News & Resources

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APA Asks the IRS to Resolve Forms 941, 941-X Processing Issues

BY: Mike Linehan | 07/27/22

The APA Government Relations Task Force Federal Issues Subcommittee contacted the IRS in June with questions regarding the backlog in processing Forms 941, Employer’s Quarterly Federal Tax Return, and 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund.

A COVID-19-Induced Backlog

Historically, the IRS has reconciled an employer’s filed Form 941 with immediate past tax returns and modified claims, as needed. For example, if an employer requests a refund but owes taxes from the previous quarter, the refund would be reduced. Under normal circumstances, the IRS would examine an employer’s filed Form 941-X in this process. With the backlog of unprocessed Forms 941-X, an employer’s tax return and electronic record may appear inaccurate.

Questions Posed to the IRS

The APA posed a series of questions to the IRS, all aimed at collaboration with the goal of reducing the backlog many are experiencing at this time and offered to meet virtually with IRS employees to discuss processing issues and develop solutions.

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Mike Linehan is the Assistant Manager of Government Relations for the APA.