I have a new client who came to me with 8 years of unfiled 940 & 941 returns. He's got IRS notices and they are after him to get his stuff filed.
Do I need to compile 32 941s, or is there a way to simply do one for each year?
He kept records of total annual payments to employees for some years, but quarterly for only a few years.
He treated all of his employees as contractors but didn't issue 1099s either. He had some unemployment, workers comp and a social security disability claim...so he is on the hook and needs to get these things filed.
My question is - can I do a summary 941 for the entire year, or does it need to be done quarterly? If it is quarterly, I suppose I will just divide the years employee payments by 4 and gross up the FITW? and FICA withholding.
He wants me to say he did not withhold anything from the pay for FITW, but if he does that, I think the employees may get under reporter notices... THis is a mess.
Any advice on the best way to tackle this?
Thanks,
Marc
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