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IRS Releases Revised Form 941-X and Instructions

BY: Curtis E. Tatum, Esq. | 09/14/20

The IRS released a revised Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, and its instructions. The form has been revised to allow for corrections to COVID-19-related employment tax credits and other relief claimed on Form 941, Employee’s Quarterly Federal Tax Return.

The revised Form 941-X includes lines to report corrections to the:

  • Credit for qualified sick and family and medical leave wages
  • Employee retention credit
  • Deferrals of the employer share of social security tax

The revised instructions include a new Worksheet 1, which will be used to correct any amounts used to figure the credit for qualified sick and family leave wages and/or the employee retention credit claimed on the original Form 941 for the quarter. Employers will also use the worksheet to figure these credits if they are claiming them for the first time on Form 941-X.

Form 941-X to Be Updated in October

The newly revised Form 941-X will be used to correct the second quarter 2020 Forms 941, as well as Forms 941 filed for earlier quarters. In late August, the IRS released a draft Form 941 for the third and fourth quarters of 2020. The IRS expects to release a revised Form 941-X in October that will allow for corrections to that version of Form 941.

To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!


Curtis E. Tatum, Esq., is Director of Federal Payroll Compliance for the APA.