SECTION 9. ADJUSTMENTS

.01 In the case of a Form 941, adjustments may be made on returns filed on magnetic tape. Except for adjustments resulting from rounding fractions of cents or from third-party sick pay for which an employer is not responsible, any Form 941 filed on magnetic tape with an adjustment to preceding quarters must be supported by a written statement or Form 941c, Supporting Statement to Correct Information, submitted with the magnetic tape. The statement must identify the taxpayer and explain the adjustment. An Agent must send the paper supporting documents and the magnetic tape containing the Forms 941 in the same shipment. For specification details, see Publication 1264.

.02 In the case of a Form 940, an adjustment to a Form 940 filed on magnetic tape must be submitted on paper to the service center where the magnetic tape was filed.

.03 In the case of a Form 945, adjustments must be made as follows:

(1) except as provided in section 9.03(2), an adjustment to a Form 945 filed on magnetic tape must be submitted on paper to the service center where the magnetic tape was filed; and

(2) beginning with 1995 calendar year returns, an Agent may adjust a prior year’s Form 945 by entering a correction in a new field on a magnetic tape. However, this adjustment field

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(1) provide the taxpayer with a paper copy of the magnetic tape information that was sent to the Service. This information may be provided on a replica of an official form or on an unofficial form. However, data entries on an unofficial form must refer to the line numbers on an official form;

(2) provide the taxpayer with a copy of the Form 4996;

(3) advise the taxpayer to retain a complete copy of the return (a paper copy of both the magnetic tape information and Form 4996) and any supporting material;

(4) inform the taxpayer of the service center that processes the taxpayer’s returns;

(5) advise the taxpayer that an amended return, if needed, must be mailed to the service center that processed the taxpayer’s return; and

(6) provide, upon request, the taxpayer with the date the taxpayer’s

(4) a copy of each Authorization. .03 An Agent must:

return was postmarked and with the date of the Service’s notification of receipt of the taxpayer’s return.