SCHEDULE B

(Form 941)
uly 1990) Supplemental Record of Federal Tax Liability ee sat88
Department of the Treasury

Internal Revenue Service

Name as shown on Form 941 (or Forms 941£, 941SS, 943 or CT 1) Employer identification number Date quarter ended

Record of Federal Tax Liability—Complete this schedule only if your tax liability for any eighth-monthly period this quarter is $100,000
or more, Show tax liability here, not deposits. IRS gets deposit data from FTD coupons. Enter in column (2) your total tax liability for each
eighth-monthly period. You must also enter in columns (3) through (6) your daily tax liability for each eighith-monthly period in which your
tax liability is $100,000 or more. See instructions for examples.

Total Tax Liability For Each Daily Tax Liability
Eighth-Monthly Period First Month of Quarter

1 2 3 4
A ist 2nd
B 4th Sth
c 8th 9th
D 12th 13th
E 16th 17th
F 20th 2ist
G 23rd 24th
H 26th 27th

30th 31st

Second Month of Quarter

| Ist 2nd 3rd
J 4th Sth 6th
K 8th 9th
L 12th 13th
M 16th 17th
N 20th 21st
oO 23rd 24th
P 26th 27th

30th 31st

Third Month of Quarter

Q Ist 2nd 3rd
R 4th 5th
Ss 8th 9th
T 12th 13th
U 16th 17th
Vv 20th 2ist
Ww 23rd 24th
x 26th 27th

30th 31st

Add amounts in column 2
> Enter this amount on line /V of the Record of Federal Tax Liability on the bottom of Form 941 (or Forms
941E, 941SS, 943A, Schedule A (Form 941) or CT-1).



Schedule 8 (Form 941) (7-90)

Page 2

Paperwork Reduction Act Notice.—We
ask for this information to carry out the
Internal Revenue laws of the United States.
We need it to ensure that taxpayers are
complying with these laws and to allow us to
figure and collect the right amount of tax.
You are required to give us this information

The time needed to complete and file
this form will vary depending on individual
circumstances. The estimated average
time is:

Recordkeeping 5S hrs. 16 min.
Learning about

the law or the form 6 min.
Preparing, copying,

assembling, and sending

the form to IRS 11 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form more
simple, we would be happy to hear from
you. You can write to both the IRS and the
Office of Management and Budget at the
addresses listed in the instructions of the
tax return with which this form is filed.

Highlights

Item to Note.—Effective for deposit
periods ending after July 31, 1990, if you
accumulate undeposited payroll taxes of
$100,000 or more in any eighth-monthly
period, you are required to deposit the
payroll taxes by the close of the next
banking day after you accumulate
$100,000 or more. You may no longer wait
until the third banking day after the close of
the eighth-monthly period.

For employment taxes required to be
deposited after December 31, 1989, a
four-tiered penalty structure has been
established in which the amount of the
penalty varies with the length of time within
which the taxpayer corrects the failure to
make the required deposit. The failure to
deposit penalty rate will be 2 per cent for
the first five days of delinquency, 5 per cent
for the sixth through the 15th day, 10 per
cent for over 15 days, and 15 per cent if the
taxes are not paid within ten days after the
Service issues the first notice demanding
payment.

Example A: X Co. pays its employees once

every two weeks on Monday. X Co.'s payroll
tax liability for the third quarter of 1990 is:

Payroll Tax Eighth-Monthly

Payroll Date Liability Period
July 9, 1980 150,000 c

July 23, 1990 90,000 G
‘August 6, 1990 150,000 )
‘August 20, 1990 95,000 N
September 3, 1990 (Holiday)

September 4, 1990 105,000 R
September 17. 1990 95,000 uv

The July 9th liability of $150,000 is due by
July 16th, three banking days after the end
of eighth-monthly period C. The next day
rule is not effective until after July 31, 1990.

The July 23rd liability of $90,000 is due by
July 30th, three banking days after the end
of eighth-monthly period G.

The August 6th liability of $150,000 is due
on August 7th. The next banking day rule
applies.

The August 20th liability of $95,000 is due
by August 27th, three banking days after
the end of eighth-monthly period N.

The September 4th liability of $105,000 is
due on September 5th. The next banking
day rule applies.

The September 17th liability of $95,000 is
due by September 24th, three banking days
after the end of eighth-monthly period U.

Example B: Z Co. has three divisions. Z Co.
pays its employees every two weeks. Z Co.
pays each division on a different da)
Division A on every other Monday,
B on every other Wednesday and Division C
on every other Friday. Z Co.'s payroll tax
liability from July 15, 1990 through August
15, 1990 is:

Payroll Tax —_Eighth-Monthly

Payroll Date Liability reriod
July 16, 1990 55,000 E
July 18, 1990 50,000 E
July 20, 1990 65,000 F
July 30, 1990 55,000 H
‘August 1, 1990 40,000 1
August 3, 1990 65,000 !
August 13, 1990 55,000 L
August 15, 1990 40,000 L

Eighth-monthly period E’s liability of
$105,000 is due by Tuesday, July 24th. The
three banking day rule applies. The next day
rule is not effective until after July 31,

1990.

Eighth-monthly period F's liability of
$65,000 is due by Wednesday, July 25th.
The three banking day rule applies.
Eighth-monthly period H's liability of
$65,000 is due by Friday, August 3rd. The
three banking day rule applies.

Eighth-monthly period I's liability must be
analyzed by day. Wednesday, August Ist's
liability of 440,000 plus Friday, August
3rd's liability of $65,000 must be deposited
on Monday, August 6th. This deposit is
subject to the next banking day rule once
the undeposited taxes are $100,000 or
more.

Eighth-monthly period L's liability of
$95,000 is due by Monday, August 20th.
The three banking day rule applies.

General Instructions

Purpose of Form.—Use this form to report
your tax liability (income tax withheld,
backup withholding, plus both employee
and employer social security taxes minus
any advance earned income credit) by day
for any eighth-monthly period in which your
tax liability is $100,000 or more.

Who Must File.—Employers who have a
tax liability of $100,000 or more for any

# U.S. GPO: 1991-282-002/40012

eighth-monthly period must file this form
along with Form 941, Employer's Quarterly
Federal Tax Return, Form 941E, Quarterly
Return of Withheld Federal Income Tax and
Hospital Insurance (Medicare) Tax, Form
941SS, Employer's Quarterly Federal Tax
Return, Form 943, Employer's Annual Tax
Return for Agricultural Employees or CT-1,
Employer's Annual Railroad Retirement and
Unemployment Repayment Tax Return.

Specific Instructions

Completing the Supplemental Record of
Federal Tax Liability.—When your
undeposited payroll tax fia ty including
backup withholding) is $100, or more,
you are required by section 6302(g) to
deposit the tax on the next banking day.
When your payroll tax liability for any
eighth-monthly period is $100,000 or more,
you must report your tax liability on
Schedule B (Form 941) and you must leave
the Record of Federal Tax Liability on the
bottom of Form 941 (or Forms 941E,
9415S, or 943) blank. You must enter in
column (2) your total payroll tax liability for
each eighth-monthly period in which you
have a liability. You must report your tax
liability by day in columns (3) through (6)
for each eighth-monthly period in which
your total tax liability is $100,000 or more.
Example 1. Taxpayer A reports $60,000 of
tax liability for eighth-monthly periods A, D,
L, Q, and T and $110,000 for period |.
Taxpayer A does not have any tax liability for
the eighth-monthly periods not mentioned.
Taxpayer A must leave the Record of
Federal Tax Liability on the bottom of Form
941 blank and file Schedule B (Form 941)
along with Form 941. Taxpayer A must only
enter his/her payroll tax liability by day for
eighth-monthly period | on Schedule B
(Form 941). Taxpayer A must also enter the
total liability in column (2) for eighth-
monthly periods A, D, 1, L,Q, and T
Example 2: Taxpayer B reports $45,000 of
tax liability for every eighth-monthly period
except for eighth-monthly periods D, L, and
T, where $165,000 is reported for each
period. Taxpayer B must leave the Record of
Federal Tax Liability on the bottom of Form
941 blank and file Schedule B (Form 941)
along with Form 941. Taxpayer B must
enter his/her tax liability by day on
Schedule B (Form 941) for eighth-monthly
periods D, L, and T Taxpayer B must also
enter the total liability in column (2) for
eighth-monthly periods A through X.
Example 3: Taxpayer C reports $25,000 of
tax liability for eighth-monthly periods A
through X. Taxpayer C is not required to file
Schedule B (Form 941) but instead must
complete the Record of Federal Tax Liability
on the bottom of Form 941

Note: This is a record of when you were
liable for taxes, NOT a record of when you
made a deposit. Do NOT show Federal tax
deposits on this form.