What IRS Form 944 (2017) Is For
IRS Form 944 (2017) serves as the Employer’s Annual Federal Tax Return used to report Social Security, Medicare, and federal income tax withheld from employees. It applies to small businesses with an annual employment tax liability of $1,000 or less that the IRS authorizes to file annually rather than quarterly. The form ensures that all wages, deductions, and taxes paid during the year are correctly recorded.
This annual filing method streamlines the process for small employers to manage payroll taxes and ensure compliance with government reporting requirements. It helps determine what each business owes, keeps the IRS account accurate, and ensures every payment and deduction aligns with federal tax regulations.
Learn how to complete Payroll and Employment Tax Forms step by step.
When You’d Use Form 944 for 2017
Employers file IRS Form 944 (2017) when they are authorized to submit one annual return instead of quarterly Forms 941 and missed the original filing date. The form applies to small businesses with $1,000 or less in total employment taxes, including Social Security, Medicare, and federal income tax withheld, as well as any other applicable taxes. Filing late helps the IRS update each employer’s account and determine any remaining balance or refund owed.
Common Reasons for Filing
- Late awareness: The employer was unaware that they were required to file Form 944 for 2017 and must correct the oversight promptly.
- IRS Request: The agency issued a notice and instructed the employer to submit the missing return immediately.
- Mathematical errors: The employer miscalculated the reported wage or tax amounts and must recalculate them accurately.
- Amended filing: A co-owner or accountant reviewed the records and found discrepancies in the previously submitted data.
Employers must ensure all figures, dates, and deductions accurately reflect 2017 information. Each entry must align with the correct tax year to maintain compliance and avoid processing delays.
Key Rules or Details for 2017
Employers must follow specific 2017 rules to complete IRS Form 944 correctly. Understanding these figures helps ensure each business calculates its employment taxes and deductions with precision. These requirements determine the amount each employer pays for Social Security and Medicare contributions and specify when deposits are due.
2017 Payroll Tax Rates
The Social Security rate was 6.2% for both the employer and employee, applied to wages up to $127,200. The Medicare rate was 1.45% for both parties, with an additional 0.9% on wages exceeding $200,000. These percentages affected how each employer calculated total taxes owed for the year.
Deposit and Filing Requirements
Businesses owing less than $2,500 in total employment taxes for 2017 could pay that amount when filing the annual return. Eligible small employers could also claim a qualified research payroll credit of up to $250,000. Only employers authorized by the IRS were allowed to file Form 944 instead of quarterly Forms 941.
Step-by-Step Guide to Filing Form 944 for 2017
Filing IRS Form 944 (2017) requires an organized process to ensure income, deductions, and payroll taxes are reported accurately. Each step confirms that figures match 2017 data and that payments are applied to the correct government account. Employers can complete the filing using approved tax software or mail paper forms directly to the IRS.
- Step 1: Gather Records: Employers collect payroll data, wage summaries, and 2017 IRS tax transcripts for verification.
- Step 2: Select the Correct Forms: Employers use the official 2017 Form 944 and all required schedules for that tax year.
- Step 3: Calculate Taxes Accurately: Employers apply the correct 2017 Social Security and Medicare tax rates when determining totals.
- Step 4: Attach Supporting Documents: Employers include Form 8974 when claiming a qualified research payroll credit.
- Step 5: Mail or E-File: Employers send the completed return to the correct IRS address or submit it through authorized e-file software.
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Common Mistakes and How to Avoid Them
Small employers completing IRS Form 944 (2017) often make preventable errors in their filings. Reviewing every number and payment before submission ensures accuracy and protects the business from processing delays. Each issue below includes a straightforward solution to maintain compliance and prevent rework.
- Incorrect form version: Employers who file the wrong form version cause rejection and must download the official 2017 version directly from the IRS website.
- Invalid Employer Identification Number: Employers must enter the correct EIN and confirm it matches IRS business records to avoid account errors.
- Deposit errors: Employers who owe more than $2,500 must make deposits electronically through EFTPS before the due date.
- Omitting a final return notice: Employers whose business closed during 2017 must check the “final return” box and provide closure details.
- Mismatched totals: Employers must verify that the Form 944 totals align with those on Forms W-2 and W-3 before mailing or e-filing.
What Happens After You File
Once IRS Form 944 (2017) is submitted, the IRS begins reviewing the return and verifying reported amounts against existing employer records. Processing times vary depending on the method used—e-filed returns are typically processed more quickly than those sent by mail. Employers can expect updates through acknowledgment letters, balance notices, or adjustments based on their account activity.
Typical outcomes include:
- Accepted return: The IRS records the information and confirms that all reported payments and deductions are accurate.
- Balance due: The IRS adds additional taxes or interest when payments are incomplete or delayed.
- Adjustment notice: The IRS reviews the return and corrects any minor reporting errors or calculation discrepancies.
Employers should monitor their business tax account for any posted changes. Keeping accurate records helps ensure future filings remain on schedule and error-free.
For more information on business tax problems, including common issues and the importance of accurate filings, consult available resources.
FAQs About IRS Form 944 (2017)
What is IRS Form 944 (2017) used for?
IRS Form 944 (2017) allows small businesses to report Social Security, Medicare, and federal income taxes once per year instead of quarterly. It simplifies tax filing for the vast majority of employers who owe $1,000 or less in taxes. The form helps the IRS track payments, deductions, and deposits for accurate records.
Can I file IRS Form 944 (2017) using tax software?
Yes, many approved tax software programs still support prior-year forms for online submission. Using software can make a little complex filing process easier, helping businesses calculate figures accurately before submission.
What was the due date for filing IRS Form 944 (2017)?
The due date for the 2017 filing was January 31, 2018. Employers who made timely deposits had until February 12, 2018, to submit their forms. Filing earlier generally ensures payments are processed and recorded on time.
Can I e-file my IRS Form 944 (2017)?
Yes, employers can e-file the return through approved providers or submit it by mail if electronic filing is unavailable. The IRS accepts both methods, ensuring all forms arrive securely before processing begins.
What happens after I file my 2017 tax return?
After the IRS receives the tax return, it reviews each figure and confirms that payments match what was reported. Processing may take several weeks, depending on whether the return was mailed or e-filed. Businesses can check their account to ensure that all tax amounts have been paid and recorded accurately.
