There are very few circumstances when you should be filing a 944
Who is a 944 filer?
- A business that only files employee taxes 1x per year
- With less than $1,000 in employer tax liability for the year (Withheld income tax and FICA (Social Security + Medicare))
Who is a 941 filer?
- A business that files their tax liability quarterly
- Everyone else (you)
So, if you do not fall into that category, why is the IRS telling you to file 944?
- You received your EIN in the last quarter of the calendar year
- When applying for your EIN, you indicated that you would not have more than 1 or 2 employees
- Your previous year's employer tax liability was below $1,000
- The IRS made a mistake
What do I do?
- Make sure your payroll company has you filed as a 941 and filed the document correctly
- Call the IRS to let them know that you are supposed to file the 941 for the reason that you pay more than $1,000 in annual employer taxes and ask them to accept the 941
- Let us know if you have any problems - make sure we have a Power of Attorney on file or else we cannot legally do anything on your behalf