Certain Taxpayers May File Their Employment Taxes Annually

File Just One, Consider It Done!

To reduce burden on small employers, the Internal Revenue Service (IRS) has simplified the rules for filing employment tax returns to report social security, Medicare, and withheld federal income taxes.

If your employment taxes for the calendar year will be $1,000 or less you could be eligible to file Form 944, Employers ANNUAL Federal Tax Return. You may make a request to file Form 944 rather than Form 941. To make the request, call the IRS at 800-829-4933 by April 1 of the current year, or send a written request, postmarked by March 15 of the current year, to:

Department of Treasury, Internal Revenue Service,
Ogden, UT 84201-0038

or

Department of Treasury, Internal Revenue Service,
Cincinnati, OH 45999-0038.

Select the appropriate address above based on the state you are in. See "Without a payment" under the "Where Should You File" section of the Instructions for Form 944PDF.

If you do not receive written notice from the IRS to file Form 944, you must file Forms 941 for the current calendar year.

What if you want to file Forms 941 instead of the Form 944?

You must file Form 944 if the IRS has notified you to do so, unless you contact the IRS to request, and receive written notice, to file quarterly Form 941 instead. This is true even if your employment taxes for the year will be over $1,000. If you are unsure of your current filing requirement, call 800-829-4933 or 267-941-1000 (toll call).

If you would like to change from Form 944 and file quarterly Forms 941 to report your social security, Medicare, and withheld federal income taxes for the current calendar year, you may make the request by calling the IRS by April 1 of the current year, or by sending a written request, postmarked by March 15 of the current year using the same contact information as above.

The IRS will send you a written notice that your filing requirement has been changed. If you do not receive this notice, you must file Form 944 for the current calendar year. See Rev. Proc. 2009-51, 2009-45 I.R.B. 625, for additional information.

How do I determine my filing requirement if I am a new business or just hired employees for the first time?

When applying for your Employer Identification Number, you will receive a notice listing the employment tax forms you are required to file. If you hired employees for the first time and were not assigned a specific employment tax return to file, you must file Forms 941 unless you contact the IRS to request to file Form 944 rather than Forms 941. Form 944 cannot be filed unless you receive written notification that you are eligible to do so.

If you are unsure of your current filing requirement, call 800-829-4933 or 267-941-1000 (toll call).

When will I file Form 944?

This return is due once a year, by January 31, after the end of the calendar year. If you made timely deposits in full payment of your taxes by January 31, you have 10 additional calendar days to file your Form 944. You may file Form 944 electronically. See the list of Authorized e-file Providers.

When will I pay my employment taxes?

Form 944 filers should have employment tax liabilities of $1,000 or less. However, if you have an employment tax liability of more than $1,000 and have not received notification changing you to a quarterly Form 941 filer, you must continue to file Form 944.

You may pay once a year when you file your return unless you are required to make Federal Tax Deposits (FTDs). If your liability for social security, Medicare, and withheld federal income taxes is less than $2,500 for the year, you can pay the taxes with your return. However, you may choose to make deposits of these taxes even if your liability is less than $2,500.

If your liability for these taxes is $2,500 or more, you are generally required to deposit the taxes instead of paying them when you file Form 944. See the Federal Tax Deposit Requirements for Form 944 Filers chart located in the Instructions for Form 944. If you do not deposit the taxes when required, you may be subject to penalties and interest. See Publication 15 (Circular E), Employers Tax Guide for FTD requirements.

Taxpayers must use electronic funds transfer to make all federal tax deposits. Generally electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). See Publication 15 (Circular E), Employer's Tax Guide for more information on EFTPS and electronic funds transfer.

What payment methods may I use?

• If you file a paper return, you may pay by check, money order, credit card, or the Electronic Federal Tax Payment System (EFTPS).
• If you file your return electronically, you may also pay by authorizing an Electronic Funds Withdrawal (EFW) from your checking or savings account.
• To make more frequent deposits, you may use EFTPS.
• Please visit Electronic Payment Options, EFTPS, or refer to Publication 15 (Circular E), Employers Tax Guide, for more information on these options.