Employers use IRS Form 941 to report employee wages, tips, Social Security, Medicare and withholding taxes. The form is due quarterly, every April, July, November and January. If you discover you or your accountant made a calculation error or your software failed you, all is not lost. You can file Form 941-X to amend your return.
Download and print Form 941-X from IRS.gov. Simply type 941-X in the search box in the upper right and click “Go.” It will appear first in the search results.
Complete the entire top portion of Page 1. On the right side, check the tax period you are correcting. Below that, write the date you discovered the error. Then go on and check the appropriate box in Part 1. Check Box 1 to adjust overreported or underreported amounts. Check Box 2 to report overreported amounts you want to use for a refund.
Check the appropriate boxes in Part 2. This section asks you to provide certain certifications to the IRS, such as whether you filed or will file W-2 forms.
Make the corrections in Part 3. Use your original Form 941 as a reference. For instance, if you reported $10,000 as wages and tips paid to employees on Form 941, but you really paid $8,000, you would make this correction in Part 3. Specifically, you would write “8,000” in Column 1 (the corrected amount), “10,000” in Column 2 (the original amount) and the difference in Column 3.
Briefly explain why and how you discovered the corrections in Part 4 of Form 941-X. Be sure to sign and date; otherwise, the IRS will not process your form. Above all, double- and triple-check your figures, your Employer Identification Number and whether you have indeed indicated the proper tax period.