IRS Released Revised Form 941-X

The final version of the second quarter Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, has been released by the IRS. The instructions detail changes to the form to account for the COVID-19 tax relief offered under the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

IRSForm 941-X is used by employers to correct errors on a previously filed Form 941, which was revised to include line items for reporting the COVID-19 tax credits and the employment tax deferral. The availability of the revised Form 941-X will provide relief to employers who were unable to take the employee retention credit by retaining the applicable employment taxes during pay cycles in the second quarter or by asking for a refund under the Form 941. Employers can now request the credits from late March and all the second quarter as a refund on the Form 941-X.

The instructions note that employers can now use Form 941-X to report corrections to the following items reported on Form 941:

  • Amounts for the credit for qualified sick and family leave wages.
  • Amounts for the employee retention credit.
  • The deferred amount of the employer share of social security tax.

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