Posted in: Electronic payments, IRS regs, Latest news & views, Tax compliance
Get your pencils ready: IRS has released Form 941, “Employer’s Quarterly Federal Tax Return,” for tax year 2008.
The good news is the form remains mostly unchanged from the 2007 version. Along with the updated form, IRS’ instructions include a few reminders on:
- Credit card payments. Employers can pay a due balance on Form 941 with an attached check or credit card, but businesses are prohibited from using a credit card to make federal tax deposits.
- Electronic payments. If your department files Form 941 electronically, you can both e-file and e-pay in a single step by either using tax software or an outside tax professional. Some companies may be charged a fee for e-filing.
- Correcting Form 941. If you discover an error for a previously-filed form, you’ll need to make a correction by filing another Form 941 for that quarter and attaching Form 941c, “Supporting Statement to Correct Information.”
- Annual employment tax for small employers. A few small employers — those with an employment tax liability of $1,000 or less — should use Form 944, “Employer’s Annual Federal Tax Return,” to report employment taxes.