Correcting Errors on Form 941
Using Form 941-X

If you are an employer in the United States, then it is your responsibility to file the tax return 941 to report the wages & taxes withheld from your employees paycheck to the IRS every quarter. Sometimes, the common issues will happen due to filing at the last minute, or due to some calculative errors. IRS has provided a way to correct and report those errors using Form 941-X.

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What is Form 941-X?

If you have made the following mistakes on 941 Form, you can use Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund to fix the errors.

• Wages
• Tips or other forms of compensation
• Taxable Social Security wages and tips
• Taxable Medicare wages and tips
• Qualified payroll tax credits for small businesses increasing research activities
• COBRA premium assistance payment credits

Don’t file Form 941-X

• If your only errors representing the number of employees who received wages
• Part 2 of Form 941, Federal tax liabilities reported
• Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors

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When you must file
Form 941-X?

Eventually, when you discover an error on Form 941, you must correct it.

There are two types of major errors found in Form 941, underreported or overreported tax. The IRS set a time for correcting the errors, which is meant as “period of limitations”. For the purposes of the period of limitations, 941 Forms for a calendar year are considered filed on April 15 of the succeeding year if filed before that date.

Underreported tax

You must file Form 941-X by the due date of the return for the return period in which you discovered the error:

• April 30 is the deadline to correct errors discovered in January, February, or March
• July 31 is the deadline to correct errors discovered in April, May, or June
• October 31 is the deadline to correct errors discovered in July, August, or September
• January 31 is the deadline to correct errors discovered in October, November, or December

Overreported tax

You need to file Form 941-X for overreported tax within 3 years of the date Form 941 was filed or 2 years from the date you paid the tax reported on Form 941.

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Penalties for underreported taxes

You won't be penalized for correcting the underreported amount if you file on time, Pay the amount shown on line 21 by the time you
file 941-X, providing the details for an error & the date you found an error.

• You will subject to pay interest,
• The amounts underreported relate to an issue that was raised in an examination of a prior period.
• You knowingly underreported your employment tax liability.
• You received a notice and demand for payment.
• You received a Notice of section 7436, Proceedings for determination of employment status.

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Fill out and Download IRS Form 941-X

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Where do I send the Form 941-X?

The 941-X mailing address varies based on
your location.