What this notice is about We received your Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, but you do not need to file this form. Federal, state, and local government agencies are exempt from federal unemployment tax. What you need to do Do not file Form 940. Destroy any Forms 940 you have. Do not make any tax deposits for Form 940. You may want to Contact your state to determine if you must make contributions under the state unemployment compensation law. Review Publication 15 (Circular E), Employer’s Tax Guide. Frequently asked questions Should I still file Form 941, Employer’s Quarterly Federal Tax Return? You must file a Form 941 for federal income taxes and other amounts withheld from employees’ compensation. Who can I contact if I disagree with this notice? You can call the telephone number on the top right corner of your notice. Reference Tools Publication 1, Your Rights as a Taxpayer Notice Topic 651 Notice Topic 653 Full list of tax forms and instructions Need Help? You can authorize someone to represent you before the IRS or inspect and/or receive confidential tax information. You may be eligible for free help from the Taxpayer Advocate Service (TAS). See if you qualify for help from a Low Income Taxpayer Clinic. You can request a copy of your notice or letter in Braille or large print. If you can’t find what you need online, call the telephone number on your notice or letter.