IRS Form 944: Overview
Updated on November 29, 2023 - 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 tax liability of $1000 or less, you may be eligible to file 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 2023?
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.
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2. 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, 2024.
If the Form 944 due date falls on any Federal holidays or weekend, the next business day will be the due date.
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3. Form 944 vs Form 941: What are the main differences?
Form 941 and 944 serve as vital tools for reporting payroll tax data to the IRS, although they differ significantly in terms of business tax liability and reporting frequency. Form 941 is used by businesses to report income taxes, Social security and Medicare taxes withheld from the employee paycheck during the year. While, the Form 944 is used to report payroll tax for the business if their annual tax liability is less than $1,000 over the year. Learn more in detail about
Form 941 vs 944.
4. How to File Form 944 electronically with TaxBandits?
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 944 & Enter Form Information
Step 3: Review Form Information
Step 4: E-file 944 with the IRS
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5. Who are exempt from Filing Form 944?
There are some exemptions from filing Form 944, includes
- If your business involves hiring a household employee.
- If your business involves hiring employee solely agricultural workers.
- If the IRS has directed you to file quarterly Forms 941, 941-SS, or 941-PR.
- If the IRS hasn't instructed you to file Form 944.
6. 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 about 944 Penalties.
Avoid being penalized by the IRS and file your 944 on time and with accurate information.