Treasury regulations require you to explain in detail the grounds and facts relied upon to support each correction. You must describe the events that caused the underreported or overreported amounts. Explanations such as “social security and Medicare wages were overstated” or “administrative/payroll errors were discovered” or “taxes were not withheld” are insufficient.
Provide the following information in your explanation for each correction:
- Form 941-X line number(s) affected.
- Date you discovered the error.
- Difference (amount of the error).
- Cause of the error.
Information can be submitted in paragraph form using this format:
“The $1,000 difference shown in column 3 on lines 6, 8, and 10 was discovered on May 15, 2017, during an internal payroll audit. We discovered that we included $1,000 of wages for one of our employees twice. This correction removes the reported wages that were never paid.”
For corrections shown on Lines 15–18, Column 3, explain why the correction was necessary and attach any notice you received from the IRS.