What IRS Form 944 (2017) Is For

IRS Form 944 is the Employer's Annual Federal Tax Return designed for small employers with an annual liability of $1,000 or less for social security, Medicare, and withheld federal income taxes (IRS Instructions for Form 944 (2017)). Only employers who have received official IRS notification to file Form 944 are eligible to use this form instead of filing quarterly Forms 941. This form allows the smallest employers to report and pay these employment taxes just once per year rather than every quarter.

When You'd Use Form 944 for 2017 (Late or Amended Filing)

You would file Form 944 for 2017 as a late return if you received IRS notification to file but missed the original January 31, 2018 deadline (or February 12, 2018 if you made timely deposits). Common scenarios include receiving IRS notices about unfiled returns, balance due notices, or compliance letters requesting the missing return. Late filing may also occur when businesses discover they were required to file but were unaware of the obligation. For amended returns, you would use Form 944-X to correct errors on a previously filed Form 944, such as incorrect wage amounts, tax calculations, or deposit reporting. Note that the refund statute of limitations generally allows corrections within 3 years of the original filing date or 2 years from when taxes were paid, whichever is later (IRS Instructions for Form 944-X).

Key Rules Specific to 2017

For 2017, the social security tax rate remained 6.2% each for employer and employee (12.4% total) with a wage base limit of $127,200. The Medicare tax rate stayed at 1.45% each for employer and employee (2.9% total) with no wage base limit. Additional Medicare Tax withholding of 0.9% applied to wages exceeding $200,000 for individual employees. A significant 2017 development was the introduction of the qualified small business payroll tax credit for increasing research activities, allowing eligible small businesses to claim up to $250,000 of research credit against the employer's share of social security tax (IRS Instructions for Form 944 (2017)). The 2017 form year also maintained the $2,500 deposit threshold rules, where employers with annual liability under $2,500 could pay with their return rather than making separate deposits.

Step-by-Step (High Level)

• Gather employment tax transcripts from the IRS to understand any previous filings, payments, or notices for 2017 using IRS.gov/businesses/get-a-business-tax-transcript or Form 4506-T
  
  
• Obtain the correct 2017 Form 944 and instructions from IRS.gov/prior-year-forms-and-instructions, not current year forms
  
  
• Complete the form accurately using 2017-specific wage bases, tax rates, and requirements, ensuring proper calculation of social security, Medicare, and federal income tax withholding
  
  
• Attach required schedules such as Form 8974 if claiming the research payroll tax credit, and any supporting documentation for adjustments
  
  
• File using appropriate method: mail to the correct IRS processing center based on your location (addresses differ for returns with and without payments), or e-file if available for prior year returns
  
  
• Keep copies of all filed forms, payment records, and correspondence for your records, as these may be needed for future reference or IRS inquiries
  
  

Common Mistakes and How to Avoid Them

• Filing without IRS notification: Only employers specifically notified by the IRS can file Form 944; verify eligibility before filing to avoid processing delays (IRS Instructions for Form 944 (2017))
  
  
• Using wrong tax year forms: Always use the 2017 version of Form 944 with 2017 wage bases ($127,200 for social security) and tax rates, not current year forms
  
  
• Incorrect EIN usage: Always use your correct business EIN, never your SSN or ITIN; filing with an incorrect EIN may result in penalties (IRS Instructions for Form 944 (2017))
  
  
• Deposit requirement errors: If liability is $2,500 or more, you must deposit taxes electronically via EFTPS rather than paying with the return (IRS Instructions for Form 944 (2017))
  
  
• Missing final return designation: If business closed during 2017, check the final return box and provide required business closure information
  
  
• Reconciliation issues: Ensure Form 944 totals match aggregate amounts reported on Forms W-2 and W-3 for 2017 to avoid IRS matching program discrepancies
  
  

What Happens After You File

The IRS typically takes several weeks to process employment tax returns, though 2017 late filings may take longer due to manual processing requirements. You'll receive acknowledgment of receipt and any balance due or overpayment notices. If you owe additional taxes, expect penalty and interest calculations from the late filing and payment dates. Payment options include immediate full payment, installment agreements using Form 9465 for amounts under $50,000, or online payment plans through IRS.gov/payments/online-payment-agreement-application. The IRS may send adjustment notices if they identify errors or discrepancies during processing. You have appeal rights if you disagree with IRS determinations, and the IRS will provide information about your appeal options in any notices sent.

FAQs

Can I still file Form 944 for 2017 even though it's years late?

Yes, you should file if you received IRS notification to file Form 944 for 2017, as there's no statute of limitations on unfiled returns (IRS Instructions for Form 944 (2017)). However, expect penalties and interest to accrue from the original due date.

What penalties apply to late-filed Form 944 returns?

Penalties and interest are charged on taxes paid late and returns filed late at a rate set by law. The trust fund recovery penalty may apply if employment taxes aren't properly withheld or deposited (IRS Instructions for Form 944 (2017)).

Do I need employment tax transcripts before filing?

While not required, obtaining transcripts helps verify any previous filings, payments, or IRS actions on your account. Request them through IRS.gov/businesses/get-a-business-tax-transcript or by calling the Business Tax Line at 1-800-829-4933.

How do I know if I should file Form 944 or 941 for 2017?

Only file Form 944 if you received written IRS notification to do so. Without notification, you should file quarterly Forms 941 even if your liability was under $1,000 (IRS Instructions for Form 944 (2017)).

Can I get refunds from overpaid 2017 employment taxes?

Yes, but you must file Form 944-X within 3 years of the original filing date or 2 years from when taxes were paid, whichever is later (IRS Instructions for Form 944-X).

Should I file amended state employment tax returns if I correct my federal Form 944?

Review your state's requirements, as many states require amended filings when federal employment tax returns are corrected. Contact your state tax agency for specific guidance.

What if I discover errors after filing my late 2017 Form 944?

File Form 944-X to correct errors, but ensure you're within the statute of limitations for corrections. The IRS generally allows corrections within 3 years of filing the original return (IRS Instructions for Form 944-X).

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