Form F44 is for all small businesses that have employees, so their business tax obligations require them to file an income and payroll tax return, which is withheld from paychecks issued by the employer.
It is important to mention that, this type of return must be made with IRS Form 941, which is also known as the employer’s Quarterly Federal Tax Return. However, in the case of small businesses, since it is a simplified procedure, a different Form can be used to file taxes with the IRS, hence Form 944 is used.
Below we show you step by step how to use Form 944 and know if your company is eligible for the use of this form, it is important that you read the instructions in detail, so you will understand how and when to use Form 944 for IRS tax filing.
What is the IRS Form 944?
As we mentioned in the summary, the IRS Form 944 is the legal document for filing income tax, social security tax and Medicare tax. It is withheld from the paycheck of all your employees as a tax policy. It is important to mention that the Form 944 is also used to calculate the employer’s Social Security and Medicare tax liability. It should be noted that the 944 has been created exclusively for small businesses which have a small number of employees, therefore the tax obligations are lower.
Note that unlike the IRS Form 941, which contains much of the information but must be filed quarterly, Form 944 is a type of tax return, which must be filed annually.
Who can use Form 944?
According to the IRS, the general rule for which companies can use Form 944 is when the company’s employment tax liability is $1,000 or less. Simply put, when the company expects to pay $4,000 or less in total wages to its employees annually, if that rule is met, then your company is eligible to use Form 944, which is “simplified” rather than Form 941, which is filed on a quarterly basis.
It is important to mention that, in order to use Form 944, the IRS must have notified you in writing of the validity and eligibility to file taxes for your business using this form. The IRS is responsible for notifying you if you are eligible or required to file the 944, so your business cannot use the 944 unless you have requested and received permission from the IRS. On the other hand, if you use Form 941 and the IRA has notified you of eligibility to use Form 944, but not required, then you may continue to use Form 941.
In case you believe you are eligible to use Form 944 for annual tax filing, but have not received notification from the IRS, then you may contact the IRS by calling 1-800-829-1040 or visiting one of the offices nearest you to initiate the verification process. However, you should note that, such requests should preferably be made during the first 60 days of the year, in case your request is accepted, the IRS will notify you with a written notice.
If you are just starting your business you fall into the category of “new employers” so when you fill out Form SS-4 for the Employer Identification Number (EIN) application, you can specify that you believe you will be eligible to file Form 944. With this information the IRS will analyze your case and if approved will inform you which form to use for filing your taxes, the 944 or the classic 941.
How to download the Form 944?
Once you have received the authorization from the IRS to use the Form 944, you can proceed with the download of the document from the official IRS website from this link, you can also download it from our direct download below. The file is downloaded in editable PDF format, that is; you can download and complete the form digitally, you do not need to fill in the document manually, so the whole procedure is faster. You can file the form physically at one of the IRS offices nearest to you or online from the official IRS website, which will save you a lot of time.
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Great guide, thank you!