When it comes to filing Form 941, there are few things as stressful as when you realize that your previously filed return contains an error or two. You worked so hard to ensure all of the information from your business records was accurate!
So, now what?
You can, and should file an amendment Form 941-X with the IRS to correct the error. While the IRS doesn’t support e-filing for Form 941-X, it can be completed and downloaded with TaxBandits. This allows you to complete the form with the help of calculations, rather than doing all of the math manually.
To learn more about what you can and cannot correct on Form 941, check out this blog post.
This is the process for completing Form 941-X with TaxBandits – step-by-step.
Please note that this article provides an overview of the TaxBandits filing process for 941-X, it also references the IRS instructions for completing this form. For the complete IRS instructions, click here.
Getting Started in TaxBandits
First, sign into your TaxBandits account and select ‘Start New’ in the upper right corner of your screen.
Then, choose ‘Form 941-X’.
Select a business that is already in your Address Book, or you can add a new business manually. To enter the information for a new business select, ‘Add New’.
If you select an existing business, check that all the information is correct and click ‘Save and Continue’ to proceed. If you need to edit the business information click the “pencil” icon.
Select the tax year (2023) and the quarter (2nd) to continue.
TaxBandits will provide a reminder that the Form 941-X can ONLY be paper-filed. The IRS does not support the e-filing of this form. However, you can complete, download, and print the form with the TaxBandits application.
Completing Form 941-X
Select the form that you are amending. You can use Form 941-X to amend Form 941 and Form 941-SS.
Form 941-X: Part 1:
In the first part of Form 941-X, there are two options. You can only select one, you are also required to enter the date that you discovered the errors on the previously filed Form 941.
Line 1: Adjusted employment tax return.
This box is used to indicate if you’re correcting underreported or overreported tax amounts and if you would like to use the adjustment process to correct the errors.
If you’re correcting both underreported tax amounts and overreported tax amounts on this form, this box has to be checked.
Line 2: Claim.
If you’re only correcting overreported tax amounts and are claiming a refund or abatement for the negative amount on line 27.
This box must be checked if you have a credit (a negative amount on line 27) and the period of limitations on credit/refund for Form 941 will expire within 90 days of the date you file Form 941-X.
Form 941-X: Part 2:
In Part 2 of the 941-X, you are required to check all of the boxes that apply to you to certify the following information:
Line 3: I certify that I’ve filed or will file Forms W-2, Wage and Tax Statement, or Forms W-2c, Corrected Wage and Tax Statement, as required.
Line 3 requires you to certify that you have met your Form W-2/W-2c filing requirements, regardless of whether or not the corrections on Form 941-X are related to the amounts reported on these forms.
If you are only reporting underreported taxes, you only need to complete line 3; skip lines 4 and 5 and go to Part 3. If you are reporting corrections that are in addition to or unrelated to underreported taxes, you will need to complete lines 4 and 5 as they pertain to you.
Line 4: If you checked line 1 because you’re adjusting overreported federal income tax, social security tax, Medicare tax, or Additional Medical tax, check all that apply.
If you checked line 1 because you’re adjusting overreported federal income tax, social security tax, Medicare tax, or Additional Medicare Tax, check all that apply. You must check at least one box.
Checking this box A indicates/certifies that:
The overreported amount includes each affected employee’s share of over-collected taxes.
The employee share of current and prior year taxes has been repaid or reimbursed.
Written statements from the employees stating that they didn’t and won’t receive a refund or credit for the prior year’s taxes were received.
The federal income tax or Additional Medicare Tax withheld from employees has been adjusted for the current calendar year only.
Line 5: If you checked line 2 because you’re claiming a refund or abatement of overreported federal income tax, Social Security tax, Medicare tax, or Additional Medicare tax, check all that apply. You must check at least one box. I certify that:
Form 941-X: Part 3
Part 3 of Form 941-X consists of Lines 6-40. Here are a few things to keep in mind when completing this portion of the form.
Column 1 is for the total corrected amount (for ALL employees)
Column 2 is for the amount originally reported or as previously corrected
Column 3 is for the difference
If you are correcting any amounts on Form 941-X Lines 6 through 13, columns 1 and 2, amounts for all employees should be shown, not just for employees whose amounts are being corrected.
If you need to reference the IRS guidance while completing the form, you can click ‘See Instructions’ to open them in another window.
Lines that do not apply should be left blank.
As you fill out the form, TaxBandits will automatically complete several of the calculations for you. You will only need to provide information in the checkboxes and yellow fields as it pertains to your business. If the box is gray, it is either not required or TaxBandits will complete that box for you based on other information you’ve provided.
Form 941-X: Part 4
Line 41: Check here if any corrections you entered on a line include both underreported and overreported amounts. Explain both your underreported and overreported amounts on line 43.
Line 42: Check here if any corrections involve reclassified workers. Explain on line 43.
Line 43: You must give us a detailed explanation of how you determined your corrections.
For more information on how to fill out this section of the forms, reference the IRS instructions.
Form 941-X: Part 5
This is the portion of the form where you are required to provide a signature. Check that your information is correct, then click ‘Save and Continue’. Once you’ve paid the filing fee and downloaded the form, you should sign this section before mailing it to the IRS.
TaxBandits will prompt you to amend Schedule B. If you are a semi-weekly depositor, you may need to amend Schedule B. If you don’t need to amend it, click ‘I do not need Schedule B’ to continue.
To learn more about 941 tax liability and deposit schedules, check out this blog.
Form 941-X Filing Fees
The filing fee for Form 941-X is $2.99. This includes the preparation complete with auto-calculations, and the ability to download and print the form directly from your TaxBandits account. Remember, once you have completed the payment process, you must download and print the form, you should then mail it to the IRS mailing address provided.
Prepare your Form 941-X
Here, you can review the information you provided and make any necessary corrections. Just click the ‘pencil’ icon to edit the form. You should also click the button to preview the form.
*Please note that once you have clicked the green ‘Complete Filing’ button, you can no longer edit the form. Once you are satisfied with the information you’ve provided and how it appears on the form, click ‘Complete Filing’.
Enter Credit Card Details
To proceed with your order, enter the credit card information or select a card that is already saved in your account. After checking the box confirming that you are authorized to use this credit card, click the green ‘Pay and Print’ button.
Form 941-X Completion Page
Once you have completed the order, you will reach the completion page. This page provides confirmation that you have successfully finished filling out the form and it provides your next steps.
The most important of which is downloading the Form 941-X.Click the orange ‘Download Form 941-X’ button.
You will also find the IRS mailing address on this page. Once you’ve printed the form, use this IRS address to mail it. Once you’ve mailed the form, any additional steps or updates regarding your 941-X will come directly from the IRS.
Downloading and Printing Form 941-X
Once you’ve downloaded the completed copy of your Form 941-X, all that’s left to do is print it and mail it to the provided address. If you need to access the form at any time in the future it will be available in the Distribution Center of your TaxBandits account, which is easily accessible from your Dashboard.
Now that we’ve broken down the process of filling out Form 941-X, are you ready to get started?