What is the purpose of Form 3921?
When you make a contribution to a contribution-restricted IRA, the IRS looks at your total contributions for the year and then divides by a limit — currently 5,500 — to determine your deduction for the year.
This limit was increased from 1,000 in 2009 and 500 in 2009.
What are the requirements for Form 3921?
You must provide your:
Tax identification number (TIN),
Social Security Number,
date of birth,
account numbers for each of the contributions to the contribution-restricted IRA or Roth IRA, even if they don't appear on the TIN.
Do I need to know the current date?
No, you don't need to know the date of your contributions. However, if you're eligible to contribute to your employer's matching 401(k) plan, you'll make a matching contribution each year. If you're not eligible for this tax-deferred benefit, you need to report the current year contribution as an after-tax contribution to your Form 1040.
Which forms are affected?
Form 3921 will affect 401(k) plans, Roth IRAs, SEP-IRA's and similar retirement plans.
Are there any age limits on Form 3921?
Yes. You must be 59½ years old (or age 50 in certain states), or not a citizen or resident alien, or in the service or seeking employment for the period immediately prior to the year of the contribution. If you're a veteran with an honorable service discharge, or are disabled, you can apply for a waiver. The age limitation is the same for Roth IRAs. The maximum individual contribution is 10,000 per year if you're underage 59½ in the year after your first contribution to your 401(k) or qualified retirement plan. This is the same maximum as the employer contributed limit.
Does the deadline change if the 401(k) or similar retirement plan is in a separate plan from a traditional IRA or Roth IRA?
Yes. Generally speaking, a 401(k) contribution for a separate plan is allowed from a prior year's tax year to a year's tax year. The deadline for including your year-end pay in the retirement plan may be delayed. The most common type of 401(k) is a salary deferral plan.
Who should complete Form 3921?
Any U.S. citizen in good standing is eligible for Form 3921. U.S. citizens are eligible even if they are subject to sanctions. Please note that Form 3921 must be completed before the Form 8938 is issued. If the citizen is subject to sanctions after a Form 3921 is completed, the foreign national who receives the Form 8938 must complete a separate Form 8938 and provide a copy of the Form 3921 to the Department of State.
Can form 4979 be signed by a nonmember of Congress? Yes, the Form 4979 must be signed by someone who can sign in his or her foreign language. This person must be authorized to act in the United States on behalf of the U.S. citizen. A noncitizen can sign Form 4979 for a U.S. citizen only if that citizen: is authorized to act in the United States. Has a U.S. address.
Did you get a notification (e-mail, call, or mailing)? It may take 10 to 40 business days for U.S. Citizenship and Immigration Services (USCIS) to e-mail or mail you a notice that includes your Form 8938. To make sure the Form 8938 was received, go to the USCIS website to find out when the form was sent. If you don't receive a Form 8938, please consider the following: If you were an immigrant applicant or nonmilitant, you'll receive a copy of your application package when you receive a Form 8938, or a copy of a notification that includes the Form 8938. If you were not an immigrant applicant or nonmilitant, we will be sending a notification to the last address you wrote to us using the same method when you applied.
Did a Form 8856 be executed? For all other requests, we consider Form 8856 to be a nonbinding letter of authorization. If your application is pending or the visa application processing has been completed, you may or may not have received an authorization letter. Please check with your consulate. To understand why the Form 8856 was executed and when it was received, please read our article about executing and reporting an Authorization Letter.
If you did not receive permission from your consulate, it's possible you can submit to your consulate a copy of your Form 8938.
When do I need to complete Form 3921?
You'll need to complete Form 3921 for all tax years that end in 2018. Complete Form 3921 for tax year 2017, then complete Form 3921 for 2018.
How do I amend my return to correct an inaccurate adjustment I received?
You may correct a tax year error by filing an amended return. Attach a copy of the original or amended return(s) that you filed and your corrections and supporting documentation. If you're filing electronically, you also can print and attach a Notice of Federal Tax Payment Correction to show that we received your corrected return. File this notice with or without an accompanying IRS Taxpayer Advocate Service (TAS) letter.
How do I verify my tax return?
You may obtain verification of your taxes from the: Internal Revenue Service
Internal Revenue Service Telephone Assistance Line (TAIL): TAIL:
The free IRS filing system allows you to view and print your Form W-2. Use the filing System to upload your tax information or to print your W-2 and attach it to your return. To complete an electronic Form W-2, go to IRS.gov/efile.
How do I adjust my refund claims?
If you received a refund because we paid too much tax, or you can show that the error may have resulted from the following:
poor record keeping,
you can claim a refund by filling out IRS Form 4852, Application for Adjustment of Refund (Claim for Refund).
If you have already filed your tax return and want this refund to affect the refund you received, you should first send us your original tax return and supporting documentation. For more information, refer to IRS Publication 502, Refunds: Requesting a Refund.
If your corrected tax return shows an incorrect amount, your adjusted tax liability must include all tax amounts in which you are assessed a tax. You cannot exclude or reduce your adjusted tax liability by claiming a refund. If you can show that the refund will not result in a large tax liability, you may be able to exclude the refund. Refer instructions in the Notice of Federal Tax Payment Correction to file Form 4852 to claim a refund. You'll use Form 4852 only if you made corrections during 2017 using the corrected income tax return filed with Form 3921.
Can I create my own Form 3921?
You can only create Form 3921 if you meet all the requirements for Form 3921 listed on the form. For more information, including a question-and-answer guide, go to.
What if I'm making my own Form 3921? Is there a fee to do this?
You are required to file Form 3921 with a valid social security number if you want to change the information on your:
Individual Taxpayer Identification Number (ITIN)
Social Security Number
When I apply for a Social Security number, am I required to use the federal system or a state system?
You must use one of the available federal systems for your application until the year 2026. Only after then must you use one of the available state systems.
I want to change my name from Mark to Michael or Mandy-Jane or any other names. What should I do?
As part of the Name Change process, you must apply through the federal system. To apply through the federal system, you must meet the following requirements:
Have a current Social Security number or individual tax identification number.
Be at least 18 years old, except you may not apply in order to change from the military to the civilian world.
Complete the online application and attach the following documents:
A completed Form DS-1115
A notarized statement from the applicant's attorney of good standing.
You will be notified once your Name Change is approved in most cases within 60 calendar days. But if the name you want to change is already in use on the system and changes cannot be made, we recommend that you wait until it is time to change your information and apply for new information.
What if I get an approval for my Name Change application but forget to upload my notarized statement? Do I need to retake the Name Change application?
The Name Change form is electronic. If you have submitted your notarized statement before, you may use the Notarized Statement Form PDF link (File and Go Link) included on the form as an alternative. If you do not submit your statement, you must return any completed Form DS-1115 (by mail or FAX) by the deadline on the form.
What should I do with Form 3921 when it’s complete?
When Form 3921 has been submitted, the employer will request that you complete Form W-9 for your employee. After your Form W-9 has been completed, the employer should prepare Form 3921. In addition to the information described in the instructions on Form W-9 and on this Website, when Form 3921 is completed, your employer should provide your employee with a Form 3921 summary. This summary will provide your employer with your employee’s basic wages, tips, bonuses, tips from tips, tax withheld, and any tax withheld under the applicable income tax rules.
Where should I send Form 3921?
We strongly urge employers to electronically transmit their Form 3921 to the IRS at Form 3921-SA. To electronically transmit your Form 3921 to the IRS, you must enter an electronic transmission code in box 14. Enter the transmission code in box 14 of your Form 3921. If you do not enter the code and file electronically, your Form 3921 will not be processed and will be returned to you in the mail.
If you have questions about Form 3921, you may contact us electronically by calling our Customer Service Center. To electronically transmit your Form 3921 to our Customer Service Center, you can fill out the Internet Form 3921 Request for Service and then submit it by postal mail.
What if I mailed Form 3921 and I did not receive a confirmation of receipt letter?
You should request a paper copy of Form 3921. Send us your mailing address and your mailing receipt by e-mail. Complete Form 3921, and we will send you a paper copy of your Form 3921.
What information to include when you complete Form 3921?
The following information must be provided (and any attachments), when you complete Form 3921. For details about the information to be provided, see our Form 3921 requirements.
You must include your employer identification number on Form 3921: The form consists of two parts. Part A contains information to be entered on page 1. Part B contains the information included on your Form W-2, such as the employee's social security number.
What if I provide an incorrect social security number?
You will need to enter an additional 50.00 for additional information about this employee’s social security number. See the Instructions for Form 3921-SA for additional information on this issue.
How do I get my Form 3921?
Go to Form 3921 and fill out an application. Click on File a new Form 3931 to proceed. We will send you back to Step 2.
If you did not fill out a Form 3931 previously, you must still fill it out.
To get your Form 3931, you must send us:
A copy of your license or permanent resident card. In some cases, you can also provide proof from your U.S. Armed Forces unit, such as a military ID card.
Your social security card number. You can find this information under “Other information” on the back of your U.S. military card. In most cases, your social security number will change in June of each year. We will send you a separate Form 3931 before the June 1st due date.
Your tax-exempt bond, if you've had one before. We will send you a separate Form 3931 if you don't have a tax-exempt bond.
We will also ask you to provide information about each of the following documents to support your request: Medical information, including current and past medical problems
Education, such as postgraduate studies, vocational training, or postsecondary education
Residence history and employment
Marriage, divorce, or living together
Child support payments
The value of any assets you own or have a claim against
Medical-related events that caused injury or disease The medical information you provide must match what's listed on your Form 3921. You will provide as much detail about your illness or injury as we ask. Medical information may change over time.
What documents do I need to attach to my Form 3921?
You must use the forms described in this section: Form 3921, Election to Report U.S. Source Income on Forms 1040, 1040A, or 1040EZ
and the following:
(a) Form 2106, Statement of Certification of Foreign Bank and Financial Accounts (FAR); or
(b) Form 4952, Statement of Certain Foreign Account (FAR) Information (Forms 941-944, and 946)
How do I prepare my Form 3921, Election to Report U.S. Source Income on Forms 1040, 1040A, and 1040EZ?
Before filing your election, file Form 3921 with the Internal Revenue Service. You should use Schedule C (Form 8949) to prepare your election. The following applies to your forms. You and your spouse (both or neither) should jointly prepare the following:
Form 3921 (your election)
Form 3106, Filing Information Statement Regarding Taxable U.S. Source Income
A certification of the U.S. source income from foreign accounts and related filing requirements for each member of the relationship (if any). The Form 3106 must be given to the U.S. mailing address on line 11 of the Form 3921. Line 11 of the Form 3106 must have the date of the election, and include the following statement on the form: If you make a gift or bequest to a nonresident alien individual, the following statements are required on Form 1040 or 1040A, U.S. Individual Income Tax Return for the calendar year ending in the year of the gift or bequest.
If you make a gift, or other payment or exchange on behalf of a nonresident alien individual, to a United States person, or on behalf of a U.S. person other than a nonresident alien individual, the statement is required on each Form 1040 or 1040A. (The Form 3106 does not need this statement in order to be effective.) This statement is also required on Form 8949 for each election (Form 8949) filed. On Schedule C, complete the relevant boxes, including your Election to Report U.S. Source Income on Forms 1040, 1040A, or 1040EZ. You can make an election to report the taxable income of your foreign financial accounts from a calendar year by filing a return for that year.
What are the different types of Form 3921?
The Form 3921 is used by employers to deduct taxes and to claim tax credits from certain sources. There are four different types of Form 3921:
Payroll taxes. Tax is not deductible from compensation if the employee is paid through payroll deductions which must be reported on an IRS Form W-4 or similar reporting form if the employer does not use a payroll deduction program. These wages include, but are not limited to, all wages paid by an employee's employer to, or on behalf of, the employee (or his or her immediate family) during any calendar year that is not a vacation or holiday or not subject to the 2% social security tax. Workers can only get paid through payroll deductions.
Tax is not deductible from compensation if the employee is paid through payroll deductions which must be reported on an IRS Form W-4 or similar reporting form if the employer does not use a payroll deduction program. These wages include, but are not limited to, all wages paid by an employee's employer to, or on behalf of, the employee (or his or her immediate family) during any calendar year that is not a vacation or holiday or not subject to the 2% social security tax. Workers can only get paid through payroll deductions. Social security taxes. The employee does not pay social security taxes on the wages reported on an IRS Form W-4 or similar reporting form if the employer does not deduct taxes from the employee's compensation and only uses a payroll deduction program. Generally, the employer does not get a tax credit if the employee has to pay social security taxes from the non-excess compensation.
The employee does not pay social security taxes on the wages reported on an IRS Form W-4 or similar reporting form if the employer does not deduct taxes from the employee's compensation and only uses a payroll deduction program. Generally, the employer does not get a tax credit if the employee has to pay social security taxes from the non-excess compensation. Benefits. Social Security benefits are not reported on the employee's wages on the same Form 3921 as wages for wages taxes. In addition, the employee's employer gets a credit on the wages subject to social security taxes when the employee's wages are paid by payroll deduction.
Social Security benefits are not reported on the employee's wages on the same Form 3921 as wages for wages taxes. In addition, the employee's employer gets a credit on the wages subject to social security taxes when the employee's wages are paid by payroll deduction.
How many people fill out Form 3921 each year?
Is it a big business or just a bunch of families? If you take a look at the list of individuals who signed their returns this year, you will see a high concentration of small firms that are filling out 3921s for employees. Also, a high concentration of individuals who do the same thing at their work stations.”
The IRS website shows that people who were self-employed paid approximately 7,600 self-employment tax returns on the 2015 tax season, a record high year that saw the highest percentage of individuals filing returns at their work stations to date. (The number of returns filed for fiscal year 2016, however, has been down from the record highs of the 2007, 2010 and 2011 tax seasons.)
And people who were self-employed also pay at home Social Security and Medicare taxes on their self-employment income.
The percentage of individuals who filed self-employment tax returns increased from 50 percent in 2013 to 57 percent in 2015. At the same time, the number of individuals filing the Form 3921 decreased in seven out of eight years. So with fewer filing returns each year, it shouldn't come as a surprise that the number of employees filing their returns has also decreased. In 2015, 6.3% of American workers reported that they filed Form 3921s.
According to the IRS, the number of individuals filing Form 3921 increased 2.6 points between 2012 and 2014. When those filing returns were broken down by the type of jobs the individual had, self-employed individuals filed a larger percentage of their tax payments in 2012 than the rate at their work stations.
But the biggest decline in the percentage of people filing their tax returns came this decade. This drop in the number of returns filing their own self-employment tax returns was attributed to the loss of jobs and economic prosperity.
In 2014, for instance, the number of people filing Form 3921s decreased by 7.2 points, or 3.2 percentage points. A 2.9-point decline in self-employment filing by people who were unemployed was the leading reason for the percentage of people filing their returns dropping. Other reasons cited in the report for how people quit filing with the IRS included their lack of knowledge about tax filing (33 percent), not being able to afford it (16 percent) and concerns about the impact of an audit (14.4 percent).
The decline was attributed to low personal tax rates, which kept the overall tax rate relatively low for some.
Is there a due date for Form 3921?
Employers with 25 or more full-time equivalent employees must file Form 3921 with the payroll office at least 30 days after March 16, 2018. The due date is based on the last day of the calendar quarter in which Form 3921 is filed, in this case it would be January 2, 2018.
Can I get Form 3921 by mail?
Yes, you can send Form 3921 to the Internal Revenue Service. For more information go to or call.
Are filing with Form 3921 a one-time only option?
Yes. Employees who are eligible for wage garnishment can also choose to file Form 3921 for future pay withholding and taxes. For more information go to or call.
How do I find out how much I should withhold, and how long to withhold all the taxes required on my Form 3921?
To find out how much you should withhold and how long to withhold all the taxes required on your Form 3921 go to or call. If you choose to withhold these taxes from your salary you do not have to give any explanation regarding your income or deductions.
If I want to have my employers withhold these taxes from my wages, must they ask my permission?
Yes. You should withhold and pay your taxes through direct deposit. To find out more about employer withholding go to or call.
Can my employer withhold the payroll tax if it is not due?
Yes. Employers can ask you to report all their wages paid by direct deposit on their 1099-MISC and 1099-INT forms, which employers can use to collect any tax for the year. To find out more about employer withholding go to or call.
How does the IRS collect and remit taxes?
The IRS sends you a 1099-MISC form for the year to report all income and deductions you receive. The federal and state withholding tax applies, and you must report all of your income on the form. If you did not pay taxes due to be withheld on your Form 3921, you can use Form 8596 to request that the taxes be remitted.