Instructions For Form 944-X (Rev. February 2015) (Page 11 of 13) in pdf

or a negative number in column 3 as a positive number in

Form 944-X. You may not use any credit that you show on

column 4.

another Form 944-X to pay the amount you owe, even if you filed

for the amount you owe and the credit at the same time.

The COBRA premium assistance credit is treated as a

If you owe tax and are filing a timely Form 944-X, do not file

credit on the first day of the return period (that is,

an amended Form 945-A unless you were assessed an FTD

January 1). However, because the credit is now

CAUTION

penalty caused by an incorrect, incomplete, or missing Form

claimed on Form 944-X filed AFTER submission of the Form

945-A. Do not include the tax increase reported on Form 944-X

944, an employer that reduces its required deposits in

on any amended Form 945-A you file.

anticipation of the credit will receive a system-generated notice

reflecting a balance due and associated penalties and interest, if

If you owe tax and are filing a late Form 944-X, that is, after

applicable. The balance due, including any related penalties and

the due date of Form 944 for the year in which you discovered

interest, resulting from the reduction in deposits in anticipation of

the error, you must file an amended Form 945-A with the Form

the credit will be abated when the credit is applied. Such

944-X. Otherwise, the IRS may assess an “averaged” FTD

abatement will generally occur without any further action from

penalty. The total tax reported on Form 945-A, line M, must

the employer. Alternatively, to prevent triggering a

match the corrected tax (Form 944, line 7, combined with any

system-generated balance due notice, the employer can make

correction reported on Form 944-X, line 17) for the year, less any

its deposits without a reduction in anticipation of the COBRA

previous abatements and interest-free tax assessments.

premium assistance credit and follow these instructions for

Payment methods. You may pay the amount you owe on

claiming the COBRA premium assistance credit.

line 19 electronically using the Electronic Federal Tax Payment

System (EFTPS), by credit or debit card, or by a check or money

For more information on the COBRA premium subsidy, visit

order.

IRS.gov and enter “COBRA” in the search box.

The preferred method of payment is EFTPS. For more

information, visit , call EFTPS Customer Service

18b. Number of Individuals Provided COBRA

at 1-800-555-4477 or 1-800-733-4829 (TDD), or see Pub. 966,

Premium Assistance on Line 18a

Electronic Federal Tax Payment System: A Guide To Getting

Started.

Enter the total number of assistance eligible individuals provided

To pay by credit or debit card, visit the IRS website at

COBRA premium assistance in column 1. Count each

assistance eligible individual who paid a reduced COBRA

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

premium in the period as one individual, whether or not the

“United States Treasury.” On your check or money order, be

reduced premium was for insurance that covered more than one

sure to write your EIN, “Form 944-X,” and year corrected.

assistance eligible individual. For example, if the reduced

You do not have to pay if the amount you owe is less than $1.

COBRA premium was for coverage for a former employee,

spouse, and two children, you would include one individual in

Previously assessed FTD penalty. If line 19 reflects

overreported tax and the IRS previously assessed a FTD

the number entered on line 18b for the premium assistance

penalty, you may be able to reduce the penalty. For more

entered on line 18a. Further, each individual is reported only

information, see the Form 945-A instructions.

once per period. For example, an assistance eligible individual

who made monthly premium payments during the period would

Part 4: Explain Your Corrections for

only be reported as one individual on line 18b for that period.

the Calendar Year You Are Correcting

For tax periods ending before January 1, 2014, enter the

number of assistance eligible individuals provided COBRA

premium assistance previously reported on Form 944, line 9b, in

20. Correction of Both Underreported and

column 2. For tax periods beginning after December 31, 2013,

Overreported Amounts

enter -0- in column 2, unless you are correcting a previously filed

Check the box on line 20 if any correction you entered on lines

Form 944-X. If you or the IRS previously corrected the number of

7–16 and 18a in column 3 reflects both underreported and

individuals reported, the number entered in column 2 should

overreported amounts.

take into account all previous corrections.

Example. If you had an increase to social security wages of

19. Total

$1,500 for employee A and a decrease to social security wages

of $500 for employee B, you would enter $1,000 on line 8,

Combine lines 17 and 18a of column 4 and enter the result on

column 3. That $1,000 represents the net change from offsetting

line 19.

corrections.

Your credit. If the amount entered on line 19 is less than zero,

On line 22, you must explain the reason for both the $1,500

for example, “-115.00,” you have a credit because you

increase and the $500 decrease.

overreported your federal employment taxes.

If you checked the box on line 1, include this amount on the

21. Did You Reclassify Any Workers?

“Total deposits” line of Form 944 for the year during which you

Check the box on line 21 if you reclassified any workers to be

filed Form 944-X. If you currently file Form 941 or Form 941-SS

independent contractors or nonemployees. Also check this box if

because your filing requirement changed, include this amount

the IRS or you determined that workers you treated as

on the “Total deposits” line of Form 941 or Form 941-SS for the

independent contractors or nonemployees should be classified

quarter during which you filed Form 944-X. Do not make any

as employees. On line 22, give us a detailed reason why any

changes to your record of federal tax liability reported on Form

worker was reclassified and, if you used section 3509 rates on

944, line 13, or Form 945-A. The amounts reported on the record

lines 13–16 for any worker reclassified as an employee, explain

should reflect your actual tax liability for the period.

why section 3509 rates apply and what rates you used.

If you checked the box on line 2, you are filing a claim for

refund or abatement of the amount shown.

Return not filed because you did not treat any workers as

If your credit is less than $1, we will send a refund or apply it

employees. If you did not previously file Form 944 because you

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

mistakenly treated workers as independent contractors or as

nonemployees, file a Form 944 for each delinquent year.

Amount you owe. If the amount entered on line 19 is a positive

number, you must pay the amount you owe by the time you file

-11-

Instructions for Form 944-X (Rev. 2-2015)

Instructions For Form 944-X (Rev. February 2015) Page 11

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