Form 944 Definition

The IRS Form 944, Employer’s Annual Federal Tax Return, is a return that certain small business owners can file annually instead of the quarterly Form 941.

Form 944 Extended Definition
Form 944 is an employer tax return that is the annual equivalent of the quarterly Form 941. Small employers whose annual liability for Medicare, Social Security, and federal income taxes withheld from employees is $1,000 can file Form 944 and only pay federal employment taxes once per year, not quarterly.

Form 944 is part of an initiative by the IRS to help small employers reduce filing and paperwork when paying federal payroll taxes. With the form, the IRS can reconcile wages and process tax payments.

Employers will receive notification from the IRS if they should file Form 944 instead of Form 941. This is based on their previous tax liability. However, employers can choose to continue filing Form 941.

The form is to be filed by January 31 each year and mailed to or e-filed with the IRS.

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Last Updated By

Rachel Blakely-Gray | Jun 15, 2023