TaxBandits Knowledge Base

How do I know whether I should file Form 944?

To determine if you need to file Form 944 (Employer's Annual Federal Tax Return) for this year, consider the following:

• Notification from the IRS: The IRS will typically notify you if you're eligible to file Form 944 instead of Form 941 (the quarterly employment tax return). They'll send you a written notice of CP136  at the beginning of the year.
   
• Annual payroll tax liability: You may be eligible to file Form 944 if your annual payroll tax liability is $1,000 or less. This means the total of your Social Security, Medicare, and federal income taxes withheld from employees' wages, plus your share of Social Security and Medicare taxes, is expected to be $1,000 or less for the entire year.
   
• New employers: If you're a new employer, you can request to file Form 944 if you expect your annual payroll tax liability to be $1,000 or less.
   
• Previous filing history: If you've been filing Form 944 in previous years and haven't been notified by the IRS to switch to Form 941, you should continue filing Form 944.

If you believe you're eligible to file Form 944 but haven't received a notice from the IRS, you should contact them to request permission to file Form 944 instead of Form 941. You can't decide on your own to file Form 944 without IRS approval.