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How to correct errors with the IRS

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SmallBusiness.com How-tos are step-by-step instructions for specific small business tasks. They are created and edited by readers like you. You can help edit this How-to or you can create your own. Find more How-tos at the SmallBusiness.com How-to Hub.

Introduction

If you discover you have made an error related to filling or paying taxes, it can be less expensive and less complicated to correct errors that you discover rather than waiting for a notice from the IRS. Recognizing that such errors occur, the IRS provides a wide array of forms for taxpayers to use to report different types of errors.

IRS correction forms

You may use the following forms to report corrections:

  • Forms 94X, Employment Tax Adjustments: When employers discover errors made resulting in overpayment or underpayment of employment taxes, they can file the corresponding amended employment tax form. These amended employment tax forms include: Forms 941X (PDF), 943X (PDF), 944X (PDF), 945X (PDF) and CT-1X (PDF).
  • Form W-2C, Corrected Wage and Tax Statement, and Form W-3C, Transmittal of Corrected Wage and Tax Statements: These forms are used to correct the information about your employees’ total earnings and withholdings for the year. You can now access and complete Forms W-2C and W-3C online. See Social Security’s Business Services Online Handbook for more information.
  • Form 1040X, Amended U.S. Individual Income Tax Return: If you made a mistake on your individual tax return, use this form to correct any errors. If you owe tax as a result of error, you should send the additional tax owed with Form 1040X (PDF). This will stop penalties and interest from accruing on the additional tax owed.
  • Form 1065, U.S. Return of Partnership Income: If you made a mistake on a partnership return, check the box for “amended return” on Form 1065, and then follow the instructions. Give each partner a copy of the amended Schedule K-1.
  • Form 1120S, U.S. Income Tax Return for an S Corporation: To correct a previously filed Form 1120S return, file an amended Form 1120S (PDF), check the box for “amended return” on page 1 and follow the instructions. Give each shareholder a copy of the amended Schedule K-1.
  • Form 1120X, Amended U.S. Corporation Income Tax Return: If you made a mistake on your corporate tax return, use Form 1120X (PDF). If you owe tax, you should send it with the form.
  • Forms 1099 and 1098: These are examples of information returns. Use the instructions for making corrections that come with the form.
  • Federal Tax Deposits: If you are not required to make your deposits electronically, be sure to include a Form 8109 with each deposit you deliver or mail to an authorized depository.