Instructions for 
Schedule D (Form 941) - Notices


Part 1: Answer these background questions

  1. Check the appropriate box to explain the type of transaction for which you are submitting Schedule D (Form 941). See Types of Mergers and Acquisitions on page 1 for details.

    File Schedule D (Form 941) after either:

    1. A statutory merger or consolidation (Check whether you are an acquired corporation or a surviving corporation.), or

    2. An acquisition for which you are using the alternate procedure under Rev. Proc. 2004-53. (Check whether you are a predecessor or a successor.)

  2. Fill in the effective date of the transaction in the box. Make sure you write the month, day, and year in this format: MM/DD/YYYY. The year must be the same as the calendar year you write in the box at the top of the schedule.

  3. Fill in the contact information about the OTHER PARTY in the transaction by including the other party's EIN, name, trade name (doing business as or d/b/a), complete address, and phone number. Verify the other party's EIN to make sure it is correct.

Part 2: Tell us about the discrepancies with your returns

Lines 4–8. Gather your information about the social security wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance earned income credit (EIC) payments (for tax years ending before January 1, 2011) you reported. When entering money amounts from your Forms 941 and W-2 (Copy A) on lines 4–14, you may round to the nearest dollar. Do not show dollar signs but do use commas as appropriate. Show an amount (even if it is zero) for each column of a line.

In Column A, fill in the amount you reported to the IRS for the tax year for each of the items. Add the totals from all Forms 941, as corrected by any Forms 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, and write your answers on the appropriate lines.

In Column B, fill in the amount you reported to SSA for each of the items. Add the totals from all Forms W-2 (Copy A), as corrected by any Forms W-2c, Corrected Wage and Tax Statement (Copy A), and write your answers on the appropriate lines.

Calculate the differences between the entries in the columns:

    Column A  
  Column B  
    Column C  
     

Enter any negative result in parentheses, if possible. For example, if line 6, Column A is “-0-” and line 6, Column B is “6,000,” write “(6,000)” on line 6, Column C.

If no Forms W-2 (Copy A) were filed by you, write “-0-” in Column B, “Amount you reported to SSA for the tax year.

If you are filing for one transaction only, stop here. If you are filing for more than one transaction, go to Part 3.

Part 3: Fill this part out ONLY if you are filing more than one Schedule D (Form 941) for any calendar year

If you are filing only one Schedule D (Form 941) for the calendar year, leave this part blank.

When more than one statutory merger, consolidation, or acquisition occurs during a calendar year, file a separate Schedule D (Form 941) for each transaction. Complete Part 3 for each transaction. For instance, if you have 11 different transactions in a calendar year, you need to file 11 different Schedules D (Form 941). Part 2 would be the same for each schedule. Part 3 would show one of the 11 transactions. For example, the amount entered in Part 2 on line 4 for Column C should equal the total of all 11 entries in Part 3 on line 10 for Column C.

Line 9.   Show the number of schedules you are filing for the year and identify which schedule this is. For example, if you had three different transactions in a calendar year and you are filing a Schedule D (Form 941) to describe the second transaction, fill in “2” and “3” so the sentence reads: “This is schedule 2 of 3.

Lines 10–14.   For purposes of Part 3, Columns A and B, the term “employees affected by the transaction reported on this Schedule D” means those employees who received wages that were reported on Forms 941 filed by one employer but whose wages were reported on Form W-2 (Copy A) filed by another employer as a result of this particular transaction. Report the totals for social security wages, Medicare wages and tips, social security tips, federal income tax withheld, and advance earned income credit (EIC) payments (for tax years ending before January 1, 2011).

In Column A, fill in the amount you reported to the IRS for the tax year for employees affected by the transaction reported on this Schedule D (Form 941) for each of the items. Add the totals from all your Forms 941, as corrected by any Forms 941-X, and write your answers on the appropriate lines.

In Column B, fill in the amount you reported to SSA for the tax year for employees affected by the transaction reported on this Schedule D (Form 941) for each of the items. Add the totals from all Forms W-2 (Copy A), as corrected by any Forms W-2c (Copy A), and write your answers on the appropriate lines.

Calculate the differences between the entries in the columns:

    Column A  
  Column B  
    Column C  
     

Enter any negative result in parentheses, if possible. For example, if line 12, Column A is “-0-” and line 12, Column B is “6,000,” write “(6,000)” on line 12, Column C.

If no Forms W-2 (Copy A) were filed by you, write “-0-” in Column B, “Amount you reported to SSA for the tax year.


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