The Internal Revenue Service redesigned Form 940 to be more user-friendly, reducing the burden for more than one million filers. The new Form 940 incorporates the advantages of Form 940-EZ (discontinued for tax year 2006) into a simplified form for all filers. Improvements include:

• A logical sequence from the taxpayer's point of view
• Eight separate parts with visual cues, breaking up the task into smaller steps
• A new Schedule A for multi-state employers or credit reduction situations
• Check boxes instead of "A, B, C" questions

The redesigned Form 940, Instructions, and Schedule A, can be viewed or downloaded on IRS.gov or here (PDFs):

• Form 940: http://www.irs.gov/pub/irs-pdf/f940.pdf
• Instructions: http://www.irs.gov/pub/irs-pdf/i940.pdf
• Schedule A: http://www.irs.gov/pub/irs-pdf/f940sa.pdf

In May 2004, a team led by the IRS office of Taxpayer Burden Reduction began the process of redesigning Form 940. IRS employment tax experts worked with representatives from other federal and state agencies, gathering input from internal and external stakeholders to create a plain language form that is logical, easy to follow, and compatible with optical scanning.