IRS Form 944

Are you a small business owner looking for an easier way to file your taxes? Depending on the number of employees and amount of money you pay them, you might be able to save yourself a ton of time and trouble when filing your monthly federal payroll taxes.

What is Form 944?

All employers are required to withhold federal income tax, state income tax, and FICA taxes (Social Security and Medicare) from their employees’ wages. Employers must report and pay these taxes to the IRS using Form 944.

if you’re a small business owner and you pay less than $1,000 in payroll taxes, then you may qualify to pay your federal tax returns annually instead of quarterly. Form 944 is for annual reporting, not for quarterly reporting.

Form 944 was intended to give small business employers a break when it comes to filing and paying federal payroll taxes. Here’s why small businesses may benefit from using Form 944: reporting and paying employment taxes may take a considerable amount of time, and small businesses may have less manpower to devote to tax reporting.

How do you know if you are required to file IRS Form 944? In most cases, the IRS will notify you if your business should be filing IRS Form 944. They usually send notification if the amount owed in employment taxes over the course of the previous year was less than $1,000.

What Information is Included on Form 944?

On Form 944, you’ll include the total tax obligation for all your employees throughout the year. You don’t need to file a separate form for each of your employees. Here’s the information you’ll include:

Form 944 vs. 941

IRS Form 941 is for quarterly reporting, while IRS Form 944 is for annual reporting. Typically, a business will file

Here’s how you can tell whether you need to file Form 944 or 941:

Who Qualifies for Form 944?

If you would like to file Form 941 instead of 944, you will need to call the IRS or send a written letter. This will need to be taken care of at the beginning of the year so the IRS has time to assess whether or not your business qualifies and implement the changes to your file. If you employ only household or agricultural employees, you will not qualify to file Form 944.

Don’t attempt to file tax Form 944 if the IRS hasn’t already explicitly stated that you qualify to do so. Your form will be rejected if you don’t already have approval.

You must make your request in writing between January 1 and March 15, or by phone between January 1 and April 1 of the tax year (call 800.829.4933).

When to File Form 944

Form 944 must be filed by January 31 of the following tax year (so if you’re reporting taxes for 2020, you’ll need to file Form 944 by January 31, 2021). But if you made deposits on time and in full, then you have until February 10 of the following year.

How to File Form 944

You will need to fill in information about your employee’s federal income tax withholdings and make sure the amount is correct. Be sure to include your EIN, business name, trade name, and address. The rest of the form is fairly straightforward and specific; take your time to fill in each box and ensure all information is accurate.

What if you see that you owed $1,000 or less last year in employment taxes but the IRS has not notified you that you can file IRS Form 944? As a small business owner, you can also call the IRS and request that they change the employment filing requirements that they have on file for you so that you may file IRS Form 944. You have to call them between January 1st and April 1st of the tax year in which you want to change your businesses filing requirements.

How to File Form 944 if You’re a New Employer

If you’re a new employer, you must apply to receive an Employer ID Number (EIN). On your application, you must indicate the highest number of employees that you expect to have during your first year. Based on the information you provide, you may be eligible to file Form 944, in which case you’d receive a notice from the IRS.

Where to Send Form 944

Your Form 944 can be mailed to your state’s IRS office. You can find your states local IRS office by going onto or speaking with a tax professional, who can better walk you through the process of filing Form 944. You can also file Form 944 online or use a third party to e-file as well.

If you’re a small business owner and you want to know whether or not your business qualifies to file through Form 944, don’t hesitate to contact one of our tax professionals. We have helped many small businesses simplify their quarterly taxes and reduce tax-related stress.