What is Form 941-X?
- Form 941-X (Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund Form) is used to correct any errors on Form 941. If you find an error on a previously filed Form 941, you must correct the error using Form 941-X.
- Note: Be sure to file a separate Form 941-X for each tax period in which there was an error.
- If you are filing for underreported taxes, you must make payments along the Form. When reporting overreported taxes, you can either claim a refund or abatement for your next return.
When is Form 941-X due?
- There is no specific deadline for filing Form 941-X. You must file this form when you find any errors on your previously submitted Form 941, however, a time frame is applicable to report overreported and underreported taxes.
- The IRS will call each of these time frames as “period of limitations.” For the purposes of the period of limitations, 941 Forms for a calendar year are considered filed on April 15 of the succeeding year if filed before that date.
- For overreported taxes, you should file Form 941-X within 3 years of the date Form 941 was filed or 2 years from the date you paid the tax reported on Form 941.
- For underreported taxes, you should file Form 941-X within 3 years of the date that Form 941 was filed.
How to complete Form 941-X using ExpressEfile?
What is the penalty for underreporting taxes?
Typically, correcting an underreported amount will not subject you to penalties or interest if you follow these guidelines:
- File on time
- Pay the amount shown on Line 20 by the time you file the 941-X Form
- Enter the date you discovered the error
- Explain your corrections in detail
You will have to pay interest if:
- The underreported taxes are related to an issue raised in an examination of a prior period
- You knowingly underreported taxes
- You received a notice and demand for payment
- You received a Notice of Determination of Worker Classification
Note: If you receive a notice after you filed your 941-X Form, reply with an explanation.