Form 941-X - Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund

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Instructions for Form 941-X

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Instructions for Form 941-X

Department of the Treasury
Internal Revenue Service

(January 2009)
Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund
Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New
New Form 941-X, Adjusted Employer’s QUARTERLY
Federal Tax Return or Claim for Refund, has replaced
Form 941c, Supporting Statement to Correct Information.
Form 941-X must be used for all corrections to a previously
filed Form 941, Employer’s QUARTERLY Federal Tax
Return, beginning with errors discovered in calendar year
2009. Do not attach Form 941-X to Form 941. Form 941-X
must be filed separately.
Also use Form 941-X instead of Form 843, Claim for
Refund or Request for Abatement, when you request a
refund or abatement of overpaid employment taxes.
However, continue to use Form 843 when asking for a
refund or abatement of assessed interest or penalties.
Form 941-X is used to make adjustments to Form
941-SS, Employer’s QUARTERLY Federal Tax Return.
Unless otherwise noted, references to Form 941 and the
Instructions for Form 941 also apply to Form 941-SS and
the Instructions for Form 941-SS.
The lines for adjusting prior quarter errors (lines 7d
through 7g) have been deleted from Form 941, beginning
with the first calendar quarter of 2009. Continue to report
current quarter adjustments for fractions of cents, third-party
sick pay, tips, and group-term life insurance on Form 941,
using lines 7a through 7c.

Background
New Treasury regulations have changed the process for
adjusting employment taxes reported on Form 941 and for
filing a claim for refund of employment taxes. You will use
the revised interest-free adjustment process if you
underreported employment taxes and you are making a
payment, or if you overreported employment taxes and you
will be applying the overpayment (credit) to Form 941 for the
quarter during which you file Form 941-X. However, see the
Caution on page 2. You will use the revised claim process if
you overreported employment taxes and you are requesting
a refund or abatement of the credit. We use the terms
correct and corrections on Form 941-X and these
instructions to include interest-free adjustments under
sections 6205 and 6413.
We believe that you will find Form 941-X easier to
complete and its instructions easier to understand. Also, the
new form will enable the IRS to process corrections to
employment taxes more accurately and efficiently. Please
read both the form and these instructions carefully to
become familiar with the changes.
Where can you get telephone help? You can call the IRS
Business and Specialty Tax Line toll free at 1-800-829-4933,
Monday through Friday from 7 a.m. to 10 p.m. local time
(Alaska and Hawaii follow Pacific time) for answers to your
questions about completing Form 941-X, employment tax
questions, or obtaining an employer identification number.

New Process For Correcting Employment
Taxes
After December 31, 2008, when you discover an error on a
previously filed Form 941, you must:
• Correct that error using Form 941-X.
• File a separate Form 941-X for each Form 941 that you
are correcting, and
• File Form 941-X separately from your current Form 941.
Overreported tax. If you have overreported your tax, you
may choose to:
• Use the adjustment process. Check the box on line 1 to
apply the amount from line 17 of Form 941-X to line 11 of
Form 941 for the quarter during which you file Form 941-X,
or
• Use the claim for refund process. Check the box on line 2
to file a claim on Form 941-X, asking for a refund of the
amount shown on line 17.
To ensure that the IRS has enough time to process a

TIP credit for an overreporting adjustment in the quarter
during which you file Form 941-X, you are
encouraged to file Form 941-X correcting the overreported
amount in the first two months of a quarter. For example, if
you discovered an overreported amount in March, June,
September, or December, you may want to file Form 941-X
in the first two months of the next quarter. This should
ensure that the IRS will have enough time to process the
Form 941-X so that the credit will be posted before you file
Form 941, thus avoiding an erroneous balance due notice
from the IRS. If you currently file Form 944 instead of
Form 941 and will claim a credit on Form 944, file
Form 941-X before December of the calendar year you
discovered the error.
Example, overreported amount applied as a credit to
Form 941. On June 20, 2009, you discover you
overreported the tax on your 2008 fourth quarter Form 941.
You choose to apply the overreported amount as a credit on
your 2009 third quarter Form 941 instead of your 2009
second quarter Form 941 to allow IRS enough time to
process it. You file Form 941-X on August 31. Include the
credit from line 17 of Form 941-X on line 11 of your 2009
third quarter Form 941. Your credit will be considered as a
tax deposit made on July 1, 2009.
Special process for refund claims. Generally, you can
report the correction of overreported amount and
underreported amounts errors for the same quarter on a
single Form 941-X. However, if you are requesting a refund
and you are correcting both overreported amounts and
underreported amounts, you MUST file one Form 941-X
correcting the overreported amounts only and a second
Form 941-X correcting the underreported amounts.
Underreported tax. If you have underreported tax, check
the box in line 1 and pay any additional tax when you file
Form 941-X. You must pay the amount you owe on each
Form 941-X separately if you are filing multiple
Forms 941-X. You may not use an overreported amount on
another Form 941-X to pay an amount you owe, even if you
file the overreported Form 941-X and the underreported
Form 941-X at the same time.

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Instructions for Form 941-X

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Error is Discovered in . . .

General Instructions:
Understanding Form 941-X
Purpose of Form 941-X
Use Form 941-X to report corrections to:
• Wages, tips, and other compensation.
• Income tax withheld from wages, tips, and other
compensation.
• Taxable social security wages.
• Taxable social security tips.
• Taxable Medicare wages and tips.
• Lines 7a through 7c of Form 941.
• Lines 7d through 7g (calendar year 2008 and prior) of
Form 941.
• Advance earned income credit payments made to
employees.
You must complete the applicable certification in Part 2
and provide an explanation of your corrections in Part 4.

!

CAUTION

Form 941-X
Is Due

1. January, February, March

April 30

2. April, May, June

July 31

3. July, August, September

October 31

4. October, November, December

January 31

The dates shown in the table above do not apply to
corrections of overreported amount errors.
Example — You owe tax On February 11, 2009, you
discover that you underreported $10,000 of social security
and Medicare wages on your 2008 fourth quarter Form 941.
File Form 941-X and pay the amount you owe by April 30,
2009 because you discovered the error in the first quarter
of 2009 and April 30, 2009 is the due date for that quarter.
Overreported amount, credit applied to Form 941. If you
overreported your tax and choose to apply the credit to
Form 941, file Form 941-X soon after you discovered the
error but no later than 90 days before the period of
limitations for correcting the Form 941 expires. Make sure
you include the credit on line 11 of Form 941. See Deadline
for Filing Form 941-X below.

Do not use Form 941-X to correct Forms 943, 944,
944-SS, 945, or CT-1. Instead, use new Forms
943-X, 944-X, 945-X, or CT-1-X.

Overreported amount, claim for refund. If you have an
overreported amount, you may choose to file a claim for
refund on Form 941-X. You will be refunded the
overreported amount plus interest if IRS approves your
claim, However, see Deadline for Filing Form 941-X below.
If you need to correct any underreported amounts, you must
file another Form 941-X reporting only the underreported
amounts.

When Not To Use Form 941-X
Current period adjustments. Current period adjustments
for the following items will continue to be reported on
Form 941, lines 7a, 7b, and 7c.
• Current quarter’s fractions of cents.
• Current quarter’s sick pay.
• Current quarter’s adjustments for tips and group-term life
insurance.
Other adjustments. The following are not reported on
Form 941-X.
• Adjustments to line 1 of Form 941.
• Adjustments to line 15 of Form 941, monthly or daily tax
liability.
• Adjustments to Form 943, Form 944, Form 945, and
Form CT-1. Do not use Form 941-X to correct Forms 943,
944, 944-SS, 945, or CT-1. Instead, use new Forms 943-X,
944-X, 945-X, or CT-1-X.
• Adjustments to Schedule B (Form 941). For more
information about correcting federal tax liabilities reported on
Schedule B (Form 941), see the Instructions for Schedule B
(Form 941).
Form 941 not filed. If you did not file a Form 941 for one
or more quarters, do not use Form 941-X. Instead, file
Form 941 for each of those quarters. If you did not file
Forms 941 because you improperly treated workers as
subcontractors or nonemployees and are now reclassifying
them as employees, see the instructions for Line 19. Did
You Reclassify Any Workers? on page 7.

If you discovered an error on or before December

TIP 31, 2008, but did not report it as an adjustment on
Form 941 for any quarter that ended before 2009,
and you did not file a refund claim (Form 843), you may use
Form 941-X to correct the error.

Deadline For Filing Form 941-X
Generally, you may correct overreported taxes on a
previously filed Form 941 within 3 years of the date Form
941 was filed or 2 years from the date you paid the tax
reported on Form 941, whichever is later. You may correct
underreported taxes on a previously filed Form 941 within 3
years of the date Form 941 was filed. We call each of these
timeframes the “period of limitations.” For purposes of the
period of limitations, all 4 quarters of Form 941 that you filed
on time for a calendar year are deemed to have been filed
on April 15 of the next calendar year.
Example. You filed your 2007 second quarter Form 941
on July 27, 2007. The IRS treats the return as if it were filed
on April 15, 2008. On January 10, 2011, you discover that
you overreported social security and Medicare wages on
that form by $10,000. To correct the error, you must file
Form 941-X by April 15, 2011 which is the end of the period
of limitations.

When Must You File?
File Form 941-X when you discover an error on a previously
filed Form 941. The due date for filing Form 941-X depends
on when you discover an error and if you underreported or
overreported your tax.
Underreported amounts. If you owe tax, file Form 941-X
and pay the amount you owe when you file. Doing so will
generally ensure that your correction is interest free and not
subject to failure-to-pay or failure-to-deposit penalties.
Filing dates to avoid interest and penalties. If you owe
tax, you should file Form 941-X by the following dates to
avoid interest and penalties.

If you file Form 941-X to correct overreported
amounts in the last 90 days of a period of limitations
CAUTION (after January 15, 2011 in the example above), you
must use the claim for refund process. You cannot use the
adjustment process. If you are also correcting underreported
amounts, you must file another Form 941-X reporting the
underreported amounts only and pay any tax due.

!

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Instructions for Form 941-X

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Where Should You File?

How Should You Complete Form 941?

Send your completed Form 941-X to the address below.

One Quarter on Form 941-X

If you are in . . .

Use this address . . .

You can only adjust one quarter on Form 941-X. You must
complete a separate Form 941-X for each quarter you are
adjusting.

Special filing addresses for exempt
organizations; federal, state, and local
governmental entities; and Indian tribal
governmental entities; regardless of location

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0005

Connecticut
Delaware
District of Columbia
Illinois
Indiana
Kentucky
Maine
Maryland
Massachusetts
Michigan
New Hampshire

New Jersey
New York
North Carolina
Ohio
Pennsylvania
Rhode Island
South Carolina
Vermont
Virginia
West Virginia
Wisconsin

Department of the Treasury
Internal Revenue Service
Cincinnati, OH
45999-0005

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Florida
Georgia
Hawaii
Idaho
Iowa
Kansas
Louisiana
Minnesota
Mississippi

Missouri
Montana
Nebraska
Nevada
New Mexico
North Dakota
Oklahoma
Oregon
South Dakota
Tennessee
Texas
Utah
Washington
Wyoming

Department of the Treasury
Internal Revenue Service
Ogden, UT
84201-0005

EIN, Name, and Address
Type or print your EIN, name, and address in the spaces
provided. Use the same EIN you used on the Form 941 you
are adjusting. Also enter your name and EIN here on the top
of pages 2 and 3. If your name or address has changed,
enter the corrected information.

Return You Are Correcting
Under “Return You Are Correcting” at the top of Form
941-X, check the box for the type of return you are
correcting, check the box for the quarter you are correcting,
and enter the calendar year of the quarter you are
correcting. Also enter the quarter and calendar year on the
top of pages 2 and 3.

Date You Discovered Errors
You MUST enter the date you discovered the errors. If you
are reporting several errors that you discovered at different
times, enter the earliest date you discovered them. In line 20
report any subsequent dates and related errors.

No legal residence or principal place of
business in any state

Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409

Lines Not Applicable
If any line in Part 3 is not applicable, leave that line blank.

Specific Instructions:

Reporting Negative Amounts

Part 1. Select ONLY one

When reporting a negative amount as a tax adjustment in
columns 3 and 4, use a “minus” sign instead of parentheses.
For example, report “-10.59” instead of “(10.59).” However, if
your software only allows for parentheses in reporting
negative amounts, you may use them.

Because Form 941-X may be used to file either an adjusted
employment tax return or a claim for refund of employment
taxes, you must check one box on either line 1 or line 2. Do
not check both boxes.

Line 1. Adjusted Employment Tax Return
How To Make Entries on Form 941-X

Check the box in line 1 if you are correcting underreported
amounts or overreported amounts and you would like to use
the adjustment method. If you are correcting both
underreported amounts and overreported amounts on this
form, you must check this box. If you check this box, any
overpayment shown in line 17 will be applied as a credit on
your Form 941, 941-SS, 944, or Form 944-SS for the period
in which you are filing this form. See When Must You File?
on page 2.
Also check the box on line 1 if you are only correcting
underreported amounts (you have a balance due).
If you owe tax. Pay the amount shown in line 17 when you
file Form 941-X. Generally, you will not be charged interest if
you file on time, pay on time, and enter the date you
discovered errors. See When Must You File? on page 2.
If you have a credit. You overpaid employment taxes (you
have a negative amount in line 17) and want IRS to apply
the credit on Form 941 or Form 944 for the period during
which you filed Form 941-X. IRS will apply your credit on the
first day of the Form 941 or Form 944 period during which
you filed Form 941-X. However, the credit you show in line
17 of Form 941-X may not be fully available on your Form
941 or Form 944 if IRS corrects it during processing or you

You can help IRS process your Form 941-X timely and
accurately if you follow these guidelines.

• Use 12-point Courier font (if possible) for all entries if you
are typing or using a computer to fill out your form.

• Omit dollar signs and decimal points. Commas are

optional. Report dollars to the left of the preprinted decimal
point and cents to the right of it.

• Always show an amount for cents. Do not round entries to
whole dollars.

• Leave blank any line in Part 3 that you did not correct.
• Complete all three pages and sign Form 941-X.
• Enter negative amounts using a minus sign (if possible).

Otherwise, use parentheses.

• Give us a detailed explanation in line 20 for all
corrections.

• Enter your name, EIN, and year and quarter you are
correcting on all pages and attachments.

• Staple multiple sheets in the upper left corner when filing.
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Instructions for Form 941-X

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Line 4a

owe other taxes, penalties, or interest. IRS will notify you if
your claimed credit changes or if the amount available as a
credit on Form 941 or Form 944 was reduced because of
unpaid taxes, penalties, or interest.

Check the box in line 4a if your overreported amount
includes each affected employee’s share of overcollected
taxes. You are certifying that you repaid or reimbursed the
employee’s share of current and prior year taxes and you
received written statements from the employees stating that
they did not and will not receive a refund or credit for the
prior year taxes. You are certifying that you adjusted federal
income tax withheld from employees for the current calendar
year only.
Example. Below is an example of the written statement
that is required from employees.
• Employee name
• Employer name
• I have received a repayment of $_________ as
overcollected social security and Medicare taxes for 20___.
I have not claimed a refund of or credit for the overcollected
taxes from IRS, or if I did, that claim has been rejected; and
I will not claim a refund or a credit of the amount.
• Employee signature
• Date
Do not send the statement to IRS. Keep for your records.

To allow time for IRS to process your credit, consider
filing Form 941-X only in the first two months of a
CAUTION quarter. See the TIP on page 1. For credits applied
to Form 944, file Form 941-X before December. Do not
check the box in line 1 if you are correcting overreported
amounts and the period of limitations for changes to
Form 941 will expire within 90 days after the date you file
Form 941-X. Instead, check the box in line 2. See Deadline
for Filing Form 941-X on page 2.

!

Line 2. Claim For Refund of Employment
Taxes
Check the box in line 2 if you are correcting overreported
amounts only and you are claiming a refund of the amount
shown on line 17. Do not check this box if you are correcting
ANY underreported amounts on this form.
You must check the box on line 2 if you have an
overreported amount and the period of limitations for making
corrections to Form 941 will expire within 90 days after the
date you file Form 941-X. See Deadline for Filing Form
941-X on page 2.

Line 4b
Check the box on line 4b to certify that your overreported
amount is only for the employer share of taxes on those
employees who you were unable to find or those who would
not (or could not) give you a statement described on line 4a.

Unless IRS corrects Form 941-X during processing or
you owe other taxes, penalties, or interest, the IRS will
refund the amount shown in line 17, plus any applicable
interest.

Line 4c
Check the box on line 4c to certify that your overreported
amount is only for the employer share of taxes on affected
employees from whom you did not withhold employment
taxes.

The IRS processes claims as quickly as possible after
they are filed. We will notify you of the status of your claim.
Generally, claims are accepted as filed, denied, or selected
to be examined. For more information on claims, see
Publication 556, Examination of Returns, Appeal Rights, and
Claims for Refund.

Line 5. Certifying Refund Claims
If you are filing a claim for refund of an overreported amount
of tax and you checked the box on line 2, check the
appropriate box on line 5. You may need to check more than
one box. You may not file a refund claim to correct federal
income tax withheld from employees.

Part 2. Complete The Certifications
You must complete all certifications that apply by checking
the appropriate boxes. If all of your corrections relate to
underreported amounts, complete line 3 only; skip lines 4
and 5 and go to Part 3.

Line 5a
Check the box in line 5a if your overreported amount
includes each affected employee’s share of social security
and Medicare tax. You are certifying that you repaid or
reimbursed to the employees their share of current and prior
year social security and Medicare tax and you received
written statements from those employees stating that they
did not and will not receive a refund or credit for the prior
year taxes.

Line 3. Filing Forms W-2 or Forms W-2c
Check the box in line 3 to certify that you filed or will file
Forms W-2 or Forms W-2c, whichever is appropriate,
showing your employees’ correct wage and tax amounts.
See the Instructions for Forms W-2 and W-3 and the
Instructions for Forms W-2c and W-3c for detailed
information about filing requirements. References to Form
W-2 on Form 941-X and in these instructions also apply to
Forms W-2AS, W-2CM, W-2GU, and W-2VI unless
otherwise noted.

Line 5b
Check the box on line 5b if your overreported amount
includes each affected employee’s share of social security
and Medicare tax. You may check this box even if you have
not yet repaid or reimbursed the employee share of taxes.
You are certifying that you received consent from each
affected employee to file a claim for refund on the employee
share of those taxes and you received written statements
from those employees stating that they did not and will not
receive a refund or credit for the prior year taxes.
Example. Below is an example of the consent and written
statement that is required from employees when you are
filing a claim for refund and have not yet repaid or
reimbursed the employee share of taxes.
• Employee name
• Employer name
• I agree to receive $_________ as a repayment of
overcollected social security and Medicare taxes for 20___.
I have not claimed a refund of or credit for the overcollected

You must check the box in line 3 to certify that you filed
Forms W-2 or Forms W-2c even if your corrections on Form
941-X do not change amounts shown on those forms. For
example, if your only correction to Form 941 involves
misstated tax adjustments (see the instructions for line 11),
check the box in line 3 to certify that you already filed all
required Forms W-2 and W-2c.

Line 4. Certifying Overreported Amount
Adjustments
If you have an overreported amount and you checked the
box on line 1, check the appropriate box in line 4. You may
need to check more than one box. You will apply the
overpayment (credit) shown on line 17 on your Form 941 for
the quarter during which you file Form 941-X.

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Instructions for Form 941-X

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taxes from IRS, or if I did, that claim has been rejected; and
I will not claim a refund or a credit of the amount.
• Employee signature
• Date

Line 7. Income Tax Withheld From Wages,
Tips, and Other Compensation
If you are correcting the federal income tax withheld from
wages, tips, and other compensation you reported in line 3
of Form 941, enter the total corrected amount for ALL
employees in column 1. In column 2, enter the amount you
originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2. Copy the
amount in column 3 to column 4. Include any minus sign
shown in column 3. This line does not apply to
Form 941-SS.

Do not send the statement to IRS. Keep for your records.

Line 5c
Check the box on line 5c to certify that your overreported
amount is only for the employer share of social security and
Medicare tax. Affected employees did not give you consent
to file a claim for refund for the employee share of social
security and Medicare tax, they could not be found, or would
not (or could not) give you a statement described on line 5b.

Generally, you may correct federal income tax
withholding errors only for the current calendar year.
However, you may correct federal income tax withholding
errors for prior years if the amounts shown on Form 941 do
not agree with the amounts you actually withheld, that is, an
administrative error. An administrative error occurred if the
amount you entered on Form 941 was not the same amount
you actually withheld. For example, when the total amount
of federal income tax actually withheld was not reported
correctly on Form 941 because of a mathematical or
transposition error, the difference is an administrative error.
The administrative error adjustment corrects the amount
reported on the Form 941 to agree with the amount actually
withheld from the employee. Include an explanation of the
adjustment on line 14.

Line 5d
Check the box on line 5d to certify that your overreported
amount is only for the employer share of taxes on affected
employees from whom you did not withhold federal income
tax, social security tax, and Medicare tax.

Part 3. Enter Your Corrections For
This Quarter
What Amounts Should You Report in Part 3
In columns 1 and 2 of lines 6 through 10, show amounts for
all of your employees, not just for those employees whose
amounts you are correcting.

Example — Failure to withhold income tax when
required. You were required to withhold $400 of federal
income tax from a new employee’s pay in December
of 2008 but did not do so. You discovered the error on
March 15, 2009. You cannot file Form 941-X to correct your
fourth quarter Form 941 because the error involves a
previous year and the amount previously reported for the
new employee (zero) represents the actual amount withheld
from the new employee during 2008.

If a correction that you report in column 4 was caused by
offsetting errors (see the instructions for line 18), provide an
explanation for each error in line 20.
Because special circumstances apply for lines 11
through 14 and line 16, read the instructions for each line
carefully before entering amounts in the columns.

Example — Administrative error reporting income tax.
You had three employees. In the fourth quarter of 2008, you
withheld $1,000 of federal income tax from employee A,
$2,000 from employee B, and $6,000 from employee C. The
total amount of federal income tax you withheld was $9,000.
You mistakenly reported $6,000 in line 3 of your 2008 fourth
quarter Form 941. You discovered the error on March 16,
2009. This is an example of an administrative error that may
be corrected in a later calendar year because the amount
actually withheld from employees’ wages differs from the
amount reported on Form 941. Use Form 941-X to correct
the error. Enter $9,000 in column 1 and $6,000 in column 2.
Subtract the amount in column 2 from the amount in
column 1.

If you previously adjusted or amended Form 941
using Form 941c, Form 941-X, Form 843, an
CAUTION “amended” Form 941, or by filing a “supplemental”
Form 941, show amounts in column 2 that include those
previously reported corrections.

!

Line 6. Wages, Tips, and Other
Compensation
If you are correcting the wages, tips, and other
compensation you reported in line 2 of Form 941, enter the
total corrected amount for ALL employees in column 1. In
column 2, enter the amount you originally reported. In
column 3, enter the difference between columns 1 and 2.
This line does not apply to Form 941-SS.

On line 20, explain your corrections. If your correction is
for the current calendar year, be sure to indicate that in your
explanation.

Example — Auto allowance; wages, tips, and other
compensation increased. You paid one of your
employees a $500 monthly auto allowance from October
through December 2008 and did not treat the payments as
taxable wages. However, in February 2009, you realized
that the payments were wages because they were not
reimbursements of deductible business expenses that were
substantiated and paid under an accountable plan.
Therefore, you must correct the error and treat the auto
allowance as wages subject to income, social security, and
Medicare taxes. Use Form 941-X to report the additional
$1,500 of wages on line 6 and correct the reported social
security and Medicare taxes on lines 8 and 10.

Line 8. Taxable Social Security Wages
Use line 8 to correct social security wages that you reported
in line 5a, column 1 of Form 941. Enter the total corrected
amount for ALL employees in column 1. In column 2, enter
the amount you originally reported or as previously
corrected. In column 3, enter the difference between
columns 1 and 2.
If you are correcting only the employer share of tax on a
decrease to social security wages, use .062 (6.2%) when
multiplying the amount shown in column 3. If you are
correcting both shares of tax for some employees and only
the employee share for other employees, enter the properly
calculated amount in column 4. Be sure to show your
calculations in line 20, showing how you arrived at the
amount in column 4.

For line 6 of Form 941-X only, do not show this

TIP difference in column 4. Instead, use the amount in
column 1 when you prepare your Forms W-2 or
Forms W-2c.

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Instructions for Form 941-X

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Do not use line 11 to report corrections to amounts
reported in lines 7d and 7e of pre-2009 Forms 941.
CAUTION Instead, file Form 941-X to correct the Form 941
quarter that caused the adjustment shown in line 7d or
line 7e.

Line 9. Taxable Social Security Tips

!

Use line 9 to correct social security tips that you reported in
line 5b, column 1 of Form 941. Enter the total corrected
amount for ALL employees in column 1. In column 2, enter
the amount you originally reported or as previously
corrected. In column 3, enter the difference between
columns 1 and 2.

Lines 12, 13, and 14. Special Addition to
Wages for Federal Income Tax, Social
Security Tax, and Medicare Tax

If you are adjusting only the employer share of tax on a
decrease to social security tips, use .062 (6.2%) when
multiplying the amount shown in column 3. If you are
correcting both shares of tax for some employees and only
the employee share for other employees, report the properly
calculated amount in column 4. Be sure to show your
calculations in line 20.

In lines 12, 13, and 14 enter only corrections to wages
resulting from reclassifying certain workers as employees or
as otherwise directed by IRS personnel.
Unlike other lines on Form 941-X, enter in column 1 only
the corrected wages related to worker reclassification, not
the amount paid to ALL employees. Enter previously
reported reclassification amounts (if any) in column 2. To
figure the amount for column 4, use the tax rates provided in
the IRS notification document when multiplying the amount
in column 3. You may qualify to use the special rates under
section 3509 even if you have not received IRS notification.
The tax correction in column 4 will be a positive number if
you increased the amount of wages you previously reported.

Line 10. Taxable Medicare Wages and Tips
Use line 10 to correct Medicare wages and tips that you
reported in line 5c, column 1 of Form 941. Enter the total
corrected amount for ALL employees in column 1. In
column 2, enter the amount you originally reported or as
previously corrected. In column 3, enter the difference
between columns 1 and 2.

If you misreported an amount in line 7f or 7g on a

TIP pre-2009 Form 941, you may adjust the amount

If you are adjusting only the employer share of tax on a
decrease to Medicare wages and tips, use .0145 (1.45%)
when multiplying the amount shown in column 3. If you are
correcting both shares of tax for some employees and only
the employee share for other employees, report the properly
calculated amount in column 4. Be sure to show your
calculations in line 20.

using lines 12 through 14 of Form 941-X. Be sure to
complete all of the columns and provide a detailed
explanation in line 20.

Line 15. Subtotal
Combine all amounts from lines 7 through 14 in column 4. If
the result is less than zero, enter the result using a
“minus” sign.

If you are adjusting an employee’s social security

TIP wages, social security tips, or Medicare wages and

Line 16. Advance Earned Income Credit
(EIC) Payments Made to Employees

tips (lines 8, 9, or 10 of Form 941-X), you must also
file Form W-2c, Corrected Wage and Tax Statement, and
Form W-3c, Transmittal of Corrected Wage and Tax
Statements.

If you are correcting the advance earned income credit (EIC)
payments made to your employees that you reported on
line 9 of Form 941, enter the total corrected amount for ALL
employees in column 1. In column 2, enter the amount you
originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2. This line
does not apply to Form 941-SS.
You can only make an adjustment to correct an
administrative error. An administrative error occurred if the
amount you entered on Form 941 was not the same amount
you actually paid to your employees. For example, when the
total amount of Advance EIC actually paid was not reported
correctly on Form 941 because of a mathematical or
transposition error, the difference is an administrative error.
The administrative error adjustment corrects the amounts
reported on Form 941 to agree with the amount actually paid
to the employee. Include an explanation of the adjustment
on line 14.
You must switch the amount in column 3 from a positive
number to a negative number or from a negative number to
a positive number when you enter the amount in column 4.
For example, if line 16, column 3 shows 560.00, enter
-560.00 in column 4. If line 16, column 3 shows -990.00,
enter 990.00 in column 4. Remember, negative amounts in
column 4 represent credits and positive amounts in
column 4 represent additional tax.
Example — Advance EIC payments increased. You
filed your 2008 fourth quarter Form 941 reporting zero (line
left blank) on line 9. On March 10, 2009, you discovered that
you forgot to report the $1,000 in advance EIC payments
you made on behalf of an employee. You made no other
EIC payments for your other employees. This is an example
of an administrative error. To correct the error, file
Form 941-X showing the following.

Line 11. Tax Adjustments
Use line 11 to correct any adjustments reported on lines 7a
through 7c of a previously filed Form 941. Add the corrected
amounts on lines 7a through 7c. Enter that total in column 1.
Add the originally reported or previously adjusted amounts
from lines 7a through 7c. Enter that total in column 2. If the
adjustment is a reduction in tax, the entry in column 1 or 2
must be a negative number. In column 3, enter the
difference between columns 1 and 2.
Example — Current quarter’s third-party sick pay
underreported. You reported $6,900 (shown as -6,900.00)
as a third-party sick pay adjustment (reduction to tax) on
line 7b of your 2008 second quarter Form 941. You did not
report any amounts on lines 7a and 7c. Your third-party sick
pay adjustment should have been $9,600 (shown as
-9,600.00) because your third-party sick pay payer withheld
that amount of social security and Medicare taxes from your
employees. You discovered the error in April of 2009. To
correct the error, figure the difference on Form 941-X as
shown.
• Column 1 (corrected amount), -9,600.00.
• Column 2 (from line 7b of Form 941), -6,900.00.
• Column 3 (difference), -2,700.00.
• Column 4, -2,700.
In this example, you are claiming a credit for $2,700 of
overreported tax on your 2008 second quarter Form 941.
On line 20, explain what you misreported on Form 941.
Tell us if your adjustment is for fractions of cents, third-party
sick pay, tips, or group-term life insurance.

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Instructions for Form 941-X

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

•
•
•
•

Column 1 (correct amount) 1,000.00.
Column 2 (from Form 941, line 9) 0.00
Column 3 (difference) 1,000.00
Reverse the mathematical sign of the amount in column 3
and enter -1,000.00 in column 4.

Line 19. Did You Reclassify Any Workers?
Check the box in line 19 if you reclassified any workers to be
subcontractors or nonemployees. Also check this box if IRS
(or you) determined that workers you treated as
subcontractors or nonemployees should be classified as
employees. On line 20, you must explain why you
reclassified any worker.

Line 17. Total
Combine the amounts on lines 15 and 16. If the result is less
than zero, enter the result using a “minus” sign.

Return not filed because of failure to treat individual as
employee. If you did not previously file Form 941 because
you mistakenly treated an employee as a subcontractor or
as a nonemployee, file Form 941 for each delinquent quarter
and attach Form 941-X to Form 941.

Overpayment
If the result on line 17 is less than zero, this is your
overpayment (credit). If you checked the box in line 2, you
are filing a claim for refund of the amount shown. If you
checked the box in line 1, include this amount on line 11 of
Form 941 for the quarter during which you filed Form 941-X.
We may apply your overpayment to any past due tax
account that is shown in our records under your EIN.

!

CAUTION

On each Form 941:

• Write “Misclassified Employees” in red ink across the top

margin of page 1,
• Enter a zero in line 10,
• Sign Form 941, and
• Attach a completed Form 941-X.

If you currently file Form 944 or Form 944-SS
because your filing requirement changed, include the
credit on line 10 of Form 944 or Form 944-SS.

On each Form 941-X for which you are entitled to use
section 3509 rates:
• Enter wage amounts in column 1 of line 6,
• Report the computed tax amounts in column 1 of lines 12
through 14,
• Enter zeros in column 2 of line 6 and in lines 12
through 14, and
• Complete columns 3 and 4 as instructed in Part 3.

Balance Due
If the result on line 17 is more than zero, you have a balance
due. You do not have to pay if the balance due is less than
$1. You may pay the amount shown using EFTPS, or by
check, money order, or credit card. For EFTPS information,
visit www.eftps.gov. For credit card information, visit the IRS
website at www.irs.gov and click on the electronic IRS link.

If you cannot use section 3509 rates, enter wage
amounts in lines 6 through 10 as instructed in Part 3.
Disregard lines 11 through 14.

If you pay by check or money order, make it payable to
the United States Treasury. Enter your EIN, Form 941-X,
and the tax period on your check or money order.

!

CAUTION

Line 20. Explanation of Adjustments
On line 20, describe in detail each correction you entered in
column 4 on lines 7 through 14 and line 16. If you need
more space, attach additional sheets, but be sure to write
your name, EIN, and tax period (quarter and calendar year)
on the top of each sheet.

Do not use a federal tax deposit coupon (Form 8109
or Form 8109-B) to make a payment with Form
941-X.

Previously assessed failure-to-deposit (FTD) penalty. If
line 17 reflects an overpayment (credit) and the IRS
previously assessed an FTD penalty, you may be able to
reduce the penalty. For more information, see the
Instructions for Schedule B (Form 941).

You must describe the events that caused the
overreported or underreported wages, administrative errors,
or payroll errors. Explanations such as “social security and
Medicare wages were overreported” or “administrative/
payroll errors were discovered” are insufficient and may
delay processing your Form 941-X because IRS may need
to ask for a more complete explanation.

Part 4. Explain Your Corrections For
The Quarter

The following is the information we need in your
explanation for each error you are correcting.
• Form 941-X line number(s) affected.
• Date you discovered the error.
• Difference (amount of the error).
• Cause of the error.

Line 18. Reporting Offsetting Corrections
Check the box in line 18 if you are correcting more than one
error on a line in lines 7 through 14 and 16 and column 3
reflects the difference between a correction that increases
tax and another correction that decreases tax. We call these
offsetting corrections.

You may report the information in paragraph form. The
following paragraph is an example.
The $1,000 difference shown in column 3 of lines 6, 8,
and 10 was discovered on May 15, 2009 during a payroll
audit. By mistake, we issued checks to a former worker after
termination.

Example. If you had an increase to social security
wages of $15,000 for employee A and a decrease to social
security wages of $5,000 for employee B, you would enter
$10,000 in line 8, column 3. That $10,000 represents the net
change from offsetting corrections.

For corrections shown in lines 12 through 14, explain why
the correction was necessary and attach any notice you
received from the IRS.

On line 20, you must separately explain the reason for
both the $15,000 increase and the $5,000 decrease.

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Page 8 of 8

Instructions for Form 941-X

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Additional Information

Part 5. Sign Here

You may find the following products helpful when preparing
Form 941-X.

Form 941-X must be signed as follows:
The individual who owns the
business.
• Corporation (including a limited liability company
(LLC) treated as a corporation) — The president, vice
president, or other principal officer.
• Partnership (including an LLC treated as a
partnership) or unincorporated organization — A
responsible and duly authorized member or officer having
knowledge of its affairs.
• Single member LLC treated as a disregarded entity —
The owner of the LLC.
• Trust or estate — The fiduciary.
Form 941-X may also be signed by a duly authorized
agent of the taxpayer if a valid power of attorney has been
filed.
Alternative signature method. Corporate officers or duly
authorized agents may sign Form 941-X by rubber stamp,
mechanical device, or computer software program. For
details and required documentation, see Rev. Proc.
2005-39. You can find Rev. Proc. 2005-39 on page 82 of
Internal Revenue Bulletin 2005-28 at www.irs.gov/pub/
irs-irbs/irb05-28.pdf.
• Sole proprietorship —

•

Form W-3c, Transmittal of Corrected Wage and Tax
Statements

•

Instructions for Forms W-2c and W-3c

•

Instructions for Form 941

•

Pub. 15 (Circular E), Employer’s Tax Guide

You may also visit the IRS website at www.irs.gov and
type “Employment Tax” in the Search box.
Privacy Act and Paperwork Reduction Act Notice. We
ask for the information on Form 941-X to carry out the
Internal Revenue laws of the United States. We need it to
figure and collect the right amount of tax. Subtitle C,
Employment Taxes, of the Internal Revenue Code imposes
employment taxes on wages, including income tax
withholding. This form is used to determine the amount of
the taxes that you owe. Section 6011 requires you to
provide the requested information if the tax is applicable to
you. Section 6109 requires you to provide your identification
number. If you fail to provide this information in a timely
manner, you may be subject to penalties and interest.
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books
or records relating to a form or its instructions must be
retained as long as their contents may become material in
the administration of any Internal Revenue law.
Generally, tax returns and return information are
confidential, as required by section 6103. However, section
6103 allows or requires the IRS to disclose or give the
information shown on your tax return to others as described
in the Code. For example, we may disclose your tax
information to the Department of Justice for civil and criminal
litigation, and to cities, states, and the District of Columbia
for use in administering their tax laws. We may also disclose
this information to other countries under a tax treaty, to
federal and state agencies to enforce federal nontax criminal
laws, or to federal law enforcement and intelligence
agencies to combat terrorism.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
average time is: Recordkeeping, x hr., xx min.; Learning
about the law or the form, x hr., xx min.; and Preparing,
copying, assembling, and sending the form to the IRS, x
hr., xx min.
If you have comments concerning the accuracy of these
time estimates or suggestions for making Form 941-X
simpler, we would be happy to hear from you. You can write
to: Internal Revenue Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave.
NW, IR-6526, Washington, DC 20224. Do not send Form
941-X to this address. Instead, see Where Should You File
Form 941-X? on page 3.

Paid Preparer’s Use Only
A paid preparer must sign Form 941-X and provide the
information in the Paid Preparer’s Use Only section of Part 5
if you were paid to prepare Form 941-X and are not an
employee of the filing entity. The preparer must give you a
copy of the return in addition to the copy filed with the IRS.
If you are a paid preparer, write your SSN or your
Preparer Tax Identification Number (PTIN) in the space
provided. Include your complete address. If you work for a
firm, write the firm’s name and the EIN of the firm. You can
apply for a PTIN using Form W-7P, Application for Preparer
Tax Identification Number. You cannot use your PTIN in
place of the EIN of the tax preparation firm.
Do not complete the Paid Preparer’s Use Only section if
you are filing the return as a reporting agent and have a
valid Form 8655, Reporting Agent Authorization, on file with
the IRS.

How to Order Forms and Publications
from the IRS
Call 1-800-829-3676.

Visit the IRS website at www.irs.gov.

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