Instructions For Form 944-X (Rev. February 2015) (Page 4 of 13) in pdf

Enter the Date You Discovered Errors

If you underreported the tax. If you underreported the tax

on a previously filed Form 944, check the box on line 1 and pay

You must enter the date you discovered errors. You discover an

any additional amount you owe by the time you file Form 944-X.

error when you have enough information to be able to correct the

For details on how to make a payment, see the instructions for

error. If you are reporting several errors you discovered at

line 19, later.

different times, enter the earliest date you discovered an error

Example—You underreported employment taxes. On

here. Report any subsequent dates and related errors on line 22.

June 20, 2014, you discovered an error that results in additional

Must You Make an Entry on Each Line?

tax on your 2013 Form 944. File Form 944-X by February 2,

2015, and pay the amount you owe by the time you file. See

You must provide all of the information requested at the top of

When Should You File Form 944-X, earlier. Do not attach Form

Form 944-X, page 1. You must check one box (but not both) in

944-X to your 2014 Form 944.

Part 1. In Part 2, you must check the box on line 3 and any

If you overreported the tax. If you overreported the tax on a

applicable boxes on lines 4 and 5. In Part 3, if any line does not

previously filed Form 944, choose one of the following options.

apply, leave it blank. Complete Parts 4 and 5 as instructed.

Use the adjustment process. Check the box on line 1 to apply

How Should You Report Negative Amounts?

any credit (negative amount) from line 19 to Form 944 for the

year during which you file Form 944-X.

Form 944-X uses negative numbers to show reductions in tax

Use the claim process. Check the box on line 2 to file a claim

(credits) and positive numbers to show additional tax (amounts

on Form 944-X requesting a refund or abatement of the amount

you owe).

shown on line 19.

When reporting a negative amount in columns 3 and 4, use a

To ensure the IRS has enough time to process a credit

minus sign instead of parentheses. For example, enter “-10.59”

for an overreporting adjustment in the year in which

TIP

instead of “(10.59).” However, if you are completing the return on

you file Form 944-X, you are encouraged to file Form

your computer and your software only allows you to use

944-X correcting the overreported amount in the first 11 months

parentheses to report negative amounts, you may use them.

of a year. For example, if you discover an overreported amount

in December, you may want to file Form 944-X during the first 11

How Should You Make Entries on Form 944-X?

months of the next year. This should ensure the IRS will have

You can help the IRS process Form 944-X timely and accurately

enough time to process the Form 944-X so the credit will be

if you follow these guidelines.

posted before you file Form 944, thus avoiding an erroneous

Type or print your entries.

balance due notice from the IRS. See the example below.

Use Courier font (if possible) for all typed or

computer-generated entries.

If you currently file Form 941 instead of Form 944 and will claim

Omit dollar signs. You may use commas and decimal points, if

a credit on Form 941, file Form 944-X in the first 2 months of a

desired. Enter dollar amounts to the left of any preprinted

quarter in any quarter before the expiration of the period of

decimal point and cents to the right of it.

limitations on Form 944. In the year of the expiration of the

Always show an amount for cents. Do not round entries to

period of limitations on Form 944, file Form 944-X at least 90

whole dollars.

days before the expiration date.

Complete all three pages and sign Form 944-X on page 3.

Example—You want your overreported tax applied as a

Staple multiple sheets in the upper-left corner.

credit on Form 944. On December 18, 2015, you discover you

overreported your tax on your 2014 Form 944 and want to

What About Penalties and Interest?

choose the adjustment process. To allow the IRS enough time to

Generally, your correction of an underreported amount will not

process the credit, you file Form 944-X on January 4, 2016, and

be subject to a failure-to-pay penalty, FTD penalty, or interest if

take the credit on your 2016 Form 944.

you:

Enter the date you discovered the error,

Specific Instructions:

Explain in detail the grounds and facts relied on to support the

correction,

Part 1: Select ONLY One Process

File on time (by the due date of Form 944 for the year in which

you discover the error) and,

Because Form 944-X may be used to file either an adjusted

Pay the amount shown on line 19 by the time you file Form

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

944-X.

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

boxes.

No correction will be eligible for interest-free treatment if any

of the following apply.

1. Adjusted Employment Tax Return

The amounts underreported relate to an issue that was raised

in an examination of a prior period.

Check the box on line 1 if you are correcting underreported

You knowingly underreported your employment tax liability.

amounts or overreported amounts and you would like to use the

adjustment process to correct the errors.

You received a notice and demand for payment.

You received a Notice of Determination of Worker

If you are correcting both underreported amounts and

Classification.

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

you check this box, any negative amount shown on line 19 will

If you receive a notice about a penalty after you file this

be applied as a credit (tax deposit) to your Form 944 or Form

return, reply to the notice with an explanation and we will

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

determine if you meet reasonable-cause criteria. Do not attach

Example—You want your overreported tax applied as a credit on

an explanation when you file your return.

Form 944 above.

Overview of the Process

The process to correct a previously filed Form 944 or to file a

claim is outlined below.

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

Instructions For Form 944-X (Rev. February 2015) Page 4

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