By Tom Douglass
Form 941 records payroll tax liability and deposits. These forms are filed quarterly in accordance with the IRS laws and regulations. The IRS uses these forms to reconcile federal tax deposits that each employer makes.
If you find that you have filed a 941 with errors, you can amend the filing with a Form 941-X. This form corrects any errors that may have been overlooked when you originally filed.
Examples of errors are math errors and miscalculations, incorrect wage reporting and reported tip errors.
Form 941-X can be downloaded from the IRS website www.irs.gov/pub/irs-pdf/f941x.pdf.
Form 941-X is a stand-alone form that correlates with the employment tax return that you are amending.
It is important to file this form when an error is found instead of waiting until the end of the quarter to file your next 941.
Are there any penalties?
The IRS states the following regarding this matter:
Generally, your correction of an under reported amount will not be subject to a failure-to-pay penalty, failure-to-deposit penalty, or interest if you:
File on time (by the due date of the quarter in which you discover the error)
Pay the amount shown on line 22 by the time you file
Form 941-X
Enter the date you discovered the error
Explain in detail the grounds and facts relied on to support the correction
Please visit http://www.irs.gov/instructions/i941x/ch01.html#d0e516 to find out more regarding the 941-X.
1099-Etc provides an easy to use software solution that will allow you to easily create a 941-X.
https://www.1099-etc.com/content/what-if-you-make-mistake-filing-your-941
