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

Instructions for Form 944-X
(Rev. February 2015)

Department of the Treasury
Internal Revenue Service

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

February 2014 revision of Form 944-X. The February 2014
revision of Form 944-X is available on IRS.gov.

Future Developments

Retroactive increase in excludible transit benefits. The Tax
Increase Prevention Act of 2014 increased the monthly transit
benefit exclusion from $130 per participating employee to $250
per participating employee for the period of January 1, 2014,
through December 31, 2014. Employers were provided
instructions on how to correct the social security and Medicare
taxes on the excess transit benefits in Notice 2015-2, 2015-4
I.R.B. 334, available at www.irs.gov/irb/2015-4_IRB/ar06.html.

For the latest information about developments related to Form
944-X and its instructions, such as legislation enacted after they
were published, go to www.irs.gov/form944x.

What's New
Employee consents to support a claim for refund. Notice
2015-15 provides guidance to employers on the requirements
for employee consents used by an employer to support a claim
for refund of overcollected social security tax and Medicare tax.
The notice and proposed revenue procedure clarifies the basic
requirements for a request for a consent and for the employee
consent itself, and permits a consent to be requested, furnished,
and retained in an electronic format as an alternative to a paper
format. The notice also requests comments and contains
guidance concerning what constitutes “reasonable efforts” if a
consent is not secured to permit the employer to claim a refund
of the employer share of overcollected social security tax and
Medicare tax. For more information, see Notice 2015-15, 2015-9
I.R.B. 687, available at www.irs.gov/irb/2015-9_IRB/ar07.html.
Claiming the COBRA premium assistance credit. The
COBRA premium assistance credit was available to an employer
for premiums paid on behalf of employees who were
involuntarily terminated from employment between September
1, 2008, and May 31, 2010. The COBRA premium assistance
credit is not available for individuals who were involuntarily
terminated after May 31, 2010. Therefore, only in rare
circumstances, such as instances where COBRA eligibility was
delayed as a result of employer provided health insurance
coverage following termination, will the credit be available. If you
are eligible to claim the credit, use Form 944-X, lines 18a and
18b. Form 944-X should be filed after filing your Form 944. Filing
a Form 944-X before filing a Form 944 for the year may result in
errors or delays in processing your Form 944-X. For more
information, visit IRS.gov and enter “COBRA” in the search box.
If you are entitled to claim the COBRA premium
assistance credit, but are not otherwise required to file
Form 944, file a Form 944 with -0- entered on line 11
before filing your Form 944-X to claim the credit.

TIP

Period of limitations to make certain corrections expired.
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. For purposes of the
period of limitations, Form 944 is considered filed on April 15 of
the succeeding year if filed before that date.
The period of limitations to correct the qualified employer's
tax exemption on wages/tips paid to qualified employees (for
quarters ending after March 31, 2010, and before January 1,
2011); the qualified employer's tax credit on wages/tips paid to
qualified employees March 19–31, 2010; and advance earned
income credit (EIC) payments expired on April 15, 2014, for
most employers. The lines formerly used for these corrections
were removed from Form 944-X. If the period of limitations for
any of these corrections is still open, you will need to file the

Mar 03, 2015

Reminders
Correcting Additional Medicare Tax withholding. Beginning
in 2013, wages and tips subject to Additional Medicare Tax
withholding are reported on Form 944, line 4d. Any errors
discovered on a previously filed Form 944 are corrected on Form
944-X, line 11. For more information about Additional Medicare
Tax withholding, see the Instructions for Form 944 and go to
IRS.gov and enter “Additional Medicare Tax” in the search box.
See the instructions for line 11, later, for more information on the
types of errors that can be corrected and how the correction is
reported on Form 944-X.
Social security tax rate for 2011 and 2012. In 2011 and
2012, the employee social security tax rate was 4.2% and the
employer social security tax rate was 6.2% (10.4% total). Be
sure to use the correct rate when reporting corrections on lines 8
and 9.
Correcting the COBRA premium assistance credit. For tax
periods ending before January 1, 2014, employers who made
COBRA premium assistance payments for assistance eligible
individuals were allowed a credit on their Form 944. Any errors
discovered on a previously filed Form 944 for this credit are
corrected on Form 944-X, lines 18a and 18b. Effective for tax
periods beginning after December 31, 2013, Form 944-X, is
used to both report the total COBRA premium assistance credit
an employer is entitled to claim and correct any previously
reported credit. For more information, see the instructions for
lines 18a and 18b, later.

General Instructions: Understanding
Form 944-X
What Is the Purpose of Form 944-X?
For tax periods beginning after December 31, 2013,
Form 944 will no longer be used to claim the credit for
CAUTION
COBRA premium assistance payments. Instead, use
Form 944-X. For more information, see the instructions for lines
18a and 18b, later.

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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;

Cat. No. 20334B

Where Can You Get Help?

Taxable wages and tips subject to Additional Medicare Tax
withholding; and
Credits for COBRA premium assistance payments.

For help filing Form 944-X or for questions about federal
employment taxes and tax corrections, you can:
Visit the IRS website at www.irs.gov/businesses and click on
the Employment Taxes link under Businesses Topics;
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; or
Call the IRS Business and Specialty Tax Line toll free at
1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who
are deaf, hard of hearing, or have a speech disability) Monday–
Friday from 7:00 a.m.–7:00 p.m. local time (Alaska and Hawaii
follow Pacific time).

Use Form 843, Claim for Refund and Request for Abatement,
to request a refund or abatement of assessed interest or
penalties. Do not request a refund or abatement of assessed
interest or penalties on Form 944 or Form 944-X.
We use the terms “correct” and “corrections” on Form
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 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, 2009-52 I.R.B. 951,
at www.irs.gov/irb/2009-52_IRB/ar14.html.

TIP

See also How Can You Order Forms, Instructions, and
Publications from the IRS, later.

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.

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.
To correct federal tax liabilities reported in Part 2 of Form 944,
file Form 945-A, but only enter the monthly totals. The daily
entries are not required. For more information about correcting
federal tax liabilities reported on Form 945-A, see the Form
945-A instructions.

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 below. 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 21,
later.

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 next. 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—adjustment process and Overreported
tax—claim process, later.
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 legal holidays
and IRS-designated private delivery services.

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 22 for each
correction that you show on Form 944-X.

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 (FTD)
penalties. See What About Penalties and Interest, later. For
details on how to make a payment, see the instructions for
line 19, 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” FTD penalty. The tax reported on
Form 945-A, line M, must match the corrected total tax (Form
944, line 7, combined with any correction reported on Form
944-X, line 17) for the year, less any previous abatements and
interest-free tax assessments.

Continue to report current year adjustments for fractions of
cents, third-party sick pay, tips, and group-term life insurance on
Form 944, line 6.
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.
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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Instructions for Form 944-X (Rev. 2-2015)

If you file Form 944-X to correct overreported amounts
in the last 90 days of a period of limitations, you must
CAUTION
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.

Example—You owe tax. On February 11, 2014, you
discovered that you underreported $1,000 of social security and
Medicare wages on your 2013 Form 944. File Form 944-X and
pay the amount you owe by February 2, 2015, because you
discovered the error in 2014 and February 2, 2015, is the due
date for that year. If you file Form 944-X before February 2,
2015, pay the amount you owe by the time you file.

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CAUTION

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Where Should You File Form 944-X?

Form 944-X cannot be used to correct underreported
amounts of Additional Medicare Tax unless the
amounts were withheld from employee wages.

Send your completed Form 944-X to the address shown next.

Overreported tax—adjustment process. If you overreported
tax and choose to apply the credit on Form 944 or Form 941, file
an adjusted return on Form 944-X soon after you discover 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.

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CAUTION

IF you are in

Form 944-X cannot be used to correct overreported
amounts of Additional Medicare Tax unless the
amounts were not withheld from employee wages.

Example—You want your credit applied to Form 944.
You filed your 2014 Form 944 on February 2, 2015, and
payments were timely made. On May 1, 2015, you discover that
you overreported tax on your 2014 Form 944. You file Form
944-X on June 2, 2015. The IRS treats your credit as a tax
deposit made on January 1, 2015. When you file your 2015
Form 944, include the amount from Form 944-X, line 19, on the
“Total deposits” line of your 2015 Form 944.

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Alabama, Alaska, Arizona, Arkansas,
California, Colorado, 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

Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0044

How Should You Complete Form
944-X?
Use a Separate Form 944-X for Each Year You
Are Correcting

You may not file a refund claim to correct federal
income tax or Additional Medicare Tax actually withheld
from employees.

Use a separate Form 944-X for each Form 944 you are
correcting. For example, if you found errors on your Forms 944
for 2013 and 2014, file one Form 944-X to correct the 2013 Form
944. File a second Form 944-X to correct the 2014 Form 944.

Is There a Deadline for Filing Form
944-X?

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 the calendar year you are correcting on the
top of any attachments.

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.

Return You Are Correcting

In the box at the top of Form 944-X, page 1, 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 the calendar year you are correcting on the top of any
attachments.

Example. You filed your 2012 Form 944 on January 25,
2013, and payments were timely made. The IRS treats the return
as if it were filed on April 15, 2013. On January 22, 2016, you
discovered 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 18, 2016, which is the end of the period of
limitations, and use the claim process.
Instructions for Form 944-X (Rev. 2-2015)

. . . . .

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

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

Overreported tax—claim process. 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 also 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 next.

THEN use this address

Connecticut, Delaware, District of
Columbia, Florida, 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

No legal residence or principal place
of business in any state

If you reduced your deposits during the year by the
amount of the COBRA premium assistance credit that
CAUTION
will be reflected on your Form 944-X, do not use the
adjustment process to claim the COBRA premium assistance
credit. Use the claim process. See the instructions for lines 18a
and 18b, later.

CAUTION

. . . . . . . . . . . .

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Enter the Date You Discovered Errors

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 by the time you file Form 944-X.
For details on how to make a payment, see the instructions for
line 19, later.

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 22.

Example—You underreported employment taxes. On
June 20, 2014, you discovered an error that results in additional
tax on your 2013 Form 944. File Form 944-X by February 2,
2015, and pay the amount you owe by the time you file. See
When Should You File Form 944-X, earlier. Do not attach Form
944-X to your 2014 Form 944.
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 19 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 19.

Must You Make an Entry on Each Line?

You must provide all of the information requested at the top of
Form 944-X, page 1. You must check one box (but not both) in
Part 1. In Part 2, you must check the box on line 3 and any
applicable boxes on lines 4 and 5. In Part 3, if any line does not
apply, leave it blank. Complete Parts 4 and 5 as instructed.

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.

To ensure the IRS has enough time to process a credit
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.

TIP

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.

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.
Example—You want your overreported tax applied as a
credit on Form 944. On December 18, 2015, you discover you
overreported your tax on your 2014 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 4, 2016, and
take the credit on your 2016 Form 944.

What About Penalties and Interest?

Generally, your correction of an underreported amount will not
be subject to a failure-to-pay penalty, FTD 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 19 by the time you file Form
944-X.

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.

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.

1. Adjusted Employment Tax Return

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.
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 19 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.

If you receive a notice about a penalty after you file this
return, reply to the notice with 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
The process to correct a previously filed Form 944 or to file a
claim is outlined below.
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Instructions for Form 944-X (Rev. 2-2015)

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CAUTION

Form 944-X cannot be used to correct overreported
amounts of Additional Medicare Tax unless the
amounts were not withheld from employee wages.

Obtain consents from your employees to file a claim on their
behalf. See Notice 2015-15 for guidance on consents.

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

If you owe tax. Pay the amount shown on line 19 by the time
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 22.

Check the box on line 3 to certify that you filed or will file Forms
W-2 or Forms W-2c, as required, showing your employees'
correct wage and tax amounts. See the General Instructions for
Forms W-2 and W-3 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 have a credit. You overreported employment taxes (you
have a negative amount on line 19) 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 Form 944-X,
line 19, 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.

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 with the Social Security Administration (SSA).

4. Certifying Overreporting Adjustments

If you overreported federal income tax, social security tax,
Medicare tax, or Additional 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 employees or
secure the statements of the remaining employees, check all
applicable boxes. Provide a summary on line 22 of the amount of
the corrections for the employees who provided written
statements and for those who did not.

Do not check the box on line 1 if you are either: (a)
correcting overreported amounts and the period of
CAUTION
limitations on credit or refund for Form 944 will expire
within 90 days of the date you file Form 944-X, or (b) claiming a
credit for COBRA premium assistance payments and you
reduced your deposits in anticipation of the credit. Instead, in
either case, check the box on line 2 to file a Form 944-X under
the claim process. See Is There a Deadline for Filing Form
944-X, earlier. Also see the instructions for lines 18a and 18b,
later.

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2. Claim

CAUTION

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 19. Do not check this box if you are correcting any
underreported amounts on this form.

4a. Check the box on line 4a if your overreported amount
includes each affected employee share of overcollected taxes.
You are certifying that you repaid or reimbursed the employee
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. Do not send these
statements to the IRS. Keep them for your records. Generally, all
employment tax records must be kept for at least 4 years.

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.

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 did not
give you a statement described on line 4a.

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.

4c. Check the box on line 4c to certify that your overreported
amount is only for federal income tax, social security tax,
Medicare tax, or Additional Medicare Tax that you did not
withhold from your employees.

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 19, plus any interest that applies.

!

CAUTION

5. Certifying Claims

If you are filing a claim for refund or abatement of overreported
federal income tax, social security tax, Medicare tax, or
Additional 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 employees or secure
the statements of the remaining employees, check all applicable
boxes. Provide a summary on line 22 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 or Additional Medicare Tax actually withheld
from employees.

Part 2: Complete the Certifications
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:
Repay or reimburse your employees for the overcollection of
employee social security and Medicare taxes, or
Instructions for Form 944-X (Rev. 2-2015)

You may not use Form 944-X to correct overreported
amounts of Additional Medicare Tax unless the
amounts were not withheld from employee wages.

!

CAUTION

You may not file a refund claim to correct federal
income tax or Additional Medicare Tax actually withheld
from employees.

5a. Check the box on line 5a if your overreported tax includes
each affected employee share of prior year social security and
-5-

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.

line 6 (column 1)
-line 6 (column 2)
line 6 (column 3)

5b. Check the box on line 5b if your overreported tax includes
each affected employee 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. Do not
send these statements and consents to the IRS. Keep them for
your records. Generally, all employment tax records must be
kept for at least 4 years.

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

Example —Wages, tips, and other compensation
increased. You reported $900 as total wages, tips, and other
compensation on line 1 of your 2014 Form 944. In July of 2015,
you discover 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)

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 22 that you have not
repaid or reimbursed employees or obtained consents at the
time you file the claim. However, you must repay or reimburse
your employees and certify that you have done so before the
IRS can allow the claim.

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 2014 Form 944. In December of
2015, you discover 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.

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. This applies when 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 they did
not give you a statement described on line 5b.

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

700.00
-900.00

Column 3 (difference)

-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 2013 and
did not treat the payments as taxable wages. However, in
February 2015, 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.

5d. Check the box on line 5d to certify that your overreported
amount is only for federal income tax, social security tax,
Medicare tax, or Additional 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?

On lines 6–11, columns 1 and 2, 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 20), give us details for each error on line 22.

The amount on line 6, column 1, should be used on
your Forms W-2 or Forms W-2c. This amount should
also be used for any business expense deduction on
your income tax return (or amended return) for wages paid.

Because special circumstances apply for lines 12–16, 18a,
and 18b, read the instructions for each line carefully before
entering amounts in the columns.

7. Federal Income Tax Withheld from Wages,
Tips, and Other Compensation

TIP

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.

If you previously adjusted or amended Form 944 using
Form 944-X or because of an IRS examination change,
CAUTION
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 Form 944, line 1, 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.

line 7 (column 1)
-line 7 (column 2)
line 7 (column 3)

If you or the IRS previously corrected the amount reported on
Form 944, line 1, enter in column 2 the amount after any
previous corrections.

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

Copy the amount in column 3 to column 4. Include any minus
sign shown in column 3.
-6-

Instructions for Form 944-X (Rev. 2-2015)

Generally, you may correct federal income tax
withholding errors only if you discovered the errors in
CAUTION
the same calendar year you paid the wages. However,
you may correct errors to federal income tax withholding for prior
years if the amount reported on Form 944, line 2, does not agree
with the amount you actually withheld. This type of error is an
administrative error. You may also correct errors to federal
income tax withholding for prior years if section 3509 rates
apply. See section 13 of Pub. 15 (Circular E) for more
information about corrections during the calendar year and
about administrative errors. See section 2 of Pub. 15 (Circular E)
for more information about section 3509. If section 3509 rates
apply, see the instructions for line 13, later.

line 8 (column 3)
x .124

!

line 8 (column 4)

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.

Example—Administrative error reporting federal income
tax. You had three employees. In 2014, 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 2014 Form 944. You discovered the error on March
17, 2015. 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.

Column 3 (difference)

- 200.00

-200.00
x .124

Column 4 (tax correction)

-24.80

Be sure to explain the reasons for this correction on line 22.
Note. If the example above was for a correction to a 2011 or
2012 return, the amount in column 3 would be multiplied by .104.

300.00

9. Taxable Social Security Tips

!

The 2011 and 2012 employee tax rate for social
security was 4.2%.

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.

8. Taxable Social Security Wages
The 2011 and 2012 employee tax rate for social
security was 4.2%.

CAUTION

If you are correcting the taxable social security wages you
reported on Form 944, line 4a, 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)

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

700.00
- 900.00

Column 3 (difference)
Tax rate (12.4%)

Report the 300.00 as a tax correction in column 4.
Be sure to explain the reasons for this correction on line 22.

!

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

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

900.00
- 600.00

Column 3 (difference)

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 22.

Example—Failure to withhold federal 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
2014 but you withheld nothing. You discovered the error on
March 17, 2015. You cannot file Form 944-X to correct your
2014 Form 944 because the error involves a previous year and
the amount previously reported for the employee represents the
actual amount withheld from the employee during 2014.

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

(Use .104 for corrections to a 2011 or 2012 return.)

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 or 2012 return) and report the result in column 4.

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

line 9 (column 3)
x .124

Multiply the amount in column 3 by .124 (.104 for corrections
to a 2011 or 2012 return) and enter the result in column 4.

line 9 (column 4)

(Use .104 for corrections to a 2011 or 2012 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
Instructions for Form 944-X (Rev. 2-2015)

-7-

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 22.
Example—Social security tips increased. 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)

Column 1 (corrected amount)
Column 2 (from Form 944, line 4c, Column 1)

700.00
-900.00

Column 3 (difference)

-200.00

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

1000.00
- 900.00

-200.00
x .029

Column 4 (tax correction)

-5.80

100.00

Be sure to explain the reasons for this correction on line 22.
Use the difference in column 3 to determine your tax
correction.
Column 3 (difference)
Tax rate (12.4%)
Column 4 (tax correction)

11. Taxable Wages and Tips Subject to
Additional Medicare Tax Withholding

Generally, you may correct errors to Additional Medicare Tax
withholding only if you discovered the errors in the same
calendar year the wages and tips were paid to employees.
However, you may correct errors to Additional Medicare Tax
withholding for prior years if the amount reported on Form 944,
line 4d, column 2, does not agree with the amount you actually
withheld. This type of error is an administrative error. You may
also correct errors to Additional Medicare Tax withholding for
prior years if section 3509 rates apply. If section 3509 rates
apply, see the instructions for line 16, later.

100.00
x .124
12.40

Be sure to explain the reasons for this correction on line 22.
Note. If the example above was for a correction to a 2011 or
2012 return, the amount in column 3 would be multiplied by .104.

10. Taxable Medicare Wages and Tips

If a prior year error was a nonadministrative error, you may
correct only the wages and tips subject to Additional Medicare
Tax withholding that were originally reported on Form 944,
line 4d, column 1, or previously corrected on Form 944-X. You
cannot correct the tax reported on Form 944, line 4d, column 2.

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.

Prior year administrative errors. If you are correcting the
taxable wages and tips subject to Additional Medicare Tax
withholding that you reported on Form 944, line 4d, 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)

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

line 11 (column 1)
-line 11 (column 2)

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

line 11 (column 3)

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

line 10 (column 3)
x .029
line 10 (column 4)

Multiply the amount in column 3 by .009 (0.9% tax rate) and
enter that result in column 4.

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

line 11 (column 3)
x .009

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 22.

line 11 (column 4)

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

Example—Prior year administrative error (incorrectly
reported amount of Additional Medicare Tax actually
withheld). Employee A's wages exceeded the $200,000
withholding threshold for Additional Medicare Tax in November
2014. The total wages paid to Employee A for 2014 were
$230,000. You withheld $270 ($30,000 x .009) from the
employee's wages. However, on your 2014 Form 944 you
mistakenly reported $3,000 on line 4d, column 1, and Additional
Medicare Tax withheld of $27 on line 4d, column 2. You discover
the error on March 16, 2015. This is an example of an

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.

-8-

Instructions for Form 944-X (Rev. 2-2015)

November 2014. The total wages paid to Employee A for 2014
were $230,000. You withheld $270 ($30,000 x .009) from the
employee's wages. However, on your 2014 Form 944 you
mistakenly reported $3,000 on line 4d, column 1, and Additional
Medicare Tax withheld of $27 on line 4d, column 2. The
difference in wages subject to Additional Medicare Tax related
to this administrative error is $27,000 ($30,000 - $3,000).
Employee B's wages exceeded the $200,000 withholding
threshold for Additional Medicare Tax in December 2014. The
total wages paid to Employee B for 2014 were $220,000. You
were required to withhold $180 ($20,000 x .009) but you
withheld nothing and did not report Employee B’s $20,000 in
wages subject to Additional Medicare Tax withholding on line 4d
of your 2014 Form 944.
You discover both errors on March 16, 2015. Use Form
944-X, line 11, to correct the errors as shown below.

administrative error that may be corrected in a later calendar
year because the amount actually withheld differs from the
amount reported on your 2014 Form 944. Use Form 944-X,
line 11, to correct the error as shown below.
Column 1 (corrected amount)
Column 2 (from Form 944, line 4d, Column 1)

30,000.00
-3,000.00

Column 3 (difference)

27,000.00

Use the difference in column 3 to determine your tax
correction.
Column 3 (difference)
Tax rate (0.9%)
Column 4 (tax correction)

27,000.00
x .009
243.00

Be sure to explain the reasons for this correction on line 22.
Prior year nonadministrative errors. You may correct only
the taxable wages and tips subject to Additional Medicare Tax
withholding that you reported on Form 944, line 4d, 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.

Column 3 (difference)

47,000.00

Difference related to administrative error
Tax rate (0.9%)

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

Column 4 (tax correction)

Do not multiply the amount in column 3 by .009 (0.9% tax rate).
Leave column 4 blank and explain the reasons for this correction
on line 22.
Example—Prior year nonadministrative error (failure to
withhold Additional Medicare Tax when required).
Employee B's wages exceeded the $200,000 withholding
threshold for Additional Medicare Tax in December 2014. The
total wages paid to Employee B for 2014 were $220,000. You
were required to withhold $180 ($20,000 x .009) but you
withheld nothing and did not report an amount on line 4d of your
2014 Form 944. You discover the error on March 16, 2015. File
Form 944-X to correct wages and tips subject to Additional
Medicare Tax withholding for your 2014 Form 944, but you may
not correct the Additional Medicare Tax withheld (column 4)
because the error involves a previous year and the amount
previously reported for the employee represents the actual
amount withheld from the employee during 2014.

27,000.00
x .009
243.00

Be sure to explain the reasons for these corrections on
line 22. You must also report that $20,000 of the amount shown
in column 3 was related to the correction of a prior year
nonadministrative error and $27,000 of the amount shown in
column 3 was related to the correction of an administrative error.

12. Tax Adjustments

Use line 12 to correct any adjustments reported on Form 944,
line 6. Enter in column 1 the total corrected amount for Form
944, line 6.
Enter in column 2 the total originally reported or previously
corrected amount from Form 944, line 6. In column 3, enter the
difference between columns 1 and 2.
line 12 (column 1)
-line 12 (column 2)
line 12 (column 3)

Combination of prior year administrative and nonadministrative errors. If you are reporting both administrative errors
and nonadministrative errors for the same prior year, 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.
However, multiply only the amount of wages and tips reported in
column 3 that are related to administrative errors by .009 (0.9%
tax rate). Do not multiply any wages and tips reported in column
3 that are related to nonadministrative errors by .009 (0.9% tax
rate). Use line 22 to explain in detail your corrections. The
explanation must include the reasons for the corrections and a
breakdown of the amount reported in column 3 into the amounts
related to administrative errors and nonadministrative errors.
Example—Combination of prior year administrative and
nonadministrative errors. Employee A's wages exceeded the
$200,000 withholding threshold for Additional Medicare Tax in
Instructions for Form 944-X (Rev. 2-2015)

50,000.00
-3,000.00

Determine the portion of wages and tips reported in column 3
that is related to the administrative error ($47,000 - $20,000
(nonadministrative error) = $27,000 (administrative error)).
Multiply this portion of column 3 by .009 (0.9% tax rate) to
determine your tax correction.

line 11 (column 1)
-line 11 (column 2)
line 11 (column 3)

Column 1 (corrected amount)
Column 2 (from Form 944, line 4d, Column 1)

You may need to report negative numbers in any
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.

TIP

Copy the amount in column 3 to column 4. Include any minus
sign shown in column 3.
On line 22, 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 2013
-9-

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 2014. 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)

For Additional Medicare Tax, 0.36% (40% of the employee
rate of 0.9%) of wages subject to Additional Medicare Tax.
For income tax withholding, the rate is 3.0% of wages.
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 in column 2 previously reported
wages (if any) to reclassified employees. To get the amount for
column 4, use the applicable section 3509 rates. If you filed the
required information returns for some employees but did not file
them for other employees, be sure to use the applicable rates for
each employee when calculating the amounts in column 4 and
show your calculations on line 22. 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 21, later, for
more information.

-960.00
- (690.00)
-270.00

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

Column 3
(difference)
-270.00

17. Subtotal

Combine the amounts on lines 7–16 of column 4 and enter the
total on line 17.

Report “-270.00” as your correction in column 4.
In this example, you are claiming a credit for $270 in
overreported tax for your 2013 Form 944. Always enter the same
amount in column 4 (including any minus sign) that you enter in
column 3.
Be sure to explain the reasons for this correction on line 22.

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 17.

13–16. Special Additions to Wages for Federal
Income Tax, Social Security Tax, Medicare Tax,
and Additional Medicare Tax

Section 3509 provides special rates for the employee share of
social security tax, Medicare tax, Additional Medicare Tax, 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 tax and
Medicare tax is due for all reclassifications.

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

1400.00
-500.00
-100.00

Line 17 (column 4)

800.00

18a. Claiming or Correcting the COBRA
Premium Assistance Credit
The COBRA premium assistance credit was available
to an employer for premiums paid on behalf of
CAUTION
employees who were involuntarily terminated from
employment between September 1, 2008 and May 31, 2010.
The COBRA premium assistance credit is not available for
individuals who were involuntarily terminated after May 31, 2010.
Therefore, only in rare circumstances, such as instances where
COBRA eligibility was delayed as a result of employer provided
health insurance coverage following termination, will the credit
be available.

!

Note. Section 3509 rates are not available if you intentionally
disregarded the requirements to withhold taxes from the
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.
On lines 13–16 enter only corrections to wages resulting from
reclassifying certain workers as employees when section 3509
rates are used to calculate the taxes.

Enter 65% of the total COBRA premium assistance payments for
all assistance eligible individuals in column 1. Report the
premium assistance payments 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 is treated as having been
made for each assistance eligible individual who paid 35% of the
COBRA premium. Do not include the assistance eligible
individual's 35% of the premium in the amount entered on this
line.

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 and 2012), for
a total rate of 7.44% (7.04% for 2011 and 2012) 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 Additional Medicare Tax, 0.18% (20% of the employee
rate of 0.9%) of wages subject to Additional Medicare Tax.
For income tax withholding, the rate is 1.5% of wages.

For tax periods ending before January 1, 2014, enter any
COBRA premium assistance payments previously claimed on
Form 944, line 9a, in column 2. For tax periods beginning after
December 31, 2013, enter -0- in column 2, unless you are
correcting a COBRA premium assistance payment previously
reported on a Form 944-X. If you or the IRS previously corrected
the amount reported, the amount entered in column 2 should
take into account all previous corrections.

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 and 2012), for
a total rate of 8.68% (7.88% for 2011 and 2012) 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.

Enter the difference between column 1 and 2 in column 3.
Copy the amount in column 3 to column 4. However, to properly
show the amount as a credit or balance due item, enter a
positive number in column 3 as a negative number in column 4
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Instructions for Form 944-X (Rev. 2-2015)

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 a 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, combined with any
correction reported on Form 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 19 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 or 1-800-733-4829 (TDD), or see Pub. 966,
Electronic Federal Tax Payment System: A Guide To Getting
Started.
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 year corrected.
You do not have to pay if the amount you owe is less than $1.
Previously assessed FTD penalty. If line 19 reflects
overreported tax and the IRS previously assessed a FTD
penalty, you may be able to reduce the penalty. For more
information, see the Form 945-A instructions.

or a negative number in column 3 as a positive number in
column 4.
The COBRA premium assistance credit is treated as a
credit on the first day of the return period (that is,
CAUTION
January 1). However, because the credit is now
claimed on Form 944-X filed AFTER submission of the Form
944, an employer that reduces its required deposits in
anticipation of the credit will receive a system-generated notice
reflecting a balance due and associated penalties and interest, if
applicable. The balance due, including any related penalties and
interest, resulting from the reduction in deposits in anticipation of
the credit will be abated when the credit is applied. Such
abatement will generally occur without any further action from
the employer. Alternatively, to prevent triggering a
system-generated balance due notice, the employer can make
its deposits without a reduction in anticipation of the COBRA
premium assistance credit and follow these instructions for
claiming the COBRA premium assistance credit.

!

For more information on the COBRA premium subsidy, visit
IRS.gov and enter “COBRA” in the search box.

18b. Number of Individuals Provided COBRA
Premium Assistance on Line 18a

Enter the total number of assistance eligible individuals provided
COBRA premium assistance in column 1. Count each
assistance eligible individual who paid a reduced COBRA
premium in the period 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
entered on line 18a. Further, each individual is reported only
once per period. For example, an assistance eligible individual
who made monthly premium payments during the period would
only be reported as one individual on line 18b for that period.

Part 4: Explain Your Corrections for
the Calendar Year You Are Correcting

For tax periods ending before January 1, 2014, enter the
number of assistance eligible individuals provided COBRA
premium assistance previously reported on Form 944, line 9b, in
column 2. For tax periods beginning after December 31, 2013,
enter -0- in column 2, unless you are correcting a previously filed
Form 944-X. If you or the IRS previously corrected the number of
individuals reported, the number entered in column 2 should
take into account all previous corrections.

20. Correction of Both Underreported and
Overreported Amounts

Check the box on line 20 if any correction you entered on lines
7–16 and 18a 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 22, you must explain the reason for both the $1,500
increase and the $500 decrease.

19. Total

Combine lines 17 and 18a of column 4 and enter the result on
line 19.
Your credit. If the amount entered on line 19 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 this amount
on the “Total deposits” line of Form 941 or Form 941-SS for the
quarter during which you filed Form 944-X. 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.

21. Did You Reclassify Any Workers?

Check the box on line 21 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 22, give us a detailed reason why any
worker was reclassified and, if you used section 3509 rates on
lines 13–16 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.

Amount you owe. If the amount entered on line 19 is a positive
number, you must pay the amount you owe by the time you file
Instructions for Form 944-X (Rev. 2-2015)

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On each Form 944 for which you are entitled to use section
3509 rates, complete the following steps.
Write “Misclassified Employees” in bold letters across the
top margin of page 1.
Enter a zero on line 7 (“Total taxes after adjustments”).
Complete the signature area.
Attach a completed Form 944-X (see instructions next).
On each Form 944X, complete the following steps.
Complete the top of Form 944-X, including the date you
discovered the error.
Enter the wage amounts on lines 13–16, column 1.
Enter zeros on lines 13–16, column 2.
Complete columns 3 and 4 as instructed in Part 3.
Provide a detailed statement on line 22.
Complete the signature area.

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.

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
bold letters across the top margin of page 1 of each Form 944.
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 22.

!

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.

22. Explain Your Corrections

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.

Treasury regulations require you to explain in detail the grounds
and facts relied upon to support each correction. On line 22,
describe in detail each correction you entered in column 4 on
lines 7–16 and 18a. Also use line 22 to describe in detail
corrections made on line 18b. If you need more space, attach
additional sheets, but be sure to write your name, EIN, “Form
944-X,” and the calendar year you are 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” are insufficient and may delay
processing your Form 944-X because the IRS may need to ask
for a more complete explanation.

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.

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.

How Can You Order Forms,
Instructions, and Publications from
the IRS?

You may report the information in paragraph form. The
following paragraph is an example.

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

“The $100 difference shown in column 3 of lines 6, 8, and 10
was discovered on May 15, 2015, 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.”

Call the IRS at 1-800-TAX-FORM (1-800-829-3676).

For corrections shown on lines 13–16, explain why the
correction was necessary and attach any notice you received
from the IRS.

Additional Information
You may find the following forms, instructions, and publications
helpful when using Form 944-X.
Form W-2, Wage and Tax Statement
Form W-3, Transmittal of Wage and Tax Statements
General 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

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? The following persons are
authorized to sign the return for each type of business entity.
Sole proprietorship—The individual who owns the business.
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Instructions for Form 944-X (Rev. 2-2015)

Form W-2VI, U.S. Virgin Islands Wage and Tax Statement
Form W-3SS, Transmittal of Wage and Tax Statements
Form W-2c, Corrected Wage and Tax Statement
Form W-3c, Transmittal of Corrected Wage and Tax
Statements
Form W-12, IRS Paid Preparer Tax Identification Number
(PTIN) Application and Renewal
Form 945-A, Annual Record of Federal Tax Liability
Instructions for Form 843
Instructions for Form 944
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, Electronic Federal Tax Payment System: A Guide
To Getting Started

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, including federal income tax
withholding, on wages. 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:
Recordkeeping . . . . . . . . . . . . . . .
Learning about the law or the form . . . .
Preparing and sending the form to the IRS

. . . . . . . .
. . . . . . . .
. . . . . . . .

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

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 send us comments
from www.irs.gov/formspubs. Click on More Information and
then click on Give us feedback. Or you can send your comments
to: Tax Forms and Publications Division, 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.

Instructions for Form 944-X (Rev. 2-2015)

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