IRS Forms 944 are two tax forms distributed by the Internal Revenue Service (IRS) and used by the smallest employers to report income, Medicare, and social security taxes withheld from their employees' paychecks and pay their share of taxes. The Smallest Employer by the IRS definition is any employer that accumulated a yearly tax liability of no more than $1,000.
The series includes the following two forms:
The Federal Employment Tax Returns are similar to the IRS 941 Forms. These are used for the same purpose but are filed four times a year at the end of each quarter and used by employers that accumulated a tax liability of more than $1,000. The IRS annually notifies the employers regarding the form they should file this year.
The IRS imposes a penalty if Form 944 is filed late. The penalty is 5% of the amount of the unpaid tax for each month the form is late. The maximum amount of the penalty if 25%. However, if the employer receives the penalty notice from the IRS and replies with an explanation, why the form is filed late and the IRS considers the ground reasonable, the penalty can be avoided.
The IRS will consider the form as filed on time if the envelope with the form is postmarked by the U.S. Postal service or sent by an IRS-designated private delivery service (PDS) on or before the due date. The mailing address for both forms depends on the location the business is at and the type of the organization.