Employer's Annual Employment Tax Return

2008 Instructions for Form 944,
Employer’s ANNUAL Federal Tax Return
Purpose: This is the first circulation of the 2008 Instructions for Form 944 for review and
comment. The major changes are described on page 2.
TPCC Meeting:

None scheduled.

Prior Version: The 2007 Instructions for Form 944 are available at:
http://www.irs.gov/pub/irs-pdf/i944.pdf .
Form Circulation: The 2008 Form 944 was circulated on June 20 and is available on the
circulation page link listed below:
Other Products: Circulations of draft tax forms and instructions are posted at
http://taxforms.web.irs.gov/Circulations/index.htm
Comments: Please email, fax, or call with any comments by Oct. 10, 2008, and
email the reviewer, Ron Gamble, at [email protected] . The two week
comment period is needed to meet print deadlines.
Robert M. Coar, Tax Law Specialist
Business Branch, Tax Forms and Publications
Cubbie C-7-266, NCFB
SE:W:CAR:MP:T:B:P
Phone: (202) 283-0659
Fax: (202) 283-7008
Email: [email protected]

September 26, 2008

2008 Instructions for Form 944,
Employer’s ANNUAL Federal Tax Return
Major Changes
Page 1
1. Beginning in 2009, there will be a new process for adjusting employment tax
returns. Information on this has been added on pages 1, 2, and 5. Regulation
2. The social security wage base for 2008 has been updated to $102,000 in
“What’s New” and on page 5. Memo from SSA. The paragraph on the social
security wage base for next year has been deleted.
3. The What’s New paragraph on address changes reflects the filing address
change for Georgia and Tennessee and the replacement of the Charlotte
address with a Cincinnati address.
4. We added a What’s New item about the requirement for a paid preparer to
sign Form 944.
5. We added a reminder about the employer’s liability if they contract with a
third-party and the third party fails to perform an action. Requested by collection
policy.
Page 2
6. A TIP has been added at the end of the section “What if you do not want to
file Form 944 for 2009”, alerting taxpayers if they meet one of the exceptions to
not file Form 944 for 2009, they can elect to not participate in the Form 944
program in future years. This suggested by the Form 944 working group.
Page 3
7. The link to the Online EIN webpage was updated.
Page 4
8. Georgia and Tennessee have switched filing addresses. The Charlotte “With
a payment” address has been replaced by a Cincinnati address, memo from
Submission Processing.
Page 8
9. A paid preparer is now required to sign Form 944, beginning with the 2008
return. The paid preparer’s section is now called Paid Preparer’s Use Only (to
agree with Form 1040) and is a separate section within Part 5. The instructions
have been revised to reflect this. Section 8246 of the Small Business and Work
Opportunity Tax Act of 2007 and Notice 2008-13.

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Instructions for Form 944

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First Circulation, September 26, 2008

2008

Department of the Treasury
Internal Revenue Service

Instructions for Form 944
Employer’s ANNUAL Federal Tax Return
Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New
Changes to filing addresses. The filing addresses have
changed for Form 944 filers located in Georgia and
Tennessee. The Charlotte, NC “With a payment” filing
address has changed to Cincinnati, OH. See Where Should
You File? on page 4.
Paid preparers must sign Form 944. The paid preparer’s
section of Form 944 is no longer optional and is included in
Part 5 of Form 944. See Paid preparers on page 8.
Social security wage base for 2008. Do not withhold
social security tax after an employee reaches $102,000 in
social security wages. There is no limit on the amount of
wages subject to Medicare tax.
New employment tax adjustment process in 2009. If you
discover an error on a previously filed Form 944 after
December 31, 2008, make the correction using new Form
944-X, Adjusted Employer’s ANNUAL Federal Tax Return or
Claim for Refund. Currently, taxpayers make corrections to
Form 944 using Form 941c that is filed once a year with
Form 944. Form 944-X is a stand-alone form, meaning
taxpayers can file Form 944-X when an error is discovered,
rather than waiting until the end of the year to file Form 941c
with Form 944. Lines 6b, 6c, 6d, 6e, and 6f will be deleted
from the 2009 Form 944. Adjustments now made on those
lines will be made on the new Form 944-X. For more
information, visit the IRS website at www.irs.gov.

Reminders
Form 944 — annual employment tax filing for small
employers. To reduce burden on small employers, the
Internal Revenue Service (IRS) has simplified the rules for
filing employment tax returns to report social security,
Medicare, and withheld federal income taxes. Certain
employers must file Form 944, Employer’s ANNUAL Federal
Tax Return, instead of Form 941, Employer’s QUARTERLY
Federal Tax Return.
Correcting Form 944 or Form 941. If you discover an
error in 2008 on a previously filed Form 944 or Form 941
and you are required to file Form 944, make the correction
using the 2008 Form 944 and attach Form 941c, Supporting
Statement to Correct Information. For example, in May
2008, you discovered that you underreported $100 in social
security and Medicare wages on your 2007 Form 944.
Correct the error by showing $15.30 (15.3% × $100) on line
6c of your 2008 Form 944 and attaching a completed
Form 941c. For more information, see Prior Period
Adjustments in section 13 of Pub. 15 (Circular E),
Employer’s Tax Guide.
Electronic filing and payment. Now, more than ever
before, businesses can enjoy the benefits of filing and
paying their federal taxes electronically. Whether you rely on
a tax professional or handle your own taxes, IRS offers you
convenient programs to make filing and paying easier.
Spend less time and worry on taxes and more time running

your business. Use e-file and Electronic Federal Tax
Payment System (EFTPS) to your benefit.
• For e-file, visit www.irs.gov.
• For EFTPS, visit www.eftps.gov or call EFTPS Customer
Service at 1-800-555-4477, 1-800-733-4829 (TDD), or
1-800-244-4829 (Spanish).
If you were a semiweekly schedule depositor at any
time during 2008, you must file a paper Form 944
CAUTION and Form 945-A, Annual Record of Federal Tax
Liability.

!

Electronic funds withdrawal (EFW). If you file
Form 944 electronically, you can e-file and e-pay (electronic
funds withdrawal) the balance due in a single step using tax
preparation software or through a tax professional.
However, do not use EFW to make federal tax deposits.
For more information on paying your taxes using EFW, visit
the IRS website at www.irs.gov and click on the electronic
IRS link. A fee may be charged to file electronically.
Credit card payments. Employers can pay the balance
due shown on Form 944 by credit card. However, do not
use a credit card to make federal tax deposits. For more
information on paying your taxes with a credit card, visit the
IRS website at www.irs.gov and click on the electronic IRS
link. A convenience fee will be charged for this service.
Employer’s liability. Employers are responsible to ensure
that tax returns are filed and deposits and payments are
made, even if the employer contracts with a third party. The
employer remains liable if the third party fails to perform a
required action.
Where can you get telephone help? You can call the IRS
Business & Specialty Tax Line toll free at 1-800-829-4933 to
order tax deposit coupons (Form 8109) and for answers to
your questions about completing Form 944, tax deposit
rules, or obtaining an employer identification number (EIN).
Photographs of missing children. The IRS is a proud
partner with the National Center for Missing and Exploited
Children. Photographs of missing children selected by the
Center may appear in instructions on pages that would
otherwise be blank. You can help bring these children home
by looking at the photographs and calling 1-800-THE-LOST
(1-800-843-5678) if you recognize a child.

General Instructions
Federal law requires you, as an employer, to withhold taxes
from your employees’ paychecks. Each time you pay wages,
you must withhold — or take out of your employees’
paychecks — certain amounts for federal income tax, social
security tax, and Medicare tax. Under the withholding
system, taxes withheld from your employees are credited to
your employees in payment of their tax liabilities.
Federal law also requires employers to pay any liability
for the employer’s portion of social security and Medicare
taxes. This portion of social security and Medicare taxes is
not withheld from employees.

Cat. No. 39820A

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Instructions for Form 944

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First Circulation, September 26, 2008

If the IRS notified you to file Form 944 for 2008, file

What Is the Purpose of Form 944?

TIP Form 944 (and not Forms 941) even if your tax
liability for 2008 exceeds $1,000.

Form 944 is designed so the smallest employers (those
whose annual liability for social security, Medicare, and
withheld federal income taxes is $1,000 or less) will file and
pay these taxes only once a year instead of every quarter.
These instructions give you some background information
about Form 944. They tell you who must file Form 944, how
to complete it line by line, and when and where to file it.

What if you do not want to file Form 944
for 2009?
You must file Form 944 if you have been notified to do so,
unless you meet one of the exceptions. If the IRS has
notified you to file Form 944 and an exception listed below
applies to you, you must contact the IRS by telephone at
1-800-829-4933 about what form to file. To determine if you
can file Form 941 quarterly to report your social security,
Medicare, and withheld federal income taxes for the 2009
calendar year, you must contact the IRS by April 1, 2009,
unless you are a new employer. See New employers above.
You may be eligible to file Form 941 quarterly, instead of
Form 944 annually, if either of the following applies.

For more information about annual employment tax filing
and tax deposit rules, see Treasury Decision 9239. You can
find T.D. 9239 on page 401 of Internal Revenue Bulletin
2006-6 at www.irs.gov/pub/irs-irbs/irb06-06.pdf.
If you want more in-depth information about payroll tax
topics, see Pub. 15 (Circular E), or visit the IRS website at
www.irs.gov/businesses and click on the Employment Taxes
link.

• You agree to file your quarterly Forms 941 electronically.
• You expect your 2009 liability for social security,

Who Must File Form 944?

Medicare, and withheld federal income taxes to be
more than $1,000.

In general, if the IRS has notified you to file Form 944, then
you must file Form 944 instead of Form 941 to report all the
following amounts.

•
•
•
•
•
•
•

If you contact the IRS and the IRS determines you can
file Forms 941 instead of Form 944, the IRS will send you a
written notice that your filing requirement has been changed.

Wages you have paid.
Tips your employees have received.
Federal income tax you withheld.
Both the employer’s and the employee’s share of social
security and Medicare taxes.
Current year’s adjustments to social security and
Medicare taxes for fractions of cents, sick pay, tips,
and group-term life insurance.
Prior years’ adjustments to payroll taxes (attach
Form 941c). If you discover an error after 2008, you must
use Form 944-X to make corrections to a previously
filed Form 944.
Advance earned income tax credit (EIC) payments.

If you meet one of the exceptions above, you may

TIP elect to not participate in the Form 944 program in
future years. You can make this election when you
contact IRS about your 2009 Form 944 filing. If the IRS
determines you can file Form 941 instead of Form 944 for
years after 2009, you will be sent a written notice that your
filing requirement has changed.

Who cannot file Form 944?
The following employers cannot file Form 944.

• Employers who are not notified. If the IRS does

You must file Form 944 for each year even if you have no
taxes to report (or you have taxes in excess of $1,000 to
report) unless the IRS notifies you that your filing
requirement has been changed to Form 941 (or you filed a
final return — See If your business has closed... below).
Also see What if you do not want to file Form 944 for 2009?
below.

•

In February 2008, the IRS mailed newly eligible
employers a notice to file Form 944 if their annual liability for
social security, Medicare, and withheld federal income taxes
was expected to be $1,000 or less. If you did not respond to
that notice by April 1, 2008, indicating your interest to not
participate in the Form 944 program, then you must file
Form 944 for 2008.

•

not notify you to file Form 944, do not file Form 944.
You can call the IRS at 1-800-829-4933 by
April 1, 2009, to determine if you can file Form 944
for calendar year 2009.
Household employers. If you employ only household
employees, do not file Form 944. For more information,
see Pub. 926, Household Employer’s Tax
Guide, and Schedule H (Form 1040), Household
Employment Taxes.
Agricultural employers. If you employ only agricultural
employees, do not file Form 944. For more information,
see Pub. 51 (Circular A), Agricultural Employer’s Tax
Guide, and Form 943, Employer’s Annual Federal Tax
Return for Agricultural Employees.

What if you reorganize or close your
business?

If you did not receive a notice but you contacted the IRS
to participate in the Form 944 program and the IRS notified
you in writing that your filing requirement was changed, you
must file Form 944 for 2008.

If you sell or transfer your business...
If you sell or transfer your business, you and the new owner
must each file a Form 944 or Forms 941, whichever applies,
for the year in which the transfer occurred. Report only the
wages you paid.

New employers are also eligible to file Form 944 if they
will meet the eligibility requirements. New employers filing
Form SS-4, Application for Employer Identification Number,
must complete line 13 of Form SS-4 indicating the highest
number of employees expected in the next 12 months and
must check the “Yes” box or the “No” box on line 14 to
indicate whether they expect to have $1,000 or less in
employment tax liability for the calendar year. Generally, if
you pay $4,000 or less in wages subject to social security
and Medicare taxes and federal income tax withholding, you
are likely to pay $1,000 or less in employment taxes. New
employers are advised of their employment tax filing
requirement when they are issued their EIN.

When two businesses merge, the continuing firm must file
a return for the year in which the change took place and the
other firm should file a final return.
Changing from one form of business to another — such as
from a sole proprietorship to a partnership or
corporation — is considered a transfer. If a transfer occurs,
you may need a new employer identification number (EIN).
See section 1 of Pub. 15 (Circular E). Attach a statement to
your return with all the following information.

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Instructions for Form 944

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First Circulation, September 26, 2008

• The new owner’s name (or the new name of the
•
•
•
•

on Form SS-4. For example, if you are a sole proprietor,
enter “Tyler Smith” on the “Name” line and “Tyler’s Cycles”
on the “Trade name” line. Leave the “Trade name” line blank
if it is the same as your “Name.”
Employer identification number (EIN). To make sure that
businesses comply with federal tax laws, the IRS monitors
tax filings and payments by using a numerical system to
identify taxpayers. A unique 9-digit employer identification
number (EIN) is assigned to all corporations, partnerships,
and some sole proprietors. Businesses needing an EIN
must apply for a number and use it throughout the life of the
business on all tax returns, payments, and reports.
Your business should have only one EIN. If you have
more than one and are not sure which one to use, write to
the IRS office where you file your returns (using the “Without
a payment” address on page 4) or call the IRS at
1-800-829-4933. TTY/TDD users can call 1-800-829-4059.
If you do not have an EIN, you may apply for one online.
Go to the IRS website at www.irs.gov and click on the More
Online Tools link, then the Online Employer Identification
Number (EIN) link. You may also apply for an EIN by calling
1-800-829-4933, or you can fax or mail Form SS-4 to the
IRS. If you have applied for an EIN but do not have your EIN
by the time a return is due, write “Applied For” and the date
you applied in the space shown for the number.

business).
Whether the business is now a sole proprietorship,
partnership, or corporation.
The kind of change that occurred (a sale or transfer).
The date of the change.
The name of the person keeping the payroll records and
the address where those records will be kept.

If your business has closed...
If you go out of business or stop paying wages to your
employees, you must file a final return. To tell the IRS that
the form for a particular year is your final return, check the
box in Part 3 on page 2 of Form 944 and enter the final date
you paid wages. Also attach a statement to your return
showing the name of the person keeping the payroll records
and the address where those records will be kept.
If you participated in a statutory merger or consolidation,
or qualify for predecessor-successor status due to an
acquisition, you should generally file Schedule D (Form
941), Report of Discrepancies Caused by Acquisitions,
Statutory Mergers, or Consolidations. See the Instructions
for Schedule D (Form 941) to determine whether you should
file Schedule D (Form 941) and when you should file it.

When Must You File?

Always be sure the EIN on the form you file exactly

File Form 944 by February 2, 2009, after the end of the
2008 calendar year. If you made deposits in full payment of
your taxes for the year by January 31, 2009, you have 10
more calendar days after that date to file your Form 944.
File Form 944 only once for each calendar year. If you
filed Form 944 electronically, do not file a paper Form 944.
For more information about filing Form 944 electronically,
see Electronic filing and payment on page 1.
If we receive Form 944 after the due date, we will treat
Form 944 as filed on time if the envelope containing
Form 944 is properly addressed, contains sufficient postage,
and is postmarked by the U.S. Postal Service on or before
the due date, or sent by an IRS-designated private delivery
service on or before the due date. If you do not follow these
guidelines, we will consider Form 944 filed when it is
actually received. See Pub. 15 (Circular E) for more
information on IRS-designated private delivery services.
If any due date for filing falls on a Saturday, Sunday, or
legal holiday, you may file your return on the next business
day.

TIP matches the EIN that IRS assigned to your business.
Do not use your social security number on forms that
ask for an EIN. Filing a Form 944 with an incorrect EIN or
using another business’s EIN may result in penalties and
delays in processing your return.
If you change your name or address... Notify the IRS
immediately if you change your business name or address.
• Name change. Write to the IRS office where you
filed your return without payment to notify the IRS of any
name change. Get Pub. 1635, Understanding Your EIN,
to see if you need to also apply for a new EIN.
• Address change. Complete and mail Form 8822,
Change of Address, for any address change.

Completing and Filing Form 944
Make entries on Form 944 as follows to enable accurate
processing.
• Use 12-point Courier font (if possible) for all entries if
you are using a typewriter or computer to complete
Form 944.
• Do not enter dollar signs and decimal points. Commas are
optional. Report dollars to the left of the preprinted
decimal point and cents to the right of it.
• Leave blank any data field with a value of zero (except
lines 1 and 9).
• Enter negative amounts using a minus sign (if possible).
Otherwise, use parentheses.
• Enter your name and EIN on all pages and attachments.
Filers using the IRS-preaddressed Form 944 do not
have to enter their name and EIN on page 2.

How Should You Complete Form 944?
Review Your Business Information at the
Top of the Form
If you are using a copy of Form 944 that has your business
name and address preprinted at the top of the form, check
to make sure the information is correct. Carefully review
your EIN to make sure that it exactly matches the EIN
assigned to your business by the IRS. If any information is
incorrect, cross it out and enter the correct information. See
also If you change your name or address... below.
If you use a tax preparer to fill out Form 944, make sure
the preparer uses your business name and EIN exactly as
they appear on the preprinted form.
If you are not using a preprinted Form 944, enter your
EIN, name, and address in the spaces provided. Also enter
your name and EIN at the top of page 2. Do not use your
social security number (SSN) or individual taxpayer
identification number (ITIN). Generally, enter the business
(legal) name that you used when you applied for your EIN

Other Forms You Must Use
Give each eligible employee Notice 797, Possible Federal
Tax Refund Due to the Earned Income Credit (EIC). Each
eligible employee who wishes to receive any advance
earned income credit (EIC) payments must give you a
completed Form W-5, Earned Income Credit Advance
Payment Certificate. For more information, see section 10 of
Pub. 15 (Circular E) and Pub. 596, Earned Income Credit.

Reconciling Form 944 and Form W-3
The IRS matches amounts reported on your Form 944 with
Form W-2 amounts totaled on your Form W-3, Transmittal of

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Instructions for Form 944

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First Circulation, September 26, 2008

Wage and Tax Statements. If the amounts do not agree, the
IRS may contact you. The following amounts are reconciled.
• Federal income tax withholding.
• Social security wages.
• Social security tips.
• Medicare wages and tips.
• Advance earned income credit (EIC) payments.
For more information, see section 12 of Pub. 15
(Circular E) and the Instructions for Schedule D (Form 941).

period. The lookback period for Form 944 filers is different
than the lookback period for Form 941 filers, so your deposit
schedule may have changed. For more information, see
section 11 of Pub. 15 (Circular E).

What About Penalties and Interest?
Avoiding penalties and interest
You can avoid paying penalties and interest if you do all the
following.
• Deposit or pay your taxes when they are due, using
EFTPS if required.
• File your fully completed Form 944 on time.
• Report your tax liability accurately in Part 2 of Form 944.
• Submit valid checks for tax payments.
• Give accurate Forms W-2 to employees.
• File Form W-3 and Copies A of Form W-2 with the Social
Security Administration (SSA) on time and accurately.
Penalties and interest are charged on taxes paid late and
returns filed late at a rate set by law. See sections 11 and 12
of Pub. 15 (Circular E) for details. Use Form 843, Claim for
Refund and Request for Abatement, to request abatement
of assessed penalties or interest. Do not request abatement
of assessed penalties or interest on Form 944, Form 944-X,
or Form 941c.

Must You Deposit Your Taxes?
If your liability for social security, Medicare, and withheld
federal income taxes is less than $2,500 for the year, you
can pay the taxes with your return. To avoid a penalty, you
should pay in full and file on time. You do not have to
deposit the taxes. However, you may choose to make
deposits of these taxes even if your liability is less than
$2,500. If your liability for these taxes is $2,500 or more, you
are generally required to deposit the taxes instead of paying
them when you file Form 944. See the Federal Tax Deposit
Requirements for Form 944 Filers chart below. If you do not
deposit the taxes when required, you may be subject to
penalties and interest.
The $2,500 threshold at which federal tax deposits must
be made is different from the amount of annual tax liability
($1,000 or less) that makes an employer eligible to
participate in the Employers’ Annual Federal Tax Program
and file Form 944. Designated Form 944 filers whose
businesses grow during the year may be required to make
federal tax deposits (see chart below), but they will still file
Form 944 for the year.

A trust fund recovery penalty may apply if federal
income, social security, and Medicare taxes that
CAUTION must be withheld are not withheld or paid. The
penalty is the full amount of the unpaid trust fund tax. This
penalty may apply when these unpaid taxes cannot be
collected from the employer. The trust fund recovery penalty
may be imposed on all people the IRS determines to be
responsible for collecting, accounting for, and paying these
taxes, and who acted willfully in not doing so. For details,
see section 11 of Pub. 15 (Circular E).

!

Federal Tax Deposit Requirements for Form 944 Filers
If Your Tax Liability is:
Less than $2,500 for the year

$2,500 or more for the year, but
less than $2,500 for the quarter

$2,500 or more for the quarter

Your Deposit Requirement is:
No deposit required. You may
pay the tax with your return. If
you are unsure that your tax
liability for the year will be less
than $2,500, deposit under the
rules below.

Where Should You File?
Where you file depends on whether you include a payment
with your form.

You can deposit by the last
day of the month after the end
of a quarter. However, if your
fourth quarter tax liability is
less than $2,500, you may pay
the fourth quarter’s tax liability
with Form 944.
You must deposit monthly, or
semiweekly, depending on
your deposit schedule. But, if
you accumulate $100,000 or
more of taxes on any day,
you must deposit the tax by
the next banking day. See
section 11 of Pub. 15.

Note. When you make deposits depends on your deposit
schedule, which is either monthly or semiweekly, depending
on the amount of your tax liability during the lookback

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If you are in . . .

Without a
payment . . .

Special filing address for
exempt organizations; federal,
state and local governmental
entities; and Indian tribal
governmental entities; regardless
of location

Department of the
Treasury
Internal Revenue
Service
Ogden, UT
84201-0044

Internal Revenue
Service
P.O. Box 105118
Atlanta, GA
30348-5118

Connecticut
Delaware
District of
Columbia
Georgia
Illinois
Indiana
Kentucky
Maine
Maryland
Massachusetts
Michigan
New Hampshire

Department of the
Treasury
Internal Revenue
Service
Cincinnati, OH
45999-0044

Internal Revenue
Service
P.O. Box 804522
Cincinnati, OH
45280-4522

New Jersey
New York
North Carolina
Ohio
Pennsylvania
Rhode Island
South Carolina
Tennessee
Vermont
Virginia
West Virginia
Wisconsin

With a payment . . .

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Instructions for Form 944

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First Circulation, September 26, 2008
Without a
payment . . .

If you are in . . .
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Florida
Hawaii
Idaho
Iowa
Kansas
Louisiana
Minnesota
Mississippi

Missouri
Montana
Nebraska
Nevada
New Mexico
North Dakota
Oklahoma
Oregon
South Dakota
Texas
Utah
Washington
Wyoming

No legal residence or principal
place of business in any state

Department of the
Treasury
Internal Revenue
Service
Ogden, UT
84201-0044

for both. Stop paying social security tax on and reporting an
employee’s wages on line 4a when the employee’s taxable
wages (including tips) reach $102,000 during 2008.
However, continue to withhold income and Medicare taxes
for the whole year on wages and tips even when the social
security wage base of $102,000 has been reached.

With a payment . . .
Internal Revenue
Service
P.O. Box 105118
Atlanta, GA
30348-5118

x

Internal Revenue
Service
P.O. Box 409101
Ogden, UT 84409

line 4a (column 1)
.124
line 4a (column 2)

4b. Taxable social security tips. Enter all tips your
employees reported to you during the year until the total of
the tips and wages for an employee reach $102,000 in
2008. Do this even if you were unable to withhold the 6.2%
employee’s share of social security tax.
An employee must report cash tips to you, including tips
you paid the employee for charge customers, totaling $20 or
more in a month by the 10th of the next month. Employees
may use Form 4070, Employee’s Report of Tips to
Employer, or submit a written statement or electronic tip
record.

Internal Revenue
Service
P.O. Box 105273
Atlanta, GA
30348-5273

Your filing or payment address may have changed
from that used to file your employment tax return in
CAUTION prior years. If you are using an IRS-provided
envelope, use only the labels and envelope provided with
the tax package. Do not send Form 944 or any payments to
the Social Security Administration (SSA). Private delivery
services cannot deliver to P.O. boxes.

!

x

line 4b (column 1)
.124
line 4b (column 2)

4c. Taxable Medicare wages and tips. Report all
wages, tips, sick pay, and taxable fringe benefits that are
subject to Medicare tax. Unlike social security wages, there
is no limit on the amount of wages subject to Medicare tax.
Include all tips your employees reported during the year,
even if you were unable to withhold the employee tax
of 1.45%.

Specific Instructions:
Part 1: Answer these questions
for 2008

x

1. Wages, tips, and other compensation

line 4c (column 1)
.029
line 4c (column 2)

For more information on tips, see section 6 of Pub. 15
(Circular E).
4d. Total social security and Medicare taxes. Add
social security tax, social security tips tax, and Medicare tax.

Enter amounts on line 1 that would also be included in box 1
of your employees’ Forms W-2. See the Instructions for
Forms W-2 and W-3 for details.

2. Income tax withheld from wages, tips,
and other compensation

line 4a (column 2)
line 4b (column 2)
+ line 4c (column 2)
line 4d

Enter the federal income tax that you withheld (or were
required to withhold) from your employees on this year’s
wages, tips, taxable fringe benefits, and supplemental
unemployment compensation benefits.

5. Total taxes before adjustments
Add the federal income tax withheld from wages, tips, and
other compensation (line 2) and total social security and
Medicare taxes before adjustments (line 4d) and enter the
result on line 5.

3. If no wages, tips, and compensation are
subject to social security or Medicare tax
If no wages, tips, and compensation are subject to social
security or Medicare taxes, check the box on line 3 and go
to line 5. If this question does not apply to you, leave the box
blank. For more information about exempt wages, see
section 15 of Pub. 15 (Circular E). For religious exemptions,
see section 4 of Pub. 15-A.

6. TAX ADJUSTMENTS
Enter tax amounts on lines 6a through 6e that result from
current or prior period adjustments. Use a minus sign (if
possible) to show an adjustment that decreases the total
taxes shown on line 5. Otherwise, use parentheses. Do not
enter an amount on line 6d or line 6e unless the IRS has
sent you a notice instructing you to do so.

4. Taxable social security and Medicare
wages and tips

For errors discovered after 2008, make corrections
to a previously filed Form 944 on Form 944-X. Lines
CAUTION 6b, 6c, 6d, 6e, and 6f will be deleted from the 2009
Form 944.
6a. Current year’s adjustments. In certain cases, you
must adjust the amounts you reported as social security and
Medicare taxes in column 2 of lines 4a, 4b, and 4c to figure
your correct tax liability for this year’s Form 944. See
section 13 of Pub. 15 (Circular E). Do not attach Form 941c
or an equivalent statement for current year adjustments.

4a. Taxable social security wages. Report the total
wages, sick pay, and fringe benefits subject to social
security taxes that you paid to your employees during the
year.
Enter the amount before deductions. Do not include tips
on this line. For information on types of wages subject to
social security taxes, see section 5 of Pub. 15 (Circular E).
The rate of social security tax on taxable wages is 6.2%
(.062) each for the employer and employee or 12.4% (.124)

!

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Instructions for Form 944

15:34 - 25-SEP-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

First Circulation, September 26, 2008

Fractions of cents. Enter adjustments for fractions of
cents (due to rounding) relating to the employee share of
social security and Medicare taxes withheld. The employee
share (one-half) of amounts shown in column 2 of lines 4a,
4b, and 4c may differ slightly from amounts actually withheld
from employees’ paychecks due to rounding social security
and Medicare taxes based on statutory rates.

8. Advance earned income credit (EIC)
payments made to employees
Enter the amount of the advance earned income credit (EIC)
payments that you made to your employees. Eligible
employees may choose to receive part of the EIC as an
advance payment. Those who expect to have a qualifying
child must give you a completed Form W-5 stating they
expect to qualify for the EIC. Once the employee gives you
a signed and completed Form W-5, you must make the
advance EIC payments starting with the employee’s next
wage payment. Advance EIC payments are generally made
from withheld federal income tax and employee and
employer social security and Medicare taxes. See
section 10 of Pub. 15 (Circular E) and Pub. 596.
If line 8 is more than line 7, you may claim a refund of the
overpayment or elect to have the credit applied to your
return for the next year. Attach a statement to Form 944
identifying the amount of excess payment and the pay
periods in which you paid it.

Sick pay. Enter the adjustment for the employee share
of social security and Medicare taxes that were withheld by
your third-party sick pay payer.
Adjustments for tips and group-term life insurance.
Enter adjustments for both the following items.

• Any uncollected employee share of social security and
Medicare taxes on tips.

• The uncollected employee share of social security and

Medicare taxes on group-term life insurance premiums
paid for former employees.

6b. Prior years’ income tax withholding adjustments.
Generally, you cannot adjust amounts reported as federal
income tax withheld in a prior calendar year unless it is to
correct an administrative error. An administrative error
happened if the amount you entered on a prior year
Form 944 or Form 941 was not the same amount you
actually withheld. For example, when the total amount of
federal income tax actually withheld was not reported
correctly on Form 944 because of a mathematical or
transposition error, the difference is an administrative error.
The administrative error adjustment corrects the amounts
reported on a prior return to agree with the amount actually
withheld from the employee. Remember to attach
Form 941c to explain the adjustment.

9. Total taxes after adjustment for
advance EIC
Calculate your total taxes as shown below.
line 7
− line 8
line 9

• If line 9 is less than $2,500, you may pay the
•

6c. Prior years’ social security and Medicare tax
adjustments. Use line 6c to adjust amounts reported on
previous returns. If you need to report both an increase
and a decrease for the same line, show only the difference.

amount with Form 944 because you were
not required to deposit. See section 11 of Pub. 15
(Circular E) for information about federal tax deposits.
If line 9 is $2,500 or more, you generally must deposit
your tax liabilities using EFTPS or at an authorized
financial institution with Form 8109. However, if you
deposited all taxes accumulated in the first three quarters
of the year and your fourth quarter liability is less than
$2,500, you may pay taxes accumulated during the fourth
quarter on Form 944. The amount shown on line 9
must equal line 13m, Total liability for year.

Adjustments you report here change your tax liability and
your tax deposits. You will have to take these adjustments
into account on lines 13a through 13l. Enter your tax liability
amounts for each month. You must explain any adjustments
that you make on Form 941c or in an equivalent statement.

10. Total deposits for this year, including
overpayments applied from a prior year

Form 941c is not an amended return but is a statement
providing the necessary information and certifications for
adjustments shown on lines 6c through 6e. Do not file
Form 941c separately from Form 944. For more information,
see section 13 of Pub. 15 (Circular E).

Enter your deposits for this year, including any deposits that
you were required to make to cover prior period liabilities
resulting from adjustments shown on lines 6a – 6e. Also
include in the amount shown any overpayment from a
previous period that you applied to this return.

11. Balance due

If you are adjusting an employee’s social security
TIP wages, social security tips, or Medicare wages and
tips for a prior year, you must also file Form W-2c,
Corrected Wage and Tax Statement, and Form W-3c,
Transmittal of Corrected Wage and Tax Statements.

If line 9 is more than line 10, write the difference on line 11.
Otherwise, see Overpayment below.
You do not have to pay if line 11 is less than $1.
Generally, you should have a balance due only if your total
taxes after adjustment for advance EIC (line 9) are less than
$2,500. See If line 9 is $2,500 or more above for an
exception.
If line 11 is:
• Less than $1, you do not have to pay it.
• Between $1 and $2,500, you can pay the amount owed
with your return. Make your check or money order
payable to the United States Treasury and write your
EIN, Form 944, and 2008 on the check or money order.
Complete Form 944-V, Payment Voucher, and enclose it
with your return.
• $2,500 or more, you must deposit your tax. See Must You
Deposit Your Taxes? on page 4.
You may pay the amount shown on line 11 using EFTPS,
a credit card, or electronic funds withdrawal (EFW). Do not

6d. Special additions to federal income tax. Use this
line only if the IRS has sent you a notice instructing you to
do so. You must attach Form 941c explaining the tax
increase.
6e. Special additions to social security and Medicare
taxes. Use this line only if the IRS has sent you a notice
instructing you to do so. You must attach Form 941c
explaining the tax increase.
6f. TOTAL ADJUSTMENTS. Combine all adjustments
shown on lines 6a through 6e and enter the result on line 6f.

7. Total taxes after adjustments
Combine the amounts shown on lines 5 and 6f and enter the
result on line 7.

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Page 7 of 8

Instructions for Form 944

15:34 - 25-SEP-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

First Circulation, September 26, 2008

use a credit card or EFW to pay taxes that were required to
be deposited. For more information on paying your taxes
with a credit card or EFW, visit the IRS website at
www.irs.gov and click on the electronic IRS link.
If you pay by EFTPS or credit card, file your return using
the “Without a payment” address on page 4 under Where
Should You File? and do not file Form 944-V.

!

CAUTION

When you deposit in multiple states, IRS cannot
determine what portion of your liability was affected by a
state holiday and may propose a deposit penalty for one or
more of the states where you made deposits. If you receive
a notice and your deposit due date was extended because
of a state bank holiday, respond to the notice citing the state
holiday and applicable deposit amount.

If you are required to make deposits and, instead,
pay the taxes with Form 944, you may be subject to
a penalty.

Part 3: Tell us about your business
In Part 3, answer question 15 only if it applies to your
business. If it does not apply, leave it blank and go to Part 4.

12. Overpayment
If line 10 is more than line 9, enter the amount on line 12.
Never make an entry on both lines 11 and 12.
If you deposited more than the correct amount for a year,
you can choose to have the overpayment refunded to you or
applied to your next return. Check the appropriate box in
line 12. If you do not check either box, we will automatically
refund the overpayment. We may apply your overpayment
to any past due tax account that is shown in our records
under your EIN.
If line 12 is less than $1, we will send a refund or apply it
to your next return only if you ask us in writing to do so.

15. If your business has closed or you
stopped paying wages...
If you go out of business or stop paying wages, you must file
a final return. To notify the IRS that a particular Form 944 is
your final return, check the box on line 15 and enter the date
you last paid wages in the space provided.

Part 4: May we speak with your
third-party designee?

Complete both pages.

If you want to allow an employee, a paid tax preparer, or
another person to discuss your Form 944 with the IRS,
check the “Yes” box in Part 4. Enter the name, phone
number, and the 5-digit personal identification number (PIN)
of the specific person to contact — not the name of the firm
who prepared your tax return. The designee may choose
any numbers as his or her PIN.
By checking “Yes,” you authorize the IRS to talk to the
person you named (your designee) about any questions we
may have while we process your return. You also authorize
your designee to do all the following.
• Give us any information that is missing from your return.
• Call us for information about processing your return.
• Respond to certain IRS notices that you have shared with
your designee about math errors and return preparation.
The IRS will not send notices to your designee.
You are not authorizing your designee to bind you to
anything (including additional tax liability) or to otherwise
represent you before the IRS. If you want to expand your
designee’s authorization, see Pub. 947, Practice Before the
IRS and Power of Attorney.
The authorization will automatically expire 1 year after the
due date (without regard to extensions) for filing Form 944.
If you or your designee want to terminate the authorization,
write to the IRS office for your locality using the “Without a
payment” address under Where Should You File? on
page 4.

You must complete both pages of Form 944 and sign on
page 2. Failure to do so may delay processing of your
return.

Part 2: Tell us about your tax liability
for 2008
13. Check one
If line 9 is less than $2,500, check the first box in line 13 and
go to Part 3, line 15.
If line 9 is $2,500 or more, check the second box on
line 13. If you are a monthly schedule depositor, fill out your
tax liability for each month and figure the total liability for the
year. If you do not enter your tax liability for each month, the
IRS will not know when you should have made deposits and
may assess an “averaged” failure-to-deposit penalty. See
section 11 of Pub. 15 (Circular E). If your tax liability for any
month is negative (for example, if you are adjusting an
overreported liability in a prior month), do not enter a
negative amount for the month. Instead, enter zero for the
month and subtract that negative amount from your tax
liability for the next month.
Note. Your total tax liability for the year (line 13m) must
equal your total taxes on line 9.
If you are a semiweekly schedule depositor or if you
accumulate $100,000 or more in tax liability on any day in a
deposit period, you must complete Form 945-A and file it
with Form 944. See the Next Day Deposit Rule in section 11
of Pub. 15 (Circular E). Do not complete lines 13a – 13m if
you file Form 945-A.

14.

Part 5: Sign here
Complete all information in Part 5 and sign Form 944 as
follows.
• Sole proprietorship — The individual who owns the
business.
• Corporation (including a limited liability company
(LLC) treated as a corporation) — The president,
vice president, or other principal officer.
• Partnership (including an LLC treated as a
partnership) or unincorporated organization — A
responsible and duly authorized member or officer having
knowledge of its affairs.

State abbreviation

If you made deposits of taxes reported on Form 944, write
the two-letter United States Postal Service abbreviation for
the state where you deposit your taxes using Form 8109 or
initiate EFTPS transfers. IRS uses the state shown to
determine banking days for purposes of deposit due dates.
Official state holidays for the state shown are not counted as
banking days. If you deposit in multiple states, enter “MU” in
the spaces provided.

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Page 8 of 8

Instructions for Form 944

7:30 - 26-SEP-2008

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• Single member LLC treated as a disregarded entity —

Other IRS Products You May Need

The owner of the LLC.
• Trust or estate — The fiduciary.
If you have filed a valid power of attorney, your duly
authorized agent may also sign Form 944.
Alternative signature method. Corporate officers or duly
authorized agents (but not paid preparers) may sign
Form 944 by rubber stamp, mechanical device, or computer
software program. For details and required documentation,
see Rev. Proc. 2005-39. You can find Rev. Proc. 2005-39
on page 82 of Internal Revenue Bulletin 2005-28 at
www.irs.gov/pub/irs-irbs/irb05-28.pdf.
Paid preparers. A paid preparer must sign Form 944 and
provide the information in the Paid Preparer’s Use Only
section of Part 5 if the preparer was paid to prepare
Form 944 and is not an employee of the filing entity. The
preparer must give you a copy of the return in addition to the
copy to be filed with the IRS.
If you are a paid preparer, write your SSN or your
Preparer Tax Identification Number (PTIN) in the space
provided. Include your complete address. If you work for a
firm, write the firm’s name and the EIN of the firm. You can
apply for a PTIN using Form W-7P, Application for Preparer
Tax Identification Number. You cannot use your PTIN in
place of the EIN of the tax preparation firm.
Generally, do not complete this section if you are filing
the return as a reporting agent and have a valid Form 8655,
Reporting Agent Authorization, on file with the IRS.

How to Order Forms and Publications
from the IRS
Call 1-800-829-3676.

Visit the IRS website at www.irs.gov.

-8-

•

Form SS-4, Application for Employer Identification Number

•

Form W-2, Wage and Tax Statement

•

Form W-2c, Corrected Wage and Tax Statement

•

Form W-3, Transmittal of Wage and Tax Statements

•

Form W-3c, Transmittal of Corrected Wage and Tax
Statements

•

Form W-4, Employee’s Withholding Allowance Certificate

•

Form W-5, Earned Income Credit Advance Payment
Certificate

•

Form 940, Employer’s Annual Federal Unemployment (FUTA)
Tax Return

•

Form 941, Employer’s QUARTERLY Federal Tax Return

•

Form 941c, Supporting Statement to Correct Information

•

Form 943, Employer’s Annual Federal Tax Return for
Agricultural Employees

•

Form 944-X, Adjusted Employer’s ANNUAL Federal Tax
Return and Claim for Refund (available in 2009)

•

Form 945-A, Annual Record of Federal Tax Liability

•

Form 4070, Employee’s Report of Tips to Employer

•

Form 8027, Employer’s Annual Information Return of Tip
Income and Allocated Tips

•

Instructions for Forms W-2 and W-3

•

Instructions for Form 941

•

Notice 797, Possible Federal Tax Refund Due to the Earned
Income Credit (EIC)

•

Pub. 15 (Circular E), Employer’s Tax Guide

•

Pub. 15-A, Employer’s Supplemental Tax Guide

•

Pub. 15-B, Employer’s Tax Guide to Fringe Benefits

•

Pub. 51 (Circular A), Agricultural Employer’s Tax Guide

•

Pub. 596, Earned Income Credit

•

Pub. 926, Household Employer’s Tax Guide

•

Pub. 947, Practice Before the IRS and Power of Attorney

•

Schedule H (Form 1040), Household Employment Taxes