Form 944



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Form 944

Does your company have low federal tax liability? If so, this small business video minute will teach you about how IRS Form 944 can simplify your life.

The 944 tax form permits business owners with an annual federal tax liability of less than $1,000 to file Form 944 annually, in place of the quarterly Form 941. If you are exempt from federal tax withholding or pay less than $6,500 in wages annually, you'll file Form 944.

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Welcome to the SurePayroll minute.

I’m Michael Alter.

If you run a small business with low federal tax liability, IRS Form 944 is one way the IRS might actually make your life easier.

In 2006, the IRS enacted the Form 944 program. It allows business owners with an annual federal employment tax liability of less than $1,000 to file their taxes just once a year, as opposed to filing form 941 on a quarterly basis.

This may apply to your business if you are exempt from federal income tax withholdings, or if you pay less than $6,500 in wages for the year.

So what happens if you were planning on filing Form 944 and your tax liability turns out to exceed $1,000? You’ll simply file your IRS Form 944 for that year, and the IRS will send you a notice to file the quarterly 941 forms the next year.

For the simple answer to small business issues, I’m Michael Alter with your SurePayroll Minute.

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