Have a Tax Question? Ask a Tax Expert
I have a quick question. You state the report was never submitted. Are you stating the 941 was never filed?
THe quarterly reports were never filed.
What is it that you are calling the quarterly report. In my practice that is what we call the 941.
So, was the 941 ever filed for the quarter in question?
Yes the 941.
Great. Thank you for clearing that up. You do not need to file a 941X, you just need to file the regular 941. What year is the return for?
No it was not filed
Is there a particular reason you thought the 941X was needed. Did the IRS file for you?
Ok! sorry, the 941 was filed and now 941x is a correction for one quarter. The year is 2008.
I see. What information are you making changes to?
adjustments to FIT,SS and medicare
Are the total wages paid changing?
yes. the corrected amounts are higher that what was originally reported.
I see. Did the IRS send you a notice that is prompting your amendment?
yes. so I just want to make sure I have my explanation for my corrections correct.
I have good news.
Glad you do.lets hear it!!
You don't have to do a thing. The IRS noticed that the wages reported on the w2s did not match the 941s. The notice they sent you is telling you they have added the missing amounts to the returns. The returns on file will now reflect the proper amount. There is nothing to amend. I have bad news and more kind of good news.
The bad news. They are going to charge penalties and interest.Filing an amendment will not help, but..
If you pay what is owed, you can file IRS form 843 asking that they refund the penalty that was paid. If you have a good reason and a fairly good filing history, you have a good shot.
If you feel the amount is not correct, you need to find out what is wrong with the w2 filing. Without fixing that problem, you will never win.
Have to step away for a minute. I will be right back.
I am back
I would call IRS at(NNN) NNN-NNNNand make sure all returns are filed and none are "6020b" meaning you did not file at all, and the IRS filed for you, and I would make sure there are no pending transactions on other years. If your accountant messed up something as easy as making sure the w-2s matched the 941s, I would double check that everything is filed and there are no problems with other years.
You can check that they match by looking at the total wages on the w-2s and adding the reported wages for all 4 quarters for the year.
If they do not match, one is wrong.
to me it appears that I overreported the amounts. So that's the reason I would like to make the explanation and sinc I got the notice I want to make it all right
Do you still have access to the w2s, and w3 for that year?
What exactly does the letter you received say? In the top right corner there is "LTR" or "CP" followed by numbers. Which is it and what are the numbers?
I just want to make sure you fix the right problem, and don't cause more problems. I suppose I could have just answered the question, but I want to make sure I help as well. Let me answer the question real quick "Upon examinations it appears that the amounts reported over stated the wages paid. I am filing the 941X to ensure proper reporting of my IRS filing requirements. Changes in accountants caused some delays and mistakes in the original filing". Ok back to helping.
If the letter stated that social security records indicate discrepancy........., there is a matching issue. You need to get your w-2s, w3, payroll reports, and 941s to figure out which if any need to be amended.
If you did over report you income, you need to make sure the w-2s support this. If not, they need to be amended which is will effect your employees. For the better if the Fed withholding was correct just the wages were to high, negatively if the wages and withholding were over reported. There are also penalties associated with correcting w2s, so you need to ensure the savings are greater than the penalties.
I know this is a lot to take in, but if you need help, there are people in your area that are as experienced as I am in these matter that would assist. Again, it comes down to cost vs savings. Heck, this might be the best $30 you ever spent.
Do you need me to clarify anything>
Last thought. It is possible that the w-2s and 941s were never filed and the IRS filed based on industry averages. If this is the case, you need to file everything. Again, you can get this information by calling IRS. The last thing you want to do is pay more than you owe.
What do you think the problem is? You accountant?
Yes, My accountant!! He closed his business and left all his clients high and dry.
Is your business still open?
That is good. Are all your other taxes in line?
Well, if you have any other questions, let me know. I would be glad to respond. Feel free to leave a comment if you accept the response. I can still respond for at least 72 hours. Hope all goes well. Good Luck.
I'll take you advice. Thanks for your help!