Instructions For Form 941 - Employer'S Quarterly Federal Tax Return

If you pay a tax preparer to fill out Form 941, make sure

completed Form W-5, Earned Income Credit Advance

the preparer uses your business name and EIN exactly as

Payment Certificate. For more information, see section 10 of

they appear on the preprinted form we sent you.

Pub. 15 (Circular E) and also Pub. 596, Earned Income

Credit.

If you are not using a preprinted Form 941, type or print

your EIN, name, and address in the spaces provided. You

Reconciling Forms 941 and Form W-3

must enter your name and EIN here on the top of the form

The IRS matches amounts reported on your four quarterly

and on the top of page 2; and, if you complete and return

Forms 941 with Form W-2 amounts totaled on your yearly

Form 941-V, Payment Voucher, on the Form 941-V. Do not

Form W-3, Transmittal of Wage and Tax Statements. If the

use your social security number (SSN) or individual taxpayer

amounts do not agree, you may be contacted by the IRS.

identification number (ITIN). Generally, enter the business

The reconciled amounts are:

(legal) name that you used when you applied for your EIN

•

federal income tax withholding,

on Form SS-4, Application for Employer Identification

•

social security wages,

Number. For example, if you are a sole proprietor, enter

•

social security tips,

“Ronald Smith” on the “Name” line and “Ron’s Cycles” on

•

Medicare wages and tips, and

the “Trade name” line. Leave the “Trade name” line blank if

•

advance earned income credit (EIC) payments.

it is the same as your “Name.”

Employer identification number (EIN). To make sure that

For more information, see section 12 of Pub. 15

businesses comply with federal tax laws, the IRS monitors

(Circular E). See also the Instructions for Schedule D (Form

tax filings and payments by using a numerical system to

941), Report of Discrepancies Caused by Acquisitions,

Statutory Mergers, or Consolidations.

identify taxpayers. A unique 9-digit employer identification

number (EIN) is assigned to all corporations, partnerships,

Depositing Your Taxes:

and some sole proprietors. Businesses needing an EIN

must apply for a number and use it throughout the life of the

When Must You Deposit Your Taxes?

business on all tax returns, payments, and reports.

Your business should have only one EIN. If you have

more than one and are not sure which one to use, write to

Determine if you are a monthly or

the IRS office where you file your returns “Without a

semiweekly schedule depositor for the

payment” or call the IRS Business and Specialty Tax Line at

quarter.

1-800-829-4933.

The IRS uses two different sets of deposit rules to determine

If you do not have an EIN, apply for one from the IRS by

when businesses must deposit their social security,

mail, by telephone, by fax, or by visiting the IRS website at

Request Form SS-4, Application for

Medicare, and withheld federal income taxes. These

Employer Identification Number. If you do not have an EIN

schedules tell you when a deposit is due after you have a

by the time a return is due, write “Applied For” and the date

payday.

you applied in the space shown for the number.

Your deposit schedule is not determined by how often

you pay your employees. Your deposit schedule depends on

Always be sure the EIN on the form you file exactly

the total tax liability you reported on Form 941 during the

TIP

matches the EIN that IRS assigned to your business.

previous four-quarter lookback period (July 1 of the second

Do not use your social security number on forms that

preceding calendar year through June 30 of last year). See

ask for an EIN. Filing a Form 941 with an incorrect EIN or

section 11 of Pub. 15 (Circular E) for details.

using another business’s EIN may result in penalties and

delays in processing your return.

Before the beginning of each calendar year, determine

If you change your name or address... Notify the IRS

which type of deposit schedule you must use. If you

immediately if you change your business name or address.

reported:

•

$50,000 or less in taxes during the lookback period, you

Write to the IRS office where you would file your return

are a monthly schedule depositor. Check the appropriate

“Without a payment” to notify the IRS of any name change.

box on line 15 and, if your tax liability for the quarter was

(Get Pub. 1635, Understanding Your EIN, to see if you need

to also apply for a new EIN.)

$2,500 or more, fill out the tax liability for each month in the

•

Complete and mail Form 8822, Change of Address, for

quarter.

•

any address change.

more than $50,000 of taxes for the lookback period, you

are a semiweekly schedule depositor. Check the

Check the Box for the Quarter

appropriate box on line 15 and, if your tax liability for the

quarter was $2,500 or more, fill out Schedule B (Form 941)

Under “Report for this Quarter” at the top of the form, check

and attach it to Form 941 when you submit it.

the appropriate box of the quarter for which you are filing.

Make sure that the quarter checked is the same as shown

See section 11 of Pub. 15 (Circular E) for the Next

on any attached Schedule B (Form 941), Report of Tax

TIP

Day Deposit Rule on taxes of $100,000 or more

Liability for Semiweekly Schedule Depositors.

accumulated on any day during the deposit period.

Completing and Filing Form 941

How Must You Deposit Your Taxes?

Make entries on Form 941 as follows to enable accurate

scanning and processing.

•

Use 12-point Courier font (if possible) for all entries if you

You may be required to deposit the federal income taxes

are typing or using a computer to fill out your form.

you withheld and both the employer and employee social

•

Omit dollar signs and decimal points. Commas are

security taxes and Medicare taxes. If your total taxes after

optional. (Report dollars to the left of the preprinted decimal

adjustment for advance EIC (line 10) are:

•

point and cents to the right of it.)

Less than $2,500 for the quarter. You are not required

•

Leave blank any data field (except lines 1, 2, and 10) with

to make a deposit, and you may pay the taxes in full with a

a value of zero.

timely filed return. However, if you are unsure that your

•

Enter negative amounts using a minus sign.

taxes will be less than $2,500 for the quarter, deposit your

•

Enter your name and EIN on all pages and attachments.

taxes using the appropriate rules (above) to avoid failure to

(Filers using the IRS-preaddressed Form 941 are not

deposit penalties.

•

required to enter their name and EIN on page 2.)

$2,500 or more for the quarter. You must deposit your

taxes by using the Electronic Federal Tax Payment System

Other Forms That You Must Use

(EFTPS) or by depositing them at a financial institution that

Give each eligible employee Notice 797, Possible Federal

is authorized to accept federal tax deposits (that is,

Tax Refund Due to the Earned Income Credit (EIC). Then

authorized depository) with Form 8109, Federal Tax Deposit

each eligible employee who wishes to receive any advance

Coupon. See section 11 of Pub. 15 (Circular E) for more

earned income credit (EIC) payments must give you a

information.

-3-

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2006 Page 3

Related Articles

Related forms

Related Categories