Employers who have an estimated employment tax liability of $1,000 or less for the entire calendar year are eligible to file annual Form 944 rather than the quarterly Form 941. In the past, filing this form has been mandatory for employers who met the qualifications. On October 27, 2009, the Internal Revenue Service released Revenue Procedure 2009-51. This procedure provides procedures for qualified employers to make an election whether to file annual Form 944 or quarterly Form 941 to report employment taxes. Form 944 filers can opt out, or qualified employers who file Form 941 can opt into Form 941, by making an election for the four quarters of calendar year by telephone no later than April 1, 2010, or in writing no later than March 15, 2010.

The election only affects the due date and frequency of returns. It does not affect the deposit schedule. For more information, see Revenue Procedure 2009-51.