Form 941 Correction Process Updated for Additional Medicare Tax

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The instructions for Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, were clarified by the IRS regarding correction of withholding errors for the additional Medicare tax. Clarifications included instructions for correcting taxable wages and tips when an employer failed to withhold the tax in a prior tax year. Instructions for correcting taxable wages and tips for a combination of prior-year incorrect reporting of and failure to withhold the tax also were included. Form 941-X is used to correct a previously filed Form 941, Employer's Quarterly Federal Tax Return, and must be filed separately from Form 941.