A recent status update from the Internal Revenue Service on Forms 941 and 941-x should be a welcome sign for the millions of business owners who completed the forms during the current or prior years and may be experiencing a longer than anticipated response due to COVID-19-related service delays.
Per the update: “The IRS is now opening mail within normal timeframes. The IRS has also made significant progress in processing Forms 941 (Employer’s Quarterly Federal Tax Return). As of June 9, 2021, we had about 33,000 Forms 941 received prior to 2021 in the processing pipeline. Including current year returns, as of June 9, 2021, we had 2.5 million unprocessed 941s in the pipeline. We are rerouting tax returns and taxpayer correspondence from locations that are behind to locations where more staff is available, and we are taking other actions to minimize any delays. Tax returns are opened in the order received.”
Of relevance to those that filed Form 941-x to correct errors on a Form 941 they had previously filed, the IRS’s inventory of unprocessed Forms 941-X was approximately 100,000 as of May 7, 2021. These returns cannot be processed until the related 941s are processed.
What you need to do?
According to the IRS, if you filed electronically and received an acknowledgement, you do not need to take any further action other than promptly responding to any requests for information. The IRS asks that business owners do not file a second tax return or contact the IRS about the status of their return.
If you have any questions, please feel free to contact your Lurie advisor.
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