Table of Contents:
If you’ve already filed IRS Form 941 — otherwise known as the Employer’s Quarterly Federal Tax Return — for 2020 and 2021, you may think you’ve missed the boat for claiming the Employee Retention Credit (ERC). That would be a shame, because the ERC could receive a significant payroll refund. The good news is that it’s not too late to apply for the ERC!
So how can you unlock this valuable resource? You don’t need a time machine, you just need Form 941-X. This handy little form amends your originally filed Form 941. Here’s how your business can still amend Form 941 for the Employee Retention Credit.
What is a 941-X Form?
According to the IRS, the “Covid-19 related employee retention credit has expired.” Although there is no employee retention credit for 2022, Form 941-X can be used to correct employment taxes that you’ve already filed — including the 2020 and 2021 for businesses interested in claiming the ERC
In other words, Form 941-X is an amendment to the Employer’s Quarterly Federal Tax Return form that can be filed to correct any mistakes or make legal changes to your Form 941.
How to fill out Form 941-X to get the Employee Retention Credit
First, Form 941 is indeed quarterly, which means that you would have filed this tax form for each quarter of the year, and you’ll need to fill out a separate 941-X per qualifying quarter to amend for the Employee Retention Tax Credit of 2020 and 2021, since the ERC program has ended. Just a reminder, though, most small businesses are not eligible for the ERC for the 4th quarter of 2021 following a provision in the Infrastructure Investment and Jobs Act enacted late in 2021. That means you may be filling out seven amendment forms in total. For instructions on how to fill out form 941-X, we recommend that you check out the IRS website.
For a general explanation of how to fill out the amendment form, you can check the IRS video. Unfortunately, this video doesn’t cover specifically filling out 941-X for the Employee Retention Tax Credit, so you’ll have to be careful that you’ve accurately ticked the right boxes and provided all necessary information.
It’s no secret that these forms can be a bit daunting and difficult to get right. Hiring a highly trained professional can help assure that all paperwork is filled out correctly so you get your company’s ERC refund approved the first time around.
What you should know before filing Form 941-X
The deadline for filing Form 941-X
You can still claim the Employee Retention Tax Credit using Form 941-X up to three years from the date you originally filed Form 941, or two years from when you paid the tax reported on Form 941 — whichever is later. This means that for some businesses, the deadline to claim the ERC could be as soon as 2024.
How to file Form 941-X
Although the original Form 941 can be e-filed, you cannot file the amended form online. You’ll need to print paper copies and snail mail them to request your business’ refund. That would be a good time to check if you need to take any other steps for the ERC. If there are any mistakes or missing information during the ERC filing process, you could face IRS processing delays.
Where to mail Form 941-X
The address needed to mail your form depends on where your business is located. There are two different Department of the Treasury addresses assigned by state, plus an Internal Revenue Service Address if you have no principal place of business.
Let Innovation Refunds make life easier for your small business
Gathering the proper paperwork and correctly filing Form 941-X can be a hassle. And, if you improperly claim the ERC, you could face having to repay the credit amount, additional penalties, and accrued interest.
Working with a Refund Specialist that lives and breathes ERC legislation offers you the surest way to facilitate your business payroll tax refund as soon as possible. Innovation Refunds is a team of independent tax attorneys and CPAs aim to help businesses unlock their eligible refunds. Check your eligibility and we'll determine whether IR can help your business get started on its Employee Retention Credit journey.