941s

[SunTaxMan]

If there is no payroll in any quarter, but continuing payroll before and after this "zero" quarter, is a 941 necessary?

I realize there are state requirements, withholding as well as SUTA filing, that may/do not fit this question. My interest is ONLY the 941.

Thanks,

[imjulier]

I do believe "zero" 941s are required.

[mcb39]

Yes, if you are continuing business, you should file it even if there are no employees for the quarter.

[TJSDAD]

The IRS won't know if you have no wages or just failed to file. You still need to tell them.

[SunTaxMan]

Yes, if you are continuing business, you should file it even if there are no employees for the quarter.

The actual situation here (and I hate "theoretical") is that there ARE continuing employees, the SAME employees before and after the missing quarter, just no wages paid.

[Wayne Brasch]

If there is no payroll in any quarter, but continuing payroll before and after this "zero" quarter, is a 941 necessary?

I realize there are state requirements, withholding as well as SUTA filing, that may/do not fit this question. My interest is ONLY the 941.

Thanks,

SunTaxMan,

What I always do in cases such as this is to file a zero return and write "No payroll this quarter" accross the face of the Form 941. That keeps my client from getting letters later from IRS wondering why no return was filed.

Wayne Brasch

[SunTaxMan]

SunTaxMan,

What I always do in cases such as this is to file a zero return and write "No payroll this quarter" accross the face of the Form 941. That keeps my client from getting letters later from IRS wondering why no return was filed.

Wayne Brasch

Interesting. The quarter in question here is Q1 07 and, apparently, there has been no inquiry as to a missing quarter report (even though the IRS summary of 2007 shows no wages paid in Q1 07). So I am waiting to talk to the employer again, because he brought me his "payroll" folder for 2007 and I now realize there is no SUTA, FUTA or state withholding information included. This is a Church, so I assume there is room for misunderstanding and "accommodation" for "errors" on the part of IRS, but I would still like to see the entire 2007 record.

I am assuming (and you know what it means to assume?) that IRS is used to Churches having new Treasurers, perhaps every year, and the inevitable inconsistency that would occur with changing personnel in the recordkeeping department.

[JohnH]

I doubt they make exceptions for churches. It may be that the unfiled 941 generated an inquiry letter somewhere along the way and someone just marked the "No Wages Paid" box and sent it back in without putting a copy in the files. As long as it was signed, the response to the letter would close the file without their ever having to file a 941. Since you're talking about 2007, I'm guessing there would have been at least a couple of these letters mailed out if a 941 was actually not filed. If IRS shows "no wages paid" in their records, they got the info in writing from someone, sometime. I'd say there's nothing else you need to do, provided you're sure there were no wages paid in the quarter in question.

[SunTaxMan]

If IRS shows "no wages paid" in their records, they got the info in writing from someone, sometime.

Clarification - the reconciliation report from IRS does NOT show "No wages paid." It is simply an empty entry box, where wages are shown for the other three quarters.

I appreciate the comments.