The IRS has issued guidance providing the procedure that qualified employers must follow to request to file Form 944, Employer's ANNUAL Federal Tax Return, or to opt out of filing Form 944 and request to file Forms 941, Employer's QUARTERLY Federal Tax Return, instead. The guidance is effective on January 1, 2010.
The procedure applies to qualified employers. Qualified employers are those with an estimated annual employment tax liability of $1,000 or less for the entire calendar year, except employers required to make a return on Form 943, Employer's Annual Federal Tax Return For Agricultural Employees, or on Schedule H (Form 1040), Household Employment Taxes. The IRS may increase the amount of the estimated annual employment tax liability for this purpose through published guidance.
Upon request by qualified employers, the IRS will notify employers in writing of their qualification to file Form 944. Employers may request to file Form 944 by contacting the IRS at the telephone number or mailing address specified in the Instructions for Form 944, Instructions for Form 944-SS, Instructions for Form 944(SP), or Instructions for Form 944-PR, as applicable, by the applicable due date provided in the procedure. Employers must not file Form 944, unless they receive notification that they are eligible to do so. Employers who previously received notification of their qualification to file Form 944 must continue to file Form 944, unless the IRS notifies them that they no longer qualify to file Form 944 or they opt out of filing Form 944 using this procedure.
Employers who previously were notified to file Form 944, but want to file Forms 941 instead, must call or write the IRS stating that they want to opt out of filing Form 944 at the telephone number or mailing address specified in the Instructions for Form 944, Instructions for Form 944-SS, Instructions for Form 944(SP), or Instructions for Form 944-PR, as applicable, before the applicable due date provided in the procedure. The IRS will send written notification to employers that their filing requirement was changed to Forms 941. Employers who were notified of their qualification to file Form 944, and do not receive notification that their filing requirement was changed to Forms 941, must file Form 944 rather than Forms 941.
Employers who have previously filed Forms 941 or Form 944 (or the related Spanish-language returns or returns for U.S. possessions) and who want to call to request to opt in or out of filing Form 944 for the current tax year must call the IRS on or before April 1st of the current tax year (e.g., April 1, 2010, for tax year 2010 returns). Employers who want to write to request to opt in or out of filing Form 944 for the current tax year must have their written correspondence postmarked on or before March 15th of the current tax year (e.g., March 15, 2010, for returns for tax year 2010).
New employers who have recently received an employer identification number or who were not previously required to file Forms 941 or Form 944 (or the related Spanish-language returns or returns for U.S. possessions) and who want to call to request to opt in or out of filing Form 944 for the current tax year must call the IRS on or before the first day of the month that the first required Form 941 for the current tax year is due (e.g., for tax year 2010 returns, employers must call on or before April 1, 2010, July 1, 2010, October 1, 2010, or January 1, 2011). Employers who want to write to request to opt in or out of filing Form 944 for the current tax year must have their written correspondence postmarked on or before the 15th day of the month before their first required Form 941 for the current tax year is due (e.g., for tax year 2010 returns, the correspondence must be postmarked on or before March 15, 2010, June 15, 2010, September 15, 2010, or December 15, 2010). If the due date falls on a Saturday, Sunday, or legal holiday, the last day employers may call the IRS or have their written correspondence postmarked is the next business day following that Saturday, Sunday, or legal holiday.