TaxBandits Knowledge Base

Should I explain my corrections on Form 941-X?

Yes. The Treasury regulations require you to explain in detail the grounds and facts relied upon to support each correction. 

On line 43, describe in detail each correction you entered in column 4 on lines 7–22 and lines 24–26c. Also, use line 43 to describe corrections made on line 6 and lines 28–40. If you need more space, attach additional sheets, but be sure to write your name, EIN, “Form 941-X,” the quarter you’re correcting (for example, “Quarter 2”), and the calendar year of the quarter you’re correcting on the top of each sheet.

You must describe the events that caused the underreported or overreported amounts. Explanations such as “social security and Medicare wages were overstated,” or “administrative/payroll errors were discovered,” or “taxes were not withheld” are insufficient and may delay processing your Form 941-X because the IRS requires a clear and detailed explanation.

Provide the following information in your explanation for each correction.

• Form 941-X line number(s) affected.
• Date you discovered the error.
• Difference (amount of the error).
• Cause of the error.