The IRS has provided guidance on filing Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, for the second quarter of 2020 [IRS, Information About Filing Form 941-X for 2020 2nd Quarter, 8-17-20]. The IRS plans to issue a revised Form 941-X in late September, which will allow employers to correct COVID-19-related employment tax credits and other relief reported on Form 941, Employer’s Quarterly Federal Tax Return.
First Quarter or Earlier Adjustments
Until the revised Form 941-X is released, the IRS said employers adjusting for the first quarter of 2020 or earlier may use the existing Form 941-X.
Second Quarter or Later Adjustments
For employers adjusting for the second quarter of 2020 or later that are not making any increase or decrease to the employer share of social security tax or any of the new COVID-related lines added to the Form 941, the IRS strongly recommends that these employers wait for the revised Form 941-X to be released.
For employers adjusting for the second quarter of 2020 or later that are making any increase or decrease to the employer share of social security tax or any of the new COVID-related lines, the IRS said to wait for the revised Form 941-X.
Other Guidance
The IRS said not to send a Form 941 with “Amended” (or a similar notation) written on it in an attempt to adjust any quarter.
Employers that made any increase or decrease to the employer share of social security tax or any of the new COVID-related lines and filed the current Form 941-X or that wrote “Amended” on the form will need to wait for correspondence from IRS to find out if their return was processed or rejected. The IRS said it is unable to approximate how long it may be for correspondence to be sent.
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Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.
