is required even if you made quarterly payments during the 2014 tax year.

Connection to State Unemployment Taxes

• FUTA tax complements state unemployment programs. Employers usually receive a credit for timely payments to their state revenue department.
  
  
• The IRS and state agencies work together to ensure employers contribute to state and federal unemployment systems.
  
  
• Making deposits by the correct due date can reduce federal tax liability and prevent additional interest or penalties.

Why the 2014 Tax Year Still Matters

• An unfiled 2014 Form 940 has no statute of limitations until you submit it. This means the IRS can still assess the tax debt and issue notices in 2025.
  
  
• Leaving an old tax return unresolved often leads to growing interest, a failure to file penalty, and possible IRS collection actions like liens or levies.
  
  
• Filing your overdue 2014 Form 940 is the only way to bring your account up to date and protect your rights as an employer.

For more details on the official form and its instructions, you can review IRS guidance on Form 940.

Connection to State Unemployment Taxes 

The Federal Unemployment Tax Act (FUTA) works alongside state programs to provide unemployment benefits for workers who lose jobs. When you file your 2014 Form 940, the IRS checks whether you have made the necessary payments to your state’s taxation and revenue department.

Here are the key points you need to know about this connection:

• State unemployment taxes help reduce your federal tax liability. Most employers can claim a credit of up to 5.4% for making timely payments of state unemployment taxes.
  
  
• Timely state deposits matter. Paying by the required due date keeps you eligible for the maximum credit, lowering the FUTA tax return rate from 6% to as little as 0.6%.
  
  
• Federal and state agencies share information. The IRS may verify that you have correctly reported and paid all necessary taxes by comparing your income tax returns with state unemployment forms.

By keeping your account current with federal and state authorities, you can avoid additional interest, prevent costly penalties, and reduce the chance of receiving an IRS notice about past-due filings.

Why the 2014 Tax Year Still Matters 

Even though the 2014 tax year may feel far behind you, leaving an unfiled 2014 Form 940 unresolved in 2025 can still create problems. Unlike some income tax returns, the IRS does not begin the statute of limitations until you submit the missing return. The agency can review, assess, and collect the tax debt anytime.

Here are the main reasons the 2014 filing still matters today:

• No time limit applies until you file: The IRS cannot close the case until the overdue federal income tax return is submitted.
  
  
• Penalties continue to grow: Failing to file a penalty adds 5% of the unpaid tax liability for every month past the due date, up to 25%. Review the IRS penalty rules here: IRS Failure to File Penalty.
  
  
• Interest keeps accruing: Interest compounds daily on unpaid taxes and penalties, increasing the total money you may owe.
  
  
• IRS notices and collection actions remain possible: You may receive updated notices or even face liens or levies on your property or bank account if you have not filed.

Filing your overdue 2014 Form 940 is the first step to resolving these IRS issues and protecting your financial future.

Who Must File Form 940 for 2014 

Not every business needed to file a 2014 Form 940, but many employers still had a responsibility to submit this tax return. Filing the federal income tax return for unemployment taxes is the first step in resolving any IRS issues linked to an unfiled 2014 Form 940. The IRS provides clear rules to help taxpayers determine if they are required to file.

Wage Threshold Test

• You had to file if you paid $1,500 or more in wages in any calendar quarter of 2013 or 2014.
  
  
• The threshold is applied to total earned income, not just FUTA-taxable wages.
  
  
• Even if the business closed later, the overdue return must still be filed to review and update the account.

Employee Count Test

• Filing was required if at least one employee worked part of a day in 20 or more weeks during 2013 or 2014.
  
  
• This applied whether workers were full-time, part-time, or temporary.
  
  
• Owners, partners, and certain family members were not counted. Checking payroll forms helps confirm your obligation.

Common Exemptions

• Nonprofit organizations with 501(c)(3) status are generally exempt but may still need to contact the IRS to confirm.
  
  
• Federal, state, and local government agencies are usually exempt.
  
  
• Federally recognized Native American tribal entities often qualify for exemption as well.

If you believe your business was exempt, it is still essential to follow the correct process and respond promptly to any notice from the IRS.

Step-by-Step Guide to Filing Your 2014 Tax Return 

Filing an unfiled 2014 Form 940 may feel like an enormous task, but breaking it into smaller steps makes the process more manageable. The IRS requires that every employer that met the filing requirements for the 2014 tax year must still prepare, complete, and submit the federal unemployment tax return. Below is a step-by-step guide to help you review your records, gather the correct forms, and devise a solution for any tax debt you still owe.

Step 1 – Gather Required Documentation 

Before you start, collect all the records you need to calculate and prepare your tax return accurately. Missing paperwork can delay the process and may cause errors. Important documents include:

• Employee wage records for 2014: These records show the total earned wages you paid each employee during the year.
  
  
• State unemployment tax forms and payment history: These records confirm whether you made required payments to your state revenue department and whether you qualify for credits against your FUTA tax return.
  
  
• Bank account statements and proof of past deposits:  These documents help you match payments you already sent to the IRS.
  
  
• Employer Identification Number (EIN): This number is necessary to identify your business on all IRS forms and ensure your account is credited correctly.

Keeping these items in one place makes it easier to prepare an accurate filing. If you cannot find certain records, you may need to contact your bank or state taxation office for updated copies.

Step 2 – Obtain the Correct 2014 Form and Instructions 

To file your 2014 federal income tax return for unemployment taxes, you must use the 2014 version of Form 940. The IRS requires that prior-year forms be used for overdue filings.

• You can access the 2014 Form 940 and instructions directly through the official IRS site.
  
  
• Do not use the current year’s forms for an old return. The IRS may reject your filing if the wrong version is submitted.
  
  
• Review the 2014 instructions carefully. They explain how to calculate tax liability, apply credits for state unemployment tax payments, and confirm the correct mailing address for your completed return.

Reading and reviewing the official instructions will help you avoid errors that might result in an IRS notice or delayed processing.

Step 3 – Calculate Your 2014 FUTA Tax Return Liability 

Once you have your records, the next step is determining the amount of FUTA tax you owe for the 2014 tax year. The calculation is straightforward, but accuracy is critical to avoid IRS issues.

• Start with total wages paid:  Add up all the salaries earned by each employee in 2014. Only the first $7,000 of wages per worker is subject to FUTA tax.
  
  
• Apply the tax rate: For 2014, the FUTA rate was 6% on the first $7,000 of wages.
  
  
• Subtract state unemployment tax credits: Most taxpayers could claim up to a 5.4% credit if state payments were made on time.
  
  
• Factor in previous deposits: Subtract the amounts of any quarterly payments you have already made to avoid overpaying.
  
  
• Confirm the exact liability: Double-check your calculations against the 2014 IRS guidance to ensure the return is accurate.

If you are unsure how to calculate correctly, contact a tax professional for help. Getting the numbers right ensures your return is accurate and avoids additional penalties or interest later.

Step 4 – Complete and Sign the Tax Return 

After confirming your tax calculation, you must complete the 2014 Form 940. The IRS forms are divided into sections that ask for details about your business and its tax liability.

• Part 1 Employer information: Provide your EIN, business name, address, and other identifying details.
  
  
• Parts 2-4 (Tax computation): Enter total wages, subtract exempt payments, calculate your FUTA tax, and apply any credits for state taxation and revenue department contributions.
  
  
• Part 5 Quarterly liability:  List the payments made each quarter to show how your account was handled during the year.
  
  
• Part 6 Credit reduction: Check if your state was a credit reduction state for 2014. This affects the final amount you owe.
  
  
• Part 7 Signature: Sign, date, and include your title. If someone else is authorized to prepare and sign, ensure they do so.

Please review each entry before submitting the return. Errors may lead to IRS notices or slow the refund process if you are due money back.

Step 5 – Submit the Form and Make Payments 

You must mail the paper return for an unfiled 2014 Form 940 because electronic filing is no longer enabled for past years. The correct mailing address depends on your state and whether you are including a payment.

• Find the correct mailing address: Use the 2014 IRS instructions to see where to send your return.
  
  
• Choose a payment method: You can pay taxes through IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or mail a check or money order from your bank account.
  
  
• Consider a payment plan: If you cannot pay the full balance, you may apply for a short-term or long-term installment agreement. These arrangements allow taxpayers to make monthly payments based on their financial situation.
  
  
• Keep proof of mailing: Always use certified mail or another trackable method, and keep a copy of your forms for your records.

Once the IRS receives and reviews your 2014 tax return, it will send an updated notice confirming your account balance. Resolving an overdue return is the first step in addressing penalties, interest, and other potential IRS issues.

Resolution Options for IRS Tax Debt 

If you still have an unfiled 2014 Form 940 and owe taxes, the IRS provides several programs to address your tax debt. Even if you have already received notice, taking steps now is essential. Acting before more penalties and daily interest build after the original due date can save you time and money. Here are the main options to learn about and follow.

Full Payment Option

• You can pay your 2014 FUTA tax return balance in one lump sum.
  
  
• Payments may be made online through IRS Direct Pay or EFTPS, or by mail with a check from your bank account.
  
  
• Paying in full closes your account quickly and provides peace of mind when your records are reviewed at home.

Installment Agreement (Payment Plan)

• If this is your first time requesting a payment plan, a short-term option allows up to 120 days with no setup fee.
  
  
• Long-term plans require monthly payments and may involve setup fees or financial reviews.
  
  
• You can apply online or visit an IRS office to speak with a person directly.

Offer in Compromise and CNC Status

• An Offer in Compromise may settle a federal income tax balance for less than the total you owe, based on your income and assets.
  
  
• You may request Currently Not Collectible (CNC) status if you cannot pay basic living expenses. This temporarily pauses collection, though interest and penalties continue until the return is updated.
  
  
• Always check official IRS guidance on secure pages marked by the locked padlock icon, and confirm the “page last reviewed” date to ensure the information is current.

Penalty Abatement Options for the First Time 

An unfiled 2014 Form 940 can lead to ongoing IRS issues. The balance often exceeds the original tax debt because of penalties and daily interest added after the due date. Even if you already received notice from the IRS, you may still have options for relief. By learning how these programs work, you can determine how to follow the proper process and protect your account.

Federal Income Tax Return and Employment Tax Penalties

• A federal income tax return is separate from a FUTA tax return, but both can bring serious consequences if filed late.
  
  
• For 2014, the penalty for failing to file was 5% of the unpaid income tax each month after the due date, up to 25%.

Reasonable Cause Relief

• The IRS may remove penalties if events like illness, natural disasters, or incorrect guidance prevented timely filing or payment.
  
  
• To request relief, you must prepare and submit Form 843 with proof of changes in circumstances. You may need to visit an office or send an email if more questions arise.

First Time Abate Program

• If this is your first time facing a penalty and all prior returns and payments are current, you may qualify for a one-time waiver.
  
  
• This option helps you start fresh and manage a reasonable payment plan without the weight of unnecessary charges at home.

Always rely on official IRS guidance and confirm the “page last reviewed or updated” date on the secure site marked by a locked padlock icon.

Case Studies: Real-Life 2014 Form 940 Tax Return Situations 

Real-world situations show how the IRS responds when a business has an unfiled 2014 Form 940. These examples highlight common challenges and how taxpayers can resolve IRS issues.

Situation 1 – Cash Flow Struggles

One business faced a slow year in 2014 and used its limited bank account funds to cover wages instead of making FUTA payments. Years later, the owners received notice of an unfiled tax return and rising debt. They reduced the amount owed by filing the overdue return, requesting penalty abatement through the First Time Abate program, and starting a payment plan. They began consistent payments to bring their account up to date.

Situation 2 – Business Closure and Errors

Another company closed its office in 2020 but later found it had missed several income tax returns, including the 2014 FUTA tax return. The debt remained because the statute of limitations does not begin until a return is submitted. After filing the missing forms and explaining changes in finances, the business qualified for Currently Not Collectible (CNC) status. Though interest and penalties continued, collections were temporarily paused, giving the company time to prepare for the next steps. These examples show that even past returns can be resolved if you follow the proper process and contact the IRS.

Prevention Strategies for Future Compliance 

After you file your unfiled 2014 Form 940 and bring your account current, shift your focus to preventing future IRS issues. Staying on time with each tax return, income tax filing, and payment by the correct due date protects your home and avoids new penalties or interest.

• Keep detailed wage, deduction, and income tax records for every employee.
  
  
• Store files safely at home or in a digital account; when using the IRS site online, look for the locked padlock icon.
  
  
• Follow all deadline changes, check the “page last reviewed” or updated date, and visit an IRS office or email for help if you have a question.

Frequently Asked Questions (FAQs) 

What is Form 940, and why is it important for employers?

Form 940, the Employer’s Annual Federal Unemployment (FUTA) Tax Return, reports yearly federal unemployment taxes. These funds support workers who lose their jobs through no fault of their own. If you paid enough income to employees in 2013 or 2014, you must file a 2014 tax return. Filing ensures your account is accurate, keeps you in compliance with the IRS, and prevents unnecessary penalties or interest from accumulating after the due date.

Can I still file my unfiled 2014 Form 940 in 2025?

Yes, even though the 2014 tax return is long overdue, the IRS still requires you to submit it. The statute of limitations does not begin until the return is filed, meaning the obligation remains open until you take action. You must prepare and mail the 2014 version of Form 940, since prior-year forms cannot be filed online. Filing now can stop additional charges and reduce future IRS issues.

What if I cannot pay the full amount I owe for 2014?

You should still file the return even if you cannot pay everything by the due date. Filing reduces the larger failure-to-file penalty. If you qualify, the IRS may let you set up a payment plan or apply for an Offer in Compromise. If finances are tight, requesting Currently Not Collectible (CNC) status may temporarily pause collection until your situation is reviewed.

How does the IRS calculate penalties and interest on late filings?

The IRS applies several penalties when a tax return is late. Failing to file a penalty is generally 5% of the unpaid income tax for each month after the due date, up to 25%. Failing to pay a penalty adds 0.5% per month, also capped at 25%. If both apply, the penalty for failure to file is reduced. In addition, interest compounds daily on unpaid taxes and penalties, increasing the total money you may ultimately owe.

Can the IRS place a lien or levy for unpaid FUTA taxes?

If you do not make payments and your unfiled 2014 Form 940 remains unresolved, the IRS may issue liens or levies. A lien is a legal claim against your property, while a levy allows the agency to take money directly from a bank account or other assets. Staying in communication, setting up a payment plan, or requesting penalty abatement are essential to avoid harsh collection actions and protect your financial home.