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

Request Form SS-4, Application for

941), Report of Discrepancies Caused by Acquisitions,

Employer Identification Number. If you do not have an EIN

Statutory Mergers, or Consolidations.

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

Depositing Your Taxes:

you applied in the space shown for the number.

When Must You Deposit Your Taxes?

Always be sure the EIN on the form you file exactly

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matches the EIN that IRS assigned to your business.

Do not use your social security number on forms that

Determine if you are a monthly or

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

using another business’s EIN may result in penalties and

semiweekly schedule depositor for the

delays in processing your return.

quarter

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

The IRS uses two different sets of deposit rules to determine

immediately if you change your business name or address.

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when businesses should deposit their social security,

Write to the IRS office where you would file your return

Medicare, and withheld federal income taxes. These

without payment to notify the IRS of any name change. (Get

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

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

payday.

also apply for a new EIN.)

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Your deposit schedule is not determined by how often

Complete and mail Form 8822, Change of Address, for

you pay your employees. Your deposit schedule depends on

any address change.

the total tax liability you reported on Form 941 during the

Check the Box for the Quarter

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

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

In the box at the top of the form, check the appropriate box

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

of the quarter for which you are filing. Make sure that the

quarter checked is the same as shown on any attached

Before the beginning of each calendar year, determine

Schedule B (Form 941), Report of Tax Liability for

which type of deposit schedule you must use. If you

Semiweekly Schedule Depositors.

reported:

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

Completing and Filing the Form

are a monthly schedule depositor. Check the appropriate

Make entries on Form 941 as follows to enable accurate

box on line 15 and fill out the tax liability for each month in

scanning and processing.

the quarter.

•

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

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

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

are a semiweekly schedule depositor. Check the

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Omit dollar signs and decimal points. Commas are

appropriate box on line 15 and fill out the 2005 Schedule B

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

(Form 941) and attach it to Form 941 when you submit it.

point and cents to the right of it.)

•

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

Leave blank any data field with a value of zero.

•

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

Enter negative amounts in parentheses (if possible).

•

accumulated on any day during the deposit period.

Enter your name and EIN on all pages and attachments.

(Filers using the IRS-preaddressed Form 941 are not

How Must You Deposit Your Taxes?

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

Other Forms That You Must Use

You may be required to deposit the income taxes you

withheld and both the employer and employee social

Each quarter with your Form 941, send copies of any Forms

security taxes and Medicare. If your total taxes after

W-4, Employee’s Withholding Allowance Certificate, you

adjustment for advance EIC (line 10) are:

received during that quarter from any employees who

•

claimed (a) more than 10 withholding allowances or (b)

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

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

exemption from income tax withholding if the employee’s

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

wages will normally be more than $200 a week. For details,

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

see section 9 of Pub. 15 (Circular E).

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

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$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.

Credit.

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

Reconciling Forms 941 and Form W-3

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

The IRS matches amounts reported on your four quarterly

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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 use

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

EFTPS to deposit their taxes. See section 11 of Pub. 15

The reconciled amounts are:

(Circular E) for details.

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income tax withholding,

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social security wages,

What About Penalties and Interest?

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social security tips,

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Medicare wages and tips, and

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Avoiding penalties and interest

advance earned income credit (EIC).

For more information, see section 12 of Pub. 15

You can avoid paying penalties and interest if you:

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

deposit your taxes when they are due,

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Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2005 Page 3

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