Department of the Treasury (1996)

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SCHEDULE B

(FORM 941)

(Rev. January 1996)

Department of the Treasury

Internal Revenue Service

Employer’s Record of Federal Tax Liability

5151

OMB No. 1545-0029

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 schedule, 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. 1-96)

Cat. No. 11967Q

Page 2

Schedule B (Form 941) (Rev. 1-96)

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

simpler, we would be happy to hear from

you. You can write to the IRS at the

address 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).

Who Must File.—Semiweekly schedule

depositors are required to complete and

attach Schedule B to Form 941. Monthly

schedule 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 (Form 941). Schedule B also

must be used by semiweekly schedule

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,

1995, and the wages for that period are

paid on January 5, 1996, the

employment tax liability for those wages

should be reported on Schedule B for

the first quarter of 1996 on line 5,

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, 1996,

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

schedule depositor. It has paydays every

other Friday. It accumulated a $20,000

employment tax liability on each of the

following pay dates: 1/5/96; 1/19/96;

2/2/96; 2/16/96; 3/1/96; 3/15/96; and

3/29/96. Since Employer B is a

semiweekly schedule depositor, it is

required to record its tax liabilities on

Schedule B (Form 941).

Employer B must record the $20,000

liabilities on lines 5 and 19 of part A

(First Month of Quarter); lines 2 and 16

of part B (Second Month of Quarter);

and lines 1, 15, and 29 of part C (Third

Month of Quarter).

Example C: Employer C is a new

business and is a monthly schedule

depositor for 1996. Employer C has

paydays every Friday and accumulated a

$2,000 employment tax liability on

1/5/96 and a $110,000 tax liability on

1/12/96 and each of the following

Fridays during 1996. 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 section 11 of

Circular E for details). Since Employer C

accumulated $110,000 on 1/12/96, it

became a semiweekly schedule

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 5 of section A and

$110,000 on the lines for the remaining

pay dates. Employer C would not

complete the Monthly Summary of

Federal Tax Liability (line 17 of Form

941) even though it was a monthly

schedule depositor until 1/12/96.

Adjustments.—Semiweekly schedule

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

1/10/96 that it overreported social

security tax on a prior quarter return by

$10,000. It paid wages on 1/5/96,

1/12/96, 1/19/96, and 1/26/96 and had a

$5,000 tax liability for each of those pay

dates. Employer D must report a $5,000

liability on line 5, section A of Schedule

B. The adjustment for the $10,000

overreported liability is used to offset the

1/12/96 and 1/19/96 liabilities, so these

two $5,000 liabilities are not deposited

or reported on Schedule B. The $5,000

liability for 1/26/96 must be reported on

line 26, section A of Schedule B. See

section 13 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.