Instructions for IRS Form 941 Schedule B "Report of Tax Liability for Semiweekly Schedule Depositors"

This document contains official instructions for IRS Form 941 Schedule B, Report of Tax Liability for Semiweekly Schedule Depositors - 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 Schedule B is available for download through this link.

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Instructions for Schedule B
Department of the Treasury
Internal Revenue Service
(Form 941)
(Rev. June 2021)
Use with the January 2017 revision of Schedule B (Form 941)
Report of Tax Liability for Semiweekly Schedule Depositors
Section references are to the Internal Revenue Code
Amended Schedule B. If you have been assessed a
unless otherwise noted.
failure-to-deposit (FTD) penalty, you may be able to file an
amended Schedule B. See
Correcting Previously
Future Developments
Reported Tax
Liability, later.
For the latest information about developments related to
General Instructions
Schedule B and its instructions, such as legislation
enacted after they were published, go to
IRS.gov/
Purpose of Schedule B
Form941.
These instructions tell you about Schedule B. To
What’s New
determine if you’re a semiweekly schedule depositor, see
section 11 of Pub. 15, Employer's Tax Guide, or section 8
Adjusting tax liability for nonrefundable credits
of Pub. 80, Federal Tax Guide for Employers in the U.S.
claimed on Form 941, lines 11a, 11b, 11c, 11d, and
Virgin Islands, Guam, American Samoa, and the
11e. See
Adjusting Tax Liability for Nonrefundable
Commonwealth of the Northern Mariana Islands.
Credits Claimed on Form 941, Lines 11a, 11b, 11c, 11d,
and
11e, later, for instructions on how to report on
Federal law requires you, as an employer, to withhold
Schedule B adjustments to your tax liabilities for the
certain taxes from your employees’ pay. Each time you
qualified small business payroll tax credit for increasing
pay wages, you must withhold—or take out of your
research activities; the nonrefundable portion of the credit
employees’ pay—certain amounts for federal income tax,
for qualified sick and family leave wages for leave taken
social security tax, and Medicare tax. You must also
before April 1, 2021; the nonrefundable portion of the
withhold Additional Medicare Tax from wages you pay to
employee retention credit for wages paid after March 31,
an employee in excess of $200,000 in a calendar year.
2021, and before July 1, 2021; the nonrefundable portion
Under the withholding system, taxes withheld from your
of the employee retention credit for wages paid after June
employees are credited to your employees in payment of
30, 2021, and before January 1, 2022; the nonrefundable
their tax liabilities.
portion of the credit for qualified sick and family leave
Federal law also requires employers to pay any liability
wages for leave taken after March 31, 2021; and the
for the employer share of social security and Medicare
nonrefundable portion of the COBRA premium assistance
taxes. This share of social security and Medicare taxes
credit.
isn’t withheld from employees.
On Schedule B, list your tax liability for each day. Your
Reminders
tax liability is based on the dates wages were paid. Your
liability includes:
Schedule B is filed with Form 941 or Form 941-SS.
The federal income tax you withheld from your
References to Form 941 in these instructions also apply to
employees' pay, and
Form 941-SS, Employer’s QUARTERLY Federal Tax
Both the employer and employee share of social
Return (American Samoa, Guam, the Commonwealth of
security and Medicare taxes.
the Northern Mariana Islands, and the U.S. Virgin
Islands), unless otherwise noted.
Don’t use Schedule B to show federal tax deposits. The
IRS gets deposit data from electronic funds transfers.
Reporting prior period adjustments. Prior period
adjustments are reported on Form 941-X, Adjusted
The IRS uses Schedule B to determine if you’ve
Employer's QUARTERLY Federal Tax Return or Claim for
deposited your federal employment tax liabilities
!
Refund, or Form 944-X, Adjusted Employer's ANNUAL
on time. If you're a semiweekly schedule
CAUTION
Federal Tax Return or Claim for Refund, and aren’t taken
depositor and you don’t properly complete and file your
into account when figuring the tax liability for the current
Schedule B with Form 941, the IRS may propose an
quarter.
“averaged” FTD penalty. See Deposit Penalties in section
When you file Schedule B with your Form 941,
11 of Pub. 15 or section 8 of Pub. 80 for more information.
Employer’s QUARTERLY Federal Tax Return, don’t
Who Must File?
change your current quarter tax liability by adjustments
reported on any Form 941-X or 944-X.
File Schedule B if you’re a semiweekly schedule
depositor. You’re a semiweekly schedule depositor if you
Jun 23, 2021
Cat. No. 38683X
Instructions for Schedule B
Department of the Treasury
Internal Revenue Service
(Form 941)
(Rev. June 2021)
Use with the January 2017 revision of Schedule B (Form 941)
Report of Tax Liability for Semiweekly Schedule Depositors
Section references are to the Internal Revenue Code
Amended Schedule B. If you have been assessed a
unless otherwise noted.
failure-to-deposit (FTD) penalty, you may be able to file an
amended Schedule B. See
Correcting Previously
Future Developments
Reported Tax
Liability, later.
For the latest information about developments related to
General Instructions
Schedule B and its instructions, such as legislation
enacted after they were published, go to
IRS.gov/
Purpose of Schedule B
Form941.
These instructions tell you about Schedule B. To
What’s New
determine if you’re a semiweekly schedule depositor, see
section 11 of Pub. 15, Employer's Tax Guide, or section 8
Adjusting tax liability for nonrefundable credits
of Pub. 80, Federal Tax Guide for Employers in the U.S.
claimed on Form 941, lines 11a, 11b, 11c, 11d, and
Virgin Islands, Guam, American Samoa, and the
11e. See
Adjusting Tax Liability for Nonrefundable
Commonwealth of the Northern Mariana Islands.
Credits Claimed on Form 941, Lines 11a, 11b, 11c, 11d,
and
11e, later, for instructions on how to report on
Federal law requires you, as an employer, to withhold
Schedule B adjustments to your tax liabilities for the
certain taxes from your employees’ pay. Each time you
qualified small business payroll tax credit for increasing
pay wages, you must withhold—or take out of your
research activities; the nonrefundable portion of the credit
employees’ pay—certain amounts for federal income tax,
for qualified sick and family leave wages for leave taken
social security tax, and Medicare tax. You must also
before April 1, 2021; the nonrefundable portion of the
withhold Additional Medicare Tax from wages you pay to
employee retention credit for wages paid after March 31,
an employee in excess of $200,000 in a calendar year.
2021, and before July 1, 2021; the nonrefundable portion
Under the withholding system, taxes withheld from your
of the employee retention credit for wages paid after June
employees are credited to your employees in payment of
30, 2021, and before January 1, 2022; the nonrefundable
their tax liabilities.
portion of the credit for qualified sick and family leave
Federal law also requires employers to pay any liability
wages for leave taken after March 31, 2021; and the
for the employer share of social security and Medicare
nonrefundable portion of the COBRA premium assistance
taxes. This share of social security and Medicare taxes
credit.
isn’t withheld from employees.
On Schedule B, list your tax liability for each day. Your
Reminders
tax liability is based on the dates wages were paid. Your
liability includes:
Schedule B is filed with Form 941 or Form 941-SS.
The federal income tax you withheld from your
References to Form 941 in these instructions also apply to
employees' pay, and
Form 941-SS, Employer’s QUARTERLY Federal Tax
Both the employer and employee share of social
Return (American Samoa, Guam, the Commonwealth of
security and Medicare taxes.
the Northern Mariana Islands, and the U.S. Virgin
Islands), unless otherwise noted.
Don’t use Schedule B to show federal tax deposits. The
IRS gets deposit data from electronic funds transfers.
Reporting prior period adjustments. Prior period
adjustments are reported on Form 941-X, Adjusted
The IRS uses Schedule B to determine if you’ve
Employer's QUARTERLY Federal Tax Return or Claim for
deposited your federal employment tax liabilities
!
Refund, or Form 944-X, Adjusted Employer's ANNUAL
on time. If you're a semiweekly schedule
CAUTION
Federal Tax Return or Claim for Refund, and aren’t taken
depositor and you don’t properly complete and file your
into account when figuring the tax liability for the current
Schedule B with Form 941, the IRS may propose an
quarter.
“averaged” FTD penalty. See Deposit Penalties in section
When you file Schedule B with your Form 941,
11 of Pub. 15 or section 8 of Pub. 80 for more information.
Employer’s QUARTERLY Federal Tax Return, don’t
Who Must File?
change your current quarter tax liability by adjustments
reported on any Form 941-X or 944-X.
File Schedule B if you’re a semiweekly schedule
depositor. You’re a semiweekly schedule depositor if you
Jun 23, 2021
Cat. No. 38683X
reported more than $50,000 of employment taxes in the
Go to Month 1 (because April is the first month of the
lookback period or accumulated a tax liability of $100,000
quarter), and
or more on any given day in the current or prior calendar
Enter your tax liability on line 2 (because line 2
year. If you became a semiweekly schedule depositor
represents the second day of the month).
during the quarter, you must complete Schedule B for the
Make sure you have checked the appropriate box
entire quarter. See section 11 of Pub. 15 or section 8 of
in Part 2 of Form 941 to show that you’re a
TIP
Pub. 80 for more information. The $100,000 tax liability
semiweekly schedule depositor.
threshold requiring a next-day deposit is determined
before you consider any reduction of your liability for
Example 1. Cedar Co. is a semiweekly schedule
nonrefundable credits. For more information, including an
depositor that pays wages for each month on the last day
example, see frequently asked question 17 at
IRS.gov/
of the month. On December 24, 2021, Cedar Co. also
ETD.
paid its employees year-end bonuses (subject to
employment taxes). Cedar Co. must report employment
Don’t complete Schedule B if you have a tax
tax liabilities on Schedule B for the fourth quarter
liability on Form 941, line 12, that is less than
!
(October, November, December) as follows.
$2,500 during the quarter.
CAUTION
When Must You File?
Month
Lines for dates wages were paid
1 (October)
line 31 (pay day, last day of the month)
Schedule B is filed with Form 941. Therefore, the due date
2 (November)
line 30 (pay day, last day of the month)
of Schedule B is the same as the due date for the
3 (December)
line 24 (bonus paid December 24, 2021)
applicable Form 941. In some situations, Schedule B may
3 (December)
line 31 (pay day, last day of the month)
be filed with Form 941-X. See
Form
941-X, later, for
details.
Example 2. Fir Co. is a semiweekly schedule depositor
Don’t file Schedule B as an attachment to Form 944,
that pays employees every other Friday. Fir Co.
Employer's ANNUAL Federal Tax Return. Instead, if
accumulated a $20,000 employment tax liability on each
you’re a semiweekly schedule depositor that is required to
of these pay dates: April 2, 2021; April 16, 2021; April 30,
file a report of tax liability with Form 944, use Form 945-A,
2021; May 14, 2021; May 28, 2021; June 11, 2021; and
Annual Record of Federal Tax Liability.
June 25, 2021. Fir Co. must report employment tax
liabilities on Schedule B as follows.
Specific Instructions
Month
Lines for dates wages were paid
Completing Schedule B
1 (April)
lines 2, 16, and 30
2 (May)
lines 14 and 28
Enter Your Business Information
3 (June)
lines 11 and 25
Carefully enter your employer identification number (EIN)
and name at the top of the schedule. Make sure that they
Example 3. Elm Co. is a new business and monthly
exactly match the name of your business and the EIN that
schedule depositor for 2021. Elm Co. paid wages every
the IRS assigned to your business and also agree with the
Friday and accumulated a $2,000 employment tax liability
name and EIN shown on the attached Form 941 or Form
on April 16, 2021. On April 23, 2021, and on every
941-X.
subsequent Friday during 2021, Elm Co. accumulated a
$110,000 employment tax liability. Under the deposit
Calendar Year
rules, employers become semiweekly schedule
Enter the calendar year that applies to the quarter
depositors on the day after any day they accumulate
checked.
$100,000 or more of employment tax liability in a deposit
period. Elm Co. became a semiweekly schedule depositor
Check the Box for the Quarter
on April 24, 2021, because Elm Co. had a total
Under Report for this Quarter at the top of Schedule B,
accumulated employment tax liability of $112,000 on April
check the appropriate box of the quarter for which you’re
23, 2021. For more information, see section 11 of Pub. 15
filing this schedule. Make sure the quarter checked on the
or section 8 of Pub. 80.
top of the Schedule B matches the quarter checked on
Elm Co. must complete Schedule B as shown next and
your Form 941 or Form 941-X.
file it with Form 941. Don't check the second box on Form
941, line 16, even though Elm Co. was a monthly
Enter Your Tax Liability by Month
schedule depositor until April 24, 2021.
Schedule B is divided into the 3 months that make up a
quarter of a year. Each month has 31 numbered spaces
that correspond to the dates of a typical month. Enter your
Month
Lines for dates wages were paid
Amount to report
tax liabilities in the spaces that correspond to the dates
1 (April)
line 16
$2,000
you paid wages to your employees, not the date payroll
1 (April)
lines 23 and 30
$110,000
liabilities were accrued or deposits were made.
2 (May)
lines 7, 14, 21, and 28
$110,000
3 (June)
lines 4, 11, 18, and 25
$110,000
For example, if your payroll period ended on March 31,
2021, and you paid the wages for that period on April 2,
2021, you would:
-2-
Instructions for Schedule B (Form 941) (Rev. 6-2021)
Total Liability for the Quarter
Example. Rose Co. is an employer with a calendar tax
year that filed its timely income tax return on April 15,
To find your total liability for the quarter, add your monthly
2021. Rose Co. elected to take the qualified small
tax liabilities.
business payroll tax credit for increasing research
activities on Form 6765. The third quarter of 2021 is the
Tax Liability for Month 1
first quarter that begins after Rose Co. filed the income tax
+ Tax Liability for Month 2
return making the payroll tax credit election. Therefore,
+ Tax Liability for Month 3
the payroll tax credit applies against Rose Co.'s share of
Total Liability for the Quarter
social security tax on wages paid to employees in the third
quarter of 2021. Rose Co. is a semiweekly schedule
depositor. Rose Co. completes Schedule B by reducing
Your total liability for the quarter must equal
the amount of liability entered for the first payroll payment
line 12 on Form 941; therefore, don't reduce your
!
in the third quarter of 2021 that includes wages subject to
total liability reported on Schedule B by the
social security tax by the lesser of (1) its share of social
CAUTION
refundable portion of the credit for qualified sick and
security tax on the wages, or (2) the available payroll tax
family leave wages, the refundable portion of the
credit. If the payroll tax credit elected is more than Rose
employee retention credit, or the refundable portion of the
Co.'s share of social security tax on the first payroll
COBRA premium assistance credit.
payment of the quarter, the excess payroll tax credit
would be carried forward to succeeding payroll payments
Adjusting Tax Liability for Nonrefundable
in the third quarter until it is used. If the amount of the
Credits Claimed on Form 941, Lines 11a, 11b,
payroll tax credit exceeds Rose Co.'s share of social
security tax on wages paid to its employees in the third
11c, 11d, and 11e
quarter, the excess credit would be treated as a payroll
Semiweekly schedule depositors must account for
tax credit against its share of social security tax on wages
nonrefundable credits claimed on Form 941, lines 11a,
paid in the fourth quarter. If the amount of the payroll tax
11b, 11c, 11d, and 11e, when reporting their tax liabilities
credit remaining exceeded Rose Co.'s share of social
on Schedule B. The total tax liability for the quarter must
security tax on wages paid in the fourth quarter, it could be
equal the amount reported on Form 941, line 12. Failure to
carried forward and treated as a payroll tax credit for the
account for the nonrefundable credits on Schedule B may
first quarter of 2022.
cause Schedule B to report more than the total tax liability
reported on Form 941, line 12. Don't reduce your daily tax
Nonrefundable portion of credit for qualified sick and
liability reported on Schedule B below zero.
family leave wages for leave taken before April 1,
2021 (Form 941, line 11b). The nonrefundable portion
Qualified small business payroll tax credit for in-
of the credit for qualified sick and family leave wages for
creasing research activities (Form 941, line 11a).
leave taken before April 1, 2021, is limited to the employer
The qualified small business payroll tax credit for
share of social security tax on wages paid in the quarter
increasing research activities is limited to the employer
that is remaining after that share is first reduced by any
share of social security tax on wages paid in the quarter
credit claimed on Form 941, line 11a, for the qualified
that begins after the income tax return electing the credit
small business payroll tax credit for increasing research
has been filed. In completing Schedule B, you take into
activities; any credit to be claimed on Form 5884-C,
account the payroll tax credit against the liability for the
line 11, for the work opportunity credit for qualified tax-
employer share of social security tax starting with the first
exempt organizations hiring qualified veterans; and/or any
payroll payment of the quarter that includes payments of
credit to be claimed on Form 5884-D for the disaster
wages subject to social security tax to your employees.
credit for qualified tax-exempt organizations. In
The credit may be taken to the extent of the employer
completing Schedule B, you take into account the entire
share of social security tax on wages associated with the
quarter's nonrefundable portion of the credit for sick and
first payroll payment, and then to the extent of the
family leave wages against the liability for the first payroll
employer share of social security tax associated with
payment of the quarter, but not below zero. Then reduce
succeeding payroll payments in the quarter until the credit
the liability for each successive payroll payment in the
is used. Consistent with the entries on Schedule B, the
quarter until the nonrefundable portion of the credit is
payroll tax credit should be taken into account in making
used. Any credit for qualified sick and family leave wages
deposits of employment tax. If any payroll tax credit is
for leave taken before April 1, 2021, that is remaining at
remaining at the end of the quarter that hasn’t been used
the end of the quarter because it exceeds the employer
completely because it exceeds the employer share of
share of social security tax for the quarter is claimed on
social security tax for the quarter, the excess credit may
Form 941, line 13c, as a refundable credit. The refundable
be carried forward to the succeeding quarter and allowed
portion of the credit doesn’t reduce the liability reported on
as a payroll tax credit for the succeeding quarter. The
Schedule B. For more information about the credit for
payroll tax credit may not be taken as a credit against
qualified sick and family leave wages, including the dates
income tax withholding, Medicare tax, or the employee
for which the credit may be claimed, go to IRS.gov/PLC.
share of social security tax. Also, the remaining payroll tax
Example. Maple Co. is a semiweekly schedule
credit may not be carried back and taken as a credit
depositor that pays employees every other Friday. In the
against wages paid from preceding quarters. For more
second quarter of 2021, Maple Co. had pay dates of April
information about the payroll tax credit, go to
IRS.gov/
2, April 16, April 30, May 14, May 28, June 11, and June
ResearchPayrollTC.
25. Maple Co. paid qualified sick and family leave wages
-3-
Instructions for Schedule B (Form 941) (Rev. 6-2021)
on April 2 and April 16 for leave taken before April 1,
quarter's nonrefundable portion of the employee retention
2021. The nonrefundable portion of the credit for qualified
credit against the liability for the first payroll payment of
sick and family leave wages for the quarter is $10,000. On
the quarter, but not below zero. Then reduce the liability
Schedule B (Form 941), Maple Co. will use the $10,000 to
for each successive payroll payment in the quarter until
reduce the liability for the April 2 pay date, but not below
the nonrefundable portion of the credit is used. Any
zero. If any nonrefundable portion of the credit remains,
employee retention credit that is remaining at the end of
Maple Co. applies it to the liability for the April 16 pay
the quarter because it exceeds the employer share of
date, then the April 30 pay date, and so forth until the
Medicare tax for the quarter is claimed on Form 941,
entire $10,000 is used.
line 13d, as a refundable credit. The refundable portion of
the credit doesn't reduce the liability reported on
Nonrefundable portion of employee retention credit
Schedule B. For more information about the employee
for wages paid after March 31, 2021, and before July
retention credit, including the dates for which the credit
1, 2021 (Form 941, line 11c). The nonrefundable
may be claimed, go to IRS.gov/ERC.
portion of the employee retention credit is limited to the
employer share of social security tax on wages paid in the
Nonrefundable portion of credit for qualified sick and
quarter that is remaining after that share is first reduced by
family leave wages for leave taken after March 31,
any credit claimed on Form 941, line 11a, for the qualified
2021 (Form 941, line 11d). The nonrefundable portion
small business payroll tax credit for increasing research
of the credit for qualified sick and family leave wages for
activities; any credit to be claimed on Form 5884-C,
leave taken after March 31, 2021, is limited to the
line 11, for the work opportunity credit for qualified tax-
employer share of Medicare tax on wages paid in the
exempt organizations hiring qualified veterans; any credit
quarter. In completing Schedule B, you take into account
to be claimed on Form 5884-D for the disaster credit for
the entire quarter's nonrefundable portion of the credit for
qualified tax-exempt organizations; and/or any credit
qualified sick and family leave wages against the liability
claimed on Form 941, line 11b, for the nonrefundable
for the first payroll payment of the quarter, but not below
portion of the credit for qualified sick and family leave
zero. Then reduce the liability for each successive payroll
wages for leave taken before April 1, 2021. In completing
payment in the quarter until the nonrefundable portion of
Schedule B, you take into account the entire quarter's
the credit is used. Any credit for qualified sick and family
nonrefundable portion of the employee retention credit
leave wages that is remaining at the end of the quarter
against the liability for the first payroll payment of the
because it exceeds the employer share of Medicare tax
quarter, but not below zero. Then reduce the liability for
for the quarter is claimed on Form 941, line 13e, as a
each successive payroll payment in the quarter until the
refundable credit. The refundable portion of the credit
nonrefundable portion of the credit is used. Any employee
doesn't reduce the liability reported on Schedule B. For
retention credit that is remaining at the end of the quarter
more information about the credit for qualified sick and
because it exceeds the employer share of social security
family leave wages, including the dates for which the
tax for the quarter is claimed on Form 941, line 13d, as a
credit may be claimed, go to IRS.gov/PLC.
refundable credit. The refundable portion of the credit
Nonrefundable portion of COBRA premium assis-
doesn’t reduce the liability reported on Schedule B. For
tance credit (Form 941, line 11e). The nonrefundable
more information about the employee retention credit,
portion of the COBRA premium assistance credit is limited
including the dates for which the credit may be claimed,
to the employer share of Medicare tax on wages paid in
go to IRS.gov/ERC.
the quarter that is remaining after that share is first
Example. Maple Co. is a semiweekly schedule
reduced by any credit claimed on Form 941, line 11d, for
depositor that pays employees every other Friday. In the
the nonrefundable portion of the credit for qualified sick
second quarter of 2021, Maple Co. had pay dates of April
and family leave wages for leave taken after March 31,
2, April 16, April 30, May 14, May 28, June 11, and June
2021; and/or any credit claimed on Form 941, line 11c, for
25. Maple Co. paid qualified wages for the employee
the nonrefundable portion of the employee retention credit
retention credit on May 14 and May 28. The
for wages paid after June 30, 2021, and before January 1,
nonrefundable portion of the employee retention credit for
2022. In completing Schedule B, you take into account the
the quarter is $10,000. On Schedule B (Form 941), Maple
entire quarter's nonrefundable portion of the COBRA
Co. will use the $10,000 to reduce the liability for the April
premium assistance credit against the liability for the first
2 pay date, but not below zero. If any nonrefundable
payroll payment of the quarter, but not below zero. Then
portion of the credit remains, Maple Co. applies it to the
reduce the liability for each successive payroll payment in
liability for the April 16 pay date, then the April 30 pay
the quarter until the nonrefundable portion of the credit is
date, and so forth until the entire $10,000 is used.
used. Any credit for COBRA premium assistance that is
remaining at the end of the quarter because it exceeds the
Nonrefundable portion of employee retention credit
employer share of Medicare tax for the quarter is claimed
for wages paid after June 30, 2021, and before Janu-
on Form 941, line 13f, as a refundable credit. The
ary 1, 2022 (Form 941, line 11c). The nonrefundable
refundable portion of the credit doesn't reduce the liability
portion of the employee retention credit is limited to the
reported on Schedule B.
employer share of Medicare tax on wages paid in the
quarter that is remaining after that share is first reduced by
You may reduce your deposits by the amount of
any credit claimed on Form 941, line 11d, for the
the nonrefundable and refundable portions of the
TIP
nonrefundable portion of the credit for qualified sick and
credit for qualified sick and family leave wages,
family leave wages for leave taken after March 31, 2021.
the nonrefundable and refundable portions of the
In completing Schedule B, you take into account the entire
employee retention credit, and the nonrefundable and
-4-
Instructions for Schedule B (Form 941) (Rev. 6-2021)
refundable portions of the COBRA premium assistance
Tax increase—Form 941-X filed timely. If you’re filing a
credit. For more information on reducing deposits, see
timely Form 941-X showing a tax increase, don’t file an
Notice 2020-22, 2020-17 I.R.B. 664, available at
amended Schedule B, unless you were assessed an FTD
IRS.gov/irb/2020-17_IRB#NOT-2020-22, and Notice
penalty caused by an incorrect, incomplete, or missing
2021-24, 2021-18 I.R.B. 1122, available at
IRS.gov/irb/
Schedule B. If you’re filing an amended Schedule B, don’t
2021-18_IRB#NOT-2021-24.
include the tax increase reported on Form 941-X.
Tax increase—Form 941-X filed late. If you owe tax
Correcting Previously Reported Tax Liability
and are filing a late Form 941-X, that is, after the due date
of the return for the return period in which you discovered
Semiweekly schedule depositors. If you’ve been
the error, you must file an amended Schedule B with Form
assessed an FTD penalty for a quarter and you made an
941-X. Otherwise, the IRS may assess an “averaged”
error on Schedule B and the correction won’t change the
FTD penalty.
total liability for the quarter you reported on Schedule B,
you may be able to reduce your penalty by filing an
The total tax reported on the “Total liability for the
amended Schedule B.
quarter” line of the amended Schedule B must match the
Example. You reported a liability of $3,000 on day 1 of
corrected tax (Form 941, line 12, combined with any
month 1. However, the liability was actually for month 3.
correction reported on Form 941-X, line 23) for the
Prepare an amended Schedule B showing the $3,000
quarter, less any previous abatements and interest-free
liability on day 1 of month 3. Also, you must enter the
tax assessments.
liabilities previously reported for the quarter that didn’t
change. Write “Amended” at the top of Schedule B. The
Paperwork Reduction Act Notice. We ask for the
IRS will refigure the penalty and notify you of any change
information on Schedule B to carry out the Internal
in the penalty.
Revenue laws of the United States. You’re required to
give us the information. We need it to ensure that you’re
Monthly schedule depositors. You can file a
complying with these laws and to allow us to figure and
Schedule B if you have been assessed an FTD penalty for
collect the right amount of tax.
a quarter and you made an error on the monthly tax
liability section of Form 941. When completing
You’re not required to provide the information
Schedule B for this situation, only enter the monthly totals.
requested on a form that is subject to the Paperwork
The daily entries aren’t required.
Reduction Act unless the form displays a valid OMB
Where to file. File your amended Schedule B, or, for
control number. Books or records relating to a form or its
monthly schedule depositors, your original Schedule B at
instructions must be retained as long as their contents
the address provided in the penalty notice you received. If
may become material in the administration of any Internal
you're filing an amended Schedule B, you don’t have to
Revenue law. Generally, tax returns and return
submit your original Schedule B.
information are confidential, as required by Code section
6103.
Form 941-X
The time needed to complete and file Schedule B will
You may need to file an amended Schedule B with Form
vary depending on individual circumstances. The
941-X to avoid or reduce an FTD penalty.
estimated average time is 2 hours, 53 minutes.
Tax decrease. If you’re filing Form 941-X for a quarter,
you can file an amended Schedule B with Form 941-X if
If you have comments concerning the accuracy of this
both of the following apply.
time estimate or suggestions for making Schedule B
1. You have a tax decrease.
simpler, we would be happy to hear from you. You can
send us comments from IRS.gov/FormComments. Or you
2. You were assessed an FTD penalty.
can send your comments to Internal Revenue Service,
File your amended Schedule B with Form 941-X. The total
Tax Forms and Publications Division, 1111 Constitution
liability for the quarter reported on your amended
Ave. NW, IR-6526, Washington, DC 20224. Don’t send
Schedule B must equal the corrected amount of tax
Schedule B to this address. Instead, see Where Should
reported on Form 941-X. If your penalty is decreased, the
You File? in the Form 941 instructions.
IRS will include the penalty decrease with your tax
decrease.
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Instructions for Schedule B (Form 941) (Rev. 6-2021)
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