Payment methods. You may pay the amount you owe on
Complete the signature area.
line 20 electronically using the Electronic Federal Tax Payment
If you cannot use section 3509 rates (for example,
System (EFTPS), by credit or debit card, or by a check or money
because the workers you treated as nonemployees
!
order.
were certain statutory employees), file a Form 941 for
The preferred method of payment is EFTPS. For more
CAUTION
each delinquent quarter. Write “Misclassified Employees” in
information, visit , call EFTPS Customer Service
bold letters across the top margin of page 1 of each Form 941.
at 1-800-555-4477 or 1-800-733-4829 (TDD), or see Pub. 966,
Complete Form 941 using the Instructions for Form 941. Attach
Electronic Federal Tax Payment System: A Guide To Getting
a Form 941-X to each Form 941. Complete the top of Form
Started.
941-X, including the date you discovered the error, and provide
To pay by credit or debit card, visit the IRS website at
a detailed explanation on line 23.
If you pay by check or money order, make it payable to
23. Explain Your Corrections
“United States Treasury.” On your check or money order, be
sure to write your EIN, “Form 941-X,” the calendar quarter you
Treasury regulations require you to explain in detail the grounds
corrected (for example, “Quarter 2”), and the calendar year of
and facts relied upon to support each correction. On line 23,
the quarter you corrected.
describe in detail each correction you entered in column 4 on
lines 7-17 and 19a. Also use line 23 to describe corrections
You do not have to pay if the amount you owe is less than $1.
made on line 19b. If you need more space, attach additional
Previously assessed FTD penalty. If line 20 reflects
sheets, but be sure to write your name, EIN, “Form 941-X,” the
overreported tax and the IRS previously assessed an FTD
quarter you are correcting (for example, “Quarter 2”), and the
penalty, you may be able to reduce the penalty. For more
calendar year of the quarter you are correcting on the top of
information, see the Instructions for Schedule B (Form 941).
each sheet.
Part 4: Explain Your Corrections for
You must describe the events that caused the underreported
This Quarter
or overreported amounts. Explanations such as “social security
and Medicare wages were overstated” or “administrative/payroll
errors were discovered” are insufficient and may delay
21. Correction of Both Underreported and
processing your Form 941-X because the IRS may need to ask
Overreported Amounts
for a more complete explanation.
Check the box on line 21 if any corrections you entered on lines
Provide the following information in your explanation for each
7-19a, column 3, reflect both underreported and overreported
correction.
amounts.
Form 941-X line number(s) affected.
Example. If you had an increase to social security wages of
Date you discovered the error.
$15,000 for employee A and a decrease to social security wages
Difference (amount of the error).
of $5,000 for employee B, you would enter $10,000 on line 8,
Cause of the error.
column 3. That $10,000 represents the net change from
You may report the information in paragraph form. The following
corrections.
paragraph is an example.
On line 23, you must explain the reason for both the $15,000
increase and the $5,000 decrease.
“The $1,000 difference shown in column 3 on lines 6, 8, and
10 was discovered on May 15, 2015, during an internal payroll
22. Did You Reclassify Any Workers?
audit. We discovered that we included $1,000 of wages for one
of our employees twice. This correction removes the reported
Check the box on line 22 if you reclassified any workers to be
wages that were never paid.”
independent contractors or nonemployees. Also check this box if
the IRS (or you) determined that workers you treated as
For corrections shown on lines 14–17, column 3, explain why
independent contractors or nonemployees should be classified
the correction was necessary and attach any notice you
as employees. On line 23, give us a detailed reason why any
received from the IRS.
worker was reclassified and, if you used section 3509 rates on
Part 5. Sign Here
lines 14–17, for any worker reclassified as an employee, explain
why section 3509 rates apply and what rates you used.
You must complete all three pages of Form 941-X and sign it on
Return not filed because you did not treat any workers as
page 3. If you do not sign, processing of Form 941-X will be
employees. If you did not previously file Form 941 because you
delayed.
mistakenly treated all workers as independent contractors or as
nonemployees, file a Form 941 for each delinquent quarter.
Who must sign the Form 941-X? The following persons are
On each Form 941 for which you are entitled to use section
authorized to sign the return for each type of business entity.
3509 rates, complete the following steps.
Sole proprietorship—The individual who owns the business.
Write “Misclassified Employees” in bold letters across the
Corporation (including a limited liability company (LLC)
top margin of page 1.
treated as a corporation)—The president, vice president, or
other principal officer duly authorized to sign.
Enter a zero on line 10 (“Total taxes after adjustments”).
Partnership (including an LLC treated as a partnership)
Complete the signature area.
or unincorporated organization—A responsible and duly
Attach a completed Form 941-X (see instructions next).
authorized member, partner, or officer having knowledge of its
On each Form 941-X complete the following steps.
affairs.
Complete the top of Form 941-X, including the date you
Single member LLC treated as a disregarded entity for
discovered the error.
federal income tax purposes—The owner of the LLC or a
Enter the wage amounts on lines 14–17, column 1.
principal officer duly authorized to sign.
Enter zeros on lines 14–17, column 2.
Trust or estate—The fiduciary.
Complete columns 3 and 4 as instructed in Part 3.
Form 941-X may also be signed by a duly authorized agent of
Provide a detailed statement on line 23.
the taxpayer if a valid power of attorney has been filed.
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Instructions for Form 941-X (Rev. 4-2015)