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

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If you reported $50,000 or less in taxes during the

tells the IRS not to expect four Forms 941 from you

lookback period, you are a monthly schedule depositor

throughout the year because you have not paid wages

unless the $100,000 Next-Day Deposit Rule discussed in

regularly.

section 11 of Pub. 15 (Circular E) applies. Check the

Generally, we will not ask about unfiled returns if you file

appropriate box on line 17 and enter your tax liability for

at least one return showing tax due each year. However,

each month in the quarter. Add the amounts for each month.

you must check the box every time you file a Form 941.

Enter the result in the Total liability for quarter box.

Also, when you fill out Form 941, be sure to check the

Note that your total tax liability for the quarter must equal

box on the top of the form that corresponds to the quarter

your total taxes shown on line 10. If it does not, your tax

reported.

deposits and payments may not be counted as timely. Do

not change your tax liability on line 17 by adjustments

Part 4: May we speak with your

reported on any Forms 941-X.

third-party designee?

You are a monthly schedule depositor for the calendar

year if the amount of your Form 941 taxes reported for the

lookback period is $50,000 or less. The lookback period is

If you want to allow an employee, a paid tax preparer, or

the four consecutive quarters ending on June 30 of the prior

another person to discuss your Form 941 with the IRS,

year. For 2010, the lookback period begins July 1, 2008,

check the “Yes” box in Part 4. Then tell us the name, phone

and ends June 30, 2009. For details on the deposit rules,

number, and the five-digit personal identification number

see section 11 of Pub. 15 (Circular E). If you filed Form 944

(PIN) of the specific person to speak with — not the name of

in either 2008 or 2009, your lookback period is the 2008

the firm who prepared your tax return. The designee may

calendar year.

choose any five numbers as his or her PIN.

The amounts reported on line 17 are a summary of

By checking “Yes,” you authorize the IRS to talk to the

your monthly tax liability, not a summary of deposits

person you named (your designee) about any questions we

you made. If you do not properly report your liabilities

may have while we process your return. You also authorize

CAUTION

when required or if you are a semiweekly schedule

your designee to:

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depositor and report your liabilities on line 17 instead of on

Give us any information that is missing from your return,

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Schedule B (Form 941), you may be assessed an

Call us for information about processing your return, and

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“averaged” failure-to-deposit (FTD) penalty. See Deposit

Respond to certain IRS notices that you have shared with

Penalties in section 11 of Pub. 15 (Circular E) for more

your designee about math errors and return preparation.

information.

The IRS will not send notices to your designee.

You are not authorizing your designee to bind you to

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If you reported more than $50,000 of taxes for the

anything (including additional tax liability) or to otherwise

lookback period, you are a semiweekly schedule

represent you before the IRS. If you want to expand your

depositor. Check the appropriate box on line 17.

designee’s authorization, see Pub. 947, Practice Before the

You must complete Schedule B (Form 941) and submit it

IRS and Power of Attorney.

with your Form 941. Do not use Schedule B (Form 941) if

The authorization will automatically expire 1 year from the

you are a monthly schedule depositor.

due date (without regard to extensions) for filing your Form

Do not change your tax liability on Schedule B (Form

941. If you or your designee want to terminate the

941) by adjustments reported on any Forms 941-X.

authorization, write to the IRS office for your locality using

Adjusting tax liability for employer’s social security tax

the Without a payment address on page 5.

exemption reported on line 6d. Monthly schedule

depositors and semiweekly schedule depositors must

Part 5: Sign Here.

account for the employer’s social security tax exemption

(line 6d) when reporting their tax liabilities on line 17 or

Complete all information in Part 5 and sign Form 941 as

Schedule B (Form 941). The total liability for the quarter

follows.

must equal the amount reported on line 10. Failure to

Sole proprietorship — The individual who owns the

account for the social security tax exemption on line 17 or

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business.

Schedule B (Form 941) may cause line 10 to be less than

the total tax liability reported on line 17 or Schedule B (Form

Corporation (including a limited liability company

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941). Do not reduce the tax liability reported on line 17 or

(LLC) treated as a corporation) — The president, vice

Schedule B (Form 941) below zero.

president, or other principal officer duly authorized to sign.

Partnership (including an LLC treated as a

Part 3: Tell us about your business.

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partnership) or unincorporated organization — A

responsible and duly authorized member or officer having

In Part 3, answer only those questions that apply to your

knowledge of its affairs.

business. If the questions do not apply, leave them blank

Single member LLC treated as a disregarded entity for

and go to Part 4.

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federal income tax purposes — The owner of the LLC or

18. If your business has closed . . .

a principal officer duly authorized to sign.

If you go out of business or stop paying wages, you must file

Trust or estate — The fiduciary.

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a final return. To tell the IRS that a particular Form 941 is

Form 941 may also be signed by a duly authorized agent

your final return, check the box on line 18 and enter the date

of the taxpayer if a valid power of attorney has been filed.

you last paid wages in the space provided. For additional

filing requirements, see If your business has closed... on

Alternative signature method. Corporate officers or duly

page 2.

authorized agents may sign Form 941 by rubber stamp,

mechanical device, or computer software program. For

19. If you are a seasonal employer . . .

details and required documentation, see Rev. Proc.

If you hire employees seasonally — such as for summer or

2005-39, 2005-28 I.R.B. 82, at

winter only — check the box on line 19. Checking the box

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Instructions For Form 941 - Employer'S Quarterly Federal Tax Return - 2010 Page 10

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