Form 944-X - Feb 2023

Form 944-X: How to correct errors on Form 944

What is Form 944-X?

Form 944-X, Adjusted Employer’s Annual Federal Tax Return or Claim for Refund, is used to correct errors on a previously filed Form 944. Employers use it to report changes to wages, tips, federal income tax withheld, Social Security and Medicare taxes or certain payroll tax credits.

Form 944-X is filed separately from Form 944. A separate Form 944-X is generally required for each tax year that needs correction because each annual return is treated separately.

Who needs to file Form 944-X?

Form 944-X is used by employers who have already filed Form 944 and later discover an error on that return. Form 944 is generally filed by small employers that are approved by the IRS to report federal employment taxes annually instead of filing Form 941 quarterly.

Common situations that may require Form 944-X include:

• Wages or employment taxes were underreported and additional tax is due.
• Wages, taxes or other amounts were overreported and the employer is requesting a refund or credit.
• Social Security or Medicare taxes were calculated incorrectly.
• Federal income tax withholding was reported incorrectly.
• A payroll tax credit on the original Form 944 needs to be corrected.
• An error in the original return resulted in an incorrect tax liability.

Adjustment process vs. claim process

Form 944-X provides two correction processes. The appropriate process depends on whether the original return understated or overstated the tax and what the employer wants to do with the correction.

• Adjustment process: Use this process to report additional tax that is due or to apply an overreported amount as a credit against a future tax liability.
• Claim process: Use this process when an employer overreported tax and wants to request a refund or have the amount abated.

When a return contains both underreported and overreported amounts, separate Form 944-X filings may be required depending on the corrections and the process being used.

Is there a deadline for filing Form 944-X?

Form 944-X does not have one universal filing deadline. The deadline depends on the type of correction and the applicable period of limitations.

For corrections that result in an overreported tax amount, the IRS generally requires Form 944-X to be filed within three years from the date the original Form 944 was filed or two years from the date the tax was paid, whichever is later.

If Form 944 was filed early, the IRS generally treats it as filed on April 15 of the following year. Corrections involving underreported tax should generally be reported as soon as the error is discovered. Additional tax may be subject to interest and penalties, so timely correction and payment are important. Because filing deadlines can depend on the specific correction, employers should check the current IRS instructions for Form 944-X before filing.

What do you need before completing Form 944-X?

Form 944-X requires information from both the original return and the corrected figures. Gathering payroll and employment tax records beforehand can help ensure that each correction is reported accurately.

Have the following information available:

• The original Form 944 for the tax year being corrected.
• Payroll records showing wages, tips and federal income tax withheld.
• Records of Social Security and Medicare wages and taxes.
• Employer identification number and business information.
• Documentation showing the corrected amounts.
• The date the error was discovered.
• A clear explanation of each correction.

Where do you file Form 944-X?

Form 944-X is filed separately from Form 944 and is generally submitted by mail rather than through the IRS electronic filing system. The correct mailing address depends on factors such as the employer's location and whether a payment is included.

Because IRS mailing addresses can change, check the current Where to File Form 944-X instructions before sending the completed form. Employers may also be able to use an IRS-designated private delivery service where permitted.

Form 944-X vs. Form 941-X

Form 944-X and Form 941-X are both used to correct previously filed employment tax returns, but they apply to different forms.

Form 944-X corrects Form 944, the annual federal employment tax return used by certain small employers approved to file annually. Whereas, Form 941-X corrects Form 941, the quarterly federal employment tax return used by most employers.

The correct correction form depends on the return that was originally filed. An employer that files Form 944 should use Form 944-X to correct that return, while an employer that files Form 941 should generally use Form 941-X.

Fill out Form 944-X with Lumin

Need to correct a previously filed Form 944? Use Lumin's fillable Form 944-X template to enter the required information, add the corrected amounts and complete the form before printing and mailing it to the IRS. Keep a completed copy with the employer's payroll and tax records for future reference.