Understanding The Form 941-X

Understanding The Form 941-X

Form 941-X, which is also known as the “Adjusted Employer’s Quarterly Federal Tax Return,” is a form which is used for the purpose of correcting any errors which were made on previous 941 reports. This form must be filed whenever an error is found on any 941 form that has been filed in the past, but it is not necessary to file it if the error is associated with part 2 of Form 941 or the number of workers who were paid.

How Form 941-X File Can Be Used

This form can be used to correct errors which were made in regards to income tax which was withheld, wages and tips, COBRA credits, and any amounts which were over or underreported. Whenever the Form 941 quarterly report is submitted for tax withholding on payroll or wages for workers, and an error is identified, the Form 941-X should be used to correct it. Form 941-X should not be submitted in situations where you simply forgot to file Form 941. In this case you will simply want to submit that form.

How Should Form 941-X Be Filled Out?

When completing Form 941-X you’ll want to report any amounts which were under or over reported. You will also need to provide an explanation with regards to these corrections in line 23. Within the form, the negative amounts will display reductions for tax (which denotes that you overpaid), while the positive numbers will display additional tax (which denotes you underpaid). When showing negative numbers, you should place a minus sign in front of the number, and if your computer doesn’t want to use the minus sign, the negative number can be simply placed in parenthesis.

Whenever multiple 941 forms must be corrected, each form will require a different 941-X for every quarter. When you must correct taxes which are over and under reported, and you need an abatement or refund request, you can simply file one Form 941-X for the taxes which were underreported and a separate 941-X for the taxes which were over reported.

Due Dates For Form 941-X

The deadline for this form will be determined by the type of error which was made. For example, taxes which were over reported may have a Form 941-X submitted within 3 years from the day that the incorrect 941 Form was sent out, or within 2 years from the day that you made payment for the taxes which were reported in the Form 941. This time span is referred to as the period of limitations.

When taxes are underreported, you may submit the 941-X Form and pay for the taxes by the deadline for the quarter when the error was discovered. These deadlines are July 31st for errors found within the second quarter, October 31st for errors found within the third quarter, April 30th for errors discovered within the first quarter, and January 31st for errors found within the fourth quarter. Overpaid taxes can be used as a credit for Form 941 by filing Form 941-X after the error is found, but should be done ninety days before the expiration of the period of limitations.

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