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How Do I Correct an Error in Form 941?

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Question: How Do I Correct an Error in Form 941?
IRS Form 941 is the Employer's Quarterly Federal Tax Return. Form 941 must be filed each quarter by employers, reporting on income taxes withheld from employee pay, FICA taxes withheld from employees, and FICA taxes payable by the employer.
Answer:

Starting in January 2009, the IRS asks employers to use the new Form 941X - Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund. Form 941X relates line-by-line with Form 941, the Employer's Quarterly Federal Tax Return.

Form 941X is a stand-alone form that relates line-by-line with the employment tax return it is correcting. You can file Form 941X at any time when you discover an error, rather than having to wait to file it at the end of the quarter with the next employment tax return.

Some Notes on Completing This Form

  • You may use the form for one quarter only. If you are reporting more than one quarter, you must use a separate form for each quarter.
  • You may choose (a) an adjustment, if you under-reported, or if you under-reported and over-reported, or (b) a claim, if you over-reported. You may not use an adjustment and a claim on the same form; you will have to use separate forms.
  • The process differs if you file less than 90 days from the expiration of the period of limitations on credit or refund for Form 941, or more than 90 days from this date. Read the Instructions (included with the form) for more information.
  • If your error affected employee withholding, you must obtain written consent from each affected employee. You will have to certify: "I have a written statement from each employee stating that he or she has not claimed (or the claim was rejected) and will not claim a refund or credit for the overcollection." If you cannot find all employees or you cannot get written consent from each employee, you can only make changes in the employer portion.
  • Part 3 of the form follows the outline of Form 941. For each item, you will need to include the total corrected amount, the previously reported amount, and the difference.
  • You must include a detailed explanation of how you determined your corrections.
Back to More Information on Form 941

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