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overreported amount in March, June, September, or December,

The IRS usually processes claims shortly after they are filed.

you may want to file Form 941-X in the first two months of the

The IRS will notify you if your claim is denied, accepted as filed,

next quarter. However, there must be 90 days remaining on the

or selected to be examined. See Publication 556, Examination

period of limitations when you file Form 941-X. See the Caution

of Returns, Appeal Rights, and Claims for Refund, for more

on page 2. This should ensure that the IRS will have enough

information.

time to process Form 941-X so the credit will be posted before

Unless the IRS corrects Form 941-X during processing or

you file Form 941, thus avoiding an erroneous balance due

you owe other taxes, penalties, or interest, the IRS will refund

notice from the IRS. See the example below. If you currently file

the amount shown on line 20, plus any interest that applies.

Form 944 instead of Form 941 and will claim a credit on Form

944, file Form 941-X before December in any year before the

Part 2: Complete the Certifications

expiration of the period of limitations on Form 941. In the year

of the expiration of the period of limitations on Form 941, file

You must complete all certifications that apply by checking the

Form 941-X at least 90 days before the expiration date.

appropriate boxes. If all of your corrections relate to

Example — You want your overreported tax applied as a

underreported amounts, complete line 3 only; skip lines 4 and 5

credit to Form 941: On June 22, 2010, you discover you

and go to Part 3. If your corrections relate to overreported

overreported your tax on your 2009 fourth quarter Form 941

amounts, you have a duty to assure that your employees’ rights

and want to choose the adjustment process. To allow the IRS

to recover overpaid employee social security and Medicare

enough time to process the credit, you file Form 941-X on July

taxes that you withheld are protected. The certifications on lines

1, 2010.

4 and 5 address the requirement to:

•

Repay or reimburse your employees for the overcollection of

employee social security and Medicare taxes, or

Specific Instructions:

•

Obtain consents from your employees to file a claim on their

behalf.

Part 1: Select ONLY one process

3. Filing Forms W-2 or Forms W-2c

Check the box on line 3 to certify that you filed or will file Forms

Because Form 941-X may be used to file either an adjusted

W-2 or Forms W-2c, as required, showing your employees’

employment tax return or a claim for refund or abatement, you

correct wage and tax amounts. See the Instructions for Forms

must check one box on either line 1 or line 2. Do not check

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

both boxes.

detailed information about filing requirements. References to

1. Adjusted Employment Tax Return

Form W-2 on Form 941-X and in these instructions also apply

to Forms W-2AS, W-2CM, W-2GU, and W-2VI unless otherwise

Check the box on line 1 if you are correcting underreported

noted.

amounts or overreported amounts and you would like to use the

You must check the box on line 3 to certify that you filed

adjustment process to correct the errors.

Forms W-2 or Forms W-2c even if your corrections on Form

If you are correcting both underreported amounts and

941-X do not change amounts shown on those forms. For

overreported amounts on this form, you must check this box. If

example, if your only correction to Form 941 involves misstated

you check this box, any negative amount shown on line 20 will

tax adjustments (see the instructions for line 12 on page 7),

be applied as a credit (tax deposit) to your Form 941 or Form

check the box on line 3 to certify that you already filed all

944 for the period in which you are filing this form. See

required Forms W-2 and W-2c.

Example — You want your overreported tax applied as a credit

to Form 941 above.

4. Certifying Overreporting Adjustments

If you owe tax. Pay the amount shown on line 20 when you

If you overreported federal income tax, social security tax, or

file Form 941-X. Generally, you will not be charged interest if

Medicare tax and checked the box on line 1, check the

you file on time, pay on time, enter the date you discovered the

appropriate box on line 4. You may need to check more than

error, and explain the correction on line 23.

one box. If you obtained written statements from some

If you have a credit. You overreported employment taxes

employees but you could not locate or secure the cooperation

(you have a negative amount on line 20) and want the IRS to

of the remaining employees, check all applicable boxes.

apply the credit to Form 941 or Form 944 for the period during

Provide a summary in line 23 of the amount of the corrections

which you filed Form 941-X. The IRS will apply your credit on

for both the employees who provided written statements and for

the first day of the Form 941 or Form 944 period during which

those who did not.

you filed Form 941-X. However, the credit you show on line 20

4a. Check the box on line 4a if your overreported amount

of Form 941-X may not be fully available on your Form 941 or

includes each affected employee’s share of overcollected taxes.

Form 944 if the IRS corrects it during processing or you owe

You are certifying that you repaid or reimbursed the employee’s

other taxes, penalties, or interest. The IRS will notify you if your

share of current and prior year taxes and you received written

claimed credit changes or if the amount available as a credit on

statements from the employees stating that they did not and will

Form 941 or Form 944 was reduced because of unpaid taxes,

not receive a refund or credit for the prior year taxes. You are

penalties, or interest.

certifying that you adjusted federal income tax withheld from

Do not check the box on line 1 if you are correcting

employees for the current calendar year only.

overreported amounts and the period of limitations on

Example. The following is an example of the written

credit or refund for Form 941 will expire within 90 days

CAUTION

statement that is required from employees.

of the date you file Form 941-X. Instead, check the box on line

Employee name

2. See Is There a Deadline for Filing Form 941-X? on page 2.

Employer name

2. Claim

I have received a repayment of $_________ as

overcollected social security and Medicare taxes for 20___. I

Check the box on line 2 to use the claim process if you are

have not claimed a refund of or credit for the overcollected

correcting overreported amounts only and you are claiming a

taxes from the IRS, or if I did, that claim has been rejected;

refund or abatement for the negative amount (credit) shown on

and I will not claim a refund or a credit of the amount.

line 20. Do not check this box if you are correcting ANY

Employee signature

underreported amounts on this form.

Date

You must check the box on line 2 if you have a credit and

the period of limitations on credit or refund for Form 941 will

expire within 90 days of the date you file Form 941-X. See Is

Do not send these statements to the IRS. Keep them for

There a Deadline for Filing Form 941-X? on page 2.

your records.

-4-

Instructions For Form 941-X - Adjusted Employer'S Quarterly Federal Tax Return Or Claim For Refund - 2010 Page 5

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