A Tax Consultant for All Seasons

Form 944 was created by the IRS to reduce the paper work for small business owners. If your business has less than $1000 due from Federal Withholding, Social Security and Medicare, you can file an annual Form 944. You would file this annual return rather than the quarterly 941 forms you previously had to file. The IRS website has additional information on filing this form as well as the 941. If you think your taxes are likely to be over that, you are better off filing your quarterly 941s, and paying your payroll taxes as required.

You can now file both your 944 and 941s electronically. For details on who can file electronically and how you file, visit the Small Business section of the IRS website.

Most importantly, be sure you file them and pay them on time. Save yourself money and headaches by being sure your payroll taxes are paid on time. Don’t make the mistake many small business owners make and put off paying those taxes in favor of paying other bills. Believe me a persistent creditor is nothing compared to the problems you will have if you don’t pay your payroll taxes.  See my last blog or read my most recent article on ezine for more information(see the link on the right side of the blog).

This entry was posted on Wednesday, July 2nd, 2008 at 20:28 and is filed under Small Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.