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

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

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

it is the same as your “Name.”

The reconciled amounts are:

•

federal income tax withholding,

Employer identification number (EIN). To make sure that

•

social security wages,

businesses comply with federal tax laws, the IRS monitors

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social security tips,

tax filings and payments by using a numerical system to

•

Medicare wages and tips, and

identify taxpayers. A unique 9-digit employer identification

•

advance earned income credit (EIC) payments.

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

and some sole proprietors. Businesses needing an EIN

For more information, see section 12 of Pub. 15

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

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

business on all tax returns, payments, and reports.

941), Report of Discrepancies Caused by Acquisitions,

Statutory Mergers, or Consolidations.

Your business should have only one EIN. If you have

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

Depositing Your Taxes:

the IRS office where you file your returns “Without a

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

When Must You Deposit Your Taxes?

1-800-829-4933.

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

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

Determine if you are a monthly or

Request Form SS-4, Application for

semiweekly schedule depositor for the

Employer Identification Number. If you do not have an EIN

quarter.

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

you applied in the space shown for the number.

The IRS uses two different sets of deposit rules to determine

when businesses must deposit their social security,

Always be sure the EIN on the form you file exactly

Medicare, and withheld federal income taxes. These

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matches the EIN that IRS assigned to your business.

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

Do not use your social security number on forms that

payday.

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

using another business’s EIN may result in penalties and

Your deposit schedule is not determined by how often

delays in processing your return.

you pay your employees. Your deposit schedule depends on

the total tax liability you reported on Form 941 during the

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

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

immediately if you change your business name or address.

•

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

Write to the IRS office where you would file your return

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

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

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

Before the beginning of each calendar year, determine

to also apply for a new EIN.)

which type of deposit schedule you must use. If you

•

Complete and mail Form 8822, Change of Address, for

reported:

•

any address change.

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

are a monthly schedule depositor. Check the appropriate

Check the Box for the Quarter

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

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

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

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

quarter.

•

Make sure that the quarter checked is the same as shown

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

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

are a semiweekly schedule depositor. Check the

Liability for Semiweekly Schedule Depositors.

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

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

Completing and Filing Form 941

and attach it to Form 941 when you submit it.

Make entries on Form 941 as follows to enable accurate

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

scanning and processing.

•

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

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

accumulated on any day during the deposit period.

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

•

Omit dollar signs and decimal points. Commas are

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

How Must You Deposit Your Taxes?

point and cents to the right of it.)

•

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

You may be required to deposit the federal income taxes

a value of zero.

you withheld and both the employer and employee social

•

Enter negative amounts in parentheses (if possible).

security taxes and Medicare taxes. If your total taxes after

Otherwise, use a minus sign.

adjustment for advance EIC (line 10) are:

•

Enter your name and EIN on all pages and attachments.

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

(Filers using the IRS-preaddressed Form 941 are not

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

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

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

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

Other Forms That You Must Use

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

Give each eligible employee Notice 797, Possible Federal

deposit penalties.

•

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

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

each eligible employee who wishes to receive any advance

taxes by using the Electronic Federal Tax Payment System

earned income credit (EIC) payments must give you a

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

completed Form W-5, Earned Income Credit Advance

is authorized to accept federal tax deposits (that is,

Payment Certificate. For more information, see section 10 of

authorized depository) with Form 8109, Federal Tax Deposit

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

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

Credit.

information.

Reconciling Forms 941 and Form W-3

EFTPS is an easy, safe, and convenient way for all

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The IRS matches amounts reported on your four quarterly

employers to make their tax deposits. Using EFTPS

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

helps eliminate errors commonly made on federal tax

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

deposit (FTD) coupons. Some taxpayers are required to

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

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