The IRS 941-X form is a critical document used by employers to correct errors on previously filed Form 941, Employer's Quarterly Federal Tax Return. It ensures accurate reporting of payroll taxes, including federal income tax withheld from employees, Social Security, and Medicare taxes. For detailed instructions on filling out the form and ensuring compliance with tax regulations, click the button below.
Navigating the landscape of tax amendments can often feel like traversing a labyrinth, especially when it comes to rectifying payroll tax errors. This is where the IRS 941-X form steps into the spotlight, serving as a beacon for businesses seeking to correct mistakes on previously filed IRS 941 forms. Designed with precision to address discrepancies ranging from withheld federal income tax to social security and Medicare taxes, the 941-X form is a critical tool for any business that finds itself in the precarious position of needing to adjust payroll tax filings. Whether it's an overlooked deduction, an incorrect wage amount, or any other error that could throw a wrench into a company's financial workings, this form provides a structured pathway to making things right. Ensuring accuracy in these corrections is not just recommended; it's imperative, as it directly impacts both the employer's and employees' tax records. The process of completing and filing the IRS 941-X form, while detailed, is a clear demonstration of a business’s commitment to compliance and rectitude in its fiscal responsibilities.
Form 941-X: Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund
(Rev. July 2021)
Department of the Treasury — Internal Revenue Service
OMB No. 1545-0029
Employer identification number
—
(EIN)
Name (not your trade name)
Trade name (if any)
Address
Number
Street
Suite or room number
City
State
ZIP code
Foreign country name
Foreign province/county
Foreign postal code
Read the separate instructions before completing this form. Use this form to correct errors you made on Form 941 or 941-SS. Use a separate Form 941-X for each quarter that needs correction. Type or print within the boxes. You MUST complete all five pages. Don’t attach this form to Form 941 or 941-SS unless you’re reclassifying workers; see the instructions for line 42.
Return You’re Correcting...
Check the type of return you’re correcting.
941
941-SS
Check the ONE quarter you’re correcting.
1: January, February, March
2: April, May, June
3: July, August, September
4: October, November, December
Enter the calendar year of the quarter you’re correcting.
(YYYY)
Part 1: Select ONLY one process. See page 6 for additional guidance, including information on how to treat employment tax credits and social security tax deferrals.
1.Adjusted employment tax return. Check this box if you underreported tax amounts. Also check this box if you overreported tax amounts and you would like to use the adjustment process to correct the errors. You must check this box if you’re correcting both underreported and overreported tax amounts on this form. The amount shown on line 27, if less than zero, may only be applied as a credit to your Form 941, Form 941-SS, or Form 944 for the tax period in which you’re filing this form.
2. Claim. Check this box if you overreported tax amounts only and you would like to use the claim process to ask for a refund or abatement of the amount shown on line 27. Don’t check this box if you’re correcting ANY underreported tax amounts on this form.
Enter the date you discovered errors.
/
(MM / DD / YYYY)
Part 2: Complete the certifications.
3.I certify that I’ve filed or will file Forms W-2, Wage and Tax Statement, or Forms W-2c, Corrected Wage and Tax Statement, as required.
Note: If you’re correcting underreported tax amounts only, go to Part 3 on page 2 and skip lines 4 and 5. If you’re correcting overreported tax amounts, for purposes of the certifications on lines 4 and 5, Medicare tax doesn’t include Additional Medicare Tax. Form 941-X can’t be used to correct overreported amounts of Additional Medicare Tax unless the amounts weren’t withheld from employee wages or an adjustment is being made for the current year.
4.If you checked line 1 because you’re adjusting overreported federal income tax, social security tax, Medicare tax, or Additional Medicare Tax, check all that apply. You must check at least one box.
I certify that:
a.I repaid or reimbursed each affected employee for the overcollected federal income tax or Additional Medicare Tax for the current year and the overcollected social security tax and Medicare tax for current and prior years. For adjustments of employee social security tax and Medicare tax overcollected in prior years, I have a written statement from each affected employee stating that he or she hasn’t claimed (or the claim was rejected) and won’t claim a refund or credit for the overcollection.
b. The adjustments of social security tax and Medicare tax are for the employer’s share only. I couldn’t find the affected employees or each affected employee didn’t give me a written statement that he or she hasn’t claimed (or the claim was rejected) and won’t claim a refund or credit for the overcollection.
c.The adjustment is for federal income tax, social security tax, Medicare tax, or Additional Medicare Tax that I didn’t withhold from employee wages.
5.If you checked line 2 because you’re claiming a refund or abatement of overreported federal income tax, social security tax, Medicare tax, or Additional Medicare Tax, check all that apply. You must check at least one box.
a.
I repaid or reimbursed each affected employee for the overcollected social security tax and Medicare tax. For claims of employee
social security tax and Medicare tax overcollected in prior years, I have a written statement from each affected employee stating
that he or she hasn’t claimed (or the claim was rejected) and won’t claim a refund or credit for the overcollection.
b.
I have a written consent from each affected employee stating that I may file this claim for the employee’s share of social security
tax and Medicare tax. For refunds of employee social security tax and Medicare tax overcollected in prior years, I also have a
written statement from each affected employee stating that he or she hasn’t claimed (or the claim was rejected) and won’t claim a
refund or credit for the overcollection.
c.
The claim for social security tax and Medicare tax is for the employer’s share only. I couldn’t find the affected employees, or each
affected employee didn’t give me a written consent to file a claim for the employee’s share of social security tax and Medicare tax,
or each affected employee didn’t give me a written statement that he or she hasn’t claimed (or the claim was rejected) and won’t
claim a refund or credit for the overcollection.
d.
The claim is for federal income tax, social security tax, Medicare tax, or Additional Medicare Tax that I didn’t withhold from
employee wages.
Next ■▶
For Paperwork Reduction Act Notice, see the separate instructions. www.irs.gov/Form941X
Cat. No. 17025J
Form 941-X (Rev. 7-2021)
Employer identification number (EIN)
Correcting quarter
(1, 2, 3, 4)
Correcting calendar year (YYYY)
Part 3: Enter the corrections for this quarter. If any line doesn’t apply, leave it blank.
Column 1
Column 2
Column 3
Column 4
6.
Wages, tips, and other
compensation (Form 941, line 2)
7.
Federal income tax withheld
from wages, tips, and other
compensation (Form 941, line 3)
8.
Taxable social security wages
(Form 941 or 941-SS, line 5a,
Column 1)
Total corrected amount (for ALL employees)
.
Amount originally reported or as
—previously corrected (for ALL employees)
—.
=
Difference
(If this amount is a negative number, use a minus sign.)
Tax correction
Use the amount in Column 1 when you prepare your Forms W-2 or Forms W-2c.
Copy Column
3 here ▶
× 0.124* =
9.
Qualified sick leave wages*
(Form 941 or 941-SS, line 5a(i),
* If you’re correcting your employer share only, use 0.062. See instructions.
× 0.062 =
* Use line 9 only for qualified sick leave wages paid after March 31, 2020, for leave taken before April 1, 2021.
10.Qualified family leave wages* (Form 941 or 941-SS, line 5a(ii), Column 1)
11.Taxable social security tips (Form 941 or 941-SS, line 5b, Column 1)
* Use line 10 only for qualified family leave wages paid after March 31, 2020, for leave taken before April 1, 2021.
12.Taxable Medicare wages & tips (Form 941 or 941-SS, line 5c, Column 1)
× 0.029* =
* If you’re correcting your employer share only, use 0.0145. See instructions.
13.
Taxable wages & tips subject to
Additional Medicare Tax
withholding (Form 941 or
941-SS, line 5d)
× 0.009* =
* Certain wages and tips reported in Column 3 shouldn’t be multiplied by 0.009. See instructions.
14.
Section 3121(q) Notice and
Demand—Tax due on
unreported tips (Form 941 or
941-SS, line 5f)
15.
Tax adjustments (Form 941 or
941-SS, lines 7 through 9)
16.
Qualified small business payroll tax
credit for increasing research
activities (Form 941 or 941-SS, line
11a; you must attach Form 8974)
17.
Nonrefundable portion of credit
for qualified sick and family
leave wages for leave taken
before April 1, 2021 (Form 941
or 941-SS, line 11b)
18a. Nonrefundable portion of employee retention credit
(Form 941 or 941-SS, line 11c)
18b. Nonrefundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021 (Form 941
or 941-SS, line 11d)
18c. Nonrefundable portion of COBRA premium assistance credit
(Form 941 or 941-SS, line 11e)
18d. Number of individuals provided COBRA premium assistance
(Form 941 or 941-SS, line 11f)
Copy Column 3 here ▶
See instructions
19.Special addition to wages for federal income tax
20.Special addition to wages for social security taxes
21.Special addition to wages for Medicare taxes
See
instructions
Page 2
Part 3: Enter the corrections for this quarter. If any line doesn’t apply, leave it blank. (continued)
Total corrected
Amount originally
amount (for ALL
reported or as
(If this amount is a
employees)
previously corrected
negative number,
(for ALL employees)
use a minus sign.)
22.
Special addition to wages for
23.
Combine the amounts on lines 7 through 22 of Column 4
24.Deferred amount of social security tax* (Form 941 or 941-SS, line 13b)
* Use this line to correct the employer deferral for the second quarter of 2020 and the employer and employee deferral for the third and fourth quarters of 2020.
25.Refundable portion of credit for qualified sick and family leave wages for leave taken before April 1, 2021 (Form 941 or 941- SS, line 13c)
26a. Refundable portion of employee
retention credit (Form 941 or 941-SS, line 13d)
26b. Refundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021 (Form 941 or 941-SS, line 13e)
26c.
Refundable portion of COBRA
premium assistance credit
(Form 941 or 941-SS, line 13f)
27.
Total. Combine the amounts on lines 23 through 26c of Column 4
If line 27 is less than zero:
•If you checked line 1, this is the amount you want applied as a credit to your Form 941 or 941-SS for the tax period in which you’re filing this form. (If you’re currently filing a Form 944, Employer’s ANNUAL Federal Tax Return, see the instructions.)
•If you checked line 2, this is the amount you want refunded or abated.
If line 27 is more than zero, this is the amount you owe. Pay this amount by the time you file this return. For information on how to pay, see Amount you owe in the instructions.
28.Qualified health plan expenses allocable to qualified sick leave wages for leave taken before April 1, 2021 (Form 941 or 941- SS, line 19)
29.Qualified health plan expenses allocable to qualified family leave wages for leave taken before April 1, 2021 (Form 941 or 941-SS, line 20)
30.Qualified wages for the employee retention credit (Form 941 or 941-SS, line 21)
31a. Qualified health plan expenses for the employee retention credit
(Form 941 or 941-SS, line 22)
31b. Check here if you’re eligible for the employee retention credit in the third or fourth quarter of 2021 solely because your business is a recovery startup business . . . . . . . . . . . .
32.Credit from Form 5884-C, line 11, for this quarter* (Form 941 or 941-SS, line 23)
* Use line 32 to correct only the second, third, and fourth quarters of 2020, and the first quarter of 2021.
Page 3
33a. Qualified wages paid March 13 through March 31, 2020, for the employee retention credit*
(Form 941 or 941-SS, line 24)
33b. Deferred amount of the employee share of social security tax included on Form 941 or 941-SS, line 13b*
* Use line 33a to correct only the second quarter of 2020.
* Use line 33b to correct only the third and fourth quarters of 2020.
34.
Qualified health plan expenses
allocable to wages reported on
Form 941 or 941-SS, line 24*
* Use line 34 to correct only the second quarter of 2020.
(Form 941 or 941-SS, line 25)
Caution: Lines 35–40 apply only to quarters beginning after March 31, 2021.
35.Qualified sick leave wages for leave taken after March 31, 2021 (Form 941 or 941-SS, line 23)
36.Qualified health plan expenses allocable to qualified sick leave wages for leave taken after March 31, 2021 (Form 941 or 941-SS, line 24)
37.Amounts under certain collectively bargained agreements allocable to qualified sick leave wages for leave taken after March 31, 2021 (Form 941 or 941-SS, line 25)
38.Qualified family leave wages for leave taken after March 31, 2021 (Form 941 or 941-SS, line 26)
39.Qualified health plan expenses allocable to qualified family leave wages for leave taken after March 31, 2021 (Form 941 or 941-SS, line 27)
40.Amounts under certain collectively bargained agreements allocable to qualified family leave wages for leave taken after March 31, 2021 (Form 941 or 941-SS, line 28)
Page 4
Part 4: Explain your corrections for this quarter.
41. Check here if any corrections you entered on a line include both underreported and overreported amounts. Explain both your underreported and overreported amounts on line 43.
42. Check here if any corrections involve reclassified workers. Explain on line 43.
43.You must give us a detailed explanation of how you determined your corrections. See the instructions.
Part 5: Sign here. You must complete all five pages of this form and sign it.
Under penalties of perjury, I declare that I have filed an original Form 941 or Form 941-SS and that I have examined this adjusted return or claim, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
✗
Print your
Sign your
name here
title here
Date
Best daytime phone
Paid Preparer Use Only
Check if you’re self-employed . . .
Preparer’s name
Preparer’s signature
Firm’s name (or yours if self-employed)
PTIN
EIN
Phone
/ /
Page 5
Form 941-X: Which process should you use?
Unless otherwise specified in the separate instructions, an underreported employment tax credit or social
security tax deferral should be treated like an overreported tax amount. An overreported employment tax credit
Type of errors
or social security tax deferral should be treated like an underreported tax amount. For more information,
including which process to select on lines 1 and 2, see Correcting an employment tax credit or social security tax
you’re correcting
deferral in the separate instructions.
Underreported
Use the adjustment process to correct underreported tax amounts.
• Check the box on line 1.
tax amounts
ONLY
• Pay the amount you owe from line 27 by the time you file Form 941-X.
Overreported tax amounts
The process you use depends on when you file Form 941-X.
If you’re filing Form 941-X
Choose either the adjustment process or the claim
MORE THAN 90 days before
process to correct the overreported tax amounts.
the period of limitations on
Choose the adjustment process if you want the
credit or refund for Form 941
amount shown on line 27 credited to your Form 941,
or Form 941-SS expires...
Form 941-SS, or Form 944 for the period in which you
file Form 941-X. Check the box on line 1.
OR
Choose the claim process if you want the amount
shown on line 27 refunded to you or abated. Check
the box on line 2.
You must use the claim process to correct the
WITHIN 90 days of the
overreported tax amounts. Check the box on line 2.
expiration of the period of
limitations on credit or refund
for Form 941 or Form 941-SS...
BOTH underreported and overreported tax amounts
Choose either the adjustment process or both the
adjustment process and the claim process when you
correct both underreported and overreported tax
amounts.
Choose the adjustment process if combining your
underreported tax amounts and overreported tax
amounts results in a balance due or creates a credit
that you want applied to Form 941, Form 941-SS, or
Form 944.
• File one Form 941-X, and
• Check the box on line 1 and follow the instructions
on line 27.
Choose both the adjustment process and the
claim process if you want the overreported tax
amount refunded to you or abated.
File two separate forms.
1. For the adjustment process, file one Form 941-X
to correct the underreported tax amounts. Check
the box on line 1. Pay the amount you owe from
line 27 by the time you file Form 941-X.
2. For the claim process, file a second Form 941-X
to correct the overreported tax amounts. Check
You must use both the adjustment process and
the claim process.
limitations on credit or
refund for Form 941 or
Form 941-SS...
Page 6
After realizing a mistake on a previously submitted IRS 941 form, it's important to correct it using the IRS 941-X form. This form allows businesses to amend errors on employee income, social security, or Medicare taxes previously reported. The steps to complete the form are straightforward, but attention to detail is essential to ensure accuracy and compliance with IRS requirements. The process below outlines how to fill out the form correctly.
Once the form is filled out and reviewed for accuracy, ensure that it is mailed to the correct IRS address. This step is crucial for processing your correction request efficiently. After submission, keep a copy of the 941-X form and all related documents for your records. The IRS may take several weeks to process the amendment, so patience is key. Tracking the status of your submission can be done by contacting the IRS directly.
The IRS 941-X form, titled "Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund," is a document that businesses use to correct errors on previously filed IRS Form 941. These corrections can include adjustments to income taxes, Social Security taxes, Medicare taxes, or federal tax deposits. This form is crucial for businesses needing to amend their payroll taxes after discovering inaccuracies in their initial submission.
Businesses should file Form 941-X as soon as they notice errors on a previously filed Form 941. However, to claim a refund or abatement of overreported taxes, the form must be filed within three years of the original form’s filing date or two years from the date the tax was paid, whichever is later. For underreported taxes, businesses should correct the error promptly to minimize potential penalties and interest.
Yes, there are two main types of corrections businesses can make with the 941-X form:
As of the last update, Form 941-X cannot be filed electronically. Businesses must complete a paper form and mail it to the IRS. This process differs from the original Form 941, which can be filed electronically or on paper.
While there's no specific deadline for filing Form 941-X, it's important to correct errors as soon as they're discovered. For claiming a refund, remember the time limits: within three years from the date the original Form 941 was filed or within two years from the day the tax was paid, whichever of these periods is later. To avoid penalties and interest on underreported amounts, file as soon as possible.
Form 941-X offers two methods for correcting taxes: the "Adjusted Employment Tax Return" and the "Claim for Refund." The choice between these methods depends on whether a business is correcting overreported or underreported taxes and whether it seeks a refund. Businesses typically choose the "Adjusted Employment Tax Return" method for underreported taxes and the "Claim for Refund" for overreported taxes. Considering the specific tax situation and possibly consulting with a tax professional is advisable.
When filing Form 941-X, businesses need to provide documentation supporting the corrections. This includes:
It's important to keep thorough records to justify the adjustments made on the form.
Common mistakes include:
Accuracy and attention to detail are critical when completing Form 941-X.
If a business needs to amend errors spanning multiple quarters, a separate Form 941-X must be filed for each quarter requiring correction. Using the specific form for the correct tax year and quarter is essential to ensure accurate processing by the IRS.
Filling out the IRS 941-X form, which is used to correct errors on a previously filed 941 form, requires careful attention to detail. Mistakes on this amendment form can lead to delays and potentially trigger an audit. Below are common errors individuals and businesses make when completing this form:
Avoiding these mistakes is essential for a smooth correction process. It's advisable to review the form multiple times before submission and consult with a professional if in doubt.
When businesses find they have made an error on their quarterly federal tax returns, the IRS 941-X form is a crucial document for correcting those mistakes. Yet, it seldom stands alone in the rectification process. Several other forms and documents often accompany it, each serving a specific purpose in ensuring that the corrections are processed efficiently and accurately. Understanding these additional forms can significantly simplify the amendment procedure.
Navigating the complexities of tax correction requires a thorough understanding of the 941-X form and its accompanying documents. Each plays a vital role in ensuring the accuracy of the correction and helps streamline the process for both the filing entity and the IRS. By preparing these forms diligently, businesses can correct errors efficiently, minimizing potential penalties and ensuring compliance with tax regulations.
IRS Form 941: The IRS Form 941-X is a direct amendment to the IRS Form 941, which businesses use to report quarterly federal tax returns. Both forms deal with reporting employee wages, withholding taxes, and Social Security and Medicare contributions. The 941-X form is specifically for making corrections to previously filed Form 941 documents.
IRS Form 944-X: Similar to the 941-X, the Form 944-X adjusts filings for the IRS Form 944, which is used by small employers to report annual federal tax returns. Like the 941-X, the 944-X is used to correct errors on originally filed forms.
IRS Form 1040-X: This form is the individual income tax amendment form. Though it is for individual taxpayers and not businesses, its purpose mirrors that of the 941-X: correcting previously filed tax returns. Both involve adjusting tax responsibilities.
IRS Form 1065-X: Used by partnerships to amend previously filed Form 1065s, the return for domestic partnerships. The 1065-X's role in correcting partnership income, deductions, and credits is akin to the 941-X’s function for employment taxes.
IRS Form 1120-X: For corporations looking to amend their tax returns filed on Form 1120, the 1120-X plays a similar role to the 941-X. It allows corrections to be made to income, deductions, and credits reported on the corporate tax return.
IRS Form 990-T: Non-profit organizations use Form 990-T to amend their taxable income reports. While different in audience, the amendment process for non-profit organizations' taxable activities aligns with the 941-X's purpose for correcting employment tax issues.
IRS Form W-2c: This form corrects information previously reported on Form W-2, such as employee wages and tax withholdings. The process of amending employee information with a W-2c is conceptually similar to adjusting employer tax liabilities with a 941-X.
IRS Form 843: Form 843 is used for claims for refund or requests for abatement of certain taxes, including interest, penalties, and additions to tax. While it serves a broader purpose, it shares the corrective nature of the 941-X when dealing with inaccuracies or changes in tax liabilities.
Schedule K-1 (Form 1065): This form is a bit different as it's a reporting document, not a correction form. However, it's related in that errors discovered on a Schedule K-1 might necessitate amendments through forms like the 1065-X, which is in the same realm of corrections as the 941-X. Changes impacting a partnership's income reporting on Schedule K-1 could also indirectly require updates to employment tax reporting.
Filing an IRS 941-X form, also known as the Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, is a crucial process for correcting errors on previously filed IRS 941 forms. To ensure accuracy and compliance with IRS regulations, there are specific dos and don'ts you should follow. Here's a list of eight essential tips to help guide you through this process:
By adhering to these guidelines, you can navigate the process of correcting your IRS 941 form with confidence, ensuring compliance and minimizing potential issues. Remember, when in doubt, consulting a tax professional or the IRS directly can provide additional guidance and support.
When it comes to correcting payroll taxes, the IRS 941-X form is a critical document. However, there are several misconceptions about the form that can confuse employers and employees alike. Here are seven common myths dispelled to ensure accurate understanding and compliance.
Myth 1: The 941-X form is only for correcting overpayments. Contrary to popular belief, the 941-X form is used for both overpayments and underpayments of payroll taxes. Whether you've paid too much or too little, this form is the correct way to report and rectify those inaccuracies.
Myth 2: Amendments can be filed at any time. While it's true that corrections must be filed, they are subject to a statute of limitations. Generally, you have three years from the date you filed the original 941 form, or two years from the date you paid the payroll tax, whichever is later, to submit a 941-X form.
Myth 3: Small errors don't need to be corrected. It might seem like minor mistakes aren't worth correcting, but even small errors can lead to issues down the line. The IRS encourages the correction of all inaccuracies to ensure full compliance and accurate tax reporting.
Myth 4: The 941-X form is complicated to fill out. Although any tax form can seem daunting at first glance, the IRS provides thorough instructions for the 941-X form. By following these guidelines carefully, most taxpayers can successfully complete and submit the form without significant issues.
Myth 5: You can correct multiple quarters on one form. Each 941-X form corresponds to a single tax period. If you need to make corrections for multiple quarters, you must file a separate 941-X form for each period that requires an amendment.
Myth 6: Electronic filing is always an option. Despite the IRS's push towards electronic filing for many forms, the 941-X currently must be filed on paper. This means you should plan accordingly for mailing time and keep records of your submission.
Myth 7: You don't have to explain the corrections. Simply filling out the form isn't enough. The IRS requires a detailed explanation of each correction on the 941-X form. This helps them understand the reason behind the amendment and process the form more efficiently.
Understanding and correcting misconceptions about the IRS 941-X form can significantly impact your business's tax compliance. Remembering these key points ensures a smoother process for correcting payroll taxes and maintaining accurate records.
The IRS 941-X form is used to correct errors on a previously filed Form 941, Employer's Quarterly Federal Tax Return. Understanding how to properly fill out and use this form is critical for employers to ensure compliance with tax laws and to avoid potential penalties. Here are six key takeaways regarding the completion and use of Form 941-X.
In summary, the IRS 941-X form is a critical document for correcting payroll tax errors. By carefully following these guidelines, employers can amend inaccuracies on previously filed Form 941s, ensuring compliance with federal tax obligations and minimizing the impact of potential penalties or interest charges.
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