The IDRS letter numbered 380 is Letter 380C, State Certification Tax Adjustment Explained. It is an employer letter tied to the federal unemployment tax (FUTA) return, Form 940. It is not an Appeals scheduling letter.

What This Letter Means

Employers get a credit on Form 940 for state unemployment contributions. The IRS checks the wages and contributions reported on Form 940 against information certified by state unemployment agencies. When the numbers do not match and the IRS adjusts the account, or cannot accept the employer's explanation, it can send Letter 380C to explain what it did.

The IRS also uses Letter 380C in this program for related messages, such as asking a successor employer for the predecessor's EIN, or confirming that an installment agreement request was referred to another office.

What to Do

  • Read the explanation paragraph. Identify the tax year, the state, and the amount of the adjustment.
  • Pull your Form 940, state unemployment returns, and proof of state contributions paid.
  • If the state reported the wrong account number, wages, or contributions, contact the state agency and send the IRS documentation by any date the letter gives.
  • If the adjustment created a balance due, pay it or set up a payment arrangement to limit interest and penalties.

If You Disagree

Respond in writing to the address on the letter. Include a copy of the letter, a short explanation, and supporting records. Keep copies and proof of mailing.

If you received a different document labeled 380 from the IRS Independent Office of Appeals, read its title closely. The letter title and instructions on your document control.

If your business received Letter 380C and the FUTA numbers don't look right, call us at (813) 229-7100.