FORM 4667

Form 4667 is a notice that the Internal Revenue Service (IRS) sends to businesses that they believe owe Federal Unemployment Tax (FUTA). FUTA is a tax that employers pay on the first $7,000 of wages paid to each employee in a year. The money collected from FUTA taxes is used to fund unemployment benefits for workers who have lost their jobs.

The IRS may issue Form 4667 for a number of reasons, including:

• The business has not filed a Form 940 (Employer’s Annual Federal Unemployment Tax Return) for one or more years.
• The business has filed a Form 940, but they have underpaid their FUTA taxes.
• The business has made a mistake in calculating their FUTA tax liability.
• The IRS has made a mistake in calculating the business’s FUTA tax liability.

• If you receive Form 4667, you have 30 days to respond. You should carefully review the notice to determine why the IRS believes you owe the tax. If you believe that you do not owe the tax, you should contact the IRS to explain your situation. You may also need to file a Form 8275 (Request for Abatement) to contest the tax.
• If you owe the tax, you can pay it in full by the deadline on the notice. If you cannot pay the tax in full, you may be able to request an installment agreement from the IRS.

The best way to avoid receiving Form 4667 is to make sure that you are filing your Form 940 correctly and on time. You should also keep careful records of your wages payments and FUTA tax payments.

Here are some specific tips:

• File your Form 940 accurately and on time.
• Make sure to pay all of your FUTA taxes in full.
• Keep careful records of your wages payments and FUTA tax payments.
• If you have any questions about your FUTA tax liability, contact the IRS for assistance.