You have a limited amount of time to file Form 941-X. The SOL period for filing a claim for reimbursement on Form 941-X is the last of three (years) from the date the employer filed its original return or two (years) from the date the tax was paid. The ability of the IRS to audit and collect taxes on a payroll tax return is also limited by law to three (years) from the date the return was filed (see the IRC section). File a modified 941-X payroll tax return to correct underpayments and file a request for a credit refund for overpayments before it's too late.
Employers who reported less than payroll tax must correct errors in the period in which they were discovered and pay the amount due by filing a modified Form 941-X to make an interest-free adjustment (see Tareas). You can generally correct overreported taxes on a previously filed Form 941 by filing Form 941-X within 3 years of the date Form 941 was filed or 2 years after the date you filed Form 941 or 2 years after the date you paid the tax declared on Form 941, whichever occurs later. Employers must create a schedule to record when the SOL is due to file an amended return for each payroll return that has not previously applied for eligible credits for COVID-19. To apply overpaid taxes as a credit to Form 941, file Form 941-X shortly after discovering the error, but at least 90 days before the statute of limitations expires (p.
