Department of the Treasury (1994)

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SCHEDULE B

(FORM 941)

(Rev. January 1994)

Department of the Treasury

Internal Revenue Service

Employer’s Record of Federal Tax Liability

OMB No. 1545-0029

Expires 1-31-96

5151

Name as shown on Form 941 (Form 941-SS)

Employer identification number

Date quarter ended

You must complete this schedule if you are required to deposit on a semiweekly basis, or if your tax liability on any

day is $100,000 or more. Show tax liability here, not deposits. (The IRS gets deposit data from FTD coupons.)

A. Daily Tax Liability—First Month of Quarter

A Total tax liability for first month of quarter

B. Daily Tax Liability—Second Month of Quarter

B Total tax liability for second month of quarter

C. Daily Tax Liability—Third Month of Quarter

C Total tax liability for third month of quarter

D Total for quarter (add lines A, B, and C). This should equal line 13 of Form 941

For Paperwork Reduction Act Notice, see page 2.

Schedule B (Form 941) (Rev. 1-94)

Cat. No. 11967Q

Page 2

Schedule B (Form 941) (Rev. 1-94)

Paperwork Reduction Act Notice.—We

ask for the information on this form to

carry out the Internal Revenue laws of

the United States. You are required to

give us the information. We need it to

ensure that you are complying with

these laws and to allow us to figure and

collect the right amount of tax.

The time needed to complete and file

this form will vary depending on

individual circumstances. The estimated

average time is 2 hr., 40 min.

If you have comments concerning the

accuracy of this time estimate or

suggestions for making this form more

simple, we would be happy to hear from

you. You can write to both the IRS and

the Office of Management and Budget

at the addresses listed in the

instructions of the tax return with which

this form is filed.

General Instructions

Purpose of Form.—Use Schedule B

(Form 941) to report your tax liability

(income tax withheld plus both employee

and employer social security and

Medicare taxes minus any advance

earned income credit payments) on a

daily basis. DO NOT show Federal tax

deposits here. Deposit information is

obtained from the deposit coupons

(Form 8109).

Beginning January 1, 1994, income

tax withholding for nonpayroll items such

as pensions, annuities, gambling

winnings, and backup withholding, will

no longer be reported on Form 941 or

Schedule B (Form 941). This withholding

will be reported on the new Form 945,

Annual Return of Withheld Federal

Income Tax. Refer to Chapter II of

Circular E for details on depositing and

reporting nonpayroll income tax

withholding.

Who Must File.—Semiweekly depositors

are required to complete and attach

Schedule B to Form 941. Monthly

depositors who accumulate $100,000 or

more on any day must also complete

and attach Schedule B. If your total tax

liability for the quarter is less than $500,

you need not complete Schedule B

(For m 941). Schedule B also must be

used by semiweekly depositors who file

Form 941-SS, Employer’s Quarterly

Federal Tax Return (for Guam, the Virgin

Islands, etc.).

Important.—Schedule B (Form 941) is

used by the IRS to determine if you

have timely deposited your employment

and withholding tax liabilities. Unless

Schedule B is properly completed and

filed with Form 941, the IRS will not be

able to process your return and will have

to contact you for the missing

information.

Specific Instructions

Completing the Employer’s Record of

Federal Tax Liability.—If you are

required to report your tax liabilities on

Schedule B (Form 941) as discussed

above, file the schedule with Forms 941

or 941-SS. Do not complete columns (a)

through (d) of the Monthly Summary of

Federal Tax Liability (e.g., line 17 on

Form 941). However, be sure to mark

the Schedule B checkbox.

Each numbered space on the

schedule corresponds to dates during

the quarter. Report your tax liabilities on

this schedule corresponding to the dates

wages are paid, not to when payroll

liabilities are accrued. For example, if

your payroll period ends December 31,

1993, and the wages for that period are

paid on January 7, 1994, the

employment tax liability for those wages

should be reported on Schedule B for

the first quarter of 1994 on line 7,

section A (First Month of Quarter).

Example A: Employer A, who has a

semiweekly deposit schedule, pays

wages once each month on the last day

of the month. On December 20, 1994,

Employer A paid year-end employee

bonuses (subject to employment tax and

income tax withholding). Since Employer

A is a semiweekly schedule depositor, it

is required to record employment tax

and withholding liabilities on Schedule B

(Form 941). Employer A should report

tax liabilities for the 4th quarter

(October–December) Schedule B on line

31, section A (First Month of Quarter);

line 30, section B (Second Month of

Quarter); and lines 20 and 31, section C

(Third Month of Quarter).

Enter the monthly totals on lines A, B,

and C. Add these monthly subtotals and

enter the total tax liability for the quarter

on line D. The amount on line D should

equal Form 941, line 13; or Form

941-SS, line 10.

Example B: Employer B is a semiweekly

depositor. It has paydays every other

Friday. It accumulated a $20,000

employment tax liability on each of the

following pay dates: 1/7/94; 1/21/94;

2/4/94; 2/18/94; 3/4/94; and 3/18/94.

Since Employer B is a semiweekly

depositor, it is required to record its tax

liabilities on Schedule B (Form 941).

Employer B must record the $20,000

liabilities on lines 7 and 21 of part A

(First Month of Quarter); lines 4 and 18

of part B (Second Month of Quarter);

and lines 4 and 18 of part C (Third

Month of Quarter).

Example C: Employer C is a new

business and is a monthly depositor for

1994. Employer C has paydays every

Friday and accumulated a $2,000

employment tax liability on 1/7/94 and a

$110,000 tax liability on 1/14/94 and

each of the following Fridays during

1994. The deposit rules state that an

employer becomes a semiweekly

schedule depositor when a $100,000 or

more tax liability is accumulated on any

day within a deposit period (see Chapter

I, section 11 of Circular E for details).

Since Employer C accumulated

$110,000 on 1/14/94, it became a

semiweekly depositor on that date and

must complete Schedule B (Form 941)

and file it with Form 941. It should

record the $2,000 liability on line 7 of

section A and $110,000 on the lines for

the remaining pay dates. No entries

should be made on line 17 of Form 941

although Employer C was a monthly

depositor until 1/14/94.

Adjustments.—Semiweekly depositors

must take into account on Schedule B

adjustments to correct errors on prior

returns (e.g., reported on lines 4 and 9

of Form 941). If the adjustment was to

correct an underreported liability in a

prior quarter, report the adjustment on

the entry space corresponding to the

date the error was discovered.

If the adjustment corrects an

overreported liability, use the

adjustment amount as a credit to offset

subsequent liabilities until it is used up.

For example, Employer D discovered on

1/10/94 that it overreported social

security tax on a prior quarter return by

$10,000. It paid wages on 1/7/94,

1/14/94, 1/21/94, and 1/28/94 and had a

$5,000 tax liability for each of those pay

dates. Employer D must report a $5,000

liability on line 7, section A of Schedule

B. The adjustment for the $10,000

overreported liability is used to offset the

1/14/94 and 1/21/94 liabilities, so these

two $5,000 liabilities are not deposited

or reported on Schedule B. The $5,000

liability for 1/28/94 must be reported on

line 28, section A of Schedule B. See

section 12 of Circular E for details on

reporting adjustments to correct errors

on prior period returns.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.