Form 940 reports federal unemployment tax, ensuring funding for unemployment compensation nationwide. Employers must file annually to maintain compliance. An unfiled 2015 Form 940 remains a legal obligation despite the passing years. Filing now can reduce penalties and demonstrate good faith.

The IRS imposes steep penalties for a 2015 Form 940 that remains unfiled monthly. Interest accrues daily on unpaid taxes until full payment. If compliance is delayed, employers risk enforced collection actions, including levies or liens. Timely filing stops additional costs and protects business stability.

This guide offers a step-by-step approach to filing the unfiled 2015 Form 940. It explains required forms, calculations, and submission procedures. You will also learn resolution strategies for penalties, interest, and enforcement risks. Following this roadmap ensures compliance while reducing financial and legal exposure.

Understanding Form 940 and FUTA Tax in the Federal Unemployment Tax System

Form 940 is a federal unemployment tax form that employers must file annually. It ensures compliance with the Internal Revenue Service by reporting income and wages subject to unemployment tax. Businesses that fail to file an unfiled 2015 Form 940 still owe payment, penalties, and interest. Employers must understand their role to avoid errors and comply with federal law.

What Form 940 Is and Why It Matters

• Purpose of the Tax Form: Form 940 is the employer’s annual tax return for the federal unemployment tax.
  
  
• Required by Law: Employers must file a report of wages and unemployment tax owed for employed workers during the year.
  
  
• Connection to Compliance: Filing ensures the IRS records are correct, reviewed, and updated for proper tax treatment.
  
  
• Example of Impact: An unfiled 2015 Form 940 can trigger penalties, add interest, and increase the balance owed.

Who Must File Form 940

• Small Businesses: Employers paying wages of $1,500 or more in a quarter must file this required tax form.
  
  
• Household Employers: Individuals who employ domestic workers may also be subject to filing criteria.
  
  
• Agricultural Employers: Businesses paying $20,000 or more in wages or employing ten workers must complete Form 940.
  
  
• Corporations and Partnerships: All entities with employees must prepare, file, and mail returns by the correct due date.

How FUTA and SUTA Taxes Work Together

• Federal and State Balance: FUTA tax return requirements coordinate with state unemployment tax to avoid duplicate charges.
  
  
• Available Credits: Employers may receive credits for timely state deposits, reducing federal unemployment tax owed.
  
  
• Deduction Coordination: Businesses must consider state deductions when calculating federal unemployment tax on Form 940.
  
  
• Example of Compliance: Employers filing state and federal unemployment taxes maintain compliance and prevent IRS penalties.

Understanding Form 940 and its connection to federal unemployment tax helps employers remain compliant. Filing correctly and on time protects businesses from penalties, unpaid taxes, and enforcement actions.

Filing an Unfiled 2015 Form 940 Tax Return

Filing an unfiled 2015 Form 940 tax return requires careful preparation to meet IRS compliance standards. Employers must gather the correct forms, review available credits, and ensure the return is filed accurately. The Internal Revenue Service charges penalties and interest on unpaid taxes, so filing now reduces risks. Below are the essential steps every employer must follow.

• Obtain Correct Tax Form: Employers must use the official 2015 Form 940, available from the IRS's prior years' forms section.
  
  
• Collect Required Records: Gather wage reports, employee data, state unemployment tax deposits, and prior tax return information for accuracy.
  
  
• Prepare FUTA Calculation: Calculate federal unemployment tax owed on the first $7,000 of each employee’s annual wages, applying available credits.
  
  
• Apply Credits and Deductions: Employers may reduce the balance by adding state unemployment tax credits and reviewing lawful deductions.
  
  
• Complete the Form Correctly: Employers must report income, wages, and unemployment tax owed, attaching required schedules if subject to credit reduction.
  
  
• Ensure Compliance with Deadlines: Employers must file by the correct due date, even if partial month wages or late payments occurred.
  
  
• Submit to the IRS: Employers must mail the completed tax return to the correct IRS address listed in the 2015 instructions.
  
  
• Keep Records Reviewed: Employers should keep all forms, payments, and explanation notes in case the IRS requests them or penalties are charged.

By filing an unfiled 2015 Form 940 tax return promptly, employers reduce penalties, protect compliance, and correct prior years' reporting.

IRS Penalties and Interest for Unfiled 2015 Form 940 and Unpaid Taxes

When an employer leaves an unfiled 2015 Form 940 unresolved, the IRS assesses penalties and interest that increase over time. These charges apply to unpaid taxes and can seriously affect businesses, individuals, and corporations that fail to comply. Understanding how each penalty works helps employers prepare, avoid errors, and reduce financial exposure. The IRS applies the main penalties and interest rules listed below.

• Failure-to-File Penalty: The IRS charges 5 percent of the unpaid tax for each month or partial month the return is late.
  
  
• Maximum Penalty Limit: This failure-to-file penalty reaches 25 percent of the balance owed on the tax return.
  
  
• Failure-to-Deposit Penalty: Employers that miss timely FUTA deposits face a tiered penalty system ranging from 2 percent to 15 percent.
  
  
• Deposit Penalty Example: The Internal Revenue Service charges a 10 percent penalty for a payment deposited 20 days late.
  
  
• Daily Interest Charges: The IRS adds compounded interest to unpaid taxes, increasing the balance owed until the payment is complete.
  
  
• Interest on Prior Years: Unpaid balances from prior years continue to accrue interest until the IRS receives the required payment.
  
  
• Trust Fund Recovery Penalty: Responsible individuals may be personally liable when employment taxes are unpaid or willfully not deposited.
  
  
• Individual Liability Example: A corporate officer may owe the Trust Fund Recovery Penalty if workers’ unemployment tax deposits are ignored.

Employers can reduce penalties and interest by filing promptly, paying required deposits, and contacting the IRS for resolution options.

Resolution Options for Past-Due Form 940 Tax Return

When a business or employer owes unpaid federal unemployment tax on a past-due Form 940, the IRS provides resolution paths. These options reduce penalties, manage payments, and protect compliance for individuals, corporations, and small businesses. Employers must choose the correct method based on income, balance owed, and eligibility criteria. Below are the main resolution strategies for unfiled 2015 Form 940 or other prior years.

Payment Plan Options with Form 9465

• Guaranteed Agreement: Employers under $10,000 may file Form 9465 and qualify automatically if compliance requirements are met.
  
  
• Streamlined Agreement: Businesses with balances under $50,000 may receive approval with reduced documentation and a set payment schedule.
  
  
• Partial Payment Agreement: The IRS allows reduced monthly payments when employers cannot pay the full balance of unpaid taxes.
  
  
• Fees: Payment plan setup fees vary, but direct debit plans cost less and help avoid additional penalties or interest.

Penalty Abatement Options with Form 843

• First-Time Abatement: Employers who filed all required returns in prior years may receive relief from penalties once.
  
  
• Reasonable Cause Abatement: The IRS may reduce penalties if events such as natural disasters, serious illness, or lost records prevented filing.
  
  
• Required Documentation: Employers must attach explanations and supporting forms when submitting Form 843 for penalty relief.
  
  
• Review by IRS: Each request is reviewed, and approval depends on proof that the employer acted responsibly under the law.

Settlement Through Offer in Compromise

• Doubt about Liability: Employers may qualify if there is a genuine dispute about whether the unemployment tax is owed.
  
  
• Doubt about Collectibility: If a business cannot pay the balance in full, the IRS may settle for a lower payment.
  
  
• Effective Tax Administration: Employers may request a settlement when paying in full would cause financial hardship or unfair results.
  
  
• Application Process: Employers must complete Form 656, submit required payments, and provide detailed financial statements to the IRS.

Currently Not Collectible Status for Financial Hardship Relief

• Temporary Suspension: The IRS may set an account to Currently Not Collectible status if payment would prevent covering basic living expenses.
  
  
• Financial Disclosure: Employers must file Form 433-F to show income, expenses, and assets that support their hardship claim.
  
  
• IRS Notification: The IRS will notify employers when the account is considered uncollectible, though interest and penalties still accrue.
  
  
• Periodic Review: Accounts in CNC status are reviewed regularly to determine if the employer’s financial situation has improved.

Employers who owe unpaid taxes on a past-due Form 940 can resolve balances by choosing the correct IRS-approved option. Taking timely action helps businesses regain compliance, reduce penalties, and protect against enforced collection.

Examples of Unfiled 2015 Form 940

Real-world cases show how businesses and individuals resolve problems with an unfiled 2015 Form 940. These examples highlight the IRS process, available relief, and potential outcomes for employers with unpaid taxes. Each scenario explains actions taken, payments owed, and resolutions achieved. Below are three case studies that demonstrate practical solutions to compliance issues.

Small Business Owner Who Missed Filing and Qualified for Abatement

• Situation: A restaurant owner employed several workers but failed to file the 2015 Form 940 tax return on time.
  
  
• Problem: The IRS assessed penalties and interest, increasing the balance owed for unemployment tax and late returns.
  
  
• Resolution: The employer prepared the complete tax form, filed it late, and requested penalty relief using Form 843.
  
  
• Outcome: The IRS granted first-time penalty abatement, and the employer reduced charges while restoring compliance.

Construction Company with Deposit Issues and Installment Agreement

• Situation: A construction company filed Form 940 promptly but failed to make the required federal unemployment tax deposits.
  
  
• Problem: The business owed penalties for partial-month late deposits and accrued interest on unpaid balances.
  
  
• Resolution: The company filed Form 9465 to set up a streamlined installment agreement for the required payment.
  
  
• Outcome: The IRS approved the plan, and the employer reduced the risk of further enforcement by making timely payments.

Failed Corporation Facing TFRP and Resolving Through an Offer in Compromise

• Situation: A corporation closed operations but left unpaid taxes from Form 940 and other employment tax forms.
  
  
• Problem: The IRS assessed the Trust Fund Recovery Penalty against the corporation’s responsible officer.
  
  
• Resolution: The officer filed Form 656 to request an Offer in Compromise, citing financial hardship and inability to pay.
  
  
• Outcome: The IRS accepted a reduced payment, and the individual resolved liability while meeting compliance requirements.

These examples show that even late or unfiled 2015 Form 940 cases can be corrected through abatement, installment agreements, or settlement. Employers who act promptly and contact the IRS or a CPA often achieve reduced penalties and restored compliance.

Best Practices to Stay Compliant with Form 940 Due Date

Employers must follow specific practices to comply with the Form 940 due date. Proper filing, accurate records, and timely responses protect businesses from IRS penalties and unpaid balances. These steps help employers maintain compliance with federal unemployment tax law and avoid interest on late returns. Below are the best practices to reduce risk and improve accuracy.

File Form 940 on Time Each Year

• Annual Requirement: Employers must file Form 940 annually to report the federal unemployment tax accurately.
  
  
• Due Date Compliance: Returns are generally due by January 31 unless the IRS grants an extension.
  
  
• Late Filing Risks: An unfiled 2015 Form 940 or other late returns trigger penalties and increase the amount owed.
  
  
• Timely Filing Example: Filing by each year's due date ensures correct processing and protects compliance with IRS law.

Keep Accurate Wage and Tax Records

• Recordkeeping Obligation: Employers must keep detailed wage reports, deposits, and unemployment tax payment records.
  
  
• Audit Protection: Proper records help when the IRS reviews forms or questions deductions and credits.
  
  
• Lost Record Risks: Lost or incomplete data can cause errors that lead to penalties or incorrect unemployment tax reporting.
  
  
• Long-Term Storage: Employers should maintain wage and tax records for at least four years after filing a return.

Consider Payroll Services or Professional Help

• Professional Support: Businesses may hire payroll providers or CPAs to correctly prepare and file required forms.
  
  
• Reduced Errors: Professionals can prevent mistakes that trigger IRS penalties, deposits misapplied, or interest charges.
  
  
• Compliance Monitoring: A payroll service tracks due dates, payments, and extensions to keep employers compliant.
  
  
• Cost Consideration: The expense of payroll services is often less than the cost of penalties for late or incorrect filing.

Stay Aware of IRS Notices and Deadlines

• Notification Response: Employers must review IRS notices promptly and respond before additional penalties are added.
  
  
• Updated Information: IRS guidance is last reviewed or updated frequently, and employers must check for current instructions.
  
  
• Deadline Tracking: Businesses must set reminders for deposit and filing dates to ensure returns are timely.
  
  
• Ongoing Communication: Employers should contact the IRS or a CPA if they receive notices they do not understand.

By following these best practices, employers comply with Form 940 due dates. Consistent filing, accurate records, and professional support protect businesses from penalties and keep them in good standing with the IRS.

FAQs

Can I still file my 2015 Form 940 now?

Yes, you can still file your 2015 Form 940 even though it is nearly a decade late. The IRS does not set a statute of limitations on unfiled returns, but penalties and interest continue to accrue until the tax return is filed. Submitting it promptly reduces further charges, shows good faith compliance, and allows you to explore resolution options like penalty abatement or installment agreements.

What if I don’t have payroll records from 2015?

You can reconstruct the information using several methods if payroll records are lost. Employers can review bank statements, contact former employees for copies of W-2 forms, or request wage data from the Social Security Administration. The IRS also accepts reasonable reconstructions when exact records are unavailable. Working with a CPA can help ensure the return is properly prepared. Filing with reconstructed data is better than leaving the 2015 Form 940 unfiled.

Does late filing increase audit risk?

Late filing alone does not automatically trigger an audit, but it can raise red flags for the IRS. Unfiled or late tax returns may prompt closer review of wage reporting, deposits, and compliance with unemployment tax requirements. When filing late, accuracy is critical. Employers should ensure the form is complete, reviewed for errors, and supported with documentation. Taking proactive steps demonstrates responsibility and can help minimize audit risk for prior years’ filings.

Can penalties exceed the original FUTA tax?

Yes, penalties and interest can exceed the original FUTA tax owed on a 2015 Form 940. The failure-to-file penalty adds 5 percent per month up to a 25 percent maximum, while failure-to-deposit penalties add more charges. Daily compounded interest increases the balance further. For small businesses or late filings spanning years, total penalties and interest often surpass the tax. Prompt filing and contacting the IRS can significantly limit these escalating costs.

Can I amend a late-filed 2015 Form 940?

Yes, you can amend a late-filed 2015 Form 940 if you discover mistakes or need to correct income or wage data. Use the original 2015 form and check the box for “Amended Return.” Explain changes and attach required schedules if adjustments affect credits or deposits. Mail the corrected tax return to the appropriate IRS address. Amending ensures compliance, corrects errors, and prevents penalties for inaccurate or incomplete reporting.

Do I have to file if my business closed after 2015?

You must still file a 2015 Form 940 if your business had employees or paid wages meeting FUTA criteria during that year. Closure of the business does not erase the filing requirement. Even dissolved corporations or sole proprietors must submit the tax return for prior years if owed. The IRS considers these returns as required until they are filed. Submitting the form, even late, helps resolve unpaid taxes and reduces the risk of penalties or enforcement.

What’s the difference between FUTA and SUTA taxes?

FUTA, reported on Form 940, is a federal unemployment tax employers pay to fund national unemployment programs. SUTA, or state unemployment tax, is paid to the state where employees worked, supporting state-level unemployment benefits. Employers can usually claim credits for timely SUTA payments to reduce FUTA liability. FUTA and SUTA ensure workers receive unemployment compensation, but taxes must be calculated and filed separately to maintain compliance with federal and state law.