What is Form 941-X?
Form 941-X, the Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund form, is used to report and correct errors on a previously filed IRS Form 941. When you realize that you have discovered an error on Form 941, you need to report and correct it by filing Form 941-X. A separate 941-X Form is needed for each 941 return you wish to amend. And also detailed explanation will be required for each correction that you are reporting on Form 941-X.
You don’t need to file Form 941-X for the errors on Form 941 for the number of employees who received wages or on Part 2 of Form 941. Create Free Fillable Form 941-X Online
Form 941-X is used to correct:
- Wages, Tips and Other Compensation
- Federal income tax withheld from wages, tips, and other compensation
- Taxable Social Security wages, Medicare wages and tips
- Taxable wages & tips subject to Additional Medicare Tax withholding
- Qualified small business payroll tax credit for increasing research activities
- Special addition to wages for federal income tax, Social Security, Medicare and additional medicare taxes; and
- Credits for COBRA premium assistance payments
Both underreported and overreported amounts can be corrected using Form 941-X.
When is Form 941-X Due?
The due date for Form 941-X will vary based on the type of error that you made on Form 941 and when you discovered the error.
For overreported taxes, you can file Form 941-X within the three years from the date you filed the incorrect Form 941 or two years from the date you paid the tax reported on
Form 941.
For underreported taxes, You can file Form 941-X within the three years from that date you filed the incorrect Form 941.
This time period is termed as “Period of Limitations”.
If you want to claim a refund for the overpayment of taxes, you can file a 941-X form any time before the period of limitations expires.
If you want to apply the overpayment (credit) to Form 941, file Form 941-X immediately after you discovered the error, file Form 941-X at least 90 days before the period of limitations expires.
For underreported taxes, you can submit a Form 941-X and pay taxes by the due date for the quarter when you find out the error.
For Example: You owe tax. On April 5, 2022, you discovered that you underreported $5,000 of social security and Medicare wages on your 2022 first quarter Form 941. File Form 941-X and also pay the amount you owe by July 31, 2022, because you found the error in the second quarter of 2022, and July 31, 2022, is the due date for that quarter. If you file your Form 941-X before July 31, 2022, pay the amount you owe by the time you file. Create & Download Form 941-X Now for Free
Penalties and Interest for Underreported Taxes
You won’t be penalized for reporting Form 941-X for an underreported amount if
- You have filed the Form 941-X by the due date of the quarter in which you find out the error.
- Paid the amount while filing the 941-X return.
- Provided the date you discovered an error
- Explained about the each correction in detail
You will have to pay penalty or interest if:
- The underreported taxes are related to an issue that was raised in an examination of a prior period
- You knowingly underreported your employment tax liabilities
- You received a notice and demand for payment
- You received a Notice of Determination of Worker Classification
Note: If you receive a notice from the IRS after you filed your 941-X Form, reply to the notice with the explanation in detail.
How to Fill Out Form 941-X?
Select ONLY one process: Will let the IRS to know what type of amendment that you are making on Form 941-X. Usually there will be a two option. One is for an adjusted return to correct both underreported and overreported amounts and another one is for claiming a refund.
Complete the certifications: In part 2, the filer has to certify that they have “Filed or will file Form W2 online or W-2c”. And also it will collect more details on adjusting the overreported amounts or
claiming a refund.
Enter the corrections for this quarter: Part 3 of Form 941-X will be more of the changes that have difference amount from the previously filed 941 return. Filers have to enter the total corrected amount in column 1 and the previously reported amount in column 2. Column 3 should have the difference of
column 1 and 2.
Explain your corrections for this quarter: Requires the detailed explanation on how you determined your corrections.
Sign here: Be sure to put your signature here and the signature of paid preparer is needed if the preparer was paid to prepare
Form 941-X.
Click here to know Form 941-X mailing address.
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