INCREASES
What are the four most common IRN’s used when adjusting a Form 941X?
111 Federal Withholding, 112 Social Security & Medicare Tax, 004 Social Security Wages & 073 Medicare Wages.
A taxpayer is sending in a Form 941X to decrease their tax liability. Under what circumstance would they be required to send in a new ROFTL?
If there is an existing FTD penalty posted.
A taxpayer timely files a Form 941-X showing a $25,000.00 tax increase and makes an EFTPS payment the same day they discover the error. What adjustment would be input?
TC 298 $25,000.00
TC 180 .00
PRC 010
Which letter should you send regarding issues with Form 94X-X?
4384C
A taxpayer wants to make an adjustment of the Federal Income Tax (FIT). When must the Form 94X-X be received to make the adjustment without an administrative error?
By the due date of 1st quarter of the next year.
Which blocking series must be used when adjusting an account based on Form 94X-X?
BS 20
A taxpayment sends an amended return increasing their tax to $2,400.00. The 941X is not timely and does not have a ROFTL attached. How would you address the FTD penalty on the adjustment?
It is not necessary to address the FTD penalty. Total tax is below tolerance.
Taxpayer files a Form 945X showing a tax increase of $2,000.00. The return is received timely for an interest free adjustment, but the payment is not. There is no previous penalty posted. What is your adjustment?
TC 298 $25,000.00
TC 180 .00 PRC 021
Which 94XX return would be filed by an agricultural employer?
FORM 943-X
What is required in part 5 of all Form 94X-X forms showing decreases?
Taxpayer’s dated signature (Or their authorized representative)
When is Form 941-X due if an error is discovered on the originally filed Form 941 on February 15, 2020?
April 30, 2020
A taxpayer files a Form 941X reporting an increase of $5,000.00. The 941X is filed timely for an interest free adjustment but no payment is included. What adjustment do you input?
TC 298 $5,000.00
TC 180 $500.00
PRC 003
A taxpayer files a Form 944X correcting tax on their 2018 Form 944 from $1,450.00 to $1,650.00, They discovered the error on Nov 29, 2019 and we received the Form 944X on Mar 10,2020. Is an FTD penalty adjustment necessary and why?
No. De minimis is met.
Which employment tax form does not have a Form 94XX Form to use when making an adjustment?
FORM 940
A claim for refund must be filed within how many years of the date the original Form 94X is filed?
3 YEARS
If the taxpayer discovers an error on Nov. 16, 2020, and must report an increase to their tax, what date must they report it and pay by?
Jan. 31, 2021
A taxpayer files an amended 945X allowing for an interest free adjustment. CC TXMODA shows an averaged penalty was posted with the original return. What else would the taxpayer be required to provide?
An original ROFTL.
A 943X is received reducing the tax from $4,750.00 to $3,000.00 with no new ROFTL provided. There is a previous TC 186 FTD penalty of $475.00. What is your adjustment?
TC 291 $1,750.00-
TC 181 $175.00
PRC 010
When is the interest comp date?
The date the IRS received the processable claim
What is the cut off time for an employer to file a Form 94X-X requesting a tax decrease if they want to use the adjustment process?
No less than 90 days before the RSED. 941X instructions page 4
The taxpayer files an adjustment for an increase of tax on Form 941-X without an ascertained date. What part of the Form 941-X can you look at for a possible ascertained date?
Part 4-Explanations
The taxpayer discovers an error of underreported tax on the originally filed Form 945 on September 2, 2020, for tax year 2019. When is Form 945-X due to correct the error?
January 31, 2021
A Form 941X is filed showing a tax increase of $10,000.00. The ascertained date is Oct 30, 2019, and the form was received Mar 19, 2016. The payment was made the same day via EFTPS. A ROFTL was enclosed and FTDPN shows a penalty of $1,249.27. What is your adjustment?
TC 290 $10,000.00
TC 180 $1,249.27
PCC 003
Which TC 971 action code would you place on an account to show a Form 94X-X has been received?
TC 971 AC 010
Form 941-X Instructions caution the taxpayer not to file an amended return requesting an over-reporting adjustment to be credited to the current tax period during ____ of the tax period.
The last month. 941X instructions page 6