Instructions for IRS Form 944-x - Adjusted Employer's Annual Federal Tax Return or Claim for Refund

ADVERTISEMENT
Instructions for Form 944-X
Department of the Treasury
Internal Revenue Service
(Rev. February 2018)
Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund
Section references are to the Internal Revenue Code unless
The period of limitations to correct social security tax for 2011
otherwise noted.
and 2012 expired on April 17, 2015, and April 15, 2016,
respectively, for most employers. These instructions no longer
Future Developments
discuss the reduced rate of employee social security tax that
applied in 2011 and 2012. The 2011 and 2012 employee social
For the latest information about developments related to Form
security tax rate was 4.2% and the employer social security tax
944-X and its instructions, such as legislation enacted after they
rate was 6.2% (10.4% total). If the period of limitations for 2011
were published, go to IRS.gov/Form944X.
and 2012 is still open, you can file the February 2018 revision of
What's New
Form 944-X but make sure you use the correct rate when
reporting corrections on lines 8 and 9.
Employee consents to support a claim for refund. Rev.
Reminders
Proc. 2017-28, 2017-14 I.R.B. 1061, available at
IRS.gov/irb/
2017-14_IRB/ar09.html, provides guidance to employers on the
Retroactive increase in excludable transit benefits for
requirements for employee consents used by an employer to
2014. The Tax Increase Prevention Act of 2014 increased the
support a claim for refund of overcollected social security tax
monthly transit benefit exclusion from $130 per participating
and Medicare tax. The revenue procedure clarifies the basic
employee to $250 per participating employee for the period of
requirements for both a request for employee consent and for
January 1, 2014, through December 31, 2014. Employers were
the employee consent, and permits a consent to be requested,
provided instructions on how to correct the social security and
furnished, and retained in an electronic format as an alternative
Medicare taxes on the excess transit benefits in Notice 2015-2,
to a paper format. The revenue procedure also contains
2015-4 I.R.B. 334, available at
IRS.gov/irb/2015-4_IRB/
guidance concerning when an employer may claim a refund of
ar06.html.
only the employer share of overcollected social security tax and
Medicare tax. The revenue procedure requires that any request
Retroactive increase in excludable transit benefits for
for consent include an Additional Medicare Tax notice indicating
2015. The Consolidated Appropriations Act, 2016, increased
that any claim on the employees’ behalf won’t include a claim for
the monthly transit benefit exclusion from $130 per participating
overpaid Addtional Medicare Tax.
employee to $250 per participating employee for the period of
January 1, 2015, through December 31, 2015. Employers were
Qualified small business payroll tax credit for increasing
provided instructions on how to correct the social security and
research activities. For tax years beginning after December
Medicare taxes on the excess transit benefits in Notice 2016-06,
31, 2015, a qualified small business may elect to claim up to
2016-4 I.R.B. 287, available at
IRS.gov/irb/2016-04_IRB/
$250,000 of its credit for increasing research activities as a
ar07.html.
payroll tax credit against the employer’s share of social security
tax. The portion of the credit used against the employer’s share
Claiming the COBRA premium assistance credit. The
of social security tax is allowed in the first calendar quarter
COBRA premium assistance credit was available to an employer
beginning after the date that the qualified small business filed its
for premiums paid on behalf of employees who were
income tax return. The first Form 944 that you can claim this
involuntarily terminated from employment between September
credit on is Form 944 filed for calendar year 2017. The election
1, 2008, and May 31, 2010. The COBRA premium assistance
and determination of the credit amount that will be used against
credit isn’t available for individuals who were involuntarily
the employer’s share of social security tax are made on Form
terminated after May 31, 2010. Therefore, only in rare
6765, Credit for Increasing Research Activities. The payroll tax
circumstances, such as instances where COBRA eligibility was
credit must generally be elected only on an original income tax
delayed as a result of employer provided health insurance
return that is timely filed (including extensions). The amount from
coverage following termination, will the credit be available. If
Form 6765, line 44, must then be reported on Form 8974,
you’re eligible to claim the credit, use Form 944-X, lines 19a and
Qualified Small Business Payroll Tax Credit for Increasing
19b. Form 944-X should be filed after filing your Form 944. Filing
Research Activities. Form 8974 is used to determine the amount
a Form 944-X before filing a Form 944 for the year may result in
of the credit that can be used in the current year. The amount
errors or delays in processing your Form 944-X. For more
from Form 8974, line 12, is reported on Form 944, line 8. For
information, go to IRS.gov/COBRACredit.
2017 and subsequent years, any correction to Form 944, line 8,
If you’re entitled to claim the COBRA premium
is reported on Form 944-X, line 13. If you make a correction on
assistance credit, but aren’t otherwise required to file
Form 944-X, line 13, you must attach a corrected Form 8974.
TIP
Form 944, file a Form 944 with -0- entered on line 11
For more information about the payroll tax credit, see Notice
before filing your Form 944-X to claim the credit.
2017-23, 2017-16 I.R.B. 1100, available at
IRS.gov/irb/
2015-16_IRB/ar07.html. Also see the line 13 instructions in the
Correcting federal income tax withheld. Generally, you may
Instructions for Form 944.
only correct administrative errors to federal income tax
Period of limitations to make certain corrections expired.
withholding (that is, errors in which the amount reported on Form
Generally, you may correct overreported taxes on a previously
944, line 2, isn’t the amount you actually withheld from an
filed Form 944 if you file Form 944-X within 3 years of the date
employee’s wages) and errors for which section 3509 rates
Form 944 was filed or 2 years from the date you paid the tax
apply. See section 13 of Pub. 15, Employer’s Tax Guide, for
reported on Form 944, whichever is later. For purposes of the
more information about corrections during the calendar year and
period of limitations, Form 944 is considered filed on April 15 of
about administrative errors. See section 2 of Pub. 15 for more
the succeeding year if filed before that date.
information about section 3509. If section 3509 rates apply, see
the instructions for
lines
14–17, later.
Mar 01, 2018
Cat. No. 20334B
Instructions for Form 944-X
Department of the Treasury
Internal Revenue Service
(Rev. February 2018)
Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund
Section references are to the Internal Revenue Code unless
The period of limitations to correct social security tax for 2011
otherwise noted.
and 2012 expired on April 17, 2015, and April 15, 2016,
respectively, for most employers. These instructions no longer
Future Developments
discuss the reduced rate of employee social security tax that
applied in 2011 and 2012. The 2011 and 2012 employee social
For the latest information about developments related to Form
security tax rate was 4.2% and the employer social security tax
944-X and its instructions, such as legislation enacted after they
rate was 6.2% (10.4% total). If the period of limitations for 2011
were published, go to IRS.gov/Form944X.
and 2012 is still open, you can file the February 2018 revision of
What's New
Form 944-X but make sure you use the correct rate when
reporting corrections on lines 8 and 9.
Employee consents to support a claim for refund. Rev.
Reminders
Proc. 2017-28, 2017-14 I.R.B. 1061, available at
IRS.gov/irb/
2017-14_IRB/ar09.html, provides guidance to employers on the
Retroactive increase in excludable transit benefits for
requirements for employee consents used by an employer to
2014. The Tax Increase Prevention Act of 2014 increased the
support a claim for refund of overcollected social security tax
monthly transit benefit exclusion from $130 per participating
and Medicare tax. The revenue procedure clarifies the basic
employee to $250 per participating employee for the period of
requirements for both a request for employee consent and for
January 1, 2014, through December 31, 2014. Employers were
the employee consent, and permits a consent to be requested,
provided instructions on how to correct the social security and
furnished, and retained in an electronic format as an alternative
Medicare taxes on the excess transit benefits in Notice 2015-2,
to a paper format. The revenue procedure also contains
2015-4 I.R.B. 334, available at
IRS.gov/irb/2015-4_IRB/
guidance concerning when an employer may claim a refund of
ar06.html.
only the employer share of overcollected social security tax and
Medicare tax. The revenue procedure requires that any request
Retroactive increase in excludable transit benefits for
for consent include an Additional Medicare Tax notice indicating
2015. The Consolidated Appropriations Act, 2016, increased
that any claim on the employees’ behalf won’t include a claim for
the monthly transit benefit exclusion from $130 per participating
overpaid Addtional Medicare Tax.
employee to $250 per participating employee for the period of
January 1, 2015, through December 31, 2015. Employers were
Qualified small business payroll tax credit for increasing
provided instructions on how to correct the social security and
research activities. For tax years beginning after December
Medicare taxes on the excess transit benefits in Notice 2016-06,
31, 2015, a qualified small business may elect to claim up to
2016-4 I.R.B. 287, available at
IRS.gov/irb/2016-04_IRB/
$250,000 of its credit for increasing research activities as a
ar07.html.
payroll tax credit against the employer’s share of social security
tax. The portion of the credit used against the employer’s share
Claiming the COBRA premium assistance credit. The
of social security tax is allowed in the first calendar quarter
COBRA premium assistance credit was available to an employer
beginning after the date that the qualified small business filed its
for premiums paid on behalf of employees who were
income tax return. The first Form 944 that you can claim this
involuntarily terminated from employment between September
credit on is Form 944 filed for calendar year 2017. The election
1, 2008, and May 31, 2010. The COBRA premium assistance
and determination of the credit amount that will be used against
credit isn’t available for individuals who were involuntarily
the employer’s share of social security tax are made on Form
terminated after May 31, 2010. Therefore, only in rare
6765, Credit for Increasing Research Activities. The payroll tax
circumstances, such as instances where COBRA eligibility was
credit must generally be elected only on an original income tax
delayed as a result of employer provided health insurance
return that is timely filed (including extensions). The amount from
coverage following termination, will the credit be available. If
Form 6765, line 44, must then be reported on Form 8974,
you’re eligible to claim the credit, use Form 944-X, lines 19a and
Qualified Small Business Payroll Tax Credit for Increasing
19b. Form 944-X should be filed after filing your Form 944. Filing
Research Activities. Form 8974 is used to determine the amount
a Form 944-X before filing a Form 944 for the year may result in
of the credit that can be used in the current year. The amount
errors or delays in processing your Form 944-X. For more
from Form 8974, line 12, is reported on Form 944, line 8. For
information, go to IRS.gov/COBRACredit.
2017 and subsequent years, any correction to Form 944, line 8,
If you’re entitled to claim the COBRA premium
is reported on Form 944-X, line 13. If you make a correction on
assistance credit, but aren’t otherwise required to file
Form 944-X, line 13, you must attach a corrected Form 8974.
TIP
Form 944, file a Form 944 with -0- entered on line 11
For more information about the payroll tax credit, see Notice
before filing your Form 944-X to claim the credit.
2017-23, 2017-16 I.R.B. 1100, available at
IRS.gov/irb/
2015-16_IRB/ar07.html. Also see the line 13 instructions in the
Correcting federal income tax withheld. Generally, you may
Instructions for Form 944.
only correct administrative errors to federal income tax
Period of limitations to make certain corrections expired.
withholding (that is, errors in which the amount reported on Form
Generally, you may correct overreported taxes on a previously
944, line 2, isn’t the amount you actually withheld from an
filed Form 944 if you file Form 944-X within 3 years of the date
employee’s wages) and errors for which section 3509 rates
Form 944 was filed or 2 years from the date you paid the tax
apply. See section 13 of Pub. 15, Employer’s Tax Guide, for
reported on Form 944, whichever is later. For purposes of the
more information about corrections during the calendar year and
period of limitations, Form 944 is considered filed on April 15 of
about administrative errors. See section 2 of Pub. 15 for more
the succeeding year if filed before that date.
information about section 3509. If section 3509 rates apply, see
the instructions for
lines
14–17, later.
Mar 01, 2018
Cat. No. 20334B
Only transposition or math errors involving the
Qualified small business payroll tax credit for increasing
inaccurate reporting of the amount actually withheld are
research activities; and
!
“administrative errors.”
Credits for COBRA premium assistance payments.
CAUTION
You can’t file a Form 944-X to correct federal income tax
Use Form 843, Claim for Refund and Request for Abatement,
withholding for prior years for nonadministrative errors. In other
to request a refund or abatement of assessed interest or
words, you can’t correct federal income tax actually withheld
penalties. Don’t request a refund or abatement of assessed
from an employee in a prior year if you discover that you didn’t
interest or penalties on Form 944 or Form 944-X.
withhold the right amount. For example, you can’t correct federal
We use the terms “correct” and “corrections” on Form
income tax withheld in a prior year because you used the wrong
944-X and in these instructions to include interest-free
income tax withholding table in Pub. 15 or you didn’t treat a
TIP
adjustments under sections 6205 and 6413 and claims
payment correctly as taxable or nontaxable. Similarly, if you paid
for refund and abatement under sections 6402, 6414, and 6404.
federal income tax in a prior year on behalf of your employee
See Rev. Rul. 2009-39 for examples of how the interest-free
rather than deducting it from the employee’s pay (which resulted
adjustment and claim for refund rules apply in 10 different
in additional wages subject to tax), and in a subsequent year you
situations. You can find Rev. Rul. 2009-39, 2009-52 I.R.B. 951,
determine that you incorrectly calculated the amount of tax, you
at IRS.gov/irb/2009-52_IRB/ar14.html.
can’t correct the federal income tax withholding.
The amount actually withheld is reflected on payroll
When you discover an error on a previously filed Form 944,
information or on Form W-2, Wage and Tax Statement,
TIP
you must:
which can be used by the employee to claim a credit for
Correct that error using Form 944-X,
withholding for individual income tax return purposes.
File a separate Form 944-X for each Form 944 that you’re
correcting, and
Correcting Additional Medicare Tax withholding. Wages
Generally, file Form 944-X separately. Don’t file Form 944-X
and tips subject to Additional Medicare Tax withholding are
with Form 944. However, if you didn’t previously file Form 944
reported on Form 944, line 4d. Certain errors discovered on a
because you mistakenly treated your employees as
previously filed Form 944 are corrected on Form 944-X, line 11.
nonemployees, you may have to file Form 944-X with Form 944.
However, you can’t file a Form 944-X to correct Additional
See the instructions for
line
22, later.
Medicare Tax actually withheld from an employee in a prior year,
including any amount you paid on behalf of your employee rather
If you didn’t file a Form 944 for 1 or more years for which you
than deducting it from the employee’s pay (which resulted in
should have filed Form 944, don’t use Form 944-X. Instead, file
additional wages subject to tax). See the instructions for
line
11,
Form 944 for each of those years. See also
When Should You
later, for more information on the types of errors that can be
File Form
944-X, later. However, if you didn’t file Forms 944
corrected and how the correction is reported on Form 944-X. For
because you improperly treated workers as independent
more information about Additional Medicare Tax withholding,
contractors or nonemployees and are now reclassifying them as
see the Instructions for Form 944 or go to IRS.gov/ADMT.
employees, see the instructions for
line
22, later.
Correcting the COBRA premium assistance credit. For tax
Report the correction of underreported and overreported
periods ending before January 1, 2014, employers who made
amounts for the same year on a single Form 944-X, unless
COBRA premium assistance payments for assistance-eligible
you’re requesting a refund or abatement. If you’re requesting a
individuals were allowed a credit on their Form 944. Any errors
refund or abatement and you’re correcting both underreported
discovered on a previously filed Form 944 for this credit are
and overreported amounts, file one Form 944-X correcting the
corrected on Form 944-X, lines 19a and 19b. Effective for tax
underreported amounts only and a second Form 944-X
periods beginning after December 31, 2013, Form 944-X is used
correcting the overreported amounts.
to both report the total COBRA premium assistance credit an
employer is entitled to claim and correct any previously reported
You’ll use the adjustment process if you underreported
credit. For more information, see the instructions for lines
19a
employment taxes and are making a payment, or if you
and 19b, later.
overreported employment taxes and will be applying the credit to
Form 944 for the period during which you file Form 944-X.
General Instructions:
However, see the Caution under
Is There a Deadline for Filing
Understanding Form 944-X
Form
944-X, later, if you’re correcting overreported amounts
during the last 90 days of a period of limitations. You’ll use the
claim process if you overreported employment taxes and are
What Is the Purpose of Form 944-X?
requesting a refund or abatement of the overreported amount.
Follow the chart on the back of Form 944-X for help in choosing
For tax periods beginning after December 31, 2013,
whether to use the adjustment process or the claim process. Be
Form 944 will no longer be used to claim the credit for
!
sure to give us a detailed explanation on line 23 for each
COBRA premium assistance payments. Instead, use
correction that you show on Form 944-X.
CAUTION
Form 944-X. For more information, see the instructions for lines
19a
and 19b, later.
Continue to report current year adjustments for fractions of
cents, third-party sick pay, tips, and group-term life insurance on
Use Form 944-X to correct errors on a previously filed Form
Form 944, line 6.
944. Use Form 944-X to correct:
Wages, tips, and other compensation;
You have additional requirements to complete when filing
Federal income tax withheld from wages, tips, and other
Form 944-X, such as certifying that you filed (or will file) all
compensation;
applicable Forms W-2 and Forms W-2c, Corrected Wage and
Taxable social security wages;
Tax Statements. For corrections of overreported federal income
Taxable social security tips;
tax, social security, or Medicare tax, you must make any
Taxable Medicare wages and tips;
certifications that apply to your situation.
Taxable wages and tips subject to Additional Medicare Tax
withholding;
-2-
Instructions for Form 944-X (Rev. 2-2018)
Don’t use Form 944-X to correct Form CT-1, 941,
Form 945-A, line M, must match the corrected total tax (Form
941-SS, 943, or 945. Instead, use the “X” form that
944, line 9 (line 7 for years before 2017), combined with any
!
corresponds to those forms (Form CT-1 X, 941-X,
correction reported on Form 944-X, line 18) for the year, less any
CAUTION
943-X, or 945-X).
previous abatements and interest-free tax assessments.
Example—You owe tax. On February 13, 2018, you
Where Can You Get Help?
discovered that you underreported $1,000 of social security and
Medicare wages on your 2017 Form 944. File Form 944-X and
For help filing Form 944-X or for questions about federal
pay the amount you owe by January 31, 2019, because you
employment taxes and tax corrections, you can:
discovered the error in 2018 and January 31, 2019, is the due
Go to IRS.gov/EmploymentTaxes;
date for that year. If you file Form 944-X before January 31,
See Pub. 15 or Pub. 80, Federal Tax Guide for Employers in
2019, pay the amount you owe by the time you file.
the U.S. Virgin Islands, Guam, American Samoa, and the
Form 944-X can’t be used to correct underreported
Commonwealth of the Northern Mariana Islands; or
amounts of Additional Medicare Tax unless the amounts
!
Call the IRS Business and Specialty Tax Line toll free at
were withheld from employee wages.
1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who
CAUTION
are deaf, hard of hearing, or have a speech disability) Monday–
Overreported tax—adjustment process. If you overreported
Friday from 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii
tax and choose to apply the credit on Form 944 or Form 941, file
follow Pacific time).
an adjusted return on Form 944-X soon after you discover the
See also
How Can You Get Forms, Instructions, and
error but more than 90 days before the period of limitations on
Publications From the
IRS, later.
the credit or refund for Form 944 expires. See
Is There a
Deadline for Filing Form 944-X
below.
When Should You File Form 944-X?
Form 944-X can’t be used to correct overreported
amounts of Additional Medicare Tax unless the amounts
!
File Form 944-X when you discover an error on a previously filed
were not withheld from employee wages.
Form 944.
CAUTION
Example—You want your credit applied to Form 944.
However, if your only errors on Form 944 relate to federal tax
You filed your 2017 Form 944 on January 31, 2018, and
liabilities reported in Part 2 of Form 944 or on Form 945-A,
payments were timely made. On May 1, 2018, you discover that
Annual Record of Federal Tax Liability, don’t file Form 944-X. To
you overreported tax on your 2017 Form 944. You file Form
correct federal tax liabilities reported in Part 2 of Form 944, file
Form 945-A, but only enter the monthly totals. The daily entries
944-X on June 4, 2018. The IRS treats your credit as a tax
deposit made on January 1, 2018. When you file your 2018
aren’t required. For more information about correcting federal tax
Form 944, include the amount from Form 944-X, line 20, on the
liabilities reported on Form 945-A, see the Form 945-A
“Total deposits” line of your 2018 Form 944.
instructions.
If you reduced your deposits during the year by the
Due dates. The due date for filing Form 944-X depends on
amount of the COBRA premium assistance credit that
when you discover an error and if you underreported or
!
will be reflected on your Form 944-X, don’t use the
overreported tax. If you underreported tax, see
Underreported
CAUTION
adjustment process to claim the COBRA premium assistance
tax
next. For overreported amounts, you may choose to either
credit. Use the claim process. See the instructions for lines
19a
make an interest-free adjustment or file a claim for refund or
and 19b, later.
abatement. If you’re correcting overreported amounts, see
Overreported tax—adjustment process
and
Overreported
Overreported tax—claim process. If you overreported tax on
tax—claim
process, later.
Form 944, you may choose to file a claim for refund or
If any due date falls on a Saturday, Sunday, or legal holiday,
abatement on Form 944-X any time before the period of
you may file Form 944-X on the next business day. The term
limitations on credit or refund expires. If you also need to correct
“legal holiday” means any legal holiday in the District of
any underreported amounts, you must file another Form 944-X
Columbia. See Pub. 15 for the list of legal holidays. If we receive
reporting only corrections to the underreported amounts. See
Is
Form 944-X after the due date, we will treat Form 944-X as filed
There a Deadline for Filing Form 944-X
next.
on time if the envelope containing Form 944-X is properly
addressed, contains sufficient postage, and is postmarked by
You may not file a refund claim to correct federal income
the U.S. Postal Service on or before the due date, or sent by an
tax or Additional Medicare Tax actually withheld from
!
IRS-designated private delivery service (PDS) on or before the
employees.
CAUTION
due date. If you don’t follow these guidelines, we will consider
Is There a Deadline for Filing Form
Form 944-X filed when it is actually received. Go to
IRS.gov/PDS
for the current list of PDSs. For the IRS mailing address to use if
944-X?
you’re using a PDS, go to IRS.gov/PDSstreetAddresses.
Underreported tax. If you’re correcting underreported tax, you
Generally, you may correct overreported taxes on a previously
must file Form 944-X by the due date of the return for the return
filed Form 944 if you file Form 944-X within 3 years of the date
period in which you discovered the error (January 31 of the
Form 944 was filed or 2 years from the date you paid the tax
following year) and pay the amount you owe by the time you
reported on Form 944, whichever is later. You may correct
file. Doing so will generally ensure that your correction is interest
underreported taxes on a previously filed Form 944 if you file
free and not subject to failure-to-pay (FTP) or failure-to-deposit
Form 944-X within 3 years of the date the Form 944 was filed.
(FTD) penalties. See
What About Penalties and
Interest, later.
We call each of these time frames a “period of limitations.” For
For details on how to make a payment, see the instructions for
purposes of the period of limitations, Form 944 is considered
line
20, later.
filed on April 15 of the succeeding year if filed before that date.
If Form 944-X is filed late (after the due date of the return for
Example. You filed your 2014 Form 944 on January 26,
the return period in which you discovered the error), you must
2015, and payments were timely made. The IRS treats the return
attach an amended Form 945-A to Form 944-X. Otherwise, the
as if it were filed on April 15, 2015. On January 22, 2018, you
IRS may assess an “averaged” FTD penalty. The tax reported on
-3-
Instructions for Form 944-X (Rev. 2-2018)
Return You’re Correcting
discovered that you overreported social security and Medicare
wages on that form by $350. To correct the error, you must file
Enter the calendar year of the Form 944 you’re correcting. Enter
Form 944-X by April 17, 2018 and use the claim process.
the calendar year on pages 2 and 3 in the box marked
If you file Form 944-X to correct overreported amounts in
“Correcting Calendar Year.” Be sure to write your name, EIN,
the last 90 days of a period of limitations, you must use
“Form 944-X,” and the calendar year you’re correcting on the top
!
the claim process. You can’t use the adjustment
of any attachments.
CAUTION
process. If you’re also correcting underreported amounts, you
Enter the Date You Discovered Errors
must file another Form 944-X to correct the underreported
amounts using the adjustment process and pay any tax due.
You must enter the date you discovered errors. You discover an
error when you have enough information to be able to correct the
Where Should You File Form 944-X?
error. If you’re reporting several errors you discovered at
different times, enter the earliest date you discovered an error
Send your completed Form 944-X to the address shown next.
here. Report any subsequent dates and related errors on line 23.
For the IRS mailing address to use if you’re using a PDS, go to
Must You Make an Entry on Each Line?
IRS.gov/PDSstreetAddresses.
You must provide all of the information requested at the top of
Form 944-X, page 1. You must check one box (but not both) in
IF you’re in . . .
THEN use this address . . .
Part 1. In Part 2, you must check the box on line 3 and any
Connecticut, Delaware, District of
applicable boxes on lines 4 and 5. In Part 3, if any line doesn’t
Columbia, Florida, Georgia, Illinois,
apply, leave it blank. Complete Parts 4 and 5 as instructed.
Indiana, Kentucky, Maine, Maryland,
Massachusetts, Michigan, New
Department of the Treasury
How Should You Report Negative Amounts?
Hampshire, New Jersey, New York,
Internal Revenue Service
North Carolina, Ohio, Pennsylvania,
Cincinnati, OH 45999-0044
Form 944-X uses negative numbers to show reductions in tax
Rhode Island, South Carolina,
(credits) and positive numbers to show additional tax (amounts
Tennessee, Vermont, Virginia, West
you owe).
Virginia, Wisconsin
When reporting a negative amount in columns 3 and 4, use a
Alabama, Alaska, Arizona, Arkansas,
minus sign instead of parentheses. For example, enter “-10.59”
California, Colorado, Hawaii, Idaho,
instead of “(10.59).” However, if you’re completing the return on
Iowa, Kansas, Louisiana, Minnesota,
Department of the Treasury
Mississippi, Missouri, Montana,
your computer and your software only allows you to use
Internal Revenue Service
Nebraska, Nevada, New Mexico,
parentheses to report negative amounts, you may use them.
Ogden, UT 84201-0044
North Dakota, Oklahoma, Oregon,
South Dakota, Texas, Utah,
How Should You Make Entries on Form 944-X?
Washington, Wyoming
You can help the IRS process Form 944-X timely and accurately
No legal residence or principal place
Internal Revenue Service
if you follow these guidelines.
of business in any state
P.O. Box 409101
Type or print your entries.
Ogden, UT 84409
Use Courier font (if possible) for all typed or
Special filing address for exempt
computer-generated entries.
organizations; federal, state, and
Department of the Treasury
Omit dollar signs. You may use commas and decimal points,
local governmental entities; and
Internal Revenue Service
if desired. Enter dollar amounts to the left of any preprinted
Indian tribal governmental entities;
Ogden, UT 84201-0044
decimal point and cents to the right of it.
regardless of location
Always show an amount for cents, even if it is zero. Don’t
round entries to whole dollars.
Complete all three pages and sign Form 944-X on page 3.
How Should You Complete Form
Staple multiple sheets in the upper-left corner.
944-X?
What About Penalties and Interest?
Generally, your correction of an underreported amount won’t be
Use a Separate Form 944-X for Each Year You’re
subject to an FTP penalty, FTD penalty, or interest if you:
Correcting
Enter the date you discovered the error,
Explain in detail the grounds and facts relied on to support the
Use a separate Form 944-X for each Form 944 you’re correcting.
correction,
For example, if you found errors on your Forms 944 for 2016 and
File on time (by the due date of Form 944 for the year in which
2017, file one Form 944-X to correct the 2016 Form 944. File a
you discover the error), and
second Form 944-X to correct the 2017 Form 944.
Pay the amount shown on line 20 by the time you file Form
Employer Identification Number (EIN), Name,
944-X.
and Address
No correction will be eligible for interest-free treatment if any
Enter your EIN, name, and address in the spaces provided. Also
of the following apply.
enter your name and EIN on the tops of pages 2 and 3, and on
The amounts underreported relate to an issue that was raised
any attachments. If your address has changed since you filed
in an examination of a prior period.
your Form 944, enter the corrected information and the IRS will
You knowingly underreported your employment tax liability.
update your address of record. Be sure to write your name, EIN,
You received a notice and demand for payment.
“Form 944-X,” and the calendar year you’re correcting on the top
You received a notice of determination under section 7436.
of any attachments.
If you receive a notice about a penalty after you file this
return, reply to the notice with an explanation and we will
determine if you meet reasonable-cause criteria. Don’t attach an
explanation when you file your return.
-4-
Instructions for Form 944-X (Rev. 2-2018)
Overview of the Process
you check this box, any negative amount shown on line 20 will
be applied as a credit (tax deposit) to your Form 944 or Form
941 for the period in which you’re filing this form. See
To correct a previously filed Form 944, use Form 944-X to file
Example—You want your overreported tax applied as a credit on
either an adjusted employment tax return or a claim for refund or
Form 944
above.
abatement. The adjustment process and the claim process are
outlined below.
Form 944-X can’t be used to correct overreported
If you underreported the tax. If you underreported the tax
amounts of Additional Medicare Tax unless the amounts
!
on a previously filed Form 944, check the box on line 1 and pay
were not withheld from employee wages.
CAUTION
any additional amount you owe by the time you file Form
944-X. For details on how to make a payment, see the
If you owe tax. Pay the amount shown on line 20 by the time
instructions for
line
20, later.
you file Form 944-X. Generally, you won’t be charged interest if
you file on time, pay on time, enter the date you discovered the
Example—You underreported employment taxes. On
error, and explain the correction on line 23.
June 20, 2017, you discovered an error that results in additional
tax on your 2016 Form 944. File Form 944-X by January 31,
If you have a credit. You overreported employment taxes (you
2018, and pay the amount you owe by the time you file. See
have a negative amount on line 20) and want the IRS to apply
When Should You File Form
944-X, earlier. Don’t attach Form
the credit on Form 944 (or Form 941) for the period during which
944-X to your 2017 Form 944.
you filed Form 944-X. The IRS will apply your credit to the first
If you overreported the tax. If you overreported the tax on a
day of the Form 944 year (or Form 941 quarter) during which you
previously filed Form 944, choose one of the following options.
filed Form 944-X. However, the credit you show on Form 944-X,
Use the adjustment process. Check the box on line 1 to apply
line 20, may not be fully available on your Form 944 (or Form
any credit (negative amount) from line 20 to Form 944 for the
941) if the IRS corrects it during processing or you owe other
year during which you file Form 944-X.
taxes, penalties, or interest. The IRS will notify you if your
Use the claim process. Check the box on line 2 to file a claim
claimed credit changes or if the amount available as a credit on
on Form 944-X requesting a refund or abatement of the amount
Form 944 or Form 941 was reduced because of unpaid taxes,
shown on line 20.
penalties, or interest.
To ensure the IRS has enough time to process a credit
Don’t check the box on line 1 if you’re either: (a)
for an overreporting adjustment in the year in which
correcting overreported amounts and the period of
!
TIP
you file Form 944-X, you’re encouraged to file Form
limitations on credit or refund for Form 944 will expire
CAUTION
944-X correcting the overreported amount in the first 11 months
within 90 days of the date you file Form 944-X, or (b) claiming a
of a year. However, there must be 90 days remaining on the
credit for COBRA premium assistance payments and you
period of limitations when you file Form 944-X. See the Caution
reduced your deposits in anticipation of the credit. Instead, in
under
Is There a Deadline for Filing Form
944-X, earlier. For
either case, check the box on line 2 to file a Form 944-X under
example, if you discover an overreported amount in December,
the claim process. See
Is There a Deadline for Filing Form
you may want to file Form 944-X during the first 11 months of the
944-X, earlier. Also see the instructions for lines
19a
and 19b,
next year. This should ensure the IRS will have enough time to
later.
process the Form 944-X so the credit will be posted before you
file Form 944, thus avoiding an erroneous balance due notice
2. Claim
from the IRS. See the example below.
Check the box on line 2 to use the claim process if you’re
correcting overreported amounts only and you’re claiming a
If you currently file Form 941 instead of Form 944 and will claim
refund or abatement for the negative amount (credit) shown on
a credit on Form 941, file Form 944-X in the first 2 months of a
line 20. Don’t check this box if you’re correcting any
quarter in any quarter before the expiration of the period of
underreported amounts on this form.
limitations on Form 944. In the year of the expiration of the
period of limitations on Form 944, file Form 944-X at least 90
You must check the box on line 2 if you have a credit and the
days before the expiration date.
period of limitations on credit or refund for Form 944 will expire
within 90 days of the date you file Form 944-X. See
Is There a
Example—You want your overreported tax applied as a
Deadline for Filing Form
944-X, earlier.
credit on Form 944. On December 18, 2018, you discover you
overreported your tax on your 2017 Form 944 and want to
The IRS usually processes claims shortly after they are filed.
choose the adjustment process. To allow the IRS enough time to
The IRS will notify you if your claim is denied, accepted as filed,
process the credit, you file Form 944-X on January 4, 2019, and
or selected to be examined. See Pub. 556, Examination of
take the credit on your 2019 Form 944.
Returns, Appeal Rights, and Claims for Refund, for more
information.
Specific Instructions:
Unless the IRS corrects Form 944-X during processing or you
owe other taxes, penalties, or interest, the IRS will refund the
Part 1: Select ONLY One Process
amount shown on line 20, plus any interest that applies.
You may not file a refund claim to correct federal income
Because Form 944-X may be used to file either an adjusted
tax or Additional Medicare Tax actually withheld from
!
employment tax return or a claim for refund or abatement, you
employees.
must check one box on either line 1 or line 2. Don’t check both
CAUTION
boxes.
Part 2: Complete the Certifications
1. Adjusted Employment Tax Return
You must complete all certifications that apply by checking the
Check the box on line 1 if you’re correcting underreported
appropriate boxes. If all of your corrections relate to
amounts or overreported amounts and you would like to use the
underreported amounts, complete line 3 only; skip lines 4 and 5
adjustment process to correct the errors.
and go to Part 3. If your corrections relate to overreported
If you’re correcting both underreported amounts and
amounts, you have a duty to ensure that your employees' rights
overreported amounts on this form, you must check this box. If
to recover overpaid employee social security and Medicare
-5-
Instructions for Form 944-X (Rev. 2-2018)

Download Instructions for IRS Form 944-x - Adjusted Employer's Annual Federal Tax Return or Claim for Refund

372 times
Rate
4.4(4.4 / 5) 26 votes
ADVERTISEMENT