Monday, March 25, 2013

Small Businesses: Apply Now to Elect to Pay Employment Taxes Annually

Normally, a business is required to file Form 941, Quarterly Federal Income Tax Return, to report employment tax liability. IRS introduced the Form 944, Employer' ANNUAL Federal Tax Return, program after it realized that many small employers were filing Forms 941 with little or no employment taxes due.

Under the original program, the IRS determined which employers were eligible and notified those that qualified to use Form 944. If the IRS determined you were a Form 944 filer, you were required to file that form until the IRS notified you that you no longer qualified. The employer had little control over which employment tax return it was required to file.

Now, you don't have to wait for the IRS to invite you to participate. Instead, a small employer may request to participate in the Form 944 Program. You can make the request by calling the IRS at 1-800-829-4933 by April 1, 2013.

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