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IRS Form 944: A Complete Guide for Small Business Owners

For small business owners, keeping up with tax filings is crucial to avoid penalties and ensure compliance. If you’ve been notified by the IRS, you may need to file Form 944 instead of the more common quarterly IRS Form 941. This guide covers everything you need to know about 944 tax form requirements, eligibility, filing process, due dates, and more.

Table of contents

What Is Form 944?...Read more

Who Needs to File IRS Form 944?...Read more

Form 944 Due Date...Read more

How to File Form 944: Step-by-Step Instructions...Read more

Where Do I Mail Form 944?...Read more

What If You Made a Mistake on Form 944?...Read more

Conclusion...Read more

What Is Form 944?

If you’re wondering what is a Form 944, it’s an annual payroll tax return for small businesses. Unlike Form 941, which is filed quarterly, 944 form allows eligible employers to report payroll taxes just once per year. Employers use this form to report:

Employee wages and tips
Federal income tax withheld from employees
Employer and employee Social Security and Medicare taxes
Adjustments to Social Security and Medicare wages
Qualified tax credits (such as for research activities or family leave wages)

Who Needs to File IRS Form 944?

The IRS determines which businesses must file Form 944 IRS based on their payroll tax liability. Generally, employers with $1,000 or less in annual payroll tax liability qualify for 944 form instead of quarterly filings. You must file IRS Form 944 if:

The IRS has notified you in writing that you must submit this form.
Your total annual payroll tax obligation is $1,000 or less.

However, some employers are not eligible, even if they meet the payroll tax threshold. These include:

Household employers (nannies, home caregivers, etc.)
Agricultural employers (farm workers, seasonal laborers, etc.)

If your business qualifies but you prefer to file Form 941 instead, you must request IRS approval in advance.

Form 944 Due Date

The Form 944 due date is January 31 of the following year. If you have already paid all your taxes for the year on time, you get an extended deadline until February 10. For example:

If filing for 2024, submit your return by January 31, 2025.
If all tax payments were made on time, you have until February 10, 2025.

Missing the deadline results in IRS penalties, which can be up to 5% per month, maxing out at 25% of the unpaid tax.

How to File Form 944: Step-by-Step Instructions

Step 1: Gather Necessary Information Before completing your 944 tax form, collect payroll records, tax withholdings, and any prepayments made throughout the year. You’ll need:

Employer Identification Number (EIN)
Employee wages and tips paid
Taxes withheld from employee paychecks

Step 2: Complete the Form

Enter total wages, tips, and other compensation paid.
Record federal income tax withheld.
Calculate Social Security and Medicare taxes (both employer and employee shares).
Apply tax credits (if applicable).
Determine the amount owed or if you overpaid.

Step 3: Choose a Filing Method

E-file: Submit through IRS-approved tax software.
Paper filing: Mail the completed form to the correct IRS address.

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Where Do I Mail Form 944?

The correct mailing address for Form 944 depends on whether you are submitting a payment along with the form. The IRS has designated different addresses for businesses that are including a payment and those that are not. Since IRS mailing addresses can change, always refer to the latest IRS instructions to ensure that your form is sent to the correct location. If you are making a payment with your Form 944, you will typically send it to an IRS processing center that handles payments. If you are not including a payment, your form will be sent to a different IRS address. Using the wrong address can delay processing, so always verify the current mailing details on the IRS website before submitting your return. To make the process easier, consider e-filing your Form 944 instead of mailing it. Electronic filing is faster, reduces the risk of errors, and provides confirmation that your form has been received by the IRS.

Quick tip

To avoid processing delays and penalties, always double-check your EIN, business details, and tax calculations before submitting Form 944. Using e-filing speeds up confirmation and reduces errors.

What If You Made a Mistake on Form 944?

Mistakes happen, and if you realize you’ve made an error after submitting your form, you need to correct it as soon as possible by filing Form 944-X (Adjusted Employer’s Annual Federal Tax Return). This form allows you to adjust underpaid or overpaid taxes. If you underpaid, it’s important to send the corrected amount immediately to avoid additional penalties. If you overpaid, you can request a refund or apply the excess to the next tax period. Taking prompt action ensures your tax records remain accurate and prevents potential IRS complications.

Conclusion

Filing IRS Form 944 offers small businesses a more streamlined approach to payroll tax reporting, shifting from quarterly to annual submissions. This simplification reduces the administrative burden, allowing business owners to focus more on their operations rather than frequent tax filings. However, ensuring compliance with IRS regulations remains crucial. If the IRS has directed you to file this form, it’s essential to meet deadlines, accurately complete the form, and use the correct mailing address to avoid unnecessary penalties. Maintaining accurate payroll records and verifying calculations can significantly minimize the risk of filing errors. Overlooking even minor details can result in processing delays or additional IRS scrutiny. If you’re ever uncertain about any aspect of Form 944, seeking guidance from a tax professional can save you both time and potential financial consequences. Taking a proactive approach to tax compliance helps ensure your business remains in good standing with the IRS while avoiding costly mistakes.

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