Instructions for Filling Out Form 941-X

This document offers detailed instructions for completing Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, including information on future developments, updates, reminders, and a comprehensive guide on filling out the form correctly. It covers various parts of the form, such as introductory material, general instructions, specific instructions, worksheets, and additional resources.

In this article, we'll provide information on Form 941-X and a step-by-step guide on how to fill it out.

What is Form 941-X?

Form 941-X, titled "Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund," is used to correct errors on a previously filed Form 941 or Form 941-SS. Its purpose is to ensure the accurate calculation and reporting of employment taxes by allowing employers to adjust wages, taxes withheld, and credits reported. The form must be filed separately for each Form 941 being corrected and for each quarter being corrected. It is essential to complete the form in full, including detailed explanations of the corrections made. Deadlines for filing Form 941-X depend on the type of error and when it was discovered. Specific instructions and worksheets are provided to assist in calculating adjusted credits for various purposes.

Who Must File Form 941-X?

Employers who need to correct errors on a previously filed Form 941 (Employer's QUARTERLY Federal Tax Return) should file Form 941-X. This includes making corrections for underreported and overreported taxes, adjustments to tax credits, and other specific corrections.

Form 941-X Tax Filing Deadlines and Due Dates

• Due dates for Form 941-X depend on when the error is discovered and whether it involves underreported or overreported tax.
• For overreported tax amounts, employers can choose between making an interest-free adjustment or filing a claim for refund or abatement.
• Specific due dates are determined by the type of error and the discovery date.

Form 941-X Late Payment Penalty

If certain conditions are met, corrections of underreported tax amounts on Form 941-X won't be subject to failure-to-pay (FTP) or failure-to-deposit (FTD) penalties. These conditions include filing on time, paying the amount owed by the time of filing, entering the date errors were discovered, and providing a detailed explanation of the corrections.

Step-by-Step Instructions for Form 941-X

Step by Step Instructions for Filling Out Form 941-X:

1. Determine the Corrected Employer Share of Social Security and Medicare Tax: Use the provided worksheets to calculate the corrected amounts of employer share of social security and Medicare tax after considering any credits claimed on Form 8974, Form 5884-C, and/or Form 5884-D.
2. Figure the Sick and Family Leave Credit: If correcting credits for qualified sick and family leave wages, use Worksheet 1 for leave taken after March 31, 2020, and before April 1, 2021, or Worksheet 3 for leave taken after March 31, 2021, and before October 1, 2021. Enter the corrected amounts of qualified wages, health plan expenses, and collectively bargained amounts, and calculate the nonrefundable and refundable portions of the credit.
3. Figure the Employee Retention Credit: If correcting the employee retention credit for qualified wages paid after March 12, 2020, and before July 1, 2021, use Worksheet 2. For wages paid after June 30, 2021, and before January 1, 2022, use Worksheet 4. Enter the corrected amounts of qualified wages and health plan expenses, and calculate the nonrefundable and refundable portions of the credit.
4. Calculate the Adjusted COBRA Premium Assistance Credit: If correcting the COBRA premium assistance credit, use Worksheet 5 to determine the corrected employer share of Medicare tax and calculate the nonrefundable and refundable portions of the credit.
5. Complete the Form: Fill out Form 941-X based on the calculations from the worksheets. Include corrected amounts for wages, taxes, credits, and any other adjustments. Make sure to explain each correction in detail in Part 4 of the form.
6. Sign and File the Form: Complete all five pages of Form 941-X, sign it on page 5, and file it with the IRS. Ensure that you file a separate Form 941-X for each Form 941 that you are correcting and follow the specific filing instructions provided on the webpage.

How to Submit Form 941-X

To submit Form 941-X, follow these steps:

1. Correct errors on a previously filed Form 941, filing a separate Form 941-X for each Form 941 being corrected.
2. Report the corrections in the applicable sections of Form 941-X, including adjustments to wages, tips, and other compensation, federal income tax withheld, and taxable social security and Medicare wages.
3. Use the provided worksheets to calculate any adjustments to credits for qualified sick and family leave wages and the employee retention credit.
4. Complete all five pages of Form 941-X, sign it on page 5, and date it.
5. Send your completed Form 941-X to the IRS at the address provided in the instructions, depending on your location.

Remember to file a separate Form 941-X for each quarter being corrected, file on time to avoid penalties and interest, pay any owed amounts by the time of filing, keep documentation supporting the corrections, and ensure all information provided is accurate and complete.

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