- What it means
- The wages and withholding you reported to Social Security on Forms W-2 do not match the totals on your Forms 941 for the year, and the IRS proposes changes.
- Respond within
- 30 days from the date on the notice
- What to send
- A reconciliation of the two, with corrected forms (941-X or W-2c) as needed.
- Write it
- Document cover letter
- When to get help
- If the discrepancy is large or spans multiple years, have a payroll professional prepare the reconciliation.
What the letter says
The combined annual wage reporting program compares W-2/W-3 totals with the four 941s. A mismatch means one side is wrong: a missed quarter, a bonus reported on one but not the other, a W-2c never filed.
What to do
Reconcile the year. If the 941s were wrong, file Form 941-X for the affected quarters. If the W-2s were wrong, file W-2c/W-3c with Social Security. Send the IRS a letter explaining which, with copies. Ignoring it results in an assessment based on the higher figure.
What to gather
- The notice
- All four Forms 941 for the year
- Form W-3 and the W-2s
- Payroll register for the year
Write back
The Document cover letter tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.