Employers who file employment tax returns and also claim a tax credit should take the time to read the instructions for Form 941 and double-check their completed form in order to avoid costly mistakes.
It is recommended that taxpayers seek out reputable tax preparers which can include, certified public accountants, enrolled agents, or other knowledgeable tax professionals that can provide tax filing assistance and answer any tax questions an individual may have. Optima Tax Relief reviews mistakes that could be made as a result of a processing delay or a balance due notice. This could mean that a taxpayer will have to endure additional delays when it comes to their return being processed or may even be required to file an amended return to correct any errors the IRS found.
- Double-check that line 1 on Form 941 returns is accurate. Taxpayers should refer to Line 1 instructions if they require additional details when entering the number of employees they have.
- Employers should report any advanced credits that they have received. If the employer has yet to receive the advance payment of credit they previously requested, then the employer is not required to report it on Form 941.
- Utilize Form 7200 to request the advance payment of credit. Employers can use this form to request their advance payment of employer credit. The form should not be used to claim the credit. Employers that have received the advance payment requested, are required to reconcile it on Form 941 by reporting the advance payments received in addition to claiming the credits for which they are eligible.
- Employers that receive an advance payment of credit but fail to claim a corresponding credit on their employer tax return, may receive a balance due notice from the IRS. Employers will need to file an amended return using 941-X to claim their eligible credits.
- Notify any third-party payers or reporting agents. Employers that use third-party payers or reporting agents are required to inform their third-party payer or agent that they have requested and received an advanced payment credit.