TAP F04-063

Simplified Form 941

Statement of Issue:

The current Form 941 is a burden for small business owners because of the complexity of both the Form and the instructions.

Proposal:

The Committee made comments and recommendations concerning the draft redesigned Form 941 and offered support and encouragement for the IRS to continue progress on simplifying Form 941.

On behalf of the Form 941 Simplification Task Force and the Office of Burden Reduction, I would like to express my gratitude for the thoughtful input regarding our efforts to redesign the Form 941. I especially appreciate the efforts of the committee members to test both the old form and the draft redesigned form as a means of identifying line items that continued to need clarification.

While the recommendations of the committee were part of the discussions that resulted in the new form, not all recommendations could be accommodated at this time. The form and the electronic systems that support it are limited as to what can be accommodated. However, we are currently in the process of developing a Form 941X for amended payroll tax returns. It is expected that this new form will result in a number of lines being removed from the Form 941. At that point, space will be open to make additional changes that will further simplify use of Form 941 and add clarity to the information being conveyed to the government.