IRS Form 944: Overview

Updated on December 02, 2021 - 10:30 AM by Admin, TaxBandits

If your small business has employees, your business should report annual federal income tax & FICA tax with the IRS. This type of information is reported using IRS Form 941 (Employer’s Quarterly Federal Tax Return). However, if your business is smaller and has less tax liability, you may be eligible to file a different IRS tax form, Form 944.

Here's everything you need to know about IRS Form 944 and how to file form 944 with the IRS.

Table of Content :

1. What is IRS Form 944 for 2021?

IRS Form 944, (Employer’s Annual Tax Return) is designed for the small employers and is used to report employment taxes. Small business employers with an annual liability for social security, Medicare, and withheld federal income taxes of $1,000 or less have to file annual information returns instead of the quarterly form 941.

Form 940

IRS Update: The IRS has made some changes to Form 944 for the 2021 Tax Year. Learn More

Need to file Form 944? Get Started Today with TaxBandits and file your 944 in a few simple steps. You will get instant IRS approval. Create a Free Account Now

2. What are the IRS changes to Form 944 for 2021?

Changes have been made for the reporting of new employment tax credits and other tax relief related to COVID-19 in Form 944 for the 2021 Tax Year. The following lines have been updated:

  • Line 8b:

    Nonrefundable portion of credit for qualified sick and family leave wages for leave taken before
    April 1, 2021

  • Line 8d:

    Non Refundable portion of credit for qualified sick and family leave wages for leave taken after
    March 31, 2021

  • Line 8e:

    Non Refundable portion of COBRA premium assistance credit

  • Line 8f:

    Number of individuals provided COBRA premium assistance

  • Line 10d:

    Refundable portion of credit for qualified sick and family leave wages for leave taken before April 1, 2021

  • Line 10f:

    Refundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021

  • Line 10g:

    Refundable portion of COBRA premium assistance credit

  • Line 15:

    Qualified health plan expenses allocable to qualified sick leave wages for leave taken before April 1, 2021

  • Line 16:

    Qualified health plan expenses allocable to qualified family leave wages for leave taken before
    April 1, 2021

  • Line 18:

    Qualified health plan expenses for the employee retention credit

  • Line 19:

    Qualified sick leave wages for leave taken after March 31, 2021

  • Line 20:

    Qualified health plan expenses allocable to qualified sick leave wages reported on line 19

  • Line 21:

    Amounts under certain collectively bargained agreements allocable to qualified sick leave wages reported on line 19

  • Line 22:

    Qualified family leave wages for leave taken after March 31, 2021

  • Line 23:

    Qualified health plan expenses allocable to qualified family leave wages reported on line 22

  • Line 24:

    Amounts under certain collectively bargained agreements allocable to qualified family leave wages reported on line 22

  • Line 25:

    If you're eligible for the employee retention credit in the third quarter solely because your business is a recovery startup business, enter the total of any amounts included on lines 8c and 10e for the third quarter

  • Line 26:

    If you're eligible for the employee retention credit in the fourth quarter solely because your business is a recovery startup business, enter the total of any amounts included on lines 8c and 10e for the fourth quarter

3. When is Form 944 due?

Form 944 is due by January 31st every year, regardless of the filing method (paper or electronic filing).

However, if you made deposits on time in full payment of the taxes due for the year, you may file the return by February 10, 2022.

If the Form 944 due date falls on any Federal holidays or weekend, the next business day will be the due date.

Never miss the 944 deadline

File on time, every time with TaxBandits, and avoid late filing penalties. Get timely updates on IRS changes and deadline reminders from TaxBandits. Create a Free Account Now.

4. How to File Form 944 electronically?

File your Form 944 electronically with the IRS, and get instant IRS approval using TaxBandits, an IRS authorized e-file provider supporting e-filing for all 1099, W2, 94x, and ACA Forms.

Simply follow the steps below to file your Form 944:

  • Step 1: Create a free TaxBandits account or Login If you have one already
  • Step 2: Select Form 943 & Enter Form Information
  • Step 3: Review Form Information
  • Step 4: E-file 944 with the IRS

Ready to file Form 944?

Create a Free Account Now with TaxBandits and E-file your Form 944 in minutes. Get instant approval from the IRS.

5. Penalty for not filing Form 944 on-time

Failure to file IRS Form 944 by the deadline will result in a 5% penalty on the tax owed for each month the return is late (this penalty caps at 25%). When you pay late or do not pay the full amount owed, you will be charged 2-15% of the unpaid tax determined by the number of days the amount remains unpaid. Learn More

Know about the penalty rates for Form 944 under different conditions.

Avoid being penalized by the IRS and file your 944 on time and with accurate information.
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