What IRS Form 944 (2020) Is For
IRS Form 944 (2020) is the Employer’s Annual Federal Tax Return for the smallest employers with an annual liability of $1,000 or less in withheld federal income taxes. It enables qualifying businesses to report and pay employment taxes once each year instead of quarterly. The form includes employee wages, deductions, and both employer and employee shares of Social Security and Medicare taxes.
Filing this form ensures accurate crediting of federal tax payments, prevents errors in reporting, and supports full compliance with federal income tax and employment tax requirements.
Learn how to file Payroll and Employment Tax Forms correctly
When You’d Use IRS Form 944 for 2020 (Late or Amended Filing)
Employers who missed the February 1, 2021, deadline or received an IRS notice for an unfiled employment tax return must file IRS Form 944 for 2020. The form also applies to individuals who need to submit an amended return to correct errors in wage, tax liability, or payment amounts. Filing ensures compliance with federal income tax and employment tax requirements for the 2020 tax year.
Late Filing Situations
Late filings usually occur when small businesses fail to report withheld federal income taxes, Social Security, or Medicare taxes. Employers should determine outstanding balances, establish a payment plan if they owe, and submit the proper documents to the IRS.
Amended Return Filing
An amended return corrects mistakes on a previously filed form, including errors in wages, deductions, or additional Medicare tax calculations. Submitting an accurate amendment ensures that IRS records are up to date and prevents penalties for unpaid employment taxes.
Key Rules or Details for 2020
Employers filing IRS Form 944 late or submitting an amended return for 2020 must understand the specific tax rules that applied during that year. The 2020 tax period included several relief programs that directly affected how employers reported and paid employment taxes. These provisions impacted the way businesses calculated federal income taxes, Social Security, and Medicare taxes.
- COVID-19 Payroll Credits: Employers could claim these credits when they paid qualified sick and family leave wages.
- Employee Retention Credit: This credit was available to employers who retained employees during periods of business disruption.
- Social Security Tax Deferral: This provision allowed eligible employers to defer the employer share from March 27 to December 31, 2020.
- Deferred Employee Withholding: The deferral applied to workers who earned less than $4,000 per biweekly pay period.
- Reporting Accuracy: Each credit or deferral required employers to provide clear documentation on the 2020 form.
Accurate completion helps employers avoid delays, payment discrepancies, and compliance issues under federal tax law.
Step-by-Step (High Level)
Filing IRS Form 944 for 2020 requires organized records and careful preparation to ensure accuracy. Employers handling late or amended filings should follow these steps to ensure accuracy and compliance with federal income tax and employment tax regulations. Each step supports the proper reporting of wages, Social Security, and Medicare taxes, while helping to prevent delays in IRS processing.
- Gather IRS Records: Employers should collect payroll reports, employee wage data, and prior filings before starting.
- Verify Employer Identification Number: Employers must match their EIN with official IRS data to ensure accuracy and compliance.
- Use the 2020 Version: The form must clearly display “2020” at the top to confirm it is the correct version.
- Calculate Taxes and Credits: Employers should include employment taxes, deferred payments, and the additional Medicare tax in their totals.
- Choose Submission Method: Employers can mail the completed form or apply online through approved IRS e-file systems.
Accurate completion ensures smooth processing, prevents rejected forms, and supports timely updates to employer tax accounts.
Common Mistakes and How to Avoid Them
Late or amended IRS Form 944 (2020) filings frequently contain errors that result in delays, rejected submissions, or additional interest charges. Employers who understand both the mistakes and the best ways to avoid them can improve accuracy and compliance with federal income tax and employment tax reporting. Proper preparation can help reduce complications involving Social Security, Medicare, and withheld federal income taxes.
- Using the Wrong Year’s Form: Employers should always verify that the form displays the correct year, “2020,” and download it directly from the IRS website to ensure authenticity.
- Missing Signature or EIN: Employers must double-check the Employer Identification Number and sign the form before mailing it to validate the return.
- Incorrect Calculations: Employers should recalculate wages, deductions, and additional Medicare tax using payroll records to verify the accuracy of totals.
- Mailing Errors: Employers must confirm the correct IRS mailing address or apply online through the e-file system to prevent their tax returns from being misrouted.
- Incomplete Submissions: Employers should attach all required pages and schedules to support every entry and payment record.
Employers who review their forms carefully, maintain current payroll documentation, and verify every figure can avoid processing delays and prevent penalties under federal tax law.
What Happens After You File
Once the IRS receives your completed Form 944 for 2020, it reviews the filing to ensure all employment taxes, wages, and federal income taxes are correctly reported. The agency processes paper filings within six to eight weeks, while amended returns may take longer due to manual verification. Payments made with the form are applied to your tax liability, and the IRS updates your employer account once processing is complete.
If you still owe taxes, the IRS will issue a notice outlining the balance and available payment options. Employers may request an IRS payment plan for employment taxes or apply online for an installment agreement to manage outstanding balances. Staying current with payments prevents additional interest, penalties, and enforcement actions under federal tax law.
FAQs
Can I still file IRS Form 944 late for the 2020 tax year?
Yes, employers can file an IRS Form 944 late filing for 2020 or an amended return to correct errors on wages, deductions, or withheld federal income taxes. Filing helps ensure accurate IRS records and compliance with employment taxes as mandated by federal tax law.
What if I owe federal income tax or Medicare taxes after filing?
If a business owes unpaid federal income tax, Social Security, or additional Medicare tax, it should contact the IRS to discuss payment options. Employers may establish a payment plan or installment agreement to pay taxes over time, thereby reducing accrued interest.
How do I apply for a payment plan online?
Employers can apply online through the IRS website using secure services identified by the locked padlock icon. The process enables eligible businesses to submit payment requests securely and track installment agreements electronically.
Can I correct errors after submitting my 2020 tax return?
Yes, employers who discover mistakes on their filed forms can submit amended returns to correct errors involving wages, deductions, or credits. Completing an amended return promptly ensures compliance and accurate processing of future payments and refunds.
How long does the IRS take to process amended returns?
Processing typically takes six to eight weeks for standard filings and longer for amended returns requiring manual review. Employers should verify their Employer Identification Number (EIN), ensure all forms are completed accurately, and refer to their IRS records to track any updates.
