IRS Form 944 "Employer's Annual Federal Tax Return"

What Is Form 944 Used For?

IRS 944 Form is filed annually to report the IRS the amount of taxes withheld from the employees' paychecks and pay the employer's share of taxes.

IRS Form 944 Instructions

The IRS provides complete Instructions for IRS Form 944 that you can find summarized down below.

1. Part 1. Questions for the Year
   1. Line 1, Wages, tips, and other compensation. Enter the amount of wages, tips and other compensations received by your employees within the year;
   2. Line 2, Federal income tax withheld from wages, tips, and other compensation. Enter the amount of tax you withheld from your employees' paychecks;
   3. Line 3. Check the box, if it applies to you;
   4. Lines 4a-d. Enter the taxable amount of wages or tips in Column 1, multiply this amount by the number given on the form and enter the result in Column 2;
   5. Line 4e. Add amounts entered in Lines 4a-d;
   6. Line 5, Total taxes before adjustments. Add amounts entered in Line 2 and 4e;
   7. Line 6, Current year's adjustments. Enter the amount of adjustments for the current year, using a minus sign for negative numbers;
   8. Line 7, Total taxes after adjustments. Add numbers from Lines 5 and 6;
   9. Line 8, Qualified small business payroll tax credit for increasing research activities. Enter the amount of payroll tax credit as it appears on your IRS form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities;
   10. Line 9, Total taxes after adjustments and credits. Subtract the amount entered in Line 8 from the amount in Line 7, enter the result;
   11. Line 10, Total deposits for this year, including overpayment applied from a prior year and overpayments applied from Form 944-X, 944-X (SP), 941-X, or 941-X (PR). Enter the number of deposits you made for the reported year;
   12. Lines 11 and 12. If the amount in Line 9 is larger than the amount in Line 10, fill line 11. Otherwise, fill line 12. Never fill both lines.
2. Part 2, Deposit Schedule and Tax Liability. Check the applicable box and enter your tax liability for each month, if it applies.
3. Part 3. Fill, if applicable.
4. Part 4, Third-party Designee. If you want to assign a third party-designee to discuss your IRS form 944 with IRS, check the applicable box and provide their name and phone number, assign them a Personal Identification Number (PIN). Otherwise, check the applicable box and leave this part blank.
5. Part 5, Signature. Enter your name, title, best daytime phone, sign, and date the form. If you are a paid preparer, check the box, if you are self-employed. Enter your name, your firm's name, EIN, Preparer Tax Identification Number (PTIN), and address. Sign the form.

If you are including a payment with your IRS Form 944, fill in the payment voucher. Enter your EIN, the amount of payment and address. Detach the voucher and mail it with the form.

When Is Form 944 Due?

Form 944 due date is January 31st of the next year. However, if deposits of the taxes due for the year are made in full payment and on time, the due date for the return is February 11th.

If the form is filed late, the IRS imposes a failure-to-deposit penalty on 5% of the unpaid tax for each month the form is late up to 25%.

If the IRS receives the form after the due date, the form will be considered filed on time, if the envelope with the form is postmarked by the U.S. Postal service or send by an IRS-designated private delivery service (PDS) on or before the due date. If the employer receives a penalty notice from the IRS after filing the return, they should reply with the explanation of late filing. If the IRS considers the ground reasonable, the penalty will be avoided.

Form 944 mailing address depends on the location of the business filing the return, the time of filing, and whether the payment is included with the form. The complete list of mailing addresses can be found in the IRS-issued Instructions for Form 944.

IRS 944 Related Forms:

• IRS Form 944-X, Adjusted Employer's Annual Federal Tax Return or Claim for Refund is used to correct mistakes on the previously filed IRS Form 944. This form can be used only to correct administrative mistakes, which occur only when the employer overreports or underreports taxes on their return;
• You can use IRS Form 944 (SP), Declaracion Federal ANUAL de Impuestos del Patrono o Empleador, if you are a Spanish-speaking taxpayer;
• Use IRS Form 944-X (PR) if you reside in Perto Rico or IRS Form 944-X (SP) to claim your refund if you are a Spanish speaking individual.