Publication 80 - Federal Tax Guide (Circular Ss) - Internal Revenue Service - 2012 Page 14
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25Household employers reporting social security and
to replace Form 941c, Supporting Statement to Correct
Medicare taxes. If you are a sole proprietor and file Form
Information. There are also new Forms 943-X, 945-X, and
941-SS (or Form 944-SS) for business employees, you
CT-1X to report corrections on the corresponding returns.
may include taxes for household employees on your Form
Form 941-X and Form 944-X also replace Form 843, Claim
941-SS (or Form 944-SS). Otherwise, report social secur-
for Refund or Request for Abatement, for employers to
ity and Medicare taxes for household employees on
request a refund or abatement of overreported employ-
Schedule H (Form 1040), Household Employment Taxes.
ment taxes. Continue to use Form 843 when requesting a
See Publication 926, Household Employer’s Tax Guide,
refund or abatement of assessed interest or penalties.
for more information.
See Revenue Ruling 2009-39, 2009-52 I.R.B.
TIP
951, for examples of how the interest-free adjust-
Employers of farmworkers. Every employer of
ment and claim for refund rules apply in 10 differ-
farmworkers must file a Form 943 for each calendar year
ent situations. You can find Rev. Rul. 2009-39, at
beginning with the first year the employer pays $2,500 or
more for farmwork or employs a farmworker who meets the
Background. Treasury Decision 9405 changed the pro-
$150 test described in
section
6.
cess for making interest-free adjustments to employment
File a Form 943 each year for all taxable wages paid for
taxes reported on Form 941-SS and Form 944-SS and for
farmwork. You may report household workers in a private
filing a claim for refund of employment taxes. Treasury
home on a farm operated for profit on Form 943. Do not
Decision 9405, 2008-32 I.R.B. 293, is available at
report wages for farmworkers on Form 941-SS or Form
gov/irb/2008-32_IRB/ar13.html. You will use the adjust-
944-SS.
ment process if you underreported employment taxes and
Send Form 943 to the IRS by January 31 of the following
are making a payment, or if you overreported employment
year. Send it with payment of any taxes due that you are
taxes and will be applying the credit to the Form 941-SS or
not required to deposit. If you deposited all taxes when
Form 944-SS period during which you file Form 941-X or
due, you have 10 additional days to file.
Form 944-X. You will use the claim process if you overre-
If you receive a Form 943 for a year in which you are not
ported employment taxes and are requesting a refund or
required to file, write “NONE” on Form 943, line 9, sign the
abatement of the overreported amount. We use the terms
form, and send it back to the IRS. If at that time you do not
“correct” and “corrections” to include interest-free adjust-
expect to meet either test in
section 6
in the future, check
ments under sections 6205 and 6413, and claims for re-
the final return box above line 1. If you later become liable
fund and abatement under sections 6402, 6414, and 6404
for any of the taxes, notify the IRS.
of the Internal Revenue Code.
Penalties. For each whole or part month that a return is
Correcting employment taxes. When you discover an
not filed when required (disregarding any extensions of the
error on a previously filed Form 941-SS or Form 944-SS,
filing deadline), there is a failure-to-file penalty of 5% of the
you must:
unpaid tax due with that return. The maximum penalty is
•
Correct that error using Form 941-X or Form 944-X,
generally 25% of the tax due. Also, for each whole or part
month that the tax is paid late (disregarding any extensions
•
File a separate Form 941-X or Form 944-X for each
of the payment deadline), there is a failure-to-pay penalty
Form 941-SS or Form 944-SS you are correcting,
of 0.5% per month of the amount of tax. For individual filers
and
only, the failure-to-pay penalty is reduced from 0.5% per
•
File Form 941-X or Form 944-X separately. Do not
month to 0.25% per month if an installment agreement is in
file with Form 941-SS or Form 944-SS.
effect. You must have filed your return on or before the due
date of the return to qualify for the reduced penalty. The
Report current quarter adjustments for fractions of
maximum amount of the failure-to-pay penalty is also 25%
cents, third-party sick pay, tips, and group-term life insur-
of the tax due. If both penalties apply in any month, the
ance on Form 941-SS, lines 7–9, or on Form 944-SS, line
failure-to-file penalty is reduced by the amount of the
6. Report the correction of underreported and overreported
failure-to-pay penalty. The penalties will not be charged if
amounts for the same tax period on a single Form 941-X or
you have a reasonable cause for failing to file or pay. If you
Form 944-X unless you are requesting a refund. If you are
receive a penalty notice, you can provide an explanation of
requesting a refund and are correcting both underreported
why you believe reasonable cause exists.
and overreported amounts, file one Form 941-X or Form
Reporting Adjustments to Form
944-X correcting the underreported amounts only and a
second Form 941-X or Form 944-X correcting the overre-
941-SS, Form 944-SS, or Form 943
ported amounts.
See the chart on the back of Form 941-X or Form 944-X
for help in choosing whether to use the adjustment process
Current Period Adjustments
or the claim process. See the Instructions for Form 941-X
or Instructions for Form 944-X for details on how to make
Make current period adjustments for fractions of cents, sick
the adjustment or claim for refund or abatement.
pay, tips, and group-term life insurance on your Form
941-SS, Form 944-SS, or Form 943. See the Instructions
Exceptions to interest-free corrections of employment
for Form 941-SS, Form 944-SS, or Form 943, for informa-
taxes. A correction will not be eligible for interest-free
tion on how to report these adjustments.
treatment if:
•
Prior Period Adjustments
The failure to report relates to an issue raised in an
IRS examination of a prior return, or
•
Forms for prior period adjustments. The Internal Rev-
The employer knowingly underreported its employ-
enue Service has developed Form 941-X and Form 944-X
ment tax liability.
Page 14
Publication 80 (2012)
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