Form 941C Supporting Statement To Correct Information

Form

941c

Supporting Statement To Correct Information

OMB No. 1545-0256

Do Not File Separately

(Rev. October 2006)
Department of the Treasury
Internal Revenue Service

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Page
No.

File with Forms 941, 941-M, 941-SS, 943, 944, 944(SP), 944-SS, 945, or Form 843.

Name

Employer identification number (EIN)

Telephone number (optional)

A

This form supports adjustments to Form:

941-M
944(SP)

941
944
B This form is attached to and filed with the return for the

period ending (month, year)

Part I

C

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Check only one box. (see instructions)

941-SS
944-SS

943
945

Enter the date that you discovered the error(s) reported on this form.
(If you are making more than one correction and the errors were not
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discovered at the same time, explain in Part V.)

Signature and Certification (You must complete this part for the IRS to process your adjustments for
overpayments.) Skip Part I if all of your adjustments are underpayments. (Part I applies to wages only.)

I certify that Forms W-2c, Corrected Wage and Tax Statement, have been filed (as necessary) with the Social Security
Administration, and that (check appropriate boxes):
All overcollected federal income taxes for the current calendar year and all social security and Medicare taxes for the
current and prior calendar years have been repaid to employees. For claims of overcollected employee social security and
Medicare taxes in earlier years, a written statement has been obtained from each employee stating that the employee has
not claimed and will not claim refund or credit for the amount of the overcollection.
All affected employees have given their written consent to the allowance of this credit or refund. For claims of
overcollected employee social security and Medicare taxes in earlier years, a written statement has been obtained from
each employee stating that the employee has not claimed and will not claim refund or credit for the amount of the
overcollection.
The social security tax and Medicare tax adjustments represent the employer’s share only. An attempt was made to
locate the employee(s) affected, but the affected employee(s) could not be located or will not comply with the certification
requirements.
None of this refund or credit was withheld from employee wages.

Sign
Here
Part II

Signature

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Title

©

Date

Federal Income Tax Withholding (Including Backup Withholding) Adjustment
(a)
Period Corrected (For quarterly
returns, enter date quarter ended.
For annual returns, enter year.)

1
2
3
4
5

6
7
8

(c)
Correct Withheld
Income Tax for
Period

(d)
Withheld Income
Tax Adjustment

5

Social Security Tax Adjustment (Use the tax rate in effect during the period(s) corrected. You must also
complete Part IV.)

(a)
Period Corrected (For quarterly
returns, enter date quarter ended.
For annual returns, enter year.)

1
2
3
4
5

(b)
Withheld Income Tax
Previously Reported
for Period

Net withheld income tax adjustment. If more than one page, enter total of all columns (d) on first
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page only. Enter here and on the appropriate line of the return with which you file this form.

Part III

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(b)
Wages Previously
Reported for Period

(c)
Correct Wages for
Period

(d)
Tips Previously
Reported for Period

(e)
Correct Tips for
Period

Totals. If more than one page,
enter totals on first page only ©
Net social security tax adjustment. If more than one page, enter total of all columns (f) on first
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page only. Enter here and on the appropriate line of the return with which you file this form
Net wage adjustment. If more than one page, enter total of all lines 7 on first page only. If line 5(c)
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is smaller than line 5(b), enter difference in parentheses
Net tip adjustment. If more than one page, enter total of all lines 8 on first page only. If line 5(e)
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is smaller than line 5(d), enter difference in parentheses

For Paperwork Reduction Act Notice, see page 4.

Cat. No. 11242O

(f)
Social Security Tax
Adjustment

6
7
8
Form

941c

(Rev. 10-2006)

Form 941c (Rev. 10-2006)

Part IV

Page

2

Medicare Tax Adjustment
(a)
Period Corrected (For quarterly
returns, enter date quarter ended.
For annual returns, enter year.)

(b)
Wages and Tips
Previously Reported
for Period

(c)
Correct Wages
and Tips for
Period

(d)
Medicare Tax
Adjustment

1
2
3
4
5
6
7

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Totals. If more than one page, enter totals on first page only
Net Medicare tax adjustment. If more than one page, enter total of all columns (d) on first page
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only. Enter here and on the appropriate line of the return with which you file this form
Net wage and tip adjustment. If more than one page, enter total of all lines 7 on first page only.
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If line 5(c) is smaller than line 5(b), enter difference in parentheses

Part V

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7

Explanation of Adjustments

Form

941c

(Rev. 10-2006)

Form 941c (Rev. 10-2006)

What’s New
Line A. Three new check boxes have been added to
line A on page one for new Forms 944, 944(SP), and
944-SS. These forms are new for calendar year 2006.
Filers of these forms who wish to make adjustments
for prior years should check the appropriate box on
line A and file Form 941c with Form 944, 944(SP), or
944-SS.

General Instructions
Purpose of form. Use Form 941c to provide
background information and certifications supporting
prior period adjustments to income, social security,
and Medicare taxes reported on Form 941, 941-M,
941-SS, 943, 944, 944(SP), 944-SS, or Form 945. File
it with the tax return on which you are claiming the
adjustment (Form 941, 943, 944, 945, etc.). You may
use Form 941c even though you filed the original
return on magnetic media or electronically.
Do not use Form 941c as a supporting statement for
current period adjustments (for example, adjustment
for uncollected employee share of social security and
Medicare taxes on tips). No supporting statement is
required for the fractions-of-cents, group-term life
insurance, and third-party sick pay adjustments. See
your form instructions.
Federal income tax withholding errors. Generally,
you are not permitted to correct federal income tax
withholding errors made in a prior calendar year.
However, you may make an adjustment to correct an
administrative error in a prior year. Refer to Pub. 15
(Circular E), Employer’s Tax Guide, for more
information on correcting administrative errors.
More information. See Pub. 15 (Circular E), Pub. 51
(Circular A), Agricultural Employer’s Tax Guide, or your
form instructions for more information about
adjustments.
How to use Form 941c. Form 941c is not an
amended return and must never be filed separately.
You must make adjustments on the return (for
example, Form 941) for the period during which you
discovered the error. There is no limit to the number
of adjustments that you can make, and these
adjustments can be for corrections to more than one
prior period. However, if you filed two or more types of
tax returns that need correction (for example, Form
941 and Form 943), use a separate Form 941c for
each type of return. The net adjustment increases or
decreases your tax liability for the period in which the
error was discovered and adjusted.
If your adjustment(s) results in an overpayment, you
may apply for a refund using Form 843, Claim for
Refund and Request for Abatement, instead of making
an adjustment as discussed above. If you choose to
file Form 843, you will receive a refund check (with
interest) instead of reducing your current employment
tax liability (no interest). When filing Form 843, attach
Form 941c or an equivalent statement.
If you did not file a return for one or more return
periods, do not use Form 941c to report the
information. Instead, file the required returns.

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Corrections not required. You are not required to
correct errors previously reported as a monthly or daily
tax liability. For example, do not use Form 941c to
correct amounts reported in line 15 of Form 941, line
13 of Form 944, line 15 of Form 943, or on Schedule B
(Form 941), Form 943-A and Form 945-A. Also, you are
not required to correct amounts previously reported on
lines 1 or 2 of Form 941 or Form 941-M; or line 1 of
Form 941-SS or Form 943.
Statute of limitations. Generally, you may make an
adjustment only within three years of the return due
date or the date the return was filed, whichever is later.
For the statute of limitations, the due date of Forms
941, 941-M, 941-SS, 943, 944, 944(SP), 944-SS, and
945 is April 15 of the year after the close of the tax
year. For example, the four quarterly Forms 941 filed
for 2004 are all treated as due on April 15, 2005. If
they were filed on or before April 15, 2005,
adjustments could be made for any of the quarterly
returns for 2004 until April 15, 2008.

Specific Instructions
Complete all applicable columns on the line for each
return period that you are correcting. Show the total
amount paid to all employees, not the amount for each
individual employee. If you need more space, use
additional Forms 941c.
If you use additional Forms 941c as continuation
pages, be sure that the total and net adjustment lines
on the first form include the totals from the continuation
pages. These lines are line 5 of Part II, lines 5 through 8
of Part III, and lines 5 through 7 of Part IV.
Line A. Check the box for the return that you are
adjusting. Check only one box. Use a separate
Form 941c for each type of return (for example,
Form 941 and Form 945).
Line B. Show the return period in which you are
reporting tax adjustment(s). For example, if you are
making an adjustment on Form 941 for the quarter
ending June 30, 2006, enter 06-2006. File Form 941c
with Form 941 for this period. Do not show the return
period(s) being corrected in this entry space.
Line C. Enter the date that you discovered the
error(s). If you are making more than one correction
and the errors were not discovered at the same time,
leave line C blank and explain in Part V. The date that
you discover the error(s) is the date that your tax
liability increases or decreases. Your deposits for this
date must be adjusted accordingly. See your form
instructions for more information.
Part I—Signature and certification. Part I applies to
wages only. If any adjustment is for an overpayment, it
cannot be processed unless you check at least one
box in Part I and you sign the certification. If you
obtained written consents or statements from some
employees but you could not locate or secure the
cooperation of the remaining employees, check both
the second and third boxes. Provide a summary in
Part V of the amount of the adjustments for both the
employees who provided statements and for those
who did not.

Form 941c (Rev. 10-2006)

You may make an adjustment for both the employer
and employee shares of social security and Medicare
taxes for those employees who provided the required
written statement. But you may make adjustments for
only the employer’s share for those employees who
did not provide statements.
Part II—Federal Income Tax Withholding (Including
Backup Withholding) Adjustment. Use this part to
correct federal income tax withholding (including
backup withholding) information that you previously
reported. Show the total amount of income tax
withheld or required to be withheld.
After the end of the year, you cannot adjust the
amounts reported as income tax withheld (including
backup withholding) unless it is to correct an
administrative error. An administrative error is any error
that does not change the amount of income tax that
was actually withheld. For example, if the total income
tax actually withheld was incorrectly reported due to a
mathematical computation or transposition error, this is
an administrative error.
Except to correct an administrative error, you will not
be allowed a refund or credit for any prior year
overpayment of income tax withheld (including backup
withholding). This is because the amount of
withholding shown on Form W-2, Wage and Tax
Statement, Form W-2G, Certain Gambling Winnings, or
Form 1099, is used as a credit on the employee’s or
income recipient’s income tax return (Form 1040, etc.).
If you are making an administrative error adjustment
for a period during a prior calendar year, provide an
explanation in Part V.
Part III—Social Security Tax Adjustment. Use this
part to correct social security wages and tips
information that you reported in an earlier period. You
may make corrections to social security taxes reported
in prior calendar years as long as the statute of
limitations has not expired (see Statute of limitations on
page 3). If you are reducing social security taxes, be
sure to read and check the appropriate boxes in Part I.
Because Form W-2 is used by the Social Security
Administration (SSA) to post an employee’s social
security wages and tips to his or her earnings record,

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you must file a Form W-2c, Corrected Wage and Tax
Statement, with the SSA and give copies to the
employee for any social security correction made after
you filed his or her Form W-2 with the SSA. Do not
send Form 941c (or a copy) to the SSA with
Form(s) W-2c.
Part IV—Medicare Tax Adjustment. Use this part to
correct Medicare wages and tips information that you
reported in an earlier period. You may make
corrections to Medicare taxes reported in prior
calendar years as long as the statute of limitations has
not expired (see Statute of limitations on page 3). If
you are reducing Medicare taxes, be sure to read and
check the appropriate boxes in Part I.
You must file a Form W-2c with the SSA and give
copies to the employee for any Medicare correction
made after you filed Form W-2 with the SSA.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal
Revenue laws of the United States. You are required to
give us the information. We need it to ensure that you
are complying with these laws and to allow us to figure
and collect the right amount of tax.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or
its instructions must be retained as long as their
contents may become material in the administration of
any Internal Revenue law. Generally, tax returns and
return information are confidential, as required by Code
section 6103.
The time needed to complete and file this form will
vary depending on individual circumstances. The
estimated average time is 9 hours and 12 minutes.
If you have comments concerning the accuracy of
this time estimate or suggestions for making this form
simpler, we would be happy to hear from you. You can
write to the IRS at the address shown in the Privacy
Act and Paperwork Reduction Act Notice in the
instructions of the tax return with which you file
Form 941c.