5 Facts About the Revised Draft of Form 941-X

Here are a few facts to help employers navigate the process of amending Form 941.

Update: Please note that the IRS released a final version of the Form 941-X for the 2nd Quarter of 2020. To see the PDF version of this form released by the IRS click here.

To complete the Form 941-X with TaxBandits click here.

The IRS updated the Form 941, Employer’s Quarterly Federal Tax Return, for the second quarter of 2020. This allowed employers who have been struggling financially due to the Coronavirus Pandemic to take advantage of tax credits.

Now that this deadline has passed and businesses across the country have submitted their Form 941 to the IRS, they may begin to notice errors in their reporting. 

Generally, the IRS advises these employers to use the Form 941-X ,Employer’s Quarterly Federal Tax Return or Claim for Refund to amend the following mistakes:

So, how should employers handle mistakes on their Form 941 for the second quarter of 2020? Here are a few facts to help employers navigate the process. 

The IRS released a draft of the Form 941-X that addresses the additional information that employers must provide due to COVID-19. This draft was released on July 27, 2020. It is a great tool for employers who are concerned with amending the Form 941 that they just filed for the second quarter. 

Did you file the Form 941-SS? This revised draft of Form 941-X will apply to you as well. 

There is no need to worry, the IRS has promised a finalized version of Form 941-X in late September. In the meantime, their advice is basically, just wait. 

There is no need to submit a second Form 941 with corrections and there is no need to submit the existing Form 941-X. 

The backlog at the IRS is very long due to the Coronavirus pandemic, and sending unnecessary documents will only enhance this problem. So, the best answer for employers is to wait patiently.

If you have noticed errors on the Form 941 that you submitted to the IRS for the first quarter of 2020 or earlier, there is something that you can do about it. 

Since this Form 941 didn’t include any COVID-related changes, you can go ahead and file the existing Form 941-X. There is no need to wait for the revised version because the added data fields won’t apply to the errors you are amending. 

Even if you notice errors on your Form 941 for the second quarter of 2020 that were not on the new data fields added for tax credits, you should still wait to file. Once the finalized version of the Form 941-X has been released by the IRS in late September, you should file at your earliest convenience. 

Until then, much like employers who made an error on the new lines related to tax credits, you must wait patiently.

These errors can be resolved on the 13 additional lines that will likely be added to the Form 941-X. Don’t let the expansion of the form concern you, employers only need to complete the lines where they are providing a correction.

There is still an area on the form where the employer has space to explain any errors more thoroughly.

For a full breakdown of the Form 941-X draft, check out https://blog.taxbandits.com/the-irs-will-issue-a-revised-form-941-x/ 

TaxBandits Will Keep You in the Know

TaxBandits supports the current version of Form 941-X. As soon as an official revised Form 941-X becomes available, TaxBandits will support this revised form. 

In the meantime the TaxBandits team is working to revise our Form 941-X process to accommodate the revised form.

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