How to Amend Form 941

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How to amend Form 941 is a common problem in our age of technology. Many business clients think that if they purchase general ledger software, they will be able to properly handle their payroll tax deposits and reporting. When they make mistakes and start getting IRS notices showing exorbitant penalties, the need to amend a 941 becomes apparent. This isn’t an easy process. It requires you to know how to properly fill out a 941. This isn’t something that your software will magically do correctly. The 941 x Adjusted Employers Quarterly Federal Tax Return or Claim For Refund requires you to show the corrected payroll tax numbers, the old numbers that were already filed, the differences between them, and the cause for the change. This isn’t a form that get’s rubber stamped and immediately accepted. If you are going to ask our Federal Government which is hopelessly operating at record deficits for a refund, you better have a good reason. “Just Because”, won’t work. Your reasoning must show “reasonable cause”, and be based upon existing Federal Payroll Tax Law. Without reasonable cause, your 941 x may be rejected. If your Amended Form 941 isn’t filed out correctly, it will probably be rejected no matter what the cause for the amendment. If your amendment is rejected, then the penalties and interest will continue to accrue. It’s certainly easier to handle this correctly in the first place. If you are having problems on how to amend Form 941 or with your accounting in general, we would love to help. I love hearing from my readers, and can be contacted at Chris@AccountingSolutionsltd.com Additional Accounting Articles and information on my firm can be found at www.AccountingSOlutionsltd.com