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 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.

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 Form 944-X, line 20, 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.

  

Do not check the box on line 1 if you are correcting overreported amounts 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. Instead, check the box on line 2. See Is There a Deadline for Filing Form 944-X, earlier.

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.

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.

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.

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).

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.

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.

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.

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.

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 your employees or obtained consents before the IRS can grant the claim.

On lines 6–10, 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 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.

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.

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 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.

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

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.

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

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.

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

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.

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

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

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.

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

Complete lines 11a and 11b to correct the payroll tax exemption for the employer's share (6.2%) of social security tax on exempt 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.

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

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.

A qualified employee is an employee who:

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.

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.

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.

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.

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.

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.

If the employer issued the required information returns, use the section 3509 rates as follows.

If the employer did not issue the required information returns, use the section 3509 rates as follows.

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.

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

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.

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 “COBRA” in the search box.

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.

Enter on line 18b, column 1, 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 line 18b.

Enter on line 18b, column 2, the number of assistance eligible individuals provided COBRA premium assistance originally reported on Form 944, line 9b (line 11b for years ending before January 1, 2011).

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.

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.

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.

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.

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, complete the following steps.

• 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.

• Attach a completed Form 944-X (see instructions below).

  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 13–15, column 1.

• Enter zeros on lines 13–15, column 2.

• Complete columns 3 and 4 as instructed in Part 3.

• Provide a detailed statement on line 23.

• Complete the signature area.

  

If you cannot use section 3509 rates (for example, because the workers you treated as nonemployees 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. 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.

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.

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, 2012, 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.

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 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.