Form 944-X - Adjusted Employer’s ANNUAL Federal Tax Return or Claim for Refund

Instructions for Form 944-X

Department of the Treasury
Internal Revenue Service

(Rev. February 2012)

Adjusted Employer’s ANNUAL Federal Tax Return or Claim for Refund
Section references are to the Internal Revenue Code unless
otherwise noted.

interest or penalties. Do not request abatement of assessed
interest or penalties on Form 944 or Form 944-X.

What’s New

We use the terms “correct” and “corrections” on Form
TIP 944-X and in these instructions to include interest-free
adjustments under sections 6205 and 6413 and claims
for refund and abatement under sections 6402, 6414, and 6404.
See Rev. Rul. 2009-39, 2009-52 I.R.B. 951, for examples of
how the interest-free adjustment and claim for refund rules
apply in 10 different situations. You can find Rev. Rul. 2009-39,
at www.irs.gov/irb/2009-52_IRB/ar14.html.

Social security tax rate for 2011. The employee social
security tax rate is 4.2% and the employer social security tax
rate is 6.2% (10.4% total). Be sure to use the correct rate when
correcting amounts reported on lines 8 and 9.
Qualified employer’s social security tax exemption expired.
The qualified employer’s exemption for their share (6.2%) of
social security tax on wages paid to qualified employees
expired December 31, 2010. Any errors discovered on a
previously filed Form 944 for this exemption are corrected on
Form 944-X, lines 11a and 11b.
Advance payment of earned income credit (EIC). The
option of receiving advance payroll payments of EIC expired on
December 31, 2010. Any errors discovered on a previously filed
Form 944 for this credit are corrected on Form 944-X, line 17.

Reminders
Qualified employer’s social security tax credit. Qualified
employers were allowed a credit for their share (6.2%) of social
security tax on wages/tips paid to qualified employees after
March 18, 2010, and before April 1, 2010. Any errors
discovered on a previously filed 2010 Form 944 for this credit
are corrected on Form 944-X, lines 18c and 18d.
COBRA premium assistance credit. Employers who make
COBRA premium assistance payments for assistance eligible
individuals are allowed a credit for the payments on Form 944.
Any errors discovered on a previously filed Form 944 for this
credit or for the number of individuals provided COBRA
premium assistance are corrected on Form 944-X. See the
instructions for lines 18a and 18b, later.

General Instructions:
Understanding Form 944-X
What Is the Purpose of Form 944-X?
Use Form 944-X to correct errors on a previously filed Form
944. Use Form 944-X to correct:
• Wages, tips, and other compensation;
• Income tax withheld from wages, tips, and other
compensation;
• Taxable social security wages;
• Taxable social security tips;
• Taxable Medicare wages and tips;
• Advance earned income credit (EIC) payments made to
employees (for years ending before January 1, 2011);
• Credits for COBRA premium assistance payments;
• Credit for qualified employer’s share of social security tax on
wages/tips paid to qualified employees March 19 – 31, 2010;
and
• Exemption for qualified employer’s share of social security
tax on wages/tips paid to qualified employees
April 1 – December 31, 2010.
Use Form 843, Claim for Refund and Request for
Abatement, to request a refund or abatement of assessed
Feb 06, 2012

When you discover an error on a previously filed Form 944,
you must:
• Correct that error using Form 944-X,
• File a separate Form 944-X for each Form 944 that you are
correcting, and
• File Form 944-X separately. Do not file Form 944-X with
Form 944.
If you did not file a Form 944 for one or more years for which
you should have filed Form 944, do not use Form 944-X.
Instead, file Form 944 for each of those years. See also When
Should You File Form 944-X, later. However, if you did not file
Forms 944 because you improperly treated workers as
independent contractors or nonemployees and are now
reclassifying them as employees, see the instructions for line
22, later.
Report the correction of underreported and overreported
amounts for the same year on a single Form 944-X, unless you
are requesting a refund or abatement. If you are requesting a
refund or abatement and you are correcting both underreported
and overreported amounts, file one Form 944-X correcting the
underreported amounts only and a second Form 944-X
correcting the overreported amounts.
You will use the adjustment process if you underreported
employment taxes and are making a payment, or if you
overreported employment taxes and will be applying the credit
to Form 944 for the period during which you file Form 944-X.
However, see the Caution under Is There a Deadline for Filing
Form 944-X, later, if you are correcting overreported amounts
during the last 90 days of a period of limitations.
You will use the claim process if you overreported
employment taxes and are requesting a refund or abatement of
the overreported amount. Follow the chart on the back of Form
944-X for help in choosing whether to use the adjustment
process or the claim process. Be sure to give us a detailed
explanation on line 23 for each correction that you show on
Form 944-X.
You have additional requirements to complete when filing
Form 944-X, such as certifying that you filed (or will file) all
applicable Forms W-2, Wage and Tax Statements, and Forms
W-2c, Corrected Wage and Tax Statements. For corrections of
overreported federal income tax, social security or Medicare
tax, you must make any certifications that apply to your
situation.
Be sure to give us a detailed explanation on line 23 for each
correction you show on Form 944-X.
Do not use Form 944-X to correct Form CT-1, 941,
941-SS, 943, or 945. Instead, use the “X” form that
CAUTION corresponds to those forms (Form CT-1 X, 941-X,
943-X, or 945-X).

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Cat. No. 20334B

the calendar year, less any previous abatements and
interest-free tax assessments.
Example — You owe tax. On February 10, 2012, you
discover that you underreported $1,000 of social security and
Medicare wages on your 2011 Form 944. File Form 944-X and
pay the amount you owe by January 31, 2013, because you
discovered the error in 2012 and January 31, 2013, is the due
date for that year. If you file Form 944-X before January 31,
2013, pay the amount you owe when you file.
Overreported tax — credit. If you overreported tax and
choose to apply the credit on Form 944 or Form 941, file Form
944-X soon after you discovered the error but more than 90
days before the period of limitations on the credit or refund for
Form 944 expires. See Is There a Deadline for Filing Form
944-X? below.
Example — You want your credit applied to Form 944.
You filed your 2011 Form 944 on January 31, 2012, and
payments were timely made. On May 1, 2012, you discover that
you overreported tax on your 2011 Form 944. You file Form
944-X on June 1, 2012. IRS treats your credit as a tax deposit
made on January 1, 2012. When you file your 2012 Form 944,
include the amount from line 20 of Form 944-X on the “Total
deposits” line of your 2012 Form 944.
Overreported tax — claim. If you overreported tax on Form
944, you may choose to file a claim for refund or abatement on
Form 944-X any time before the period of limitations on credit or
refund expires. If you need to correct any underreported
amounts, you must file another Form 944-X reporting only
corrections to the underreported amounts. See Is There a
Deadline for Filing Form 944-X? below.

Where Can You Get Help?
For help filing Form 944-X or for questions about federal
employment taxes and tax corrections, you can:
• Call the IRS Business and Specialty Tax Line toll-free at
1-800-829-4933 (TTY/TDD for the hearing impaired at
1-800-829-4059), Monday through Friday from 7 a.m.
to 7 p.m. local time (Alaska and Hawaii follow Pacific time),
• Visit the IRS website at www.irs.gov/businesses and click on
“Employment Taxes,” or
• See Pub. 15 (Circular E), Employer’s Tax Guide, for
correcting Form 944, or Pub. 80 (Circular SS), Federal Tax
Guide for Employers in the U.S. Virgin Islands, Guam,
American Samoa, and the Commonwealth of the
Northern Mariana Islands, for correcting Form 944-SS.
See also How Can You Order Forms and Publications from
the IRS, later.

When Should You File Form 944-X?
File Form 944-X when you discover an error on a previously
filed Form 944.
However, if your only errors on Form 944 relate to federal
tax liabilities reported in Part 2 of Form 944 or on Form 945-A,
Annual Record of Federal Tax Liability, do not file Form 944-X.
For more information about correcting federal tax liabilities
reported in Part 2 of Form 944 or on Form 945-A, see the Form
945-A instructions.
Due dates. The due date for filing Form 944-X depends on
when you discover an error and if you underreported or
overreported tax. If you underreported tax, see Underreported
tax below. For overreported amounts, you may choose to either
make an interest-free adjustment or file a claim for refund or
abatement. If you are correcting overreported amounts, see
Overreported tax — credit and Overreported tax — claim below.
If any due date falls on a Saturday, Sunday, or legal holiday,
you may file Form 944-X on the next business day. If we
receive Form 944-X after the due date, we will treat Form 944-X
as filed on time if the envelope containing Form 944-X is
properly addressed, contains sufficient postage, and is
postmarked by the U.S. Postal Service on or before the due
date, or sent by an IRS-designated private delivery service on
or before the due date. If you do not follow these guidelines, we
will consider Form 944-X filed when it is actually received. See
Pub. 15 (Circular E) or Pub. 80 (Circular SS) for more
information on IRS-designated private delivery services.

If you discovered an error on or before December 31,
TIP 2008, but did not report it as a line adjustment on Form
944 for any year that ended before 2009 and did not file
a claim (Form 843), you may use Form 944-X to correct the
error. File Form 944-X for the year in which you made the error.

Is There a Deadline for Filing Form
944-X?
Generally, you may correct overreported taxes on a previously
filed Form 944 if you file Form 944-X within 3 years of the date
Form 944 was filed or 2 years from the date you paid the tax
reported on Form 944, whichever is later. You may correct
underreported taxes on a previously filed Form 944 if you file
Form 944-X within 3 years of the date the Form 944 was filed.
We call each of these time frames a “period of limitations.” For
purposes of the period of limitations, Form 944 is considered
filed on April 15 of the succeeding year if filed before that date.
Example. You filed your 2010 Form 944 on January 27,
2011, and payments were timely made. The IRS treats the
return as if it were filed on April 15, 2011. On January 22, 2014,
you discover that you overreported social security and Medicare
wages on that form by $350. To correct the error, you must file
Form 944-X by April 15, 2014, which is the end of the period of
limitations, and use the claim process.

Underreported tax. If you are correcting underreported tax,
you must file Form 944-X by the due date of the return for the
return period in which you discovered the error (January 31 of
the following year) and pay the amount you owe by the time you
file. Doing so will generally ensure that your correction is
interest free and not subject to failure-to-pay or
failure-to-deposit penalties. See What About Penalties and
Interest, later. For details on how to make a payment, see the
instructions for lines 19 – 20, later.
If Form 944-X is filed late (after the due date of the return for
the return period in which you discovered the error), you must
attach an amended Form 945-A to Form 944-X. Otherwise, the
IRS may assess an “averaged” failure-to-deposit penalty. The
tax reported on Form 945-A, line M, must match the corrected
total tax (Form 944, line 7 (line 9 for years before 2011),
combined with any correction reported on Form 944-X, line 16,
minus any advance EIC reported on Form 944-X, line 17) for

If you file Form 944-X to correct overreported amounts
in the last 90 days of a period of limitations (after
CAUTION January 15, 2014, in the example above), you must use
the claim process. You cannot use the adjustment process. If
you are also correcting underreported amounts, you must file
another Form 944-X to correct the underreported amounts
using the adjustment process and pay any tax due.

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Instructions for Form 944-X

Must You Make an Entry on Each Line?

Where Should You File Form 944-X?

You must provide all of the information requested at the top of
page 1 of Form 944-X. You must check one box (but not both)
in Part 1. You must check the box on line 3 and any boxes that
apply on lines 4 and 5. In Part 3, if any line does not apply,
leave it blank. Complete Parts 4 and 5 as instructed.

Send your completed Form 944-X to the Internal Revenue
Service Center shown below.
IF you are in . . . . . . .

THEN use this address . . .

Special filing addresses for
exempt organizations; federal,
state, and local governmental
entities; and Indian tribal
governmental entities; regardless
of location

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0044

Connecticut, Delaware, District of
Columbia, Georgia, Illinois,
Indiana, Kentucky, Maine,
Maryland, Massachusetts,
Michigan, New Hampshire, New
Jersey, New York, North Carolina,
Ohio, Pennsylvania, Rhode
Island, South Carolina,
Tennessee, Vermont, Virginia,
West Virginia, Wisconsin

Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0044

Alabama, Alaska, Arizona,
Arkansas, California, Colorado,
Florida, Hawaii, Idaho, Iowa,
Kansas, Louisiana, Minnesota,
Mississippi, Missouri, Montana,
Nebraska, Nevada, New Mexico,
North Dakota, Oklahoma, Oregon,
South Dakota, Texas, Utah,
Washington, Wyoming

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0044

No legal residence or principal
place of business in any state

Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409

How Should You Report Negative Amounts?
Form 944-X uses negative numbers to show reductions in tax
(credits) and positive numbers to show additional tax (amounts
you owe).
When reporting a negative amount in columns 3 and 4, use
a minus sign instead of parentheses. For example, enter
“-10.59” instead of “(10.59).” However, if you are completing the
return on your computer and your software only allows you to
use parentheses to report negative amounts, you may use
them.

How Should You Make Entries on Form 944-X?
You can help the IRS process Form 944-X timely and
accurately if you follow these guidelines.
• Type or print your entries.
• Use Courier font (if possible) for all typed or
computer-generated entries.
• Omit dollar signs. You may use commas and decimal points,
if desired. Enter dollar amounts to the left of any preprinted
decimal point and cents to the right of it.
• Always show an amount for cents. Do not round entries to
whole dollars.
• Complete all three pages and sign Form 944-X on page 3.
• Staple multiple sheets in the upper-left corner.

What About Penalties and Interest?
Generally, your correction of an underreported amount will not
be subject to a failure-to-pay penalty, failure-to-deposit penalty,
or interest if you:
• Enter the date you discovered the error,
• Explain in detail the grounds and facts relied on to support
the correction,
• File on time (by the due date of Form 944 for the year in
which you discover the error) and,
• Pay the amount shown on line 20 when you file Form 944-X.

How Should You Complete Form 944-X?
Use a Separate Form 944-X for Each Year You
Are Correcting
Use a separate Form 944-X for each Form 944 you are
correcting. For example, if you found errors on your Forms 944
for 2010 and 2011, file one Form 944-X to correct the 2010
Form 944. File a second Form 944-X to correct the 2011
Form 944.

No correction will be eligible for interest-free treatment if any
of the following apply.
• The amounts underreported relate to an issue that was
raised in an examination of a prior period.
• You knowingly underreported your employment tax liability.
• You received a notice and demand for payment.
• You received a Notice of Determination of Worker
Classification.

EIN, Name, and Address
Enter your EIN, name, and address in the spaces provided.
Also enter your name and EIN on the tops of pages 2 and 3,
and on any attachments. If your address has changed since
you filed your Form 944, enter the corrected information and the
IRS will update your address of record. Be sure to write your
name, EIN, Form 944-X, and calendar year on the top of any
attachments.

If you receive a notice about penalties and interest after you
file this return, send us an explanation and we will determine if
you meet reasonable-cause criteria. Do not attach an
explanation when you file your return.

Overview of the Process

Return You Are Correcting

The process to correct a previously filed Form 944 or to file a
claim is outlined below.

In the box at the top of page 1 of Form 944-X, check the type of
return (Form 944 or Form 944-SS) you are correcting. Enter the
calendar year of the Form 944 you are correcting. Enter the
calendar year on pages 2 and 3 in the box marked “Correcting
calendar year.” Be sure to write your name, EIN, Form 944-X,
and calendar year on the top of any attachments.

If you underreported the tax. If you underreported the tax
on a previously filed Form 944, check the box on line 1 and pay
any additional amount you owe when you file Form 944-X. For
details on how to make a payment, see the instructions for lines
19 – 20, later.

Enter the Date You Discovered Errors
You must enter the date you discovered errors. You discover
an error when you have enough information to be able to
correct the error. If you are reporting several errors you
discovered at different times, enter the earliest date you
discovered an error here. Report any subsequent dates and
related errors on line 23.
Instructions for Form 944-X

Example — You underreported employment taxes. On
June 20, 2012, you discover an error that results in additional
tax on your 2011 Form 944. File Form 944-X by January 31,
2013, and pay the amount you owe when you file. See When
Should You File Form 944-X, earlier. Do not attach Form 944-X
to your 2012 Form 944.

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If you overreported the tax. If you overreported the tax on
a previously filed Form 944, choose one of the following
options.
• Use the adjustment process. Check the box on line 1 to apply
any credit (negative amount) from line 20 to Form 944 for the
year during which you file Form 944-X.
• Use the claim process. Check the box on line 2 to file a claim
on Form 944-X requesting a refund or abatement of the
amount shown on line 20.

Do not check the box on line 1 if you are correcting
overreported amounts and the period of limitations on
CAUTION credit or refund for Form 944 will expire within 90 days
of the date you file Form 944-X. Instead, check the box on line
2. See Is There a Deadline for Filing Form 944-X, earlier.

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2. Claim
Check the box on line 2 to use the claim process if you are
correcting overreported amounts only and you are claiming a
refund or abatement for the negative amount (credit) shown on
line 20. Do not check this box if you are correcting any
underreported amounts on this form.

To ensure the IRS has enough time to process a credit
TIP for an overreporting adjustment in the year in which
you file Form 944-X, you are encouraged to file Form
944-X correcting the overreported amount in the first 11 months
of a year. For example, if you discover an overreported amount
in December, you may want to file Form 944-X during the first
11 months of the next year. This should ensure the IRS will
have enough time to process the Form 944-X so the credit will
be posted before you file Form 944, thus avoiding an erroneous
balance due notice from the IRS. See the example below. If you
currently file Form 941 instead of Form 944 and will claim a
credit on Form 941, file Form 944-X in the first 2 months of a
quarter in any quarter before the expiration of the period of
limitations on Form 944. In the year of the expiration of the
period of limitations on Form 944, file Form 944-X at least 90
days before the expiration date.

You must check the box on line 2 if you have a credit and
the period of limitations on credit or refund for Form 944 will
expire within 90 days of the date you file Form 944-X. See Is
There a Deadline for Filing Form 944-X, earlier.
The IRS usually processes claims shortly after they are filed.
The IRS will notify you if your claim is denied, accepted as filed,
or selected to be examined. See Pub. 556, Examination of
Returns, Appeal Rights, and Claims for Refund, for more
information.
Unless the IRS corrects Form 944-X during processing or
you owe other taxes, penalties, or interest, the IRS will refund
the amount shown on line 20, plus any interest that applies.

Part 2: Complete the Certifications

Example — You want your overreported tax applied as a
credit on Form 944. On December 18, 2012, you discover
you overreported your tax on your 2011 Form 944 and want to
choose the adjustment process. To allow the IRS enough time
to process the credit, you file Form 944-X on January 2, 2013,
and take the credit on your 2013 Form 944.

You must complete all certifications that apply by checking the
appropriate boxes. If all of your corrections relate to
underreported amounts, complete line 3 only; skip lines 4 and 5
and go to Part 3. If your corrections relate to overreported
amounts, you have a duty to ensure that your employees’ rights
to recover overpaid employee social security and Medicare
taxes that you withheld are protected. The certifications on lines
4 and 5 address the requirement to (a) repay or reimburse your
employees for the overcollection of employee social security
and Medicare taxes or (b) obtain consents from your employees
to file a claim on their behalf.

Specific Instructions:
Part 1: Select ONLY One Process
Because Form 944-X may be used to file either an adjusted
employment tax return or a claim for refund or abatement, you
must check one box on either line 1 or line 2. Do not check
both boxes.

3. Filing Forms W-2 or Forms W-2c

Check the box on line 1 if you are correcting underreported
amounts or overreported amounts and you would like to use the
adjustment process to correct the errors.

Check the box on line 3 to certify that you filed or will file Forms
W-2 or Forms W-2c, whichever is appropriate, as required,
showing your employees’ correct wage and tax amounts. See
the Instructions for Forms W-2 and W-3 and the Instructions for
Forms W-2c and W-3c for detailed information about filing
requirements. References to Form W-2 on Form 944-X and in
these instructions also apply to Forms W-2AS, W-2CM,
W-2GU, and W-2VI unless otherwise noted.

If you are correcting both underreported amounts and
overreported amounts on this form, you must check this box. If
you check this box, any negative amount shown on line 20 will
be applied as a credit (tax deposit) to your Form 944 or Form
941 for the period in which you are filing this form. See
Example — You want your overreported tax applied as a credit
on Form 944 above.

You must check the box on line 3 to certify that you filed
Forms W-2 or Forms W-2c even if your corrections on Form
944-X do not change amounts shown on those forms. For
example, if your only correction to Form 944 involves misstated
tax adjustments (see the instructions for line 12), check the box
on line 3 to certify that you already filed all required Forms W-2
and W-2c.

If you owe tax. Pay the amount shown on line 20 when you
file Form 944-X. Generally, you will not be charged interest if
you file on time, pay on time, enter the date you discovered the
error, and explain the correction on line 23.

4. Certifying Overreporting Adjustments

1. Adjusted Employment Tax Return

If you overreported federal income tax, social security tax, or
Medicare tax and checked the box on line 1, check the
appropriate box on line 4. You may need to check more than
one box. If you obtained written statements from some
employees but you could not locate or secure the cooperation
of the remaining employees, check all applicable boxes.
Provide a summary on line 23 of the amount of the corrections
for the employees who provided written statements and for
those who did not.

If you have a credit. You overreported employment taxes
(you have a negative amount on line 20) and want the IRS to
apply the credit on Form 944 (or Form 941) for the period
during which you filed Form 944-X. The IRS will apply your
credit to the first day of the Form 944 year (or Form 941
quarter) during which you filed Form 944-X. However, the credit
you show on line 20 of Form 944-X may not be fully available
on your Form 944 (or Form 941) if the IRS corrects it during
processing or you owe other taxes, penalties, or interest. The
IRS will notify you if your claimed credit changes or if the
amount available as a credit on Form 944 or Form 941 was
reduced because of unpaid taxes, penalties, or interest.

4a. Check the box on line 4a if your overreported amount
includes each affected employee’s share of overcollected taxes.
You are certifying that you repaid or reimbursed the employees’
share of prior year taxes and you received written statements
from the employees stating that they did not and will not receive
a refund or credit for the prior year taxes.

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Instructions for Form 944-X

Example. The following is an example of the written
statement that is required from employees.
Employee name
Employer name
I have received a repayment of $_________ as
overcollected social security and Medicare taxes for 20___. I
have not claimed a refund of or credit for the overcollected
taxes from the IRS, or if I did, that claim has been rejected;
and I will not claim a refund or a credit of the amount.
Employee signature
Date

your employees or obtained consents before the IRS can grant
the claim.
5c. Check the box on line 5c to certify that your overreported
tax is only for the employer share of social security and
Medicare tax. Affected employees did not give you consent to
file a claim for refund for the employee share of social security
and Medicare tax, they could not be found, or would not (or
could not) give you a statement described on line 5b.
5d. Check the box on line 5d to certify that your overreported
amount is only for federal income tax, social security tax, and
Medicare tax that you did not withhold from your employees.

Do not send these statements to the IRS. Keep them for
your records.
4b. Check the box on line 4b to certify that your overreported
amount is only for the employer share of taxes on those
employees who you were unable to find or those who would not
or could not give you a statement described on line 4a.
4c. Check the box on line 4c to certify that your overreported
amount is only for federal income tax, social security tax, and
Medicare tax that you did not withhold from your employees.

Part 3: Enter the Corrections for the
Calendar Year You Are Correcting
What Amounts Should You Report in Part 3?
In columns 1 and 2 of lines 6 – 10, show amounts for all of your
employees, not just for those employees whose amounts you
are correcting.
If a correction you report in column 4 includes both
underreported and overreported amounts (see the instructions
for line 21), give us details for each error on line 23.
Because special circumstances apply for lines 11a – 15 and
17 – 18d, read the instructions for each line carefully before
entering amounts in the columns.

5. Certifying Claims
If you are filing a claim for refund or abatement of overreported
federal income tax, social security tax, or Medicare tax and
checked the box on line 2, check the appropriate box on line 5.
You may need to check more than one box. If you obtained
written statements or consents from some employees but you
could not locate or secure the cooperation of the remaining
employees, check all applicable boxes. Provide a summary on
line 23 of the amount of the corrections for the employees who
provided statements or consents and for those who did not. You
may not file a refund claim to correct federal income tax actually
withheld from employees.
5a. Check the box on line 5a if your overreported tax includes
each affected employee’s share of prior year social security and
Medicare tax. You are certifying that you repaid or reimbursed
to the employees their share of prior year social security and
Medicare tax and you received written statements from those
employees stating that they did not and will not receive a refund
or credit for the prior year taxes.
5b. Check the box on line 5b if your overreported tax includes
each affected employee’s share of prior year social security and
Medicare tax and you have not yet repaid or reimbursed the
employee share of taxes. You are certifying that you received
consent from each affected employee to file a claim on the
employee share of those taxes and you received written
statements from those employees stating that they did not and
will not receive a refund or credit for the prior year taxes.
Example. The following is an example of the consent and
written statement that is required from employees when you are
filing a claim for refund and have not yet repaid or reimbursed
the employee share of taxes.
Employee name
Employer name
I give my consent to have my employer (named above) file a
claim on my behalf with the IRS requesting $_________ in
overcollected social security and Medicare taxes for 20___. I
have not claimed a refund of or credit for the overcollected
taxes from the IRS, or if I did, that claim has been rejected;
and I will not claim a refund or a credit of the amount.
Employee signature
Date

If you previously adjusted or amended Form 944 by
using Form 941c, Form 944-X, Form 843, an “amended”
CAUTION Form 944, a “supplemental” Form 944, or because of an
IRS examination change, show amounts in column 2 that
include those previously reported corrections.

!

6. Wages, Tips, and Other Compensation
If you are correcting the wages, tips, and other compensation
you reported on line 1 of Form 944, enter the total corrected
amount for ALL employees in column 1. In column 2, enter the
amount you originally reported. In column 3, enter the
difference between columns 1 and 2. This line does not apply to
Form 944-SS.
If you or the IRS previously corrected the amount reported
on line 1 of Form 944, enter in column 2 the amount after any
previous corrections.
line 6 (column 1)
-line 6 (column 2)
line 6 (column 3)

Example — Wages, tips, and other compensation
increased. You reported $900 as total wages, tips, and other
compensation on line 1 of your 2010 Form 944. In July of 2011,
you discovered that you had overlooked $100 in tips for one of
your part-time employees. To correct the error, figure the
difference on Form 944-X as shown.
Column 1 (corrected amount)
Column 2 (from Form 944, line 1)
Column 3 (difference)

1000.00
-900.00
100.00

Example — Wages, tips, and other compensation
decreased. You reported $900 as wages, tips, and other
compensation on line 1 of your 2010 Form 944. In December of
2011, you discovered that you included $200 in wages for one
of your employees twice. To correct the error, figure the
difference on Form 944-X as shown.

Do not send these statements to the IRS. Keep them for
your records.
In certain situations, you may not have repaid or reimbursed
your employees or obtained their consents before filing a claim,
such as in cases where the period of limitations on credit or
refund is about to expire. In those situations, file Form 944-X,
but do not check a box on line 5. Tell us on line 23 that you
have not repaid or reimbursed employees or obtained consents.
However, you must certify that you have repaid or reimbursed
Instructions for Form 944-X

If the amount in column 2 is larger than
the amount in column 1, use a minus
sign in column 3.

Column 1 (corrected amount)
Column 2 (from Form 944, line 1)
Column 3 (difference)

700.00
-900.00
-200.00

Example — Auto allowance; wages, tips, and other
compensation increased. You paid one of your employees a
$50 monthly auto allowance from October – December 2010

-5-

and did not treat the payments as taxable wages. However, in
February 2011, you realized that the payments were wages
because they were not reimbursements of deductible business
expenses that were substantiated and paid under an
accountable plan. Therefore, you must correct the error and
treat the auto allowance as wages subject to income, social
security, and Medicare taxes. Use Form 944-X to report the
additional $150 of wages on line 6 and any underreported
amounts on lines 8 and 10.

corrected amount in column 1. In column 2, enter the amount
you originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2.

For line 6 of Form 944-X only, there is no entry in
TIP column 4. Instead, use the amount in column 1 when
you prepare your Forms W-2 or Forms W-2c.

Multiply the amount in column 3 by .124 (.104 for corrections
to a 2011 return) and enter the result in column 4.

line 8 (column 1)
-line 8 (column 2)
line 8 (column 3)

line 8 (column 3)
x .124
line 8 (column 4)

7. Income Tax Withheld from Wages, Tips, and
Other Compensation
If you are correcting the federal income tax withheld from
wages, tips, and other compensation you reported on Form
944, line 2, enter the total corrected amount in column 1. In
column 2, enter the amount you originally reported or as
previously corrected. In column 3, enter the difference between
columns 1 and 2. This line does not apply to Form 944-SS.
line 7 (column 1)
-line 7 (column 2)
line 7 (column 3)

Copy the amount in column 3 to column 4. Include any minus
sign shown in column 3.

Column 1 (corrected amount)
Column 2 (from Form 944, line 4a, Column 1)
Column 3 (difference)

Generally, you may correct federal income tax
withholding errors only for the current calendar year.
CAUTION However, you may correct federal income tax
withholding errors for prior years if the amounts shown on Form
944 do not agree with the amounts you actually withheld, that
is, an administrative error. See section 13 of Pub. 15 (Circular
E) for more information about corrections during the calendar
year and about administrative errors.
Example — Failure to withhold income tax when
required. You were required to withhold $400 of federal
income tax from an employee’s bonus that was paid in
December of 2011 but you withheld nothing. You discovered
the error on March 15, 2012. You cannot file Form 944-X to
correct your 2011 Form 944 because the error involves a
previous year and the amount previously reported for the
employee represents the actual amount withheld from the new
employee during 2011.
Example — Administrative error reporting income tax.
You had three employees. In 2011, you withheld $100 of
federal income tax from employee A, $200 from employee B,
and $600 from employee C. The total amount of federal income
tax you withheld was $900. You mistakenly reported $600 on
line 2 of your 2011 Form 944. You discovered the error on
March 16, 2012. This is an example of an administrative error
that may be corrected in a later calendar year because the
amount actually withheld from employees’ wages differs from
the amount reported on Form 944. Use Form 944-X to correct
the error. Enter $900 in column 1 and $600 in column 2.
Subtract the amount in column 2 from the amount in column 1.

!

700.00
- 900.00
- 200.00

Use the difference in column 3 to determine your tax
correction.
Column 3 (difference)
Tax rate (12.4%)
Column 4 (tax correction)

-200.00
x .124
-24.80

Be sure to explain the reasons for this correction on line 23.
Note. If the example above was for a correction to a 2011
return, the amount in column 3 would be multiplied by .104.

9. Taxable Social Security Tips

!

The 2011 employee tax rate for social security is 4.2%.
The employer tax rate for social security is 6.2%.

CAUTION

If you are correcting the taxable social security tips you
reported on Form 944, line 4b, column 1, enter the total
corrected amount in column 1. In column 2, enter the amount
you originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2.
line 9 (column 1)
-line 9 (column 2)
line 9 (column 3)

If the amount in column 2 is larger than the amount
in column 1, use a minus sign in column 3.

Multiply the amount in column 3 by .124 (.104 for corrections
to a 2011 return) and report the result in column 4.

900.00
- 600.00
300.00

line 9 (column 3)
x .124
line 9 (column 4)

Report the 300.00 as a tax correction in column 4.
Be sure to explain the reasons for this correction on line 23.

8. Taxable Social Security Wages

!

(Use .104 for corrections to a 2011 return.)
If the amount in column 3 used a minus sign,
also use a minus sign in column 4.

Note. If you are correcting only the employer share of tax on a
decrease to social security wages, use .062 (6.2%) when
multiplying the amount shown in column 3. If you are correcting
both shares of tax for some employees and only the employer
share for other employees, enter the properly calculated
amount in column 4. Be sure to show your calculations on
line 23.
Example — Social security wages decreased. Following
Example — Wages, tips, and other compensation decreased in
the instructions for line 6, the wages that you counted twice
were also taxable social security wages. To correct the error,
figure the difference on Form 944-X as shown.

If the amount in column 2 is larger
than the amount in column 1, use a
minus sign in column 3.

Column 1 (corrected amount)
Column 2 (from Form 944, line 2)
Column 3 (difference)

If the amount in column 2 is larger
than the amount in column 1, use a
minus sign in column 3.

(Use .104 for corrections to a 2011 return.)
If the amount in column 3 used a minus sign,
also use a minus sign in column 4.

Note. If you are correcting only the employer share of tax on a
decrease to social security tips, use .062 (6.2%) when
multiplying the amount shown in column 3. If you are correcting
both shares of tax for some employees and only the employer
share for other employees, report the properly calculated
amount in column 4. Be sure to show your calculations on
line 23.

The 2011 employee tax rate for social security is 4.2%.
The employer tax rate for social security is 6.2%.

CAUTION

If you are correcting the taxable social security wages you
reported on Form 944, line 4a, column 1, enter the total

-6-

Instructions for Form 944-X

Following the Example — Wages, tips, and other
compensation increased in the instructions for line 6, the tips
that you overlooked were also taxable social security tips. To
correct the error, figure the difference on Form 944-X as shown.
Column 1 (corrected amount)
Column 2 (from Form 944, line 4b, Column 1)
Column 3 (difference)

wages/tips paid to one or more qualified employees from April
1 – December 31, 2010. An employer must be a qualified
employer to qualify for the employer’s social security tax
exemption. A qualified employer is any employer other than
Federal, State, and any related government entities. All public
institutions of higher education and Indian tribal governments
are also qualified employers.

1000.00
- 900.00
100.00

Use the difference in column 3 to determine your tax
correction.

For more information regarding the employer’s social
security tax exemption, visit IRS.gov and enter the keywords
HIRE Act in the search box.

Column 3 (difference)
Tax rate (12.4%)
Column 4 (tax correction)

11a. Number of Qualified Employees Paid
Exempt Wages/Tips April 1–December 31, 2010

100.00
x .124
12.40

Enter on line 11a (column 1) the corrected number of qualified
employees paid wages/tips to which you applied the social
security tax exemption. Enter on line 11a (column 2) the
number of qualified employees originally reported on line 5a of
the previously filed 2010 Form 944. If you are not correcting line
5a of the previously filed 2010 Form 944 and are making a
correction on line 11b, enter the number from line 5a of the
previously filed 2010 Form 944 on line 11a.

Be sure to explain the reasons for this correction on line 23.
Note. If the example above was for a correction to a 2011
return, the amount in column 3 would be multiplied by .104.

10. Taxable Medicare Wages and Tips
If you are correcting the taxable Medicare wages and tips you
reported on Form 944, line 4c, column 1, enter the total
corrected amount in column 1. In column 2, enter the amount
you originally reported or as previously corrected. In column 3,
enter the difference between columns 1 and 2.
line 10 (column 1)
-line 10 (column 2)
line 10 (column 3)

A qualified employee is an employee who:

• Began employment with you after February 3, 2010, and
before January 1, 2011;

• Certifies by signed affidavit (Form W-11, Hiring Incentives to

Restore Employment (HIRE) Act Employee Affidavit, or
similar statement) under penalties of perjury, that he or she
has not been employed for more than 40 hours during
the 60-day period (including 2009) ending on the date the
employee began employment with you;
• Is not employed by you to replace another employee unless
the other employee separated from employment voluntarily
or for cause (including downsizing); and
• Is not related to you. An employee is related to you if he
or she is your child or a descendant of your child, your sibling
or stepsibling, your parent or ancestor of your parent, your
stepparent, your niece or nephew, your aunt or uncle, or
your in-law. An employee is also related to you if he or she is
related to anyone who owns more than 50% of your
outstanding stock or capital and profits interest or is your
dependent or a dependent of anyone who owns more than
50% of your outstanding stock or capital and profits interest.

If the amount in column 2 is larger than the
amount in column 1, use a minus sign in
column 3.

Multiply the amount in column 3 by .029 (2.9% tax rate) and
enter the result in column 4.
line 10 (column 3)
x .029
line 10 (column 4)

If the amount in column 3 used a minus sign,
also use a minus sign in column 4.

Note. If you are correcting only the employer share of tax on a
decrease to Medicare wages and tips, use .0145 (1.45%) when
multiplying the amount in column 3. If you are correcting both
shares of tax for some employees and only the employee share
for other employees, enter the properly calculated amount in
column 4. Be sure to explain your calculations on line 23.

If you are an estate or trust, see section 51(i)(1) and section
152(d)(2) for more details.

Example — Medicare wages and tips decreased.
Following Example — Wages, tips, and other compensation
decreased in the instructions for line 6, the wages that you
counted twice were also taxable Medicare wages and tips. To
correct the error, figure the difference on Form 944-X as shown.
Column 1 (corrected amount)
Column 2 (from Form 944, line 4c, Column 1)
Column 3 (difference)

Exempt wages/tips are the wages/tips paid to qualified
employees for which the employer is exempt from paying the
employer’s 6.2% share of social security tax.

700.00
-900.00
-200.00

!

CAUTION

11b. Exempt Wages/Tips Paid to Qualified
Employees April 1–December 31, 2010

Use the difference in column 3 to determine your tax
correction.
Column 3 (difference)
Tax rate (2.9%)
Column 4 (tax correction)

Enter the amount of exempt wages/tips paid that you are
correcting for all qualified employees. Enter the corrected
amount from line 5b of the previously filed 2010 Form 944.
Enter the corrected amount in column 1. In column 2, enter the
amount originally reported or as previously corrected. In column
3, enter the difference between columns 1 and 2. If the amount
in column 2 is larger than the amount in column 1, use a minus
sign in column 3. Multiply the amount in column 3 by .062 and
enter the result in column 4. However, to properly show the
correction as a credit or balance due item, enter a positive
number in column 3 as a negative number in column 4 or a
negative number in column 3 as a positive number in column 4.
See the instructions for line 11a for definitions of qualified
employee and exempt wages/tips.

-200.00
x .029
-5.80

Be sure to explain the reasons for this correction on line 23.

!

Lines 11a and 11b apply only for corrections to the 2010
Form 944.

CAUTION

11. Employer’s Social Security Tax Exemption
Complete lines 11a and 11b to correct the payroll tax exemption
for the employer’s share (6.2%) of social security tax on exempt
Instructions for Form 944-X

If you make a correction on line 11a, then you must
complete line 11b.

-7-

!

If you make a correction on line 11b, then you must
complete line 11a.

employee, or if you withheld income tax but did not withhold
social security and Medicare tax. Section 3509 rates are also
not available for certain statutory employees.

CAUTION

12. Tax Adjustments

On lines 13 – 15 enter only corrections to wages resulting
from reclassifying certain workers as employees when section
3509 rates are used to calculate the taxes.

Use line 12 to correct any adjustments reported on Form 944,
line 6 (line 6a for 2007 or 2008). Enter in column 1 the total
corrected amount for Form 944, line 6 (line 6a for 2007 and
2008).

If the employer issued the required information returns, use
the section 3509 rates as follows.
• For social security taxes, use the employer rate of 6.2% plus
20% of the employee rate of 6.2% (4.2% for 2011), for a total
rate of 7.44% (7.04% for 2011) of wages.
• For Medicare taxes, use the employer rate of 1.45% plus
20% of the employee rate of 1.45%, for a total rate of 1.74%
of wages.
• For income tax withholding, the rate is 1.5% of wages.

Enter in column 2 the total originally reported or previously
corrected amount from Form 944, line 6 (line 6a for 2007 or
2008). In column 3, enter the difference between columns 1
and 2.
line 12 (column 1)
-line 12 (column 2)
line 12 (column 3)

If the employer did not issue the required information
returns, use the section 3509 rates as follows.
• For social security taxes, use the employer rate of 6.2% plus
40% of the employee rate of 6.2% (4.2% for 2011), for a
total rate of 8.68% (7.88% for 2011) of wages.
• For Medicare taxes, use the employer rate of 1.45% plus
40% of the employee rate of 1.45%, for a total rate of 2.03%
of wages.
• For income tax withholding, the rate is 3.0% of wages.

You may need to report negative numbers in any
TIP column. Make sure that the difference you enter in
column 3 accurately represents the change to
adjustments originally reported or previously corrected on Form
944, line 6 (line 6a for 2007 and 2008).
Copy the amount in column 3 to column 4. Include any
minus sign shown in column 3.
On line 23, describe what you misreported on Form 944. Tell
us if your adjustment is for fractions of cents, third-party sick
pay, tips, or group-term life insurance.
Example — Current year’s third-party sick pay
underreported. You reported $690 (shown as “-690.00”) as a
third-party sick pay adjustment (reduction to tax) on your 2010
Form 944, line 6. Your third-party sick pay adjustment should
have been $960 (shown as “-960.00”) because your third-party
sick pay payer withheld that amount of social security and
Medicare taxes from your employees. You discovered the error
in April of 2011. To correct the error, figure the difference on
Form 944-X as shown.
Column 1 (corrected amount)
Column 2 (from Form 944, line 6)
Column 3 (difference)

Unlike other lines on Form 944-X, enter in column 1 only the
corrected wages for workers being reclassified, not the amount
paid to ALL employees. Enter previously reported wages to
reclassified employees (if any) in column 2. To get the amount
for column 4, use the applicable section 3509 rates. The tax
correction in column 4 will be a positive number if you increased
the amount of wages you previously reported. See the
instructions for line 22 for more information.
If you misreported an amount on line 6d or line 6e on a
TIP pre-2009 Form 944, you may adjust the amount using
lines 13 – 15 of Form 944-X. Be sure to complete all of
the columns and provide a detailed explanation on line 23.

-960.00
- (690.00)
-270.00

16. Subtotal
Combine the amounts on lines 7 – 15 of column 4 and enter the
total on line 16.

Here is how you would enter the numbers on Form 944-X.
Column 1
(corrected amount)
-960.00

Column 2
(from Form 944, line 6)
-690.00

Example: You entered “1,400.00” in column 4 of line 7,
“-500.00” in column 4 of line 8, and “-100.00” in column 4 of line
10. Combine these amounts and enter “800.00” in column 4 of
line 16.

Column 3
(difference)
-270.00

Line 7 (column 4)
Line 8 (column 4)
Line 10 (column 4)
Line 16 (column 4)

Report “-270.00” as your correction in column 4.
In this example, you are claiming a credit for $270 in
overreported tax for your 2010 Form 944. Always enter the
same amount in column 4 (including any minus sign) that you
enter in column 3.

17. Advance Earned Income Credit (EIC)
Payments Made to Employees

Be sure to explain the reasons for this correction on line 23.

!

1400.00
-500.00
-100.00
800.00

Do not use line 12 to report corrections to amounts
reported on lines 6b through 6e of pre-2009 Forms 944.

The option of receiving advance payroll payments of
EIC expired on December 31, 2010. Corrections to
CAUTION advance EIC can be made only for years ending before
January 1, 2011.

!

CAUTION

13–15. Special Additions to Wages for Federal
Income Tax, Social Security Tax, and Medicare
Tax

If you are correcting the advance EIC payments made to
your employees that you reported on Form 944, line 8 (only for
years ending before January 1, 2011), enter the total corrected
amount for ALL employees in column 1. In column 2, enter the
amount you originally reported or as previously corrected. In
column 3, enter the difference between columns 1 and 2. This
line does not apply to Form 944-SS.

Section 3509 provides special rates for the employee share of
social security and Medicare taxes and income tax withholding
when workers are reclassified as employees in certain
circumstances. The applicable rate depends on whether you
filed required information returns. An employer cannot recover
any tax paid under this provision from the employees. The full
employer share of social security and Medicare tax is due for all
reclassifications.
Note. Section 3509 rates are not available if you intentionally
disregarded the requirements to withhold taxes from the

line 17 (column 1)
-line 17 (column 2)
line 17 (column 3)

-8-

If the amount in column 2 is larger than
the amount in column 1, use a minus sign
in column 3.

Instructions for Form 944-X

Copy the amount in column 3 to column 4. However, to
properly show the correction as a credit or balance due
CAUTION item, enter a positive number in column 3 as a negative
number in column 4 or a negative number in column 3 as a
positive number in column 4. Remember, negative amounts in
column 4 represent credits and positive amounts in column 4
represent additional tax.
Examples. If line 17, column 3 shows “560.00,” enter
“-560.00” in column 4.
If line 17, column 3 shows “-990.00,” enter “990.00” in
column 4.
Example — Advance EIC payments increased. You filed
your 2010 Form 944 reporting zero (line left blank) on line 8. On
February 17, 2011, you discovered that you forgot to report the
$100 in advance EIC payments you made on behalf of John
Smith, one of your employees. You made no other advance EIC
payments for your other employees. This is an example of an
administrative error. To correct the error, file Form 944-X
showing the following.

eligible individuals provided COBRA premium assistance
originally reported on Form 944, line 9b ((line 11b for years
ending before January 1, 2011).

!

Column 1 (corrected amount)
Column 2 (from Form 944, line 8)
Column 3 (difference)

!

Lines 18c and 18d apply only for corrections to the 2010
Form 944.

CAUTION

18c. Number of Qualified Employees Paid
Exempt Wages/Tips March 19–31, 2010
Enter on line 18c (column 1) the corrected number of qualified
employees paid wages/tips March 19 – 31, 2010, to which you
applied the social security tax exemption. Enter on line 18c
(column 2) the number of qualified employees originally
reported on line 11c of the previously filed 2010 Form 944. If
you are not correcting line 11c of the previously filed 2010 Form
944 and are making a correction on line 18d, enter the amount
from line 11c of the previously filed 2010 Form 944 on line 18c.
For the definition of qualified employee, see the instructions for
line 11a, earlier.

18d. Exempt Wages/Tips Paid to Qualified
Employees March 19–31, 2010

100.00
- 0.00
100.00

See section 13 of Pub. 15 (Circular E) for more
information about administrative errors and corrections
CAUTION during the calendar year. The same rules that apply to
withheld federal income taxes also apply to advance EIC
payments made to employees.

Enter the exempt wages/tips paid March 19 – 31, 2010, to all
qualified employees reported on line 18c. For the definition of
exempt wages/tips, see the instructions for line 11a, earlier.
Enter the corrected amount in column 1. In column 2, enter the
amount you originally reported or as previously corrected. In
column 3, enter the difference between columns 1 and 2. If the
amount in column 2 is larger than the amount in column 1, use
a minus sign in column 3. Multiply the amount in column 3 by
.062 and enter the result in column 4. However, to properly
show the correction as a credit or balance due item, enter a
positive number in column 3 as a negative number in column 4
or a negative number in column 3 as a positive number in
column 4.

18a. COBRA Premium Assistance Payments

19–20. Total

Reverse the mathematical sign of the amount in column 3
and enter your correction in column 4.
Column 4 (tax correction)

-100.00

Be sure to explain the reasons for this correction on line 23.

!

If you are correcting the total COBRA premium assistance
payments reported on Form 944, line 9a (line 11a for years
ending before January 1, 2011), report on this line the corrected
amount of the 65% of the COBRA premiums for assistance
eligible individuals. Report the premium assistance credit on
this line only after the assistance eligible individual’s 35% share
of the premium has been paid. For COBRA coverage provided
under a self-insured plan, COBRA premium assistance
payments are treated as having been made for each assistance
eligible individual who pays 35% of the COBRA premium.
Do not include the assistance eligible individual’s 35% share
of the premium in the amount entered on this line. For more
information on the COBRA premium subsidy, visit IRS.gov and
enter the keyword COBRA.
Copy the amount in column 3 to column 4. However, to
properly show the correction as a credit or balance due item,
enter a positive number in column 3 as a negative number in
column 4 or a negative number in column 3 as a positive
number in column 4. This is the same procedure as the
advance EIC on line 17.

Combine lines 16 – 18d of column 4 and enter the result on line
19. Copy the amount from line 19 on page 2 to line 20 on
page 3.
Your credit. If the amount entered on line 20 is less than zero,
for example, “-115.00,” you have a credit because you
overreported your federal employment taxes.
• If you checked the box on line 1, include this amount on the
“Total deposits” line of Form 944 for the year during which
you filed Form 944-X. If you currently file Form 941 or
Form 941-SS because your filing requirement changed,
include the credit on line 11. Do not make any changes to
your record of federal tax liability reported on Form 944,
line 13, or Form 945-A. The amounts reported on the
record should reflect your actual tax liability for the period.
• If you checked the box on line 2, you are filing a claim for
refund or abatement of the amount shown.
If your credit is less than $1, we will send a refund or apply it
to your next return only if you ask us in writing to do so.
Amount you owe. If the amount entered on line 20 is a
positive number, you must pay the amount you owe when you
file Form 944-X. You may not use any credit that you show on
another Form 944-X to pay the amount you owe, even if you
filed for the amount you owe and the credit at the same time.
If you owe tax and are filing a timely Form 944-X, do not file
an amended Form 945-A unless you were assessed an FTD
penalty caused by an incorrect, incomplete, or missing Form
945-A. Do not include the tax increase reported on Form 944-X
on any amended Form 945-A you file.
If you owe tax and are filing late Form 944-X, that is, after
the due date of Form 944 for the year in which you discovered
the error, you must file an amended Form 945-A with the Form
944-X. Otherwise, the IRS may assess an “averaged” FTD
penalty. The total tax reported on Form 945-A, line M, must
match the corrected tax (Form 944, line 7 (line 9 for years
before 2011), combined with any correction reported on Form
944-X, line 16, minus any advance EIC reported on Form

18b. Number of Individuals Provided COBRA
Premium Assistance on Line 18a
Enter in column 1 on line 18b the corrected number of
assistance eligible individuals provided COBRA premium
assistance. Count each assistance eligible individual who paid
a reduced COBRA premium in the year as one individual,
whether or not the reduced premium was for insurance that
covered more than one assistance eligible individual. For
example, if the reduced COBRA premium was for coverage for
a former employee, spouse, and two children, you would
include one individual in the number entered on line 18b for the
premium assistance reported on line 18a. Further, each
individual is reported only once per year. For example, an
assistance eligible individual who made monthly payments
during the year would only be reported as one individual on
line18b. Enter in column 2 on line 18b the number of assistance
Instructions for Form 944-X

-9-

944-X, line 17, for the year), less any previous abatements and
interest-free tax assessments.
Payment methods. You may pay the amount you owe on
line 20 electronically using the Electronic Federal Tax Payment
System (EFTPS), by credit or debit card, or by a check or
money order.
• The preferred method of payment is EFTPS. For more
information, visit www.eftps.gov, call EFTPS Customer
Service at 1-800-555-4477 toll free, or see Pub. 966, The
Secure Way to Pay Your Federal Taxes.
• To pay by credit or debit card, visit the IRS website at
www.irs.gov/e-pay.
• If you pay by check or money order, make it payable to
“United States Treasury.” On your check or money order,
be sure to write your EIN, “Form 944-X,”
and the quarter and year corrected.
You do not have to pay if the amount you owe is less than $1.
Previously assessed FTD penalty. If line 20 reflects
overreported tax and the IRS previously assessed a
failure-to-deposit (FTD) penalty, you may be able to reduce the
penalty. For more information, see the Form 945-A instructions.

Complete Form 944 using the Instructions for Form 944. Attach
a Form 944-X to each Form 944. Complete the top of Form
944-X, including the date you discovered the error, and provide
a detailed explanation on line 23.

23. Explain Your Corrections
Treasury regulations require you to explain in detail the grounds
and facts relied upon to support each correction. On line 23,
describe in detail each correction you entered in column 4 on
lines 7 – 15 and 17 – 18d. Also use line 23 to describe in detail
corrections made on lines 11a, 18b, and 18c. If you need more
space, attach additional sheets, but be sure to write your name,
EIN, Form 944-X, and calendar year 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” are insufficient and may delay
processing your Form 944-X because the IRS may need to ask
for a more complete explanation.
Provide the following information in your explanation of each
correction.
• Form 944-X line number(s) affected.
• Date you discovered the error.
• Amount of the error.
• Cause of the error.
You may report the information in paragraph form. The
following paragraph is an example.
“The $100 difference shown in column 3 of lines 6, 8, and 10
was discovered on May 15, 2011, during an internal payroll
audit. We discovered that we included $100 of wages for one of
our employees twice. This correction removes the reported
wages that were never paid.”
For corrections shown on lines 13 – 15, explain why the
correction was necessary and attach any notice you received
from the IRS.

Part 4: Explain Your Corrections for
the Calendar Year You Are Correcting
21. Correction of Both Underreported and
Overreported Amounts
Check the box on line 21 if any correction you entered on lines
7 – 15 and 17 – 18d in column 3 reflects both underreported and
overreported amounts.
Example. If you had an increase to social security wages of
$1,500 for employee A and a decrease to social security wages
of $500 for employee B, you would enter $1,000 on line 8,
column 3. That $1,000 represents the net change from
offsetting corrections.
On line 23, you must explain the reason for both the $1,500
increase and the $500 decrease.

Part 5: Sign Here
You must complete all three pages of Form 944-X and sign it on
page 3. If you do not sign, processing of Form 944-X will be
delayed.
Who must sign the Form 944-X? Form 944-X must be
signed by one of the following.
• Sole proprietorship — The individual who owns the
business.
• Corporation (including a limited liability company (LLC)
treated as a corporation) — The president, vice president,
or other principal officer duly authorized to sign.
• Partnership (including an LLC treated as a partnership)
or unincorporated organization — A responsible and
duly authorized member, partner, or officer having knowledge
of its affairs.
• Single member LLC treated as a disregarded entity for
federal income tax purposes — The owner of the LLC or
a principal officer duly authorized to sign.
• Trust or estate — The fiduciary.
Form 944-X may also be signed by a duly authorized agent
of the taxpayer if a valid power of attorney has been filed.
Alternative signature method. Corporate officers or duly
authorized agents may sign Form 944-X by rubber stamp,
mechanical device, or computer software program. For details
and required documentation, see Rev. Proc. 2005-39, 2005-28
I.R.B. 82, available at www.irs.gov/irb/2005-28_IRB/ar16.html.

22. Did You Reclassify Any Workers?
Check the box on line 22 if you reclassified any workers to be
independent contractors or nonemployees. Also check this box
if the IRS or you determined that workers you treated as
independent contractors or nonemployees should be classified
as employees. On line 23, give us a detailed reason why any
worker was reclassified and, if you used section 3509 rates on
lines 13 – 15 for any worker reclassified as an employee, explain
why section 3509 rates apply and what rates you used.
Return not filed because you did not treat any workers as
employees. If you did not previously file Form 944 because
you mistakenly treated workers as independent contractors or
as nonemployees, file a Form 944 for each delinquent year.
On each Form 944 for which you are entitled to use section
3509 rates:
• Write “Misclassified Employees” in dark bold letters across
the top margin of page 1,
• Enter a zero on line 7 (“Total taxes after adjustments”),
• Complete the signature area, and
• Attach a completed Form 944-X (see instructions below).
On each Form 944-X:
• Complete the top of Form 944-X, including the date you
discovered the error,
• Enter the wage amounts in column 1 of lines 13 through 15,
• Enter zeros in column 2 of lines 13 through 15,
• Complete columns 3 and 4 as instructed in Part 3,
• Provide a detailed statement on line 23, and
• Complete the signature area.

Paid Preparer Use Only
A paid preparer must sign Form 944-X and provide the
information in the Paid Preparer Use Only section of Part 5 if
the preparer was paid to prepare Form 944-X and is not an
employee of the filing entity. Paid preparers must sign paper
returns with a manual signature. The preparer must give you a
copy of the return in addition to the copy to be filed with the
IRS.

If you cannot use section 3509 rates (for example,
because the workers you treated as nonemployees
CAUTION were certain statutory employees), file a Form 944 for
each delinquent year. Write ‘‘Misclassified Employees’’ in dark,
bold letters across the top margin of page 1 of each Form 944.

!

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Instructions for Form 944-X

If you are a paid preparer, enter your Preparer Tax
Identification Number (PTIN) in the space provided. Include
your complete address. If you work for a firm, enter the firm’s
name and the EIN of the firm. You can apply for a PTIN online
or by filing Form W-12, IRS Paid Preparer Tax Identification
Number (PTIN) Application and Renewal. For more information
about applying for a PTIN online, visit the IRS website at
www.irs.gov/ptin. You cannot use your PTIN in place of the EIN
of the tax preparation firm.
Generally, you are not required to complete this section if
you are filing the return as a reporting agent and have a valid
Form 8655, Reporting Agent Authorization, on file with the IRS.
However, a reporting agent must complete this section if the
reporting agent offered legal advice, for example, advising the
client on determining whether its workers are employees or
independent contractors, for federal tax purposes.

Paperwork Reduction Act Notice. We ask for the information
on Form 944-X to carry out the Internal Revenue laws of the
United States. We need it to figure and collect the right amount
of tax. Subtitle C, Employment Taxes, of the Internal Revenue
Code imposes employment taxes on wages, including income
tax withholding. This form is used to determine the amount of
taxes you owe. Section 6011 requires you to provide the
requested information if the tax applies to you.
You are not required to provide the information requested on
a form that is subject to the Paperwork Reduction Act unless
the form displays a valid OMB control number. Books and
records relating to a form or instructions must be retained as
long as their contents may become material in the
administration of any Internal Revenue law.
The time needed to complete and file Form 944-X will vary
depending on individual circumstances. The estimated average
time is:

How Can You Order Forms and
Publications from the IRS?

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . . . . . . . . . .
Preparing and sending the form to the IRS . . . . . . . .

If you have comments concerning the accuracy of these time
estimates or suggestions for making Form 944-X simpler, we
would be happy to hear from you. You can email us at
[email protected]. Enter “Form 944-X” on the subject line. Or
write to: Internal Revenue Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:MS, 1111 Constitution Ave. NW,
IR-6526, Washington, DC 20224. Do not send Form 944-X to
this address. Instead, see Where Should You File Form 944-X,
earlier.

Call the IRS at 1-800-829-3676.

Visit the IRS website at www.irs.gov/formspubs.

Additional Information
You may find the following products helpful when using
Form 944-X.
• Form W-2, Wage and Tax Statement
• Form W-3, Transmittal of Wage and Tax Statements
• Instructions for Forms W-2 and W-3
• Form W-2AS, American Samoa Wage and Tax Statement
• Form W-2CM, Wage and Tax Statement (Northern Mariana
Islands)
• Form W-2GU, Guam Wage and Tax Statement
• Form W-2VI, U.S. Virgin Islands Wage and Tax Statement
• Form W-3SS, Transmittal of Wage and Tax Statements
• Instructions for Forms W-2AS, W-2GU, W-2VI, and Form
W-3SS
• Form W-2c, Corrected Wage and Tax Statement
• Form W-3c, Transmittal of Corrected Wage and Tax
Statements
• Form W-11, Hiring Incentives to Restore Employment (HIRE)
Act Employee Affidavit
• Form W-12, IRS Paid Preparer Tax Identification Number
(PTIN) Application and Renewal
• Form 945-A, Annual Record of Federal Tax Liability
• Instructions for Forms W-2c and W-3c
• Instructions for Form 843
• Instructions for Form 944
• Instructions for Form 944-SS
• Pub. 15 (Circular E), Employer’s Tax Guide
• Pub. 80 (Circular SS), Federal Tax Guide for Employers in
the U.S. Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands
• Pub. 966, The Secure Way to Pay Your Federal Taxes

Instructions for Form 944-X

17 hrs., 27 min.
45 min.
2 hrs., 16 min.

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