Form 944

Employer's Annual Federal Tax Return

What Form 944 is for

Form 944 reports the same taxes as Form 941 - withheld income tax, Social Security and Medicare - but once a year rather than quarterly. It exists so that the smallest employers file one return instead of four. The eligibility is not self-assessed: an employer files 944 only if the IRS has notified it in writing to do so, and it keeps filing 944 until the IRS notifies it otherwise. An employer that would prefer to file quarterly can request the change, but until it is granted the 944 requirement stands.

Who files it

Employers the IRS has notified in writing to file Form 944
Generally the smallest employers, by annual employment tax liability
Not employers who have simply decided their payroll is small - the notification is what governs

Deposit schedule

Whether you deposit monthly or semiweekly depends on your lookback period, not on this form. Publication 15 (Circular E) sets the rule, and it is worth checking each year - the schedule can change when your liability does.

IRS Publication 15

Common questions

Can I choose to file Form 944 instead of Form 941?

No. You file 944 only if the IRS has told you in writing to. Filing a 944 without that notification means the quarterly 941s the IRS was expecting are treated as missing.

I was told to file 944 but would rather file quarterly. Can I switch?

You can request it, but the change takes effect only when the IRS confirms it. Until then, keep filing the 944.

How do I correct a Form 944?

With Form 944-X, the Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund.