When to Use 941 Amended Form

Not all businesses use a 941 amended form for tax periods. Employers should still understand why they might need them. Use Form 941 to record your business’s payroll tax liabilities and deposits. File the forms on a quarterly basis to stay compliant with the Internal Revenue Service regulations. The IRS references your 941 forms to reconcile federal tax deposits that you make as an employer. Double check that you or your payroll team correctly filed the company’s 941 forms. Do not fret if you notice any errors. A Form 941-X corrects any errors that your company overlooked when you originally filed your forms. We created several resources to make filing a 941 amendment form simpler.

Advanced Micro Solutions’ software does not make companies immune to any payroll and Form 941 errors. We offer users a way to rectify accuracy issues with a 941 amended form or reduce needless mistakes. Our Forms Filer Plus module supports many federal forms. Included forms are 941 and 941-X across all 50 states, plus the District of Columbia and Puerto Rico.


Common 941 Form Errors

You are not alone if you worry about making mistakes on your 941 forms. Keep in mind some of the more common yet avoidable mistakes:

Incorrect Calculations or Typos – Reduce the risks of overreporting and/or underreporting on Form 941 with reliable software.

Incorrect Tip Reporting – Creating a manual record of tips is inadvisable. Avoid needing a 941 amendment form or forgetting any tips when you stay up-to-date electronically each quarter.

Inaccurate Wage Reporting – The 941 amended form corrects any accidental mathematical wage errors. Use the form if you encounter mistakes related to taxable Medicare wages.

Use Form 941-X as a stand-alone form. The form correlates with the employment tax return that you need to amend.


What are Penalties for Form 941 Errors?

Any IRS penalties for Form 941 errors depend on the type of mistake and how quickly you address it. Do not seek any penalty refunds by using Form 941-X. Use Form 843 to complete a Claim for Refund and Request for Abatement. How you file Form 941-X may vary if you request abatement.

Underreporting Taxes – File a 941 amendment form as soon as possible or by the due date once you find an error. Include the date that you realized the error and pay the amount that your business owes. Ensure that you pay the amount by the time that you file the 941 amended form. Explain your corrections without omitting any details. Knowingly underreporting taxes may lead to you needing to pay interest. You may also need to pay interest if the IRS sends a notice and demand for payment, or if they send a notice of determination.

Overreporting Taxes – The IRS will not penalize companies for unintentionally overreporting on Form 941. You still need to address your mistakes. File Form 941-X in the three-year window from the date you submitted the inaccurate Form 941. Otherwise file within two years from when you paid the tax reported on Form 941, if that date is later.


Understanding the 941 Amended Form

Did you underreport? Submit the Form 941 correction and repay what you owe. The due date corresponds to the quarter that you found the error. File Form 941-X on April 30 for Q1 and July 31 for Q2. Submit forms on Oct. 31 and Jan. 31 for Q3 and Q4 errors, respectively.

Complete the following five parts to finalize a 941 amendment form:

Part 1 – Indicate if the form is for a claim or an adjusted employment tax return. Check only one of these options.

Part 2 – Fill out the certifications and explain why you need to submit the form.

Part 3 – Enter the necessary corrections for the relevant quarter. Put the total corrected amount, what you reported, and the difference between the two. Review the numbers with software or an alternative method to confirm that they are accurate.

Part 4 – Explain the corrections that you made for the current quarter.

Part 5 – Print and sign your name, and then date the form. Ignore the “Paid Preparer Use Only” section unless you used a paid preparer for the form.


How AMS Can Help

Human mistakes and miscalculations cause filing errors. Ensure efficiency and accuracy with a trusted software solution. Our Forms Filer Plus offers basic form support at a great price. Use AMS Payroll to improve calculations and store data. Then use our E-Filer tools to send your 941 amended form. Check out our free demo or call (405) 340-0697 to learn how it works.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.