Instructions For Form 943-X - 2009 Page 7
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9On February 17, 2009, you discovered that you forgot to report
Part 4: Explain Your Corrections for This
the $1,000 in advance EIC payments you made on behalf of
Year
John Smith, one of your employees. You made no other EIC
payments for your other employees. This is an example of an
administrative error. To correct the error, file Form 943-X
16. Correction of Both Underreported and
showing the following.
Overreported Amounts
Column 1 (corrected amount)
1,000.00
Check the box on line 16 if any corrections you entered on lines
Column 2 (from Form 943, line 10)
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0.00
6 through 12 and 14 in column 3 reflect both underreported and
Column 3 (difference)
1,000.00
overreported amounts.
Reverse the mathematical sign of the amount in column 3
Example: If you had an increase to social security wages of
and enter your correction in column 4.
$15,000 for employee A and a decrease to social security
wages of $5,000 for employee B, you would enter $10,000 on
Column 4 (tax correction)
-1,000.00
line 6, column 3. That $10,000 represents the net change from
corrections.
Be sure to explain the reasons for this correction on line 18.
On line 18, you must explain the reason for both the $15,000
increase and the $5,000 decrease.
17. Did You Reclassify Any Workers?
See section 9 of Pub. 51 (Circular A) for more
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information about administrative errors. The same rules
Check the box on line 17 if you reclassified any workers to be
that apply to withheld federal income taxes also apply to
CAUTION
independent contractors or nonemployees. Also check this box
advance earned income credit (EIC) payments made to
if the IRS (or you) determined that workers you treated as
employees.
independent contractors or nonemployees should be classified
as employees. On line 18, give us a detailed reason why any
worker was reclassified and, if you used section 3509 rates on
15. Total
lines 10 through 12 for any worker reclassified as an employee,
Combine lines 13 and 14 and enter the result on line 15.
explain why section 3509 rates apply and what rates you used.
Return not filed because you did not treat any workers as
Your credit. If the amount entered on line 15 is less than zero,
employees. If you did not previously file Form 943 because
for example, “-115.00,” you have a credit because you
you mistakenly treated all workers as independent contractors
overreported your federal employment taxes.
or as nonemployees, file a Form 943 for each delinquent year.
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If you checked the box on line 1, include this amount on line
On each Form 943 for which you are entitled to use section
12 (“Total deposits”) of Form 943 for the year during which you
3509 rates,
filed Form 943-X. Do not make any changes to your Monthly
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write “Misclassified Employees” in dark, bold letters across
Summary of Federal Tax Liability in Form 943 or on Form
the top margin of page 1,
943-A. The amounts reported in your Monthly Summary of
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enter a zero on line 11 (“Net taxes”),
Federal Tax Liability or on Form 943-A should reflect your
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complete the signature area, and
actual tax liability for the period.
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attach a completed Form 943-X (see instructions below).
If you checked the box on line 2, you are filing a claim for
On each attached Form 943-X,
refund or abatement of the amount shown.
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complete the top of Form 943-X, including the date you
discovered the error,
If your credit is less than $1, we will send a refund or apply it
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enter the wage amounts in column 1 of lines 10 through 12,
only if you ask us in writing to do so.
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enter zeros in column 2 of lines 10 through 12,
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complete columns 3 and 4 as instructed in Part 3,
Amount you owe. You must pay the amount you owe when
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provide a detailed statement on line 18, and
you file Form 943-X. You may not use any credit that you show
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complete the signature area.
on another Form 943-X to pay the amount you owe, even if you
If you cannot use section 3509 rates (for example,
filed for the amount you owe and the credit at the same time.
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because the workers you treated as nonemployees
You may pay the amount you owe on line 15 electronically
were certain statutory employees), file a Form 943 for
using the Electronic Federal Tax Payment System (EFTPS), by
CAUTION
each delinquent year. Write “Misclassified Employees” in dark,
credit card, or by a check or money order.
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bold letters across the top margin of page 1 of each Form 943.
The preferred method of payment is EFTPS. For more
Complete Form 943 using the Instructions for Form 943. Attach
information, visit , call EFTPS Customer Service
a Form 943-X to each Form 943. Complete the top of Form
at 1-800-555-4477 toll free, or get Pub. 966, The Secure Way to
943-X, including the date you discovered the error, and provide
Pay Your Federal Taxes.
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a detailed explanation on line 18.
To pay by credit card, visit the IRS website at
and click on the electronic IRS link.
18. Explain Your Corrections.
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If you pay by check or money order, make it payable to
Treasury regulations require you to explain in detail the grounds
“United States Treasury.” On your check or money order, be
and facts relied upon to support each correction. On line 18,
sure to write your EIN, “Form 943-X,” and the year corrected.
describe in detail each correction you entered in column 4 on
lines 6 through 12 and line 14. If you need more space, attach
Do not use a federal tax deposit coupon (Form 8109 or
additional sheets, but be sure to write your name, EIN, and
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Form 8109-B) to make a payment with Form 943-X.
calendar year on the top of each sheet.
CAUTION
You must describe the events that caused the underreported
or overreported amounts. Explanations such as “social security
You do not have to pay if the amount you owe is less than
and Medicare wages were overstated” or “administrative/payroll
$1.
errors were discovered” are insufficient and may delay
processing your Form 943-X because the IRS may need to ask
for a more complete explanation.
Previously assessed FTD penalty. If line 15 reflects
overreported tax and the IRS previously assessed a
The following is the information we need in your explanation
failure-to-deposit (FTD) penalty, you may be able to reduce the
for each error you are correcting.
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penalty. For more information, see the instructions for Form
Form 943-X line number(s) affected
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943-A.
Date you discovered the error
-7-
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