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941 Corrections

Discussion in 'Business Operations' started by scottt, Feb 6, 2005.

  1. scottt

    scottt LawnSite Senior Member
    Posts: 269

    I've made a mistake on my 4th quarter 941 and need some help. I'm going to my accountant at the end of the week, but would like some help between now and then. PLEASE only post if you've had the exact same situation and got it resolved correctly as there are a couple of twists that are giving me fits. I know we have some accountants on this board so that is why I'm posting. This will not be the most exciting post you've ever read, but I need some help.
    Let me say first this was from my 4th quarter of 2004 and I am an S corp. The mistake was on my pay, not an employees. I will give some fictitious numbers for clarification. I showed my wages as $10 for the quarter when in fact they were supposed to be $2. I withheld the extra tax and already sent off my 941 and payed income tax on the $8 I shouldn't have. My SS and Medicare taxes are correct, I just need to correct the income tax. I need to report an adjustment to show I only was paid $2 and would like to use the extra tax paid as a credit for the 1st quarter of 2005. Hear is where I'm having trouble. I was going to file a 941c, however Pub. 15 circ. E says you can only make adjustments for the same calendar year due to the info on W-2's. I have not yet printed MY W-2, only my employee's. The publication says you cannot adjust income tax withholding in prior years unless it is an administrative error which does not change the amount you withheld. My mistake will change this amount. However, since I have not printed my W-2 yet, can I just make changes and on 941c and put the correct numbers on my W-2? I'm thinking not because you must file a 941c with the next quarter's 941? If you've read this far, thank you very much.
     
  2. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Over the years we have had a couple 941 issues. I will tell you that the IRS checks every single business' 941's against the W2's and W3 to make sure they all match up. What I would do is (if your CPA agrees) is go ahead and file the Amended 941 and just like the IRS send you a check back for the overpayment. They will do that on their own once they see the overpayment for what was reported as they did on us one time. That way you stay in the same year.
     
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I wouldn't worry about it. You will get a refund. I did a mistake on my one of mine back in 2002, and I just received a notice this fall that I messed up and I am going to receive a refund of about $141.00
     
  4. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Yep they'll send a check when they catch the error
     
  5. scottt

    scottt LawnSite Senior Member
    Posts: 269

    Thanks for the replies, I was a little worked up and wanted to fix it immediately :rolleyes: I'll meet the accountant on thursday and see what her opinion is too. Thanks again.
     

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