Form 941 - Payment Voucher - 2003 (Page 7 of 7) in pdf

the total liability for the month, do not enter a negative

Line 12—Advance earned income credit

amount for the month. Instead, enter “-0-” for the month

(EIC) payments made to employees

and carry over the unused portion of the adjustment to

Enter any advance EIC payments that you made to your

the next month.

employees. Your eligible employees may elect to receive

For example, Pine Co. discovered on February 6,

part of the EIC as an advance payment. Eligible

2003, that it overreported social security tax on a prior

employees must expect to have a qualifying child and

quarter return by $2,500. Its Form 941 taxes for the 1st

must give you a completed Form W-5 stating that they

quarter of 2003 were: January $2,000, February $2,000,

qualify for the EIC. Once the employee gives you a

March $2,000. Pine Co. should enter “$2,000” in column

signed and completed Form W-5, you must make the

(a), “-0-” in column (b), “$1,500” in column (c), and the

appropriate advance EIC payments. Advance EIC

total, “$3,500,” in column (d). The prior period adjustment

payments are generally made from withheld income tax

($2,500) offsets the $2,000 liability for February and the

and employee and employer social security and

excess $500 must be used to offset March liabilities.

Medicare taxes. See section 10 of Circular E (Pub. 15)

Since the error was not discovered until February, it does

and Pub. 596.

not affect January liabilities reported in column (a).

If the amount of your advance EIC payments exceeds

If excess negative adjustments are carried forward to

your total taxes (line 11) for the quarter, you may claim a

the next quarter, do not show those excess adjustments

refund of the overpayment or elect to have the credit

on lines 4 or 9 because line 17 column (d) must equal

applied to your return for the next quarter. Provide a

line 13. Instead, on your next quarter’s Form 941, report

statement with your return identifying the amount of

the excess negative adjustments on lines 4 or 9 and

excess payment(s) and the pay period(s) in which it was

adjust (but not below zero) your liability reported on line

paid. See section 10 of Circular E (Pub. 15).

17(a).

Line 15—Balance due

Third Party Designee. If you want to allow any

individual, corporation, firm, organization, or partnership

You do not have to pay if line 15 is under $1.

to discuss your Form 941 with the IRS, check the “Yes”

Generally, you should show a balance due on line 15

box in the Third Party Designee section of the return.

only if your net tax liability for the quarter (line 13) is less

Also, enter the name, phone number, and any five

than $2,500. However, see section 11 of Circular E

numbers that the designee chooses as his or her

(Pub. 15) regarding payments made under the accuracy

personal identification number (PIN). The authorization

of deposits rule.

applies only to the tax form upon which it appears.

If you fail to make deposits as required and

By checking the “Yes” box, you are authorizing the

instead pay the taxes with Form 941, you may be

IRS to call the designee to answer any questions relating

subject to a penalty.

CAUTION

to the information reported on your tax return. You are

also authorizing the designee to:

Line 16—Overpayment

•

Exchange information concerning your tax return with

If you deposited more than the correct amount for a

the IRS and

•

quarter, you can have the overpayment refunded or

Request and receive written tax return information

applied to your next return by checking the appropriate

relating to your tax return including copies of specific

box. If you do not check either box, your overpayment will

notices, correspondence, and account transcripts.

be applied to your next return. The IRS may apply your

You are not authorizing the designee to receive any

overpayment to any past due tax account under your

refund check, bind you to anything (including additional

EIN. If line 16 is under $1, the amount will be refunded or

tax liability), or otherwise represent you before the IRS. If

applied to your next return only on written request.

you want to expand the designee’s authorization or

desire automatic issuances of copies of notices, see

Line 17—Monthly Summary of Federal Tax

Pub. 947, Practice Before the IRS and Power of

Liability

Attorney.

Note: This is a summary of your monthly tax liability, not

The Third Party Designee authorization automatically

a summary of deposits made. If line 13 is less than

expires one year from the due date (without regard to

$2,500, do not complete line 17 or Schedule B (Form

extensions) for filing your Form 941. If you or your

941).

designee desire to terminate the authorization, a written

statement conveying your wish to revoke the

Complete line 17 only if you were a monthly

authorization should be submitted to the IRS service

schedule depositor for the entire quarter and line 13 is

center where the return was processed.

$2,500 or more. (See section 11 of Circular E (Pub. 15)

for details on the deposit rules.) You are a monthly

Who Must Sign

schedule depositor for the calendar year if the total

•

Sole proprietorship —The individual owning the

amount of your Form 941 taxes (line 11) reported for the

business.

lookback period is not more than $50,000.

•

Corporation —The president, vice president, or other

The lookback period is the four consecutive quarters

principal officer.

ending on June 30 of the prior year. For 2003, the

•

Partnership or unincorporated organization —A

lookback period begins July 1, 2001, and ends June 30,

responsible and duly authorized member or officer having

2002.

knowledge of its affairs.

•

If you were a semiweekly schedule depositor

Trust or estate —The fiduciary.

•

during any part of the quarter, do not complete

Single member limited liability company treated as

columns (a) through (d) of line 17. Instead,

a disregarded entity —The owner of the limited liability

CAUTION

complete Schedule B (Form 941).

company.

The return may also be signed by a duly authorized

Reporting adjustments on line 17. If the net

agent of the taxpayer if a valid power of attorney has

adjustment during a month is negative (e.g., correcting

been filed.

an overreported liability in a prior period) and it exceeds

-4-

Form 941 - Payment Voucher - 2003 Page 7

Related Articles

Related forms

Related Categories