How to Make Corrections With Newly Updated IRS Form 941-X

Find out all the new IRS changes to Form 941-X for 2020 COVID-19 tax relief.

At this point, we’re all committed to making changes in our lifestyles and routines to protect ourselves and the people around us during COVID-19. The IRS has been making changes too. On September 11, 2020, they released the final version of the newly updated Form 941-X. 

Here’s what to expect when you make corrections for your business with Form 941-X in 2020.

What is Form 941-X?

Form 941-X is the correction form for Employer’s Quarterly Federal Tax Return Form 941. Form 941 is the form that employers file every quarter to report the taxes withheld from employee paychecks. Since this form has to be filed four times a year by all employers, the IRS understands that sometimes mistakes get made. The Form 941-X revision allows employers to correct mistaken information, avoid penalties, and keep the IRS up to date. 

IRS Changes to Form 941 and Form 941-X

Because of the financial strain of COVID-19, the federal government has offered a variety of new tax relief provisions for businesses. The Federal Families First Coronavirus Response Act (FFCRA) and the CARES Act are providing tax credits and deferment options. This tax relief needs to be reported to the IRS on Form 941, so that form has been going through multiple revisions to accommodate all the new information. 

After all the changes on Form 941, the IRS also had to bring Form 941-X up to speed. The original Form 941 revision put 23 new data-entry fields on the Employer’s Quarterly Federal Tax Return. Click here for all the details. 

Following new measures that allow employers to defer the employee portion of social security taxes, the IRS updated Form 941 once again for the 3rd and 4th quarter of Form 941. Click here to find out more.

Now, with updated Form 941-X filing, employers can make corrections if they make a mistake while reporting COVID-19 related tax relief. 

What’s new on Updated Form 941-X? 

Everyone was filing the updated Form 941 for the first time, so if you made a mistake, it’s totally understandable. Now, thanks to this new version of Form 941-X, you can correct what you reported for credits for qualified sick and family leave wages. 

You can also correct all the amounts reported for employee retention credit.

If you deferred any amount of the employer share of social security tax and reported it on Form 941, you can make adjustments to that number as well. 

When is the New Form 941-X Due?

There is so specific deadline for filing Form 941-X since it’s a correction measure that you need to take if you make a mistake, but employers should file as soon as they catch an error. Even though there’s no due date for filing Form 941-X, there is a limited window of time that the IRS allows you to make corrections. 

If you overreport your tax amounts, you need to file Form 941-X within 3 years of the date you originally filed or two years from when you paid the tax that was misreported on Form 941.

For underreported taxes, you also have to file Form 941-X within 3 years of the date that you originally filed Form 941.

How to file the Updated Form 941-X

If you noticed a mistake on your Form 941 and are wondering what to do, you need to file Form 941-X for your business. This is the best way to avoid mistakes and keep your business in good standing with the IRS.

E-file Form 941-X safely and simply and get all the support you need with ExpressEfile. For more information and detailed filing instructions, click here. Our team is committed to providing those most current versions of all your IRS forms.

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