If you’re a small business owner, you may have received a notice from the IRS telling you that you must file Form 944, Employer’s Annual Federal Tax Return. This form is designed for certain small employers with $1,000 or less in annual payroll tax liability.

At The MadTax, we offer tax services. We know that IRS forms can feel overwhelming. That’s why we’re here to break down Form 944 so you understand what it is, who needs to file, and how to do it correctly without stress.

Information Reported on Form 944?

Form 944 lets small businesses report their annual employment taxes in one filing instead of four. On this form, you’ll provide details such as:

Employee wages and tips.
Federal income tax withheld.
Employer and employee portions of Social Security and Medicare taxes.
Adjustments for sick leave wages, tips, or group-term life insurance.
Small business payroll tax credit for research activities.
Sick and family leave credits.
Employee retention credits.
COBRA premium credits.
Any advances received via Form 7200.

For many small employers, this makes compliance far easier than juggling quarterly filings with Form 941.

Who Must File Form 944?

Not every small business is required, or even allowed, to file Form 944. So how does it apply to you? Let’s break it down.

You must file Form 944 if:

The IRS notifies you in writing that you are required to do so. If you haven’t received a notice, you’ll likely continue filing Form 941 instead.
Your business’s annual payroll tax liability is $1,000 or less. That means when you total up your federal income tax withholdings, plus Social Security and Medicare taxes for the year, the amount owed doesn’t exceed $1,000.

In some cases, the IRS may give you the option to file Form 944 instead of Form 941. If that happens, you can choose the filing method that makes more sense for your business.

Do I Have to File Form 944 if I Have No Employees?

Yes, but only if the IRS has told you in writing that you must. In this case, you’ll still submit the form, but enter “0” in sections related to wages and withholdings.

If you haven’t received a notice and you don’t have employees, you don’t need to file Form 944.

Mailing Addresses for Form 944

The correct mailing address for Form 944 depends on your business location and whether you are sending payment.

State	Mailing addresses for Form 944 without payment	Mailing addresses for Form 944 with payment
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, WyomingNo legal residence or place of business in any state, such as businesses based in American Samoa, Guam, Northern Mariana Islands, U.S. Virgin Islands, or Puerto RicoAny exempt organization, government entity, or Indian tribal government entity	Department of the Treasury Internal Revenue Service Ogden, UT 84201-0044	Internal Revenue Service P.O. Box 932100 Louisville, KY 40293-2100
Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin	Department of the Treasury Internal Revenue Service Kansas City, MO 64999-0044	Internal Revenue Service P.O. Box 806532 Cincinnati, OH 45280-6532

How to File Form 944 (Step-by-Step)

Here’s a simplified filing process:

1. Gather Payroll Information

Before starting the form, collect all payroll records for the year. This includes employee wages, federal income tax withheld, and Social Security/Medicare contributions.

2. Complete Part 1

In this section, you’ll enter your total wages, tips, and federal income tax withheld. You’ll also calculate your business’s total employment tax liability for the year. Don’t forget to apply adjustments or credits, such as sick leave wages or research tax credits.

3. Complete Part 2

Here, you’ll report your deposit schedule and outline your tax liability by month, if necessary. If your total liability is less than $2,500, you can skip this part entirely. Otherwise, you’ll need to break down your deposits so the IRS can match them with your payments.

4. Complete Part 3

This part asks whether your business has closed or if you stopped paying wages during the year. If that’s the case, check the box and enter the date you paid your final wages.

5. Complete Part 4

In Part 4, you decide if you want to allow a third-party designee (like your CPA, payroll provider, or The MadTax tax service) to speak to the IRS on your behalf. Granting access makes it easier to resolve questions quickly.

6. Complete Part 5

The final step is to review all the information carefully, sign, and date the form. Accuracy is key; errors can cause delays or even penalties. Once signed, you can submit your Form 944 electronically or by mail.

When Is Form 944 Due?

January 31 of the following year is the standard deadline.
If you’ve deposited all taxes on time and in full, the deadline extends to February 10.
If the deadline falls on a weekend or holiday, you can file the next business day.

Where Do I Send Form 944?

When it comes to filing your IRS Form 944, you have two main options, and choosing the right one depends on what works best for your business.

1. E-File (Recommended)

The fastest and safest way to submit your Form 944 is to e-file. You can do this through IRS-approved tax software or by working with a trusted tax professional. E-filing comes with several benefits:

You’ll receive an instant confirmation that the IRS received your form.
It reduces the chances of errors, since the software or preparer can catch mistakes before submission.

2. Paper Filing by Mail

If you prefer, you can still file a paper copy of Form 944 by mailing it directly to the IRS. However, the mailing address depends on two things:

The state where your business is located.
Whether you are submitting payment along with the form.

What If I Make a Mistake on Form 944?

Mistakes happen, and the IRS has a way to fix them. If you discover an error, you’ll need to file Form 944-X: Adjusted Employer’s Annual Federal Tax Return.

If you underreported taxes, you’ll pay the difference plus any interest.
If you overreported, you can request a refund or apply the extra as a credit.
You’ll also need to include a brief explanation of what was wrong and how you corrected it.

Even small errors, like misreporting wages or forgetting a credit, can trigger IRS notices. Correcting them early helps you avoid penalties.

What Are the Penalties for Filing Form 944 Late?

The IRS can impose strict penalties:

5% of the unpaid taxes per month (up to 25%) for late filing.
2%–15% penalty on late payments, depending on how overdue they are.

These penalties add up quickly, which is why timely filing is so important.

Ready to File Form 944 the Easy Way?

Dealing with the IRS doesn’t have to be stressful. With The MadTax, you’ll have a trusted partner who ensures your Form 944 is filed correctly, on time, and penalty-free.

Don’t wait until deadlines sneak up on you. Contact The MadTax today and let our experts handle your payroll tax filings so you can stay focused on running your business with peace of mind.

What Is IRS Form 944?