Why am I required to explain the need for a correction?
1.8k views | Last modified 9/17/2020 7:35:40 AM EST | Added by ExpressEfile Team

Applicable To
Form 941 Form 1099 / W-2 Form 2290

Treasury regulations require you to explain in detail the grounds and facts relied upon to support each correction. 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” or “taxes were not withheld” are insufficient.

Provide the following information in your explanation for each correction:

           Date you discovered the error.

  • Difference (amount of the error).

           Cause of the error.

Information can be submitted in paragraph form using this format:
“The $1,000 difference shown in column 3 on lines 6, 8, and 10 were discovered on May 15, 2017, during an internal payroll audit. We discovered that we included $1,000 of wages for one of our employees twice. This correction removes the reported wages that were never paid.”
For corrections shown on Lines 15–18, Column 3, explain why the correction was necessary and attach any notice you received from the IRS.

Was this helpful? Yes No

E-File Form W-2, 1099-NEC/MISC, 940, 941, 941-X & 2290
using ExpressEfile

Register Now

Returning User? Sign in

Couldn't find what you
are looking for?

Contact Us