Hello, I'm Portia Bingham and I'm talking with Charlotte Kieliszek from the Office of Taxpayer Burden Reduction about changes in 2009 for employers who need to correct errors on employment tax forms.
Charlotte, in a nutshell, what changes are coming and why do employers need to know?
Beginning in January 2009, we'll have five new forms for employers who need to correct errors on previously filed employment tax returns.
These new forms will replace the current Form 941c process.
This is very important information for businesses with employees -- it directly affects the payroll reporting process.
Make sure that if you use a tax professional or payroll service, you let them know about these changes, as they will also be affected.
Why is the process changing?
The prior process was confusing, so we worked with taxpayers, tax professionals and IRS employees to find a way to make it work better for everyone.
What is the pre-2009 process?
Currently employers use Form 941c to make corrections to employment tax returns.
Form 941c doesn't correspond line-by-line to the forms originally filed, so it can be confusing.
The adjustments don't always match the period being corrected, which makes it difficult for the employer to keep track of corrections.
And the new process?
Beginning in January 2009, employers will use the new forms that correspond directly with the original employment tax return filed.
Employers or their third party payers can file them as soon as an error is discovered.
The new forms are easier to fill out and the adjustments are applied to the tax period being corrected.
That will make it easier to for you to identify and monitor corrections.
What are these five new forms?
The new forms are Form 941X, 943X, 944X, 945X and CT-1X.
The form numbers mirror the existing tax forms.
An employer will use Form 941-X to correct an error on Form 941, Employer's Quarterly Federal Tax Return, Form 943-X for errors on Form 943; Form 944-X for Form 944, and so on.
This sounds like a big change.
Where can people get more information and details?
IRS.gov has more details.
Enter the letters TBR in the search box, click on the Office of Taxpayer Burden Reduction then look for Projects and Status.
We'll be updating the information on IRS.gov as the final versions of the forms and instructions are published.
Thank you, Charlotte.
I've been talking with Charlotte Kieliszek, of the IRS.
This is Portia Bingham.
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