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 this link.

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

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Instructions for Form 941-X
Department of the Treasury
Internal Revenue Service
(April 2015)
Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund
Section references are to the Internal Revenue Code unless
period of limitations, Forms 941 for a calendar year are
otherwise noted.
considered filed on April 15 of the succeeding year if filed before
that date.
Future Developments
The period of limitations to correct the qualified employer's
For the latest information about developments related to Form
tax exemption on wages/tips paid to qualified employees (for
941-X and its instructions, such as legislation enacted after they
quarters ending after March 31, 2010, and before January 1,
were published, go to www.irs.gov/form941x.
2011); the qualified employer's tax credit on wages/tips paid to
qualified employees March 19–31, 2010; and advance earned
What's New
income credit (EIC) payments expired on April 15, 2014, for
most employers. The lines formerly used for these corrections
Employee consents to support a claim for refund. Notice
were removed from Form 941-X. If the period of limitations for
2015-15 provides guidance to employers on the requirements
any of these corrections is still open, you will need to file the April
for employee consents used by an employer to support a claim
2013 revision of Form 941-X. The April 2013 revision of Form
for refund of overcollected social security tax and Medicare tax.
941-X is available on IRS.gov.
The notice and proposed revenue procedure clarifies the basic
requirements for a request for a consent and for the employee
Correcting Additional Medicare Tax withholding. Beginning
consent itself, and permits a consent to be requested, furnished,
with the first quarter of 2013, wages and tips subject to
and retained in an electronic format as an alternative to a paper
Additional Medicare Tax withholding are reported on Form 941,
format. The notice also requests comments and contains
line 5d. Any errors discovered on a previously filed Form 941 are
guidance concerning what constitutes “reasonable efforts” if a
corrected on Form 941-X, line 11. For more information about
consent is not secured to permit the employer to claim a refund
Additional Medicare Tax withholding, see the Instructions for
of the employer share of overcollected social security tax and
Form 941 and go to IRS.gov and enter “Additional Medicare
Medicare tax. For more information, see Notice 2015-15, 2015-9
Tax” in the search box. See the instructions for line 11, later, for
I.R.B. 687, available at www.irs.gov/irb/2015-9_IRB/ar07.html.
more information on the types of errors that can be corrected
and how the correction is reported on Form 941-X.
Retroactive increase in excludible transit benefits. The Tax
Increase Prevention Act of 2014 increased the monthly transit
Correcting the COBRA premium assistance credit. For tax
benefit exclusion from $130 per participating employee to $250
periods ending before January 1, 2014, employers who made
per participating employee for the period of January 1, 2014,
COBRA premium assistance payments for assistance eligible
through December 31, 2014. Employers were provided
individuals were allowed a credit on their Form 941 or 941-SS.
instructions on how to correct the social security and Medicare
Any errors discovered on a previously filed Form 941 or 941-SS
taxes on the excess transit benefits in Notice 2015-2, 2015-4
for this credit are corrected on Form 941-X, lines 19a and 19b.
I.R.B. 334, available at www.irs.gov/irb/2015-4_IRB/ar06.html.
Effective for tax periods beginning after December 31, 2013,
Form 941-X, is used to both report the total COBRA premium
Reminders
assistance credit an employer is entitled to claim and correct any
previously reported credit. For more information, see the
Claiming the COBRA premium assistance credit. The
instructions for lines 19a and 19b, later.
COBRA premium assistance credit was available to an employer
Social security tax rate for 2011 and 2012. In 2011 and
for premiums paid on behalf of employees who were
2012, the employee social security tax rate was 4.2% and the
involuntarily terminated from employment between September
employer social security tax rate was 6.2% (10.4% total). Be
1, 2008, and May 31, 2010. The COBRA premium assistance
sure to use the correct rate when reporting corrections on lines 8
credit is not available for individuals who were involuntarily
and 9.
terminated after May 31, 2010. Therefore, only in rare
circumstances, such as instances where COBRA eligibility was
Aggregate Form 941. Agents must complete Schedule R
delayed as a result of employer provided health insurance
(Form 941), Allocation Schedule for Aggregate Form 941 Filers,
coverage following termination, will the credit be available. If you
when correcting an aggregate Form 941. Schedule R (Form
are eligible to claim the credit, use Form 941-X, lines 19a and
941) is completed only for those clients who have corrections
19b. Form 941-X should be filed after filing your Form 941 or
reported on Form 941-X. Schedule R (Form 941) is filed as an
941-SS. Filing a Form 941-X before filing a Form 941 or 941-SS
attachment to Form 941-X. Aggregate Forms 941 are filed by
for the quarter may result in errors or delays in processing your
agents approved by the IRS under section 3504. To request
Form 941-X. For more information, visit IRS.gov and enter
approval to act as an agent for an employer, the agent files Form
“COBRA” in the search box.
2678, Employer/Payer Appointment of Agent, with the IRS.
If you are entitled to claim the COBRA premium
assistance credit, but are not otherwise required to file
TIP
Form 941 or 941-SS, file a Form 941 or 941-SS with -0-
entered on line 12 before filing your Form 941-X to claim the
credit.
Period of limitations to make certain corrections expired.
Generally, you may correct overreported taxes on a previously
filed Form 941 if you file Form 941-X within 3 years of the date
Form 941 was filed or 2 years from the date you paid the tax
reported on Form 941, whichever is later. For purposes of the
Mar 19, 2015
Cat. No. 20331U
Instructions for Form 941-X
Department of the Treasury
Internal Revenue Service
(April 2015)
Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund
Section references are to the Internal Revenue Code unless
period of limitations, Forms 941 for a calendar year are
otherwise noted.
considered filed on April 15 of the succeeding year if filed before
that date.
Future Developments
The period of limitations to correct the qualified employer's
For the latest information about developments related to Form
tax exemption on wages/tips paid to qualified employees (for
941-X and its instructions, such as legislation enacted after they
quarters ending after March 31, 2010, and before January 1,
were published, go to www.irs.gov/form941x.
2011); the qualified employer's tax credit on wages/tips paid to
qualified employees March 19–31, 2010; and advance earned
What's New
income credit (EIC) payments expired on April 15, 2014, for
most employers. The lines formerly used for these corrections
Employee consents to support a claim for refund. Notice
were removed from Form 941-X. If the period of limitations for
2015-15 provides guidance to employers on the requirements
any of these corrections is still open, you will need to file the April
for employee consents used by an employer to support a claim
2013 revision of Form 941-X. The April 2013 revision of Form
for refund of overcollected social security tax and Medicare tax.
941-X is available on IRS.gov.
The notice and proposed revenue procedure clarifies the basic
requirements for a request for a consent and for the employee
Correcting Additional Medicare Tax withholding. Beginning
consent itself, and permits a consent to be requested, furnished,
with the first quarter of 2013, wages and tips subject to
and retained in an electronic format as an alternative to a paper
Additional Medicare Tax withholding are reported on Form 941,
format. The notice also requests comments and contains
line 5d. Any errors discovered on a previously filed Form 941 are
guidance concerning what constitutes “reasonable efforts” if a
corrected on Form 941-X, line 11. For more information about
consent is not secured to permit the employer to claim a refund
Additional Medicare Tax withholding, see the Instructions for
of the employer share of overcollected social security tax and
Form 941 and go to IRS.gov and enter “Additional Medicare
Medicare tax. For more information, see Notice 2015-15, 2015-9
Tax” in the search box. See the instructions for line 11, later, for
I.R.B. 687, available at www.irs.gov/irb/2015-9_IRB/ar07.html.
more information on the types of errors that can be corrected
and how the correction is reported on Form 941-X.
Retroactive increase in excludible transit benefits. The Tax
Increase Prevention Act of 2014 increased the monthly transit
Correcting the COBRA premium assistance credit. For tax
benefit exclusion from $130 per participating employee to $250
periods ending before January 1, 2014, employers who made
per participating employee for the period of January 1, 2014,
COBRA premium assistance payments for assistance eligible
through December 31, 2014. Employers were provided
individuals were allowed a credit on their Form 941 or 941-SS.
instructions on how to correct the social security and Medicare
Any errors discovered on a previously filed Form 941 or 941-SS
taxes on the excess transit benefits in Notice 2015-2, 2015-4
for this credit are corrected on Form 941-X, lines 19a and 19b.
I.R.B. 334, available at www.irs.gov/irb/2015-4_IRB/ar06.html.
Effective for tax periods beginning after December 31, 2013,
Form 941-X, is used to both report the total COBRA premium
Reminders
assistance credit an employer is entitled to claim and correct any
previously reported credit. For more information, see the
Claiming the COBRA premium assistance credit. The
instructions for lines 19a and 19b, later.
COBRA premium assistance credit was available to an employer
Social security tax rate for 2011 and 2012. In 2011 and
for premiums paid on behalf of employees who were
2012, the employee social security tax rate was 4.2% and the
involuntarily terminated from employment between September
employer social security tax rate was 6.2% (10.4% total). Be
1, 2008, and May 31, 2010. The COBRA premium assistance
sure to use the correct rate when reporting corrections on lines 8
credit is not available for individuals who were involuntarily
and 9.
terminated after May 31, 2010. Therefore, only in rare
circumstances, such as instances where COBRA eligibility was
Aggregate Form 941. Agents must complete Schedule R
delayed as a result of employer provided health insurance
(Form 941), Allocation Schedule for Aggregate Form 941 Filers,
coverage following termination, will the credit be available. If you
when correcting an aggregate Form 941. Schedule R (Form
are eligible to claim the credit, use Form 941-X, lines 19a and
941) is completed only for those clients who have corrections
19b. Form 941-X should be filed after filing your Form 941 or
reported on Form 941-X. Schedule R (Form 941) is filed as an
941-SS. Filing a Form 941-X before filing a Form 941 or 941-SS
attachment to Form 941-X. Aggregate Forms 941 are filed by
for the quarter may result in errors or delays in processing your
agents approved by the IRS under section 3504. To request
Form 941-X. For more information, visit IRS.gov and enter
approval to act as an agent for an employer, the agent files Form
“COBRA” in the search box.
2678, Employer/Payer Appointment of Agent, with the IRS.
If you are entitled to claim the COBRA premium
assistance credit, but are not otherwise required to file
TIP
Form 941 or 941-SS, file a Form 941 or 941-SS with -0-
entered on line 12 before filing your Form 941-X to claim the
credit.
Period of limitations to make certain corrections expired.
Generally, you may correct overreported taxes on a previously
filed Form 941 if you file Form 941-X within 3 years of the date
Form 941 was filed or 2 years from the date you paid the tax
reported on Form 941, whichever is later. For purposes of the
Mar 19, 2015
Cat. No. 20331U
However, see the Caution under Is There a Deadline for Filing
General Instructions:
Form 941-X, later, if you are correcting overreported amounts
during the last 90 days of a period of limitations. You will use the
Understanding Form 941-X
claim process if you overreported employment taxes and are
requesting a refund or abatement of the overreported amount.
What Is the Purpose of Form 941-X?
Follow the chart on the back of Form 941-X for help in choosing
whether to use the adjustment process or the claim process. Be
For tax periods beginning after December 31, 2013,
sure to give us a detailed explanation on line 23 for each
Forms 941 and 941-SS will no longer be used to claim
!
correction that you show on Form 941-X.
the credit for COBRA premium assistance payments.
CAUTION
Instead, use Form 941-X. For more information, see the
Continue to report current quarter fractions of cents,
instructions for lines 19a and 19b, later.
third-party sick pay, tips, and group-term life insurance on Form
941, lines 7–9.
Use Form 941-X to correct errors on a Form 941 that you
previously filed. Use Form 941-X to correct:
You have additional requirements to complete when filing
Wages, tips, and other compensation;
Form 941-X, such as certifying that you filed (or will file) all
Income tax withheld from wages, tips, and other
applicable Forms W-2, Wage and Tax Statements, and Forms
compensation;
W-2c, Corrected Wage and Tax Statements, with the Social
Security Administration (SSA). For corrections of overreported
Taxable social security wages;
federal income tax, social security tax, Medicare tax, or
Taxable social security tips;
Additional Medicare Tax, you must make any certifications that
Taxable Medicare wages and tips;
apply to your situation.
Taxable wages and tips subject to Additional Medicare Tax
withholding; and
Do not use Form 941-X to correct Form CT-1, 943, 944,
Credits for COBRA premium assistance payments.
944-SS, or 945. Instead, use the “X” form that
!
corresponds to those forms (Form CT-1 X, 943-X,
Use Form 843, Claim for Refund and Request for Abatement,
CAUTION
944-X, or 945-X).
to request a refund or abatement of assessed interest or
penalties. Do not request a refund or abatement of assessed
Where Can You Get Help?
interest or penalties on Form 941 or Form 941-X.
References to Form 941 on Form 941-X and in these
For help filing Form 941-X or for questions about federal
instructions also apply to Form 941-SS, Employer's
employment taxes and tax corrections, you can:
TIP
QUARTERLY Federal Tax Return—American Samoa,
Visit IRS.gov and enter “employment taxes” in the search box;
Guam, the Commonwealth of the Northern Mariana Islands, and
See Pub. 15 (Circular E), Employer's Tax Guide, for correcting
the U.S. Virgin Islands, unless otherwise noted. We use the
Form 941, or Pub. 80 (Circular SS), Federal Tax Guide for
terms “correct” and “corrections” on Form 941-X and in these
Employers in the U.S. Virgin Islands, Guam, American Samoa,
instructions to include interest-free adjustments under sections
and the Commonwealth of the Northern Mariana Islands, for
6205 and 6413 and claims for refund and abatement under
correcting Form 941-SS; or
sections 6402, 6414, and 6404. See Rev. Rul. 2009-39 for
Call the IRS Business and Specialty Tax Line at
examples of how the interest-free adjustment and claim for
1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who
refund rules apply in 10 different situations. You can find Rev.
are deaf, hard of hearing, or have a speech disability) Monday–
Rul. 2009-39, 2009-52, I.R.B. 951 at
www.irs.gov/irb/
Friday from 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii
2009-52_IRB/ar14.html.
follow Pacific time).
When you discover an error on a previously filed Form 941,
See also How Can You Order Forms, Instructions, and
Publications from the IRS, later.
you must:
Correct that error using Form 941-X,
When Should You File Form 941-X?
File a separate Form 941-X for each Form 941 that you are
correcting, and
File Form 941-X when you discover an error on a previously filed
File Form 941-X separately. Do not file Form 941-X with
Form 941.
Form 941.
However, if your only errors on Form 941 relate to the number
If you did not file a Form 941 for one or more quarters, do not
of employees who received wages or to federal tax liabilities
use Form 941-X. Instead, file Form 941 for each of those
reported on Form 941, Part 2, or on Schedule B (Form 941),
quarters. See also When Should You File Form 941-X? below.
Report of Tax Liability for Semiweekly Schedule Depositors, do
However, if you did not file Forms 941 because you improperly
not file Form 941-X. For more information about correcting
treated workers as independent contractors or nonemployees
federal tax liabilities reported on Form 941, Part 2, or on
and are now reclassifying them as employees, see the
Schedule B (Form 941), see the Instructions for Schedule B
instructions for line 22, later.
(Form 941).
Report the correction of underreported and overreported
Due dates. The due date for filing Form 941-X depends on
amounts for the same tax period on a single Form 941-X, unless
when you discover an error and if you underreported or
you are requesting a refund or abatement. If you are requesting
overreported tax. If you underreported tax, see Underreported
a refund or abatement and are correcting both underreported
tax, later. For overreported amounts, you may choose to either
and overreported amounts, file one Form 941-X correcting the
make an interest-free adjustment or file a claim for refund or
underreported amounts only and a second Form 941-X
abatement. If you are correcting overreported amounts, see
correcting the overreported amounts.
Overreported tax—adjustment process or Overreported
tax—claim process, later.
You will use the adjustment process if you underreported
employment taxes and are making a payment, or if you
If any due date falls on a Saturday, Sunday, or legal holiday,
overreported employment taxes and will be applying the credit to
you may file Form 941-X on the next business day. If we receive
Form 941 for the period during which you file Form 941-X.
Form 941-X after the due date, we will treat Form 941-X as filed
-2-
Instructions for Form 941-X (Rev. 4-2015)
on time if the envelope containing Form 941-X is properly
underreported amounts. See Is There a Deadline for Filing Form
addressed, contains sufficient postage, and is postmarked by
941-X? next.
the U.S. Postal Service on or before the due date, or sent by an
You may not file a refund claim to correct federal
IRS-designated private delivery service on or before the due
income tax or Additional Medicare Tax actually withheld
!
date. If you do not follow these guidelines, we will consider Form
from employees.
941-X filed when it is actually received. See Pub. 15 (Circular E)
CAUTION
or Pub. 80 (Circular SS) for more information on legal holidays
Is There a Deadline for Filing Form
and IRS-designated private delivery services.
941-X?
Underreported tax. If you are correcting underreported tax,
you must file Form 941-X by the due date of the return for the
Generally, you may correct overreported taxes on a previously
return period in which you discovered the error and pay the
filed Form 941 if you file Form 941-X within 3 years of the date
amount you owe by the time you file. Doing so will generally
Form 941 was filed or 2 years from the date you paid the tax
ensure that your correction is interest free and not subject to
reported on Form 941, whichever is later. You may correct
failure-to-pay or failure-to-deposit (FTD) penalties. See What
underreported taxes on a previously filed Form 941 if you file
About Penalties and Interest, later. For details on how to make a
Form 941-X within 3 years of the date the Form 941 was filed.
payment, see the instructions for line 20, later.
We call each of these time frames a “period of limitations.” For
If Form 941-X is filed late (after the due date of the return for
purposes of the period of limitations, Forms 941 for a calendar
the return period in which you discovered the error), you must
year are considered filed on April 15 of the succeeding year if
attach an amended Schedule B (Form 941) to Form 941-X.
filed before that date.
Otherwise, the IRS may assess an “averaged” FTD penalty. The
Example. You filed your 2012 fourth quarter Form 941 on
total tax reported on the “Total liability for the quarter” line of
January 27, 2013, and payments were timely made. The IRS
Schedule B (Form 941) must match the corrected tax (Form 941,
treats the return as if it were filed on April 15, 2013. On January
line 10, combined with any correction entered on Form 941-X,
22, 2016, you discovered that you overreported social security
line 18) for the quarter, less any previous abatements and
and Medicare wages on that form by $350. To correct the error
interest-free tax assessments.
you must file Form 941-X by April 18, 2016, which is the end of
the period of limitations for Form 941, and use the claim process.
If you discover an error in
Form 941-X is due
. . . . . .
. .
If you file Form 941-X to correct overreported amounts
in the last 90 days of a period of limitations, you must
!
use the claim process. You cannot use the adjustment
1. January, February, March
April 30
CAUTION
process. If you are also correcting underreported amounts, you
2. April, May, June
July 31
must file another Form 941-X to correct the underreported
3. July, August, September
October 31
amounts using the adjustment process and pay any tax due.
4. October, November, December
January 31
Where Should You File Form 941-X?
The dates shown in the table above apply only to corrections of
underreported amounts. If any due date falls on a Saturday, Sunday,
Send your completed Form 941-X to the address shown next.
or legal holiday, you may file Form 941-X on the next business day.
IF you are in
THEN use this address
. . . . . . . . . . . .
. . . . .
Example—You owe tax. On February 11, 2015, you
Connecticut, Delaware, District of
discovered that you underreported $10,000 of social security
Columbia, Florida, Georgia, Illinois,
and Medicare wages on your 2014 fourth quarter Form 941. File
Indiana, Kentucky, Maine, Maryland,
Form 941-X and pay the amount you owe by April 30, 2015,
Massachusetts, Michigan, New
Department of the Treasury
because you discovered the error in the first quarter of 2015, and
Hampshire, New Jersey, New York,
Internal Revenue Service
North Carolina, Ohio, Pennsylvania,
Cincinnati, OH 45999-0005
April 30, 2015, is the due date for that quarter. If you file Form
Rhode Island, South Carolina,
941-X before April 30, 2015, pay the amount you owe by the
Tennessee, Vermont, Virginia, West
time you file.
Virginia, Wisconsin
Overreported tax—adjustment process. If you overreported
Alabama, Alaska, Arizona, Arkansas,
tax on Form 941 and choose to apply the credit to Form 941 or
California, Colorado, Hawaii, Idaho,
Form 944, file an adjusted return on Form 941-X soon after you
Iowa, Kansas, Louisiana, Minnesota,
Department of the Treasury
discover the error but more than 90 days before the period of
Mississippi, Missouri, Montana,
Internal Revenue Service
limitations on the credit or refund for Form 941 expires. See Is
Nebraska, Nevada, New Mexico,
Ogden, UT 84201-0005
There a Deadline for Filing Form 941-X? below.
North Dakota, Oklahoma, Oregon,
South Dakota, Texas, Utah,
If you reduced your deposits during the quarter by the
Washington, Wyoming
amount of the COBRA premium assistance credit that
!
No legal residence or principal place
Internal Revenue Service
will be reflected on your Form 941-X, do not use the
of business in any state
P.O. Box 409101
CAUTION
adjustment process to claim the COBRA premium assistance
Ogden, UT 84409
credit. Use the claim process. See the instructions for lines 19a
Special filing addresses for exempt
and 19b, later.
organizations; federal, state, and local
Department of the Treasury
governmental entities; and Indian
Internal Revenue Service
Overreported tax—claim process. If you overreported tax on
tribal governmental entities;
Ogden, UT 84201-0005
Form 941, you may choose to file a claim for refund or
regardless of location
abatement on Form 941-X any time before the period of
limitations on credit or refund expires on Form 941. If you also
need to correct any underreported amounts, you must file
another Form 941-X reporting only corrections to the
-3-
Instructions for Form 941-X (Rev. 4-2015)
How Should You Complete Form
Complete all three pages and sign Form 941-X on page 3.
Staple multiple sheets in the upper-left corner.
941-X?
What About Penalties and Interest?
Use a Separate Form 941-X for Each Quarter
Generally, your correction of an underreported amount will not
be subject to a failure-to-pay penalty, FTD penalty, or interest if
You Are Correcting
you:
Use a separate Form 941-X for each Form 941 that you are
File on time (by the due date of the quarter in which you
correcting. For example, if you found errors on your Forms 941
discover the error),
for the third and fourth quarters of 2014, file one Form 941-X to
Pay the amount shown on line 20 by the time you file Form
correct the 2014 third quarter Form 941. File a second Form
941-X,
941-X to correct the 2014 fourth quarter Form 941.
Enter the date you discovered the error, and
Explain in detail the grounds and facts relied on to support the
EIN, Name, and Address
correction.
Enter your EIN, name, and address in the spaces provided. Also
No correction will be eligible for interest-free treatment if any
enter your name and EIN on the top of pages 2 and 3, and on
of the following apply.
any attachments. If your address has changed since you filed
The amounts underreported relate to an issue that was raised
your Form 941, enter the corrected information and the IRS will
in an examination of a prior period.
update your address of record. Be sure to write your name, EIN,
You knowingly underreported your employment tax liability.
“ Form 941-X,” the calendar quarter you are correcting (for
You received a notice and demand for payment.
example, “Quarter 2”), and the calendar year of the quarter you
You received a Notice of Determination of Worker
are correcting on the top of any attachments.
Classification.
Return You Are Correcting
If you receive a notice about a penalty after you file this
In the box at the top of page 1, check the type of return (Form
return, reply to the notice with an explanation and we will
941 or Form 941-SS) you are correcting. Check the appropriate
determine if you meet the reasonable-cause criteria. Do not
attach an explanation when you file your return.
box for the one quarter you are correcting. Enter the calendar
year of the Form 941 you are correcting. Enter the quarter and
Overview of the Process
calendar year on pages 2 and 3. Be sure to write your name,
EIN, “Form 941-X,” the quarter you are correcting (for example,
The process to correct a previously filed Form 941 or file a claim
“Quarter 2”), and the calendar year of the quarter you are
is outlined below.
correcting on the top of any attachments.
If you underreported the tax. If you underreported the tax
Enter the Date You Discovered Errors
on a previously filed Form 941, check the box on line 1 and pay
any additional amount you owe by the time you file Form 941-X.
You must enter the date you discovered errors. You discover an
For details on how to make a payment, see the instructions for
error when you have enough information to be able to correct it.
line 20, later.
If you are reporting several errors that you discovered at different
Example—You underreported employment taxes. On
times, enter the earliest date you discovered them here. Report
June 19, 2015, you discover an error that results in additional tax
any subsequent dates and related errors on line 23.
on your 2014 fourth quarter Form 941. File Form 941-X by July
Must You Make an Entry on Each Line?
31, 2015, and pay the amount you owe by the time you file. See
When Should You File Form 941-X, earlier. Do not attach Form
You must provide all of the information requested at the top of
941-X to your 2015 second quarter Form 941.
page 1. You must check one box (but not both) in Part 1. In Part
If you overreported the tax. If you overreported the tax on a
2, you must check the box on line 3 and any applicable boxes on
previously filed Form 941, you may choose one of the following
lines 4 and 5. In Part 3, if any line does not apply, leave it blank.
options.
Complete Parts 4 and 5 as instructed.
Use the adjustment process. Check the box on line 1 to apply
How Should You Report Negative Amounts?
any credit (negative amount) from line 20 to Form 941 for the
quarter during which you file Form 941-X.
Form 941-X uses negative numbers to show reductions in tax
Use the claim process. Check the box on line 2 to file a claim
(credits) and positive numbers to show additional tax (amounts
on Form 941-X requesting a refund or abatement of the amount
you owe).
shown on line 20.
When reporting a negative amount in columns 3 and 4, use a
To ensure that the IRS has enough time to process a
minus sign instead of parentheses. For example, enter “-10.59”
credit for an overreporting adjustment in the quarter
instead of “(10.59).” However, if you are completing the return on
TIP
during which you file Form 941-X, you are encouraged
your computer and your software only allows you to use
to file Form 941-X correcting the overreported amount in the first
parentheses to report negative amounts, you may use them.
two months of a quarter. For example, if you discover an
How Should You Make Entries on Form 941-X?
overreported amount in March, June, September, or December,
you may want to file Form 941-X in the first two months of the
You can help the IRS process Form 941-X timely and accurately
next quarter. However, there must be 90 days remaining on the
if you follow these guidelines.
period of limitations when you file Form 941-X. See the Caution
Type or print your entries.
under Is There a Deadline for Filing Form 941-X, earlier. This
Use Courier font (if possible) for all typed or
should ensure that the IRS will have enough time to process
computer-generated entries.
Form 941-X so the credit will be posted before you file Form 941,
Omit dollar signs. You may use commas and decimal points, if
thus avoiding an erroneous balance due notice from the IRS.
desired. Enter dollar amounts to the left of any preprinted
See the example below.
decimal point and cents to the right of it.
Always show an amount for cents. Do not round entries to
Example—You want your overreported tax applied as a
whole dollars.
credit to Form 941. On June 19, 2015, you discover you
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Instructions for Form 941-X (Rev. 4-2015)
overreported your tax on your 2014 fourth quarter Form 941 and
You must check the box on line 2 if you have a credit and the
want to choose the adjustment process. To allow the IRS
period of limitations on credit or refund for Form 941 will expire
enough time to process the credit, you file Form 941-X on July 1,
within 90 days of the date you file Form 941-X. See Is There a
2015, and take the credit on your third quarter 2015 Form 941.
Deadline for Filing Form 941-X, earlier.
If you currently file Form 944 and you are making a
The IRS usually processes claims shortly after they are filed.
correction to a previously filed Form 941 that will be
The IRS will notify you if your claim is denied, accepted as filed,
TIP
claimed as a credit on Form 944, file Form 941-X before
or selected to be examined. See Pub. 556, Examination of
December in any year before the expiration of the period of
Returns, Appeal Rights, and Claims for Refund, for more
limitations for the previously filed Form 941. In the year that the
information.
period of limitations for the previously filed Form 941 expires, file
Unless the IRS corrects Form 941-X during processing or you
Form 941-X at least 90 days before the expiration date.
owe other taxes, penalties, or interest, the IRS will refund the
amount shown on line 20, plus any interest that applies.
Specific Instructions:
You may not file a refund claim to correct federal
income tax or Additional Medicare Tax actually withheld
Part 1: Select ONLY One Process
!
from employees.
CAUTION
Because Form 941-X may be used to file either an adjusted
Part 2: Complete the Certifications
employment tax return or a claim for refund or abatement, you
must check one box on either line 1 or line 2. Do not check both
You must complete all certifications that apply by checking the
boxes.
appropriate boxes. If all of your corrections relate to
underreported amounts, complete line 3 only; skip lines 4 and 5
1. Adjusted Employment Tax Return
and go to Part 3. If your corrections relate to overreported
Check the box on line 1 if you are correcting underreported
amounts, you have a duty to ensure that your employees' rights
amounts or overreported amounts and you would like to use the
to recover overpaid employee social security and Medicare
adjustment process to correct the errors.
taxes that you withheld are protected. The certifications on lines
4 and 5 address the requirement to:
If you are correcting both underreported amounts and
Repay or reimburse your employees for the overcollection of
overreported amounts on this form, you must check this box. If
employee social security and Medicare taxes, or
you check this box, any negative amount shown on line 20 will
Obtain consents from your employees to file a claim on their
be applied as a credit (tax deposit) to your Form 941 or Form
behalf. See Notice 2015-15 for guidance on consents.
944 for the period in which you are filing this form. See
Example—You want your overreported tax applied as a credit to
3. Filing Forms W-2 or Forms W-2c
Form 941, earlier.
Check the box on line 3 to certify that you filed or will file Forms
If you owe tax. Pay the amount shown on line 20 by the time
W-2 or Forms W-2c with the SSA, as required, showing your
you file Form 941-X. Generally, you will not be charged interest if
employees' correct wage and tax amounts. See the General
you file on time, pay on time, enter the date you discovered the
Instructions for Forms W-2 and W-3 for detailed information
error, and explain the correction on line 23.
about filing requirements. References to Form W-2 on Form
941-X and in these instructions also apply to Forms W-2AS,
If you have a credit. You overreported employment taxes (you
W-2CM, W-2GU, and W-2VI unless otherwise noted.
have a negative amount on line 20) and want the IRS to apply
the credit to Form 941 or Form 944 for the period during which
You must check the box on line 3 to certify that you filed
you filed Form 941-X. The IRS will apply your credit on the first
Forms W-2 or Forms W-2c even if your corrections on Form
day of the Form 941 or Form 944 period during which you filed
941-X do not change amounts shown on those forms. For
Form 941-X. However, the credit you show on Form 941-X,
example, if your only correction to Form 941 involves misstated
line 20, may not be fully available on your Form 941 or Form 944
tax adjustments (see the instructions for line 13, later), check the
if the IRS corrects it during processing or you owe other taxes,
box on line 3 to certify that you already filed all required Forms
penalties, or interest. The IRS will notify you if your claimed
W-2 and W-2c with the SSA.
credit changes or if the amount available as a credit on Form 941
or Form 944 was reduced because of unpaid taxes, penalties, or
4. Certifying Overreporting Adjustments
interest.
If you overreported federal income tax, social security tax,
Do not check the box on line 1 if you are either: (a)
Medicare tax, or Additional Medicare Tax and checked the box
correcting overreported amounts and the period of
!
on line 1, check the appropriate box on line 4. You may need to
limitations on credit or refund for Form 941 will expire
check more than one box. If you obtained written statements
CAUTION
within 90 days of the date you file Form 941-X, or (b) claiming a
from some employees but you could not locate employees or
credit for COBRA premium assistance payments and you
secure the statements of the remaining employees, check all
reduced your deposits in anticipation of the credit. Instead, in
applicable boxes. Provide a summary on line 23 of the amount of
either case, check the box on line 2 to file a Form 941-X under
the corrections both for the employees who provided written
the claim process. See Is There a Deadline for Filing Form
statements and for those who did not.
941-X, earlier. Also see the instructions for lines 19a and 19b,
4a. Check the box on line 4a if your overreported amount
later.
includes each affected employee share of overcollected taxes.
You are certifying that you repaid or reimbursed the employee
2. Claim
share of current and prior year taxes and you received written
Check the box on line 2 to use the claim process if you are
statements from the employees stating that they did not and will
correcting overreported amounts only and you are claiming a
not receive a refund or credit for the prior year taxes. You are
refund or abatement for the negative amount (credit) shown on
certifying that you adjusted federal income tax or Additional
line 20. Do not check this box if you are correcting any
Medicare Tax withheld from employees for the current calendar
underreported amounts on this form.
year only. Do not send these statements to the IRS. Keep them
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Instructions for Form 941-X (Rev. 4-2015)