Instructions for IRS Form 941-X "Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund"

This document contains official instructions for IRS Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 941-X is available for download through .

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Instructions for Form 941-X
Department of the Treasury
Internal Revenue Service
(Rev. July 2021)
Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund
Section references are to the Internal Revenue Code
and completing Form 941-X, you'll need a copy of the
unless otherwise noted.
Instructions for Form 941 for the quarter that you're
correcting because these instructions don't repeat all of
Contents
Page
the information included in the Instructions for Form 941.
Future Developments
1
. . . . . . . . . . . . . . . . . . . . . . . .
For example, these instructions don't discuss who is
What's New
1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
eligible to claim the credit for qualified sick and family
Reminders
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
leave wages, the employee retention credit, or the
General Instructions: Understanding Form 941-X
4
. . . .
COBRA premium assistance credit. Prior revisions of the
Instructions for Form 941 are available at
IRS.gov/
What Is the Purpose of Form 941-X?
4
. . . . . . . . . .
Form941
(select the link for “All Form 941 Revisions”
Where Can You Get Help?
5
. . . . . . . . . . . . . . . . .
under “Other Items You May Find Useful”).
When Should You File Form 941-X?
5
. . . . . . . . . .
Is There a Deadline for Filing Form 941-X?
6
. . . . . .
What's New
Where Should You File Form 941-X?
6
. . . . . . . . . .
Changes to Form 941-X for coronavirus (COVID-19)
How Should You Complete Form 941-X?
6
. . . . . . .
related employment tax credits. Form 941-X has been
Overview of the Process
7
. . . . . . . . . . . . . . . . . . .
significantly revised to allow for correcting COVID-19
Specific Instructions:
8
. . . . . . . . . . . . . . . . . . . . . . . . .
related employment tax credits reported on Form 941 due
Part 1: Select ONLY One Process
8
. . . . . . . . . . . .
to changes under the ARP. For a description of changes
Part 2: Complete the Certifications
8
. . . . . . . . . . . .
made under the ARP, see the June 2021 revision of the
Part 3: Enter the Corrections for This Quarter
10
Instructions for Form 941. You may now use Form 941-X
. . .
to report corrections to the following items reported on
Part 4: Explain Your Corrections for This
Form 941.
Quarter
24
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corrections to amounts reported on Form 941, lines
Part 5: Sign Here
25
. . . . . . . . . . . . . . . . . . . . . . .
11d, 13e, 23, 24, 25, 26, 27, and 28, for the credit for
Worksheet 1. Adjusted Credit for Qualified Sick
qualified sick and family leave wages for leave taken after
and Family Leave Wages for Leave Taken
March 31, 2021, are reported on Form 941-X, lines 18b,
Before April 1, 2021
26
. . . . . . . . . . . . . . . . . . . . .
26b, 35, 36, 37, 38, 39, and 40, respectively. For more
Worksheet 2. Adjusted Employee Retention Credit
information about the credit for qualified sick and family
for Wages Paid After March 12, 2020, and
leave wages, including the dates for which the credit may
Before July 1, 2021
27
. . . . . . . . . . . . . . . . . . . . . .
be claimed, go to IRS.gov/PLC.
Worksheet 3. Adjusted Credit for Qualified Sick
Corrections to amounts reported on Form 941, lines
and Family Leave Wages for Leave Taken
11c, 13d, 21, and 22, for the employee retention credit are
After March 31, 2021
28
. . . . . . . . . . . . . . . . . . . .
reported on Form 941-X, lines 18a, 26a, 30, and 31a,
Worksheet 4. Adjusted Employee Retention Credit
respectively. However, how you figure the employee
for Wages Paid After June 30, 2021, and
retention credit for qualified wages paid after March 12,
Before January 1, 2022
29
. . . . . . . . . . . . . . . . . . .
2020, and before July 1, 2021, is different from how you
Worksheet 5. Adjusted COBRA Premium
figure the credit for qualified wages paid after June 30,
Assistance Credit
30
. . . . . . . . . . . . . . . . . . . . . . .
2021, and before January 1, 2022. Also, for corrections to
How Can You Get Forms, Instructions, and
qualified wages paid after June 30, 2021, you may need
Publications From the IRS?
30
to complete new line 31b to tell us if you're eligible for the
. . . . . . . . . . . . . . . .
employee retention credit solely because your business is
Future Developments
a recovery startup business. For more information about
For the latest information about developments related to
the employee retention credit, including the dates for
Form 941-X and its instructions, such as legislation
which the credit may be claimed, go to IRS.gov/ERC.
enacted after they were published, go to
IRS.gov/
Corrections to amounts reported on Form 941, lines
Form941X.
11e, 11f, and 13f, for the new COBRA premium
assistance credit are reported on Form 941-X, lines 18c,
These instructions have been updated for
18d, and 26c, respectively. For more information on
changes under the American Rescue Plan Act of
TIP
COBRA premium assistance payments and the credit,
2021 (the ARP). You may use these instructions
see Notice 2021-31, 2021-23 I.R.B. 1173, available at
and the July 2021 revision of Form 941-X for all years for
IRS.gov/irb/2021-23_IRB#NOT-2021-31, and Notice
which the statute of limitations on corrections hasn't
2021-46, 2021-33 I.R.B. 303, available at
IRS.gov/irb/
expired. However, see
COBRA premium assistance credit
2021-33_IRB#NOT-2021-46.
for employees who were involuntarily terminated from
employment between September 1, 2008, and May 31,
2010, later. Before you proceed with these instructions
Sep 09, 2021
Cat. No. 20331U
Instructions for Form 941-X
Department of the Treasury
Internal Revenue Service
(Rev. July 2021)
Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund
Section references are to the Internal Revenue Code
and completing Form 941-X, you'll need a copy of the
unless otherwise noted.
Instructions for Form 941 for the quarter that you're
correcting because these instructions don't repeat all of
Contents
Page
the information included in the Instructions for Form 941.
Future Developments
1
. . . . . . . . . . . . . . . . . . . . . . . .
For example, these instructions don't discuss who is
What's New
1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
eligible to claim the credit for qualified sick and family
Reminders
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
leave wages, the employee retention credit, or the
General Instructions: Understanding Form 941-X
4
. . . .
COBRA premium assistance credit. Prior revisions of the
Instructions for Form 941 are available at
IRS.gov/
What Is the Purpose of Form 941-X?
4
. . . . . . . . . .
Form941
(select the link for “All Form 941 Revisions”
Where Can You Get Help?
5
. . . . . . . . . . . . . . . . .
under “Other Items You May Find Useful”).
When Should You File Form 941-X?
5
. . . . . . . . . .
Is There a Deadline for Filing Form 941-X?
6
. . . . . .
What's New
Where Should You File Form 941-X?
6
. . . . . . . . . .
Changes to Form 941-X for coronavirus (COVID-19)
How Should You Complete Form 941-X?
6
. . . . . . .
related employment tax credits. Form 941-X has been
Overview of the Process
7
. . . . . . . . . . . . . . . . . . .
significantly revised to allow for correcting COVID-19
Specific Instructions:
8
. . . . . . . . . . . . . . . . . . . . . . . . .
related employment tax credits reported on Form 941 due
Part 1: Select ONLY One Process
8
. . . . . . . . . . . .
to changes under the ARP. For a description of changes
Part 2: Complete the Certifications
8
. . . . . . . . . . . .
made under the ARP, see the June 2021 revision of the
Part 3: Enter the Corrections for This Quarter
10
Instructions for Form 941. You may now use Form 941-X
. . .
to report corrections to the following items reported on
Part 4: Explain Your Corrections for This
Form 941.
Quarter
24
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corrections to amounts reported on Form 941, lines
Part 5: Sign Here
25
. . . . . . . . . . . . . . . . . . . . . . .
11d, 13e, 23, 24, 25, 26, 27, and 28, for the credit for
Worksheet 1. Adjusted Credit for Qualified Sick
qualified sick and family leave wages for leave taken after
and Family Leave Wages for Leave Taken
March 31, 2021, are reported on Form 941-X, lines 18b,
Before April 1, 2021
26
. . . . . . . . . . . . . . . . . . . . .
26b, 35, 36, 37, 38, 39, and 40, respectively. For more
Worksheet 2. Adjusted Employee Retention Credit
information about the credit for qualified sick and family
for Wages Paid After March 12, 2020, and
leave wages, including the dates for which the credit may
Before July 1, 2021
27
. . . . . . . . . . . . . . . . . . . . . .
be claimed, go to IRS.gov/PLC.
Worksheet 3. Adjusted Credit for Qualified Sick
Corrections to amounts reported on Form 941, lines
and Family Leave Wages for Leave Taken
11c, 13d, 21, and 22, for the employee retention credit are
After March 31, 2021
28
. . . . . . . . . . . . . . . . . . . .
reported on Form 941-X, lines 18a, 26a, 30, and 31a,
Worksheet 4. Adjusted Employee Retention Credit
respectively. However, how you figure the employee
for Wages Paid After June 30, 2021, and
retention credit for qualified wages paid after March 12,
Before January 1, 2022
29
. . . . . . . . . . . . . . . . . . .
2020, and before July 1, 2021, is different from how you
Worksheet 5. Adjusted COBRA Premium
figure the credit for qualified wages paid after June 30,
Assistance Credit
30
. . . . . . . . . . . . . . . . . . . . . . .
2021, and before January 1, 2022. Also, for corrections to
How Can You Get Forms, Instructions, and
qualified wages paid after June 30, 2021, you may need
Publications From the IRS?
30
to complete new line 31b to tell us if you're eligible for the
. . . . . . . . . . . . . . . .
employee retention credit solely because your business is
Future Developments
a recovery startup business. For more information about
For the latest information about developments related to
the employee retention credit, including the dates for
Form 941-X and its instructions, such as legislation
which the credit may be claimed, go to IRS.gov/ERC.
enacted after they were published, go to
IRS.gov/
Corrections to amounts reported on Form 941, lines
Form941X.
11e, 11f, and 13f, for the new COBRA premium
assistance credit are reported on Form 941-X, lines 18c,
These instructions have been updated for
18d, and 26c, respectively. For more information on
changes under the American Rescue Plan Act of
TIP
COBRA premium assistance payments and the credit,
2021 (the ARP). You may use these instructions
see Notice 2021-31, 2021-23 I.R.B. 1173, available at
and the July 2021 revision of Form 941-X for all years for
IRS.gov/irb/2021-23_IRB#NOT-2021-31, and Notice
which the statute of limitations on corrections hasn't
2021-46, 2021-33 I.R.B. 303, available at
IRS.gov/irb/
expired. However, see
COBRA premium assistance credit
2021-33_IRB#NOT-2021-46.
for employees who were involuntarily terminated from
employment between September 1, 2008, and May 31,
2010, later. Before you proceed with these instructions
Sep 09, 2021
Cat. No. 20331U
Lines 9, 10, 17, 25, 28, and 29 are now applicable only
the Form 941 for the quarter for which the credit is being
to qualified sick leave and qualified family leave taken
claimed has been filed. You'll enter the credit claimed on
before April 1, 2021.
Form 5884-D on
Worksheet 1
to figure your credit for
qualified sick and family leave wages for leave taken
If you claimed the credit for qualified sick and
before April 1, 2021, or
Worksheet 2
to figure the
family leave wages for leave taken before April 1,
!
employee retention credit for wages paid after March 12,
2021, and you make any corrections on Form
2020, and before July 1, 2021. For more information about
CAUTION
941-X to amounts used to figure this credit, you'll need to
this credit, go to IRS.gov/Form5884D.
refigure the amount of this credit using
Worksheet
1, later.
You'll also use this worksheet to figure this credit if you’re
COBRA premium assistance credit for employees
claiming it for the first time on Form 941-X. If you claimed
who were involuntarily terminated from employment
the credit for qualified sick and family leave wages for
between September 1, 2008, and May 31, 2010. The
leave taken after March 31, 2021, and you make any
2008–2010 COBRA premium assistance credit was
corrections on Form 941-X to amounts used to figure this
available to an employer for premiums paid on behalf of
credit, you'll need to refigure the amount of this credit
employees who were involuntarily terminated from
using
Worksheet
3, later. You'll also use this worksheet to
employment between September 1, 2008, and May 31,
figure this credit if you’re claiming it for the first time on
2010. This COBRA premium assistance credit isn’t
Form 941-X. If you claimed the employee retention credit
available for individuals who were involuntarily terminated
for wages paid after March 12, 2020, and before July 1,
after May 31, 2010. The IRS previously kept these lines
2021, and you make any corrections on Form 941-X to
available on Form 941-X because, in rare circumstances,
amounts used to figure this credit, you'll need to refigure
such as instances where COBRA eligibility was delayed
the amount of this credit using
Worksheet
2, later. You'll
as a result of employer-provided health insurance
also use this worksheet to figure this credit if you’re
coverage following termination, the credit was still
claiming it for the first time on Form 941-X. If you claimed
available. It is extremely unlikely that any employers
the employee retention credit for wages paid after June
would still be providing health insurance coverage for an
30, 2021, and before January 1, 2022, and you make any
employee terminated between September 1, 2008, and
corrections on Form 941-X to amounts used to figure this
May 31, 2010. Therefore, the IRS is no longer accepting
credit, you'll need to refigure the amount of this credit
claims for the 2008–2010 COBRA premium assistance
using
Worksheet
4, later. You'll also use this worksheet to
credit. However, if you need to correct a previously
figure this credit if you’re claiming it for the first time on
claimed 2008–2010 COBRA premium assistance credit
Form 941-X. If you claimed the COBRA premium
for a quarter in which the statute of limitations on
assistance credit and you make any corrections on Form
corrections hasn't expired, you can file the April 2017
941-X to amounts used to figure this credit, you'll need to
revision of Form 941-X and make the corrections on lines
refigure the amount of this credit using
Worksheet
5, later.
20a and 20b.
You'll also use this worksheet to figure this credit if you’re
Employee consents to support a claim for refund.
claiming it for the first time on Form 941-X.
Rev. Proc. 2017-28, 2017-14 I.R.B. 1061, available at
IRS.gov/irb/2017-14_IRB#RP-2017-28, provides
Reminders
guidance to employers on the requirements for employee
consents used by an employer to support a claim for
If a line on Form 941-X doesn't apply to you, leave
refund of overcollected social security tax and Medicare
it blank. If you're correcting a quarter that began
TIP
tax. The revenue procedure clarifies the basic
before April 1, 2020, you must leave blank lines 9,
requirements for both a request for employee consent and
10, 17, 18a, 24, 25, 26a, 28, 29, 30, 31, 32, 33a, and 34. If
for the employee consent, and permits a consent to be
you're correcting a quarter that began before July 1, 2020,
requested, furnished, and retained in an electronic format
you must leave blank line 33b. If you're correcting a
as an alternative to a paper format. The revenue
quarter that began before April 1, 2021, you must leave
procedure also contains guidance concerning when an
blank lines 18b, 18c, 18d, 26b, 26c, 35, 36, 37, 38, 39,
employer may claim a refund of only the employer share
and 40. If you're correcting a quarter that began before
of overcollected social security tax and Medicare tax. The
July 1, 2021, you must leave blank line 31b.
revenue procedure requires that any request for consent
include an Additional Medicare Tax notice indicating that
Form 941-X is filed to correct Form 941 or Form
any claim on the employee’s behalf won’t include a claim
941-SS. References to Form 941 on Form 941-X and in
for overpaid Additional Medicare Tax.
these instructions also apply to Form 941-SS, Employer's
QUARTERLY Federal Tax Return (American Samoa,
Qualified small business payroll tax credit for in-
Guam, the Commonwealth of the Northern Mariana
creasing research activities. For tax years beginning
Islands, and the U.S. Virgin Islands), unless otherwise
after 2015, a qualified small business may elect to claim
noted.
up to $250,000 of its credit for increasing research
activities as a payroll tax credit against the employer
New payroll tax credit for certain tax-exempt organi-
share of social security tax. The payroll tax credit election
zations affected by qualified disasters. Section 303(d)
must be made on or before the due date of the originally
of the Taxpayer Certainty and Disaster Tax Relief Act of
filed income tax return (including extensions). Any
2020 allows for a new payroll tax credit for certain
election to take the payroll tax credit may be revoked only
tax-exempt organizations affected by certain qualified
with the consent of the IRS. The portion of the credit used
disasters not related to COVID-19. This new credit is
against the employer share of social security tax is
claimed on new Form 5884-D. Form 5884-D is filed after
-2-
Instructions for Form 941-X (Rev. 7-2021)
allowed in the first calendar quarter beginning after the
The amount actually withheld is reflected on
date that the qualified small business filed its income tax
payroll information or on Form W-2 which can be
TIP
return. The election and determination of the credit
used by the employee to claim a credit for
amount that will be used against the employer share of
withholding for individual income tax return purposes.
social security tax is made on Form 6765, Credit for
Correcting Additional Medicare Tax withholding and
Increasing Research Activities. The amount from Form
wages and tips subject to Additional Medicare Tax
6765, line 44, must then be reported on Form 8974,
withholding. Wages and tips subject to Additional
Qualified Small Business Payroll Tax Credit for Increasing
Medicare Tax withholding are reported on Form 941,
Research Activities. Form 8974 is used to determine the
line 5d. Certain errors discovered on a previously filed
amount of the credit that can be used in the current
Form 941 are corrected on Form 941-X, line 13. However,
quarter. The amount from Form 8974, line 12, is reported
you can’t file a Form 941-X to correct the wrong amount of
on Form 941, line 11a (line 11 for quarters beginning
Additional Medicare Tax actually withheld from an
before April 1, 2020). Any corrections to Form 941,
employee in a prior year, including any amount you paid
line 11a (line 11 for quarters beginning before April 1,
on behalf of your employee rather than deducting it from
2020), are reported on Form 941-X, line 16. If you make a
the employee’s pay (which resulted in additional wages
correction on Form 941-X, line 16, you must attach a
subject to tax). See the instructions for
line
13, later, for
corrected Form 8974. For more information about the
more information on the types of errors that can be
payroll tax credit, go to IRS.gov/ResearchPayrollTC.
corrected and how the correction is reported on Form
Correcting federal income tax withheld. Generally,
941-X. For more information about Additional Medicare
you may correct federal income tax withholding errors
Tax withholding, see the Instructions for Form 941 or go to
only if you discovered the errors in the same calendar
IRS.gov/ADMT.
year you paid the wages. In addition, for an overcollection,
You may need to attach Schedule R (Form 941) to
you may correct federal income tax withholding only if you
your Form 941-X. If you were required to file Schedule R
also repaid or reimbursed the employees in the same
(Form 941), Allocation Schedule for Aggregate Form 941
year.
Filers, when you filed Form 941, you must complete
For prior years, you may only correct administrative
Schedule R (Form 941) when correcting an aggregate
errors to federal income tax withholding (that is, errors in
Form 941. Schedule R (Form 941) is completed only for
which the amount reported on Form 941, line 3, isn't the
those clients and customers who have corrections
amount you actually withheld from an employee’s wages)
reported on Form 941-X. Schedule R (Form 941) is filed
and errors for which section 3509 rates apply. See section
as an attachment to Form 941-X.
13 of Pub. 15, Employer’s Tax Guide, for more information
Approved section 3504 agents and certified
about corrections during the calendar year and about
professional employer organizations (CPEOs) must
administrative errors. See section 2 of Pub. 15 for more
complete and file Schedule R (Form 941) when filing an
information about section 3509. If section 3509 rates
aggregate Form 941. Aggregate Forms 941 are filed by
apply, see the instructions for
lines
19–22, later.
agents approved by the IRS under section 3504. To
Only transposition or math errors involving the
request approval to act as an agent for an employer, the
inaccurate reporting of the amount withheld are
!
agent files Form 2678 with the IRS. Aggregate Forms 941
“administrative errors.”
are also filed by CPEOs approved by the IRS under
CAUTION
section 7705. To become a CPEO, the organization must
You can’t file a Form 941-X to correct federal income
apply through the IRS Online Registration System at
tax withholding for prior years for nonadministrative errors.
IRS.gov/CPEO. CPEOs file Form 8973, Certified
In other words, you can’t correct federal income tax
Professional Employer Organization/Customer Reporting
actually withheld from an employee in a prior year if you
Agreement, to notify the IRS that they started or ended a
discover that you didn’t withhold the right amount. For
service contract with a customer.
example, you can’t correct federal income tax withheld in
a prior year because you used the wrong income tax
Other third-party payers that file aggregate Forms 941,
withholding table or you didn’t treat a payment correctly as
such as non-certified PEOs, must complete and file
taxable or nontaxable. Similarly, if you paid federal
Schedule R (Form 941) if they have clients that are
income tax in a prior year on behalf of your employee,
claiming the qualified small business payroll tax credit for
rather than deducting it from the employee’s pay (which
increasing research activities, the credit for qualified sick
resulted in additional wages subject to tax), and in a
and family leave wages, the employee retention credit,
subsequent year you determine that you incorrectly
and/or the COBRA premium assistance credit, or clients
calculated the amount of tax, you can’t correct the federal
deferring the employer or the employee share of social
income tax withholding. However, you must still correct
security tax. If you're an other third-party payer that didn't
the amount of wages you reported on Form 941 and Form
file Schedule R (Form 941) with Form 941 because you
W-2, Wage and Tax Statement, for a prior year by filing
didn't meet these requirements, but are now filing Form
Form 941-X and Form W-2c, Corrected Wage and Tax
941-X to report these credits or the deferral of the
Statement, respectively. You'll report the correct wages
employer or the employee share of social security tax for
on Form 941-X, line 6, column 1.
your clients, then you must now file Schedule R (Form
941) and attach it to Form 941-X.
See the June 2021 revision of the Instructions for Form
941 for information about when a third party is considered
-3-
Instructions for Form 941-X (Rev. 7-2021)
the person to whom COBRA premium assistance
employees as nonemployees, you may have to file Form
payments are payable.
941-X with Form 941. See the instructions for
line
42,
later.
General Instructions:
If you didn’t file a Form 941 for one or more quarters,
Understanding Form 941-X
don’t use Form 941-X. Instead, file Form 941 for each of
those quarters. Also, see
When Should You File Form
What Is the Purpose of Form 941-X?
941-X, later. However, if you didn’t file Forms 941
because you improperly treated workers as independent
contractors or nonemployees and are now reclassifying
Use Form 941-X to correct errors on a Form 941 that you
them as employees, see the instructions for
line
42, later.
previously filed. Use Form 941-X to correct:
Wages, tips, and other compensation;
Unless otherwise specified in these instructions,
Income tax withheld from wages, tips, and other
an underreported employment tax credit or social
TIP
compensation;
security tax deferral should be treated like an
Taxable social security wages;
overreported tax amount. An overreported employment
Taxable social security tips;
tax credit or social security tax deferral should be treated
Taxable Medicare wages and tips;
like an underreported tax amount. For more information,
Taxable wages and tips subject to Additional Medicare
including which process to select on lines 1 and 2, see
Tax withholding;
Correcting an employment tax credit or social security tax
Deferred amount of the employer share of social
deferral, later.
security tax;
Deferred amount of the employee share of social
Report the correction of underreported and
security tax;
overreported tax amounts for the same tax period on a
Qualified small business payroll tax credit for increasing
single Form 941-X, unless you’re requesting a refund or
research activities;
abatement. If you’re requesting a refund or abatement and
Amounts reported on Form 941 for the credit for
are correcting both underreported and overreported tax
qualified sick and family leave wages for leave taken
amounts, file one Form 941-X correcting the
before April 1, 2021, including adjustments to Form 941,
underreported tax amounts only and a second Form
lines 5a(i), 5a(ii), 11b, 13c, 19, and 20;
941-X correcting the overreported tax amounts.
Amounts reported on Form 941 for the credit for
You’ll use the adjustment process if you underreported
qualified sick and family leave wages for leave taken after
employment taxes and are making a payment, or if you
March 31, 2021, including adjustments to Form 941, lines
overreported employment taxes and will be applying the
11d, 13e, 23, 24, 25, 26, 27, and 28;
credit to Form 941 for the period during which you file
Amounts reported on Form 941 for the employee
Form 941-X. However, see the
Caution
under Is There a
retention credit, including adjustments to Form 941, lines
Deadline for Filing Form 941-X, later, if you’re correcting
11c, 13d, 21, and 22, (for the second quarter of 2020, also
overreported tax amounts during the last 90 days of a
Form 941, lines 24 and 25); and
period of limitations. You’ll use the claim process if you
Amounts reported on Form 941 for the COBRA
overreported employment taxes and are requesting a
premium assistance credit, including adjustments to Form
refund or abatement of the overreported tax amount.
941, lines 11e, 11f, and 13f.
Follow the chart on page 6 of Form 941-X for help in
Use Form 843, Claim for Refund and Request for
choosing whether to use the adjustment process or the
Abatement, to request a refund or abatement of assessed
claim process. Be sure to give us a detailed explanation
interest or penalties. Don’t request a refund or abatement
on line 43 for each correction that you show on Form
of assessed interest or penalties on Form 941 or Form
941-X.
941-X.
Continue to report current quarter fractions of cents,
We use the terms “correct” and “corrections” on
third-party sick pay, tips, and group-term life insurance on
Form 941-X and in these instructions to include
Form 941, lines 7–9.
TIP
interest-free adjustments under sections 6205 and
You have additional requirements to complete when
6413 and claims for refund and abatement under sections
filing Form 941-X, such as certifying that you filed (or will
6402, 6414, and 6404. See Rev. Rul. 2009-39 for
file) all applicable Forms W-2 and Forms W-2c with the
examples of how the interest-free adjustment and claim
Social Security Administration (SSA). For corrections of
for refund rules apply in 10 different situations. You can
overreported federal income tax, social security tax,
find Rev. Rul. 2009-39, 2009-52 I.R.B. 951, at
IRS.gov/irb/
Medicare tax, or Additional Medicare Tax, you must make
2009-52_IRB#RR-2009-39.
any certifications that apply to your situation.
When you discover an error on a previously filed Form
Don’t use Form 941-X to correct Form CT-1, 943,
941, you must:
944, or 945. Instead, use the “X” form that
!
Correct that error using Form 941-X;
corresponds to those forms (Form CT-1 X, 943-X,
CAUTION
File a separate Form 941-X for each Form 941 that
944-X, or 945-X).
you’re correcting; and
Generally, file Form 941-X separately. Don't file Form
941-X with Form 941. However, if you didn't previously file
Form 941 because you mistakenly treated your
-4-
Instructions for Form 941-X (Rev. 7-2021)
Where Can You Get Help?
later. For details on how to make a payment, see the
instructions for
line
27, later.
For help filing Form 941-X or for questions about federal
If Form 941-X is filed late (after the due date of the
employment taxes and tax corrections, you can:
return for the return period in which you discovered the
Go to
IRS.gov/EmploymentTaxes
and
IRS.gov/
error), you must attach an amended Schedule B (Form
CorrectingEmploymentTaxes;
941) to Form 941-X. Otherwise, the IRS may assess an
See Pub. 15 for correcting Form 941, or Pub. 80,
“averaged” FTD penalty. See “Averaged” FTD penalty in
Federal Tax Guide for Employers in the U.S. Virgin
section 11 of Pub. 15 or section 8 of Pub. 80 for more
Islands, Guam, American Samoa, and the Commonwealth
information about “averaged” FTD penalties. The total tax
of the Northern Mariana Islands, for correcting Form
reported on the “Total liability for the quarter” line of
941-SS; or
Schedule B (Form 941) must match the corrected tax
Call the IRS Business and Specialty Tax Line at
(Form 941, line 12, combined with any correction entered
800-829-4933 or 800-829-4059 (TDD/TTY for persons
on Form 941-X, line 23) for the quarter, less any previous
who are deaf, hard of hearing, or have a speech
abatements and interest-free tax assessments.
disability), Monday–Friday from 7:00 a.m. to 7:00 p.m.
local time (Alaska and Hawaii follow Pacific time).
If you discover an error in . . .
Form 941-X is due . . .
1. January, February, March
April 30
See also
How Can You Get Forms, Instructions, and
2. April, May, June
July 31
Publications From the
IRS, later.
3. July, August, September
October 31
When Should You File Form 941-X?
4. October, November,
January 31
December
File Form 941-X when you discover an error on a
previously filed Form 941.
The dates shown in the table above apply only to corrections of
underreported amounts. If any due date falls on a Saturday,
However, if your only errors on Form 941 relate to the
Sunday, or legal holiday, you may file Form 941-X on the next
number of employees who received wages (Form 941,
business day.
line 1) or to federal tax liabilities reported on Form 941,
Part 2, or on Schedule B (Form 941), Report of Tax
Liability for Semiweekly Schedule Depositors, don’t file
Example—You owe tax. On December 10, 2021, you
Form 941-X. For more information about correcting
discovered that you underreported $10,000 of social
federal tax liabilities reported on Form 941, Part 2, or on
security and Medicare wages on your 2021 first quarter
Schedule B (Form 941), see the Instructions for
Form 941. File Form 941-X and pay the amount you owe
Schedule B (Form 941).
by January 31, 2022, because you discovered the error in
the fourth quarter of 2021, and January 31, 2022, is the
Due dates. The due date for filing Form 941-X depends
due date for that quarter. If you file Form 941-X before
on when you discover an error and if you underreported or
January 31, 2022, pay the amount you owe by the time
overreported tax. If you underreported tax, see
you file.
Underreported
tax, later. For overreported tax amounts,
you may choose to either make an interest-free
The due date for filing the adjusted return is
adjustment or file a claim for refund or abatement. If you’re
determined by the type of return (Form 941 or
TIP
correcting overreported tax amounts, see
Overreported
Form 944) being corrected, without regard to your
tax—Adjustment process
or
Overreported tax—Claim
current filing requirements. Therefore, if you're currently
process, later.
filing Form 941 and you're correcting a previously filed
Form 944, you must file Form 944-X by January 31 of the
If any due date falls on a Saturday, Sunday, or legal
year following the year you discover the error.
holiday, you may file Form 941-X on the next business
day. If we receive Form 941-X after the due date, we will
Overreported tax—Adjustment process. If you
treat Form 941-X as filed on time if the envelope
overreported tax on Form 941 and choose to apply the
containing Form 941-X is properly addressed, contains
credit to Form 941 or Form 944, file an adjusted return on
sufficient postage, and is postmarked by the U.S. Postal
Form 941-X soon after you discover the error but more
Service on or before the due date, or sent by an
than 90 days before the period of limitations on the credit
IRS-designated private delivery service (PDS) on or
or refund for Form 941 expires. See
Is There a Deadline
before the due date. If you don’t follow these guidelines,
for Filing Form
941-X, later.
we will consider Form 941-X filed when it is actually
received. See Pub. 15 or Pub. 80 for more information on
Overreported tax—Claim process. If you overreported
legal holidays. For more information about PDSs, see
tax on Form 941, you may choose to file a claim for refund
Where Should You File Form
941-X, later.
or abatement on Form 941-X any time before the period of
limitations on credit or refund expires on Form 941. If you
Underreported tax. If you’re correcting underreported
also need to correct any underreported tax amounts, you
tax, you must file Form 941-X by the due date of the return
must file another Form 941-X reporting only corrections to
for the return period in which you discovered the error and
the underreported amounts. See
Is There a Deadline for
pay the amount you owe by the time you file. Doing so
Filing Form 941-X?
next.
will generally ensure that your correction is interest free
and not subject to failure-to-pay (FTP) or failure-to-deposit
(FTD) penalties. See
What About Penalties and
Interest,
-5-
Instructions for Form 941-X (Rev. 7-2021)
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