August 26, 2020
Revised Form 941-X expected in late September, here's what to do now
In its August 25, 2020, News for Payroll Professionals, the IRS announced that the revised Form 941-X to allow corrections for new lines added to the Form 941 effective in the second quarter 2020 is expected in late September.
The revised Form 941-X, like the revised Form 941, will include the lines necessary for correcting information in connection with federal COVID-19 tax benefits, such as the employer deferral of Social Security, paid sick and family medical leave tax credits and the employee retention credit.
The IRS has released a draft version of the revised Form 941-X and instructions.
Making corrections to Form 941-X in advance of the revised form
While awaiting the final revision to the Form 941-X, the IRS provides the following instructions.
If the employer has used the current Form 941-X when instructed not to, the IRS requests that the employer wait for correspondence to find out if it was able to process the Form 941 or if it had to reject it. Given the backlog of paper forms and correspondence due to COVID-19, the IRS is unable to estimate when correspondence will go out.
EY Payroll News Flash