Long story short. My boss does not pay his 941 payroll taxes on time and generally we send in the 941's showing the amount due and there are no payments for the quarter. I am new to payroll and did the first quarter of 07. My boss tricked me and had sent in a few payments towards this quarter without me knowing. I sent it in the 941 showing zero payments. Is this something that can be corrected with a 941C or do I need to do something else? Thank you!
"jtees4" wrote
In a while, a few weeks to a few months, the IRS will send a notice informing you "they corrected" your return. They'll show the payments received and applied to that quarter, and either ask for the balance due, or ask you what needs to be done with the overpayment (if any).
I'd wait for that notice and respond to it accordingly.
Try to get your boss to understand that this is an expensive method of keeping the business afloat.
He owes some 941 taxes from as far back as 1998!!! I have been here since 2003, but only doing payroll since 07. This was my first 941. At this point I don't have a clue how much he owes the IRS, but it is at least $400K...and they really do very little about it. Sure a letter here or there, he pays part of a quarter here and there. He always pays the newer stuff first even though I tell him, and his accountant tells him to pay the old stuff first. I don't know how they allow him to stay open, I really don't. As far as my amended 941, I was thinkling that the IRS may just apply those payments to the older stuff, but I guess they'd inform me of that too if that was the case. Thanks for the reply.
"jtees4" wrote
Given those facts, I'd also advise to pay the newest balances first. In fact, I'd strongly suggest making strong efforts to keep current, ie: that you keep up with current payroll taxes for 2007 and beyond. Then work on the prior year(s) amounts in some reasonable fashion.
Maybe they see that receiving some payments is better than shutting him down and not getting anything.
The IRS applies the 941 deposits to where you tell them when the coupon is filled out.
If you overpay a quarter, they may apply it to older interest penalties and taxes.
Thanks again.
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