Instructions For Form 941 - Employer'S Quarterly Federal Tax Return (Page 8 of 9) in pdf

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13. Total deposits and credits

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

period (see below), you are a monthly schedule depositor

Add lines 11, 12a, and 12e.

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

14. Balance due

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

appropriate box on line 17 and enter your tax liability for each

If line 10 is more than line 13, write the difference in line 14.

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

Otherwise, see Overpayment below. You do not have to pay if

the result in the Total liability for quarter box.

line 14 is under $1. Generally, you should have a balance due

only if your total taxes after adjustment for advance EIC (line

Note that your total tax liability for the quarter must equal

10), for the current quarter or preceding quarter are less than

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

$2,500, and you did not incur a $100,000 next-day deposit

deposits and payments may not be counted as timely. Do not

obligation during the current quarter. However, see section 11

change your tax liability on line 17 by adjustments reported on

of Pub. 15 (Circular E) for information about payments made

any Forms 941-X.

under the accuracy of deposits rule.

You are a monthly schedule depositor for the calendar

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

You may pay the amount shown on line 14 using EFTPS, a

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

credit or debit card, a check or money order, or electronic funds

four consecutive quarters ending on June 30 of the prior year.

withdrawal (EFW). Do not use a credit or debit card or EFW to

For 2010, the lookback period begins July 1, 2008, and ends

pay taxes that were required to be deposited. For more

June 30, 2009. For details on the deposit rules, see section 11

information on electronic payment options, visit the IRS website

of Pub. 15 (Circular E). If you filed Form 944 in either 2008 or

2009, your lookback period is the 2008 calendar year.

If you pay by EFTPS, credit card, or EFW, file your return

using the Without a payment address on page 4 under Where

The amounts reported on line 17 are a summary of your

Should You File? and do not file Form 941-V, Payment

monthly tax liability, not a summary of deposits you

Voucher.

made. If you do not properly report your liabilities when

CAUTION

If you pay by check or money order, make it payable to the

required or if you are a semiweekly schedule depositor and

“United States Treasury.” Enter your EIN, Form 941, and the

report your liabilities on line 17 instead of on Schedule B (Form

tax period on your check or money order. Complete Form

941), you may be assessed an “averaged” failure-to-deposit

941-V and enclose with Form 941.

(FTD) penalty. See Deposit Penalties in section 11 of Pub. 15

If line 10 is $2,500 or more and you have deposited all taxes

(Circular E) for more information.

when due, the balance due on line 14 should be zero.

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

If you do not deposit as required and, instead, pay the

period (see above), you are a semiweekly schedule

taxes with Form 941, you may be subject to a penalty.

depositor. Check the appropriate box on line 17.

CAUTION

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

15. Overpayment

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

are a monthly schedule depositor.

If line 13 is more than line 10, write the difference in line 15.

Never make an entry in both lines 14 and 15.

Do not change your tax liability on Schedule B (Form 941)

by adjustments reported on any Forms 941-X.

If you deposited more than the correct amount for the

quarter, you can choose to have the IRS either refund the

Adjusting tax liability for employer’s social security tax

overpayment or apply it to your next return. Check only one box

exemption reported on line 6d. Monthly schedule depositors

in line 15. If you do not check either box or if you check both

and semiweekly schedule depositors must account for the

boxes, generally we will apply the overpayment to your account.

employer’s social security tax exemption (line 6d) when

We may apply your overpayment to any past due tax account

reporting their tax liabilities on line 17 or Schedule B (Form

that is shown in our records under your EIN.

941). The total liability for the quarter must equal the amount

If line 15 is under $1, we will send a refund or apply it to your

reported on line 10. Failure to account for the social security tax

next return only if you ask us in writing to do so.

exemption on line 17 or Schedule B (Form 941) may cause line

10 to be less than the total tax liability reported on line 17 or

Complete both pages.

Schedule B (Form 941). Do not reduce the tax liability reported

You must complete both pages of Form 941 and sign on page

on line 17 or Schedule B (Form 941) below zero.

2. An incomplete return may delay processing.

Part 2: Tell us about your deposit

Part 3: Tell us about your business.

schedule and tax liability for this quarter.

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

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

go to Part 4.

16. State abbreviation

In the spaces provided, write the two-letter U.S. Postal Service

18. If your business has closed . . .

abbreviation for the bank branch in the state where you deposit

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

your taxes using Form 8109 or initiate EFTPS transfers. The

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

IRS uses the state shown to determine banking days for

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

purposes of deposit due dates. Official state holidays for the

paid wages in the space provided. For additional filing

state shown are not counted as banking days. If you deposit in

requirements, see If your business has closed... on page 2.

multiple states, enter “MU” in the spaces provided.

When you deposit in multiple states, the IRS cannot

19. If you are a seasonal employer . . .

determine what portion of your liability was affected by a state

holiday and may propose a deposit penalty for one or more of

If you hire employees seasonally — such as for summer or

the states where you made deposits. If you receive a notice and

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

your deposit due date was extended because of a state bank

the IRS not to expect four Forms 941 from you throughout the

holiday, respond to the notice citing the state holiday and

year because you have not paid wages regularly.

applicable deposit amount.

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

17. Tax liability for the quarter

least one return showing tax due each year. However, you must

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check the box every time you file a Form 941.

If line 10 is less than $2,500 or line 10 on the preceding

quarterly return was less than $2,500, and you did not incur a

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

$100,000 next-day deposit obligation during the current quarter,

on the top of the form that corresponds to the quarter reported.

check the appropriate box in line 17 and go to Part 3.

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Instructions For Form 941 - Employer'S Quarterly Federal Tax Return Page 8

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