IRS Issues Draft Form 941 Instructions

Updated draft instructions for Form 941, Employer’s Quarterly Federal Tax Return, were released May 31 by the Internal Revenue Service.

The draft instructions were updated with guidance about the end of the COBRA premium assistance credit.

Generally, the COBRA premium assistance credit expired Sept. 30, 2021, with limited availability for the first quarter of 2022. However, under “rare circumstances,” an employer may become entitled to the credit after the first quarter of 2022, the instructions said.

“In those cases, the credit must be claimed on a Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund,” the instructions ...