The IRS issued a special administrative procedure Jan. 8 allowing employers that have yet to file their 2014 fourth-quarter Form 941 to implement a retroactive increase in excludible qualified transit benefits. The increase resulted from recent tax extender legislation.
Under Notice 2015-2, employers that provided transit benefits in excess of $130 per month may make an adjustment on the fourth-quarter Form 941 to reduce the wages subject to withholding for all four quarters of 2014. Under normal refund and adjustment procedures, employers would be required to file a Form 941-X for each quarter of 2014.
This Tax Flash describes procedures for employers who have and have not filed Form 941 for the fourth quarter of 2014, which is generally due Jan. 31.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.