Understanding Your CP221 Notice


What this notice is about

You are not required to file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return.

We received your Form 940; however, you are not required to file. We have determined that you’re an exempt organization under section 501(e), 501(f), or 501(k) of the Internal Revenue Code and therefore, you’re exempt from federal unemployment tax.

What you need to do

  • Destroy any Forms 940 you received. Do not make tax deposits for federal unemployment tax.
  • Contact your state to find out if you’re required to make contributions under the state unemployment compensation law.
  • Review Publication 15 (Circular E), Employer’s Tax Guide.

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