Information on this page is for third-party payers – such as certified professional employer organizations (CPEO), professional employer organizations (PEO) and IRC section 3504 agents – that reported and paid their common law employer clients’ federal employment taxes under the third-party payer’s employer identification number (EIN). You shouldn’t use the supplemental claim process if you’re a business that didn’t use a third-party payer. If your business didn’t use a TPP and you need to adjust non-ERC items, you should amend your return. Q1. I’m not a third-party payer. Can I submit a supplemental claim? (added Sept. 26, 2024) A1. No. The supplemental claim process is only for third-party payers (TPP) that reported and paid their common law employer clients’ federal employment taxes under the third-party payer’s employer identification number (EIN). If you use a third-party payer and they filed your ERC claim for you, you should consult with them if you want to file a supplemental claim for your ERC claim. How the TPP filed your claim – individually or batched with others – determines if the TPP can include your claim on its supplemental claim. You’ll need to check with the TPP. If you or your tax professional filed your own claim using your EIN and you want to resolve an incorrect ERC, see: The claim withdrawal process if your claim is pending, or The IRS’s second Voluntary Disclosure Program, if you received the ERC either as a refund or a credit against tax owed. If your business didn’t use a TPP and you need to adjust non-ERC items, you should amend your return. Q2. Should the supplemental claim include amounts from prior adjusted employment tax returns? (added Sept. 26, 2024) A2. No. The third-party payer’s supplemental claim should include only unprocessed items that were included on the adjusted employment tax return filed on or before Jan. 31, 2024. When preparing a supplemental claim TPPs must ensure correct input of Form 941-X, column 2 for all employees. Column 2 shows the amount originally reported or previously corrected. If you’re unsure of what your starting figures are to complete column 2 on your supplemental claim, you can use the Transcript Delivery System to verify the amounts. Q3. Who is authorized to sign a supplemental claim? (added Sept. 26, 2024) A3. An authorized person must sign a third-party payer’s supplemental claim. The person who can sign an ERC claim or a supplemental claim depends on the type of employer the TPP is. People authorized to sign a supplemental claim Type of employer Who can sign a claim for refund for the ERC if you filed an original employment tax return Sole proprietorship The individual who owns the business Corporation, including a limited liability company (LLC) treated as a corporation The president, vice president or other principal officer duly authorized to sign Partnership (including an LLC treated as a partnership) or unincorporated organization A responsible and duly authorized member, partner or officer having knowledge of its affairs Single-member LLC treated as a disregarded entity for federal income tax purposes The owner of the LLC or a principal officer duly authorized to sign Trust or estate The fiduciary Your supplemental claim may also be signed by a duly authorized agent of the taxpayer (i.e., an individual with valid power of attorney via Form 2848, Power of Attorney and Declaration of Representative, or a reporting agent with Form 8655, Reporting Agent Authorization). Q4. What if the third-party payer has only one adjusted employment tax return left to be processed that was filed on or before Jan. 31, 2024? (added Sept. 26, 2024) A4. As a third-party payer, you may submit a supplemental claim using this process but make sure your supplemental claim has an updated Schedule R that reflects amounts of ERC claimed by each client and identifies what claim it is replacing. Q5. If a third-party payer needs to amend non-ERC items on its adjusted employment tax return, should the TPP include these adjustments on the supplemental claim? (added Sept. 26, 2024) A5. Yes. All outstanding items that you, as the third-party payer, included on the adjusted employment tax return filed on or before Jan. 31, 2024, should be submitted on one supplemental claim for the period, including items that are not related to ERC. Note: This is not the process you should use if you’re a business that didn’t use a third-party payer. If your business didn’t use a TPP and you need to adjust non-ERC items, you should amend your return. Q6. Can a third-party payer file another claim or amend a return after the supplemental claim? (added Sept. 26, 2024) A6. Yes, a third-party payer can continue to file adjusted employment tax returns after submitting the supplemental claim. For example, if a new eligible client wants to claim the ERC for 2021 or if a client identifies an error in an earlier adjusted employment tax return and needs to correct it, the TPP could submit these claims through the normal process after their supplemental claim. These claims may take longer to process. Q7. What will happen to my supplemental claim if I don’t attach Schedule R? (added Sept. 26, 2024) A7. The IRS will reject your supplemental claim and your prior adjusted employment tax returns will remain open. You may resubmit your supplemental claim to include a Schedule R if before the Nov. 22, 2024, deadline. Q8.What happens if my supplemental claim does not include the statement required in part 4? (added Oct. 17, 2024) A8. If your supplemental claim is received after Oct. 17, 2024, without the statement below, your supplemental claim will be rejected. For your claim to be accepted, you must verify the statement and include it on your supplemental claim. The statement must say “This form 941-X withdraws and replaces the following previously filed and unprocessed Forms 941-X. This Form 941-X does not contain an increase in the aggregate amount of ERC claimed on any Forms 941-X filed prior to Jan. 31, 2024, or claimed on behalf of any clients listed on a Schedule R attached to any Form 941-X filed before Jan. 31, 2024. Further, this Form 941-X does not include a claim for ERC for clients not previously listed on a Schedule R attached to Forms 941-X filed prior to Jan. 31, 2024.” Q9. What will happen if my supplemental claim is rejected? (added Sept. 26, 2024) A9. All prior claims submitted will remain open for consideration. If your claim was rejected for an item that can be corrected, you may resubmit your supplemental claim if before the Nov. 22, 2024, deadline. Q10. I want to send a supplemental claim but need more time. Can I request an extension? (added Sept. 26, 2024) A10. No. To participate in this program, submit your supplemental claim by 11:59 p.m., local time, Nov. 22, 2024.
