IRS Form 944 (2020): Late & Amended Filing Guide

What IRS Form 944 (2020) Is For

IRS Form 944 is the Employer's Annual Federal Tax Return designed for the smallest employers whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less (IRS Instructions for Form 944 (2020)). This form allows eligible small employers to file and pay employment taxes only once per year instead of quarterly, reporting wages paid, tips reported by employees, federal income tax withheld, and both employer and employee shares of social security and Medicare taxes.

When You'd Use Form 944 for 2020 (Late or Amended Filing)

You would file Form 944 for 2020 as a late or amended return in several scenarios: when you received IRS notices about unfiled employment tax returns for 2020, if you discovered you were required to file but missed the February 1, 2021 deadline, or when you have an outstanding balance due from 2020 employment taxes. Late filing may also occur when you realize errors on a previously filed Form 944 requiring correction through Form 944-X. Since there's no statute of limitations on unfiled employment tax returns, the IRS can assess taxes and penalties for any unfiled year, making it crucial to address missing 2020 returns even years later (IRS Instructions for Form 944 (2020)).

Key Rules Specific to 2020

The 2020 Form 944 included several COVID-19-related provisions unique to that year: employers could claim credits for qualified sick and family leave wages, the employee retention credit was available, and employers could defer the employer share of social security tax due between March 27, 2020, and January 1, 2021. Additionally, employers could defer employee social security tax withholding on wages paid between September 1 and December 31, 2020, but only for employees earning less than $4,000 per biweekly pay period. These deferrals and credits required specific reporting on designated lines of Form 944 and had unique calculation requirements not present in other tax years (IRS Instructions for Form 944 (2020)).

Step-by-Step (High Level)

• Gather your records: Obtain account transcripts from the IRS to verify what has been filed and any outstanding liabilities for 2020
  
  
• Complete the correct form: Use the 2020 version of Form 944 and its instructions, ensuring you report all wages, tips, taxes withheld, and any applicable COVID-19 credits or deferrals
  
  
• Attach required schedules: Include any necessary supporting forms such as Form 8974 for research credits or documentation for COVID-19 relief claims
  
  
• Choose filing method: Mail to the appropriate IRS processing center based on your location and whether you're including payment, or use authorized e-file providers
  
  
• Keep copies: Maintain copies of your completed return and all supporting documentation for your records
  
  
• Follow up: Monitor for IRS processing confirmation and any subsequent notices requiring response
  
  

Common Mistakes and How to Avoid Them

• Using wrong year forms: Always use the 2020 version of Form 944 and its instructions for 2020 tax periods, not current year forms which may have different line numbers or requirements
  
  
• Missing signature and date: Form 944 must be signed and dated on page 3 under penalties of perjury; unsigned returns may be rejected and treated as not filed
  
  
• Incorrect COVID-19 credit calculations: 2020 had specific rules for sick leave, family leave, and employee retention credits that require careful calculation using the correct worksheets and limitations
  
  
• Wrong mailing address: Filing addresses changed for some employers in 2020; verify the correct address based on your location and whether you're including payment
  
  
• Incomplete three-page form: All three pages of Form 944 must be completed and submitted; partial submissions delay processing
  
  
• Missing EIN or incorrect business information: Ensure your Employer Identification Number exactly matches IRS records and business name is consistent with your EIN application
  
  

What Happens After You File

The IRS typically processes Form 944 within 6-8 weeks for paper returns, though processing times may be longer for late or amended returns requiring manual review. You'll receive acknowledgment of receipt and processing, and the IRS will apply any payments to reduce outstanding balances. If you owe additional taxes, penalties, or interest, you'll receive a notice with payment options including installment agreements using Form 9465 (IRS.gov/payments). Should you disagree with any IRS adjustments or penalty assessments, you have appeal rights through the IRS Appeals Office, typically within 30 days of receiving a notice. Interest continues to accrue on unpaid balances at rates set by federal law, but penalty rates may be reduced to half the normal rate if you establish an approved installment agreement.

FAQs

Can I still get a refund from a 2020 Form 944 filed late?

Generally, you must file within three years of the original due date (by February 1, 2024) to claim refunds, though some exceptions apply for amended returns correcting errors (IRS Instructions for Form 944-X).

What penalties apply to late filing of 2020 Form 944?

Late filing penalties are typically 5% of unpaid taxes per month (up to 25%), while late payment penalties are 0.5% per month, plus interest on both taxes and penalties at rates set by federal law (IRS Instructions for Form 944 (2020)).

Do I need to file amended state employment tax returns if I amend Form 944?

Most states require separate filings and have their own correction procedures; contact your state tax agency to determine if amended state returns are needed when correcting federal employment taxes.

How do I get transcripts to help prepare my late 2020 Form 944?

Request account transcripts and wage and income transcripts through IRS.gov, by calling 800-908-9946, or using Form 4506-T; these show what the IRS has on file and help ensure accurate reporting.

Can I set up a payment plan if I owe taxes from 2020 Form 944?

Yes, you can request an installment agreement using Form 9465 or apply online if you owe $50,000 or less; approved plans reduce the failure-to-pay penalty rate by half while active (IRS.gov/payments).

What if I discover errors after filing my late 2020 Form 944?

Use Form 944-X to correct errors on previously filed Form 944 returns; you generally have three years from the filing date to make corrections, and Form 944-X is filed separately from the original return.

Should I file 2020 Form 944 even if I had no employees or wages?

If you received IRS notification to file Form 944 for 2020, you must file even if you had no tax liability, unless you filed a final return for the prior year or received written confirmation to file quarterly forms instead (IRS Instructions for Form 944 (2020)).

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