Form 941-X

[RayT]

2012 Forms 941 for 1, 2 & 3 quarters omitted health insurance cost for sole shareholder of S-Corp on Line 2. This cost is deducted on page 1 (adjustments) on Form 1040 and, as I understand, the omission on forms 941 does not constitute a change in tax liability. Form 941-X does not appear to allow such corrections. Any suggestions on how this should be resolved? Thanks.

[BOB W]

Put the info in the 4th qtr.

[Nashville]

Classic Plug

Ah yes, the classic "plug."

Don't know whether I should admit to doing this myself or not. But it works and for small amounts, the IRS would even appreciate you doing it:

1) Print out all W-2s and W-3s. Make sure all items like car allowance is in box 7 and box 12 crap is in.
2) Note the totals on the W-3.
3) Add up the 941s from March 31, June 30, and September 30 and total the various elements.
4) Subtract from the W-3 totals.
5) [POOF!!] Plug the results into your 4th quarter 941.

Probably a good idea to compare this to what you would have reported conventionally on the 4th qtr 941. If the difference is large, you should determine the cause and consider fixing the problem with a 941-X or correct the W-2s before issuing. If the difference is small, just do the above and move on. You will appreciate it, your client will appreciate it, and the IRS will appreciate it.

Any "purists" out there?? Here is golden opportunity to jump all over me....

[Matt Sova]

S-Corp Health Insurance

The amount of premiums paid by an S-corp for a >2% owner is added to the Fourth Quarter 941, Gross Wages but not SS or Medicare Wages.

[BOB W]

When I posted the first time I felt fairly sure that is was a 4th plugin by statute but wasn't 100% sure so I left it out.

[Burke]

That's what I do, since it does not affect the bottom line of the 941. Just put taxable wages (with health ins, whatever) on Line 1, and SS wages, which does not include this amt, on Line 2. No problem. I am not sure they even match to Line 1 anyway. IRS will definitely match to Line 2 with SSA.