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

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wages you have paid,

for Schedule D (Form 941) to determine whether you should

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tips your employees have received,

file Schedule D (Form 941) and when you should file it.

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federal income tax you withheld,

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When Must You File?

both the employer’s and the employee’s share of social

security and Medicare taxes, and

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advance earned income tax credit (EIC) payments.

File your initial Form 941 for the quarter in which you first

paid wages that are subject to social security and Medicare

After you file your first Form 941, you must file a return

taxes or subject to federal income tax withholding. See the

for each quarter even if you have no taxes to report unless

table below titled, When To File Form 941.

you filed a final return or one of the exceptions (below)

applies.

Then you must file for every quarter after that — every 3

months — even if you have no taxes to report (unless you

Exceptions

are a seasonal employer or are filing your final return. See

Seasonal employers on page 1 and If your business has

Special rules apply to some employers.

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Seasonal employers are not required to file a Form 941

closed . . . above).

for quarters when they have no tax liability because they

File Form 941 only once for each quarter. If you filed

have paid no wages. To tell the IRS that you will not file a

electronically, do not also file a paper Form 941. For more

return for one or more quarters during the year, check the

information about filing Form 941 electronically, see

box on line 17 every quarter you file the form. See section

Electronic Filing and Payment on page 1.

12 of Pub. 15 (Circular E) for more information.

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Employers of household employees do not usually file

When To File Form 941

Form 941. See Pub. 926, Household Employer’s Tax Guide,

Your Form 941 is due by the last day of the month that follows the end of the

and Schedule H (Form 1040), Household Employment

quarter.

Taxes, for more information.

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Employers of farm employees do not usually file Form

Form 941

The Quarter Includes . . .

Quarter Ends

Is Due

941. See Form 943, Employer’s Annual Tax Return for

Agricultural Employees, and Pub. 51 (Circular A),

1. January, February, March

March 31

April 30

Agricultural Employer’s Tax Guide.

2. April, May, June

June 30

July 31

If none of the above exceptions applies and you

3. July, August, September

September 30

October 31

TIP

have not filed a final return, you must file Form 941

4. October, November, December

December 31

January 31

each quarter even if you did not pay wages during

the quarter. Use IRS e-file, if possible.

For example, generally you must report wages you pay

What if you reorganize or close your

during the first quarter — which is January through March —

by April 30th. If you made deposits in full payment of your

business?

taxes for a quarter, you have 10 more days after the due

dates shown above to file your Form 941.

If you sell or transfer your business . . .

We consider your form filed on time if it is properly

If you sell or transfer your business, you and the new owner

addressed and mailed First-Class or if it is sent by an

must each file a Form 941 for the quarter in which the

IRS-designated delivery service on or before the due date.

transfer occurred. Report only the wages you paid.

See Pub. 15 (Circular E) for more information on

When two businesses merge, the continuing firm must file

IRS-designated delivery services.

a return for the quarter in which the change took place and

If any due date for filing shown above falls on a Saturday,

the other firm should file a final return.

Sunday, or legal holiday, you may file your return on the

Changing from one form of business to another — such as

next business day.

from a sole proprietorship to a partnership or corporation —

is considered a transfer. See section 1 of Pub. 15

How Should You Complete Form 941?

(Circular E). If a transfer occurs, you may need a new

employer identification number (EIN). Attach a statement to

your return with:

Review Your Business Information at the

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the new owner’s name (or the new name of the business),

Top of the Form

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whether the business is now a sole proprietorship,

If you are using a copy of Form 941 that has your business

partnership, or corporation;

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name and address preprinted at the top of the form, check

the kind of change that occurred (a sale or transfer);

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to make sure that the information is correct. Carefully review

the date of the change; and

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your EIN to make sure that it exactly matches the EIN

the name of the person keeping the payroll records and

assigned to your business by the IRS. If any information is

the address where those records will be kept.

incorrect, cross it out and type or print the correct

If your business has closed . . .

information. See also If you change your name or address...

If you go out of business or stop paying wages to your

on page 3.

employees, you must file a final return. To tell the IRS that

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

the form for a particular quarter is your final return, check

the preparer uses your business name and EIN exactly as

the box on line 16 and enter the date that you last paid

they appear on the preprinted form we sent you.

wages. Also attach a statement to your return showing the

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

name of the person keeping the payroll records and the

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

address where those records will be kept.

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

See the Instructions for Forms W-2 and W-3 for

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

information about earlier dates for the expedited furnishing

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

and filing of Forms W-2 when a final Form 941 is filed.

use your social security number (SSN) or individual taxpayer

If you participated in a statutory merger or consolidation,

identification number (ITIN). Generally, enter the business

or qualify for predecessor-successor status due to an

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

acquisition, you should generally file Schedule D (Form

on Form SS-4, Application for Employer Identification

941), Report of Discrepancies Caused by Acquisitions,

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

Statutory Mergers, or Consolidations. See the Instructions

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

-2-

Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2006 Page 2

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