Form 944 is the annual version of the quarterly Form 941. It's for the smallest US employers, those whose yearly liability for social security, Medicare and withheld federal income tax is $1,000 or less, and you only file it if the IRS has notified you to. For 2025, Form 944 was due February 2, 2026, or February 10, 2026 if you'd deposited all the tax on time.
The IRS rough guide is wages: if you pay $5,000 or less in wages subject to those taxes in a calendar year, you're generally likely to owe $1,000 or less. So Form 944 fits a business with one part-time employee, not a growing team. Here's how the switch works in both directions.
Form 944 or Form 941? A quick guide
| Your situation | What you file |
|---|---|
| The IRS notified you in writing to file Form 944 | Form 944, even if your liability ends up over $1,000 |
| The IRS never notified you to file Form 944 | Quarterly Forms 941. Don't file Form 944 |
| You were told to file Form 944 but want quarterly returns | Request Forms 941, and wait for written confirmation |
| You file Form 944 and your business grows mid-year | You still file Form 944 for that year, but you may have to make deposits |
The rule to remember is the first row. If the IRS told you in writing to file Form 944, you must file it, not quarterly Forms 941, even when your tax goes over $1,000. Unsure which you're meant to file? The IRS says call 800-829-4933.
How to ask to switch
Both switches have a window at the start of the year, and the IRS confirms in writing. For calendar year 2026, the instructions set these dates:
| Switch | By phone | In writing |
|---|---|---|
| Ask to file Form 944 instead of Forms 941 | Call 800-829-4933 between January 1 and April 1, 2026 | Postmarked between January 1 and March 16, 2026 |
| Ask to file Forms 941 instead of Form 944 | Call the same number in the same window | Postmarked in the same window |
Here's the catch in each direction. If you asked to move to Form 944 and don't receive the IRS notice changing your requirement, you must file quarterly Forms 941 for that year. If you asked to move back to Forms 941 and don't get the notice, you must still file Form 944.
When Form 944 is due
You file Form 944 once for each calendar year. For 2025, the IRS deadline was February 2, 2026. If you made all your deposits on time and in full, you get until February 10. If you e-filed, don't also send a paper Form 944.
The deposit rule to watch
As of October 2026, the latest instructions are the 2025 edition, and they make one point very clearly: filing once a year doesn't always mean paying once a year. The IRS separates two numbers: the $1,000 liability that makes you eligible for Form 944, and a $2,500 threshold for deposits.
| Your tax for the year (Form 944, line 9) | How you pay |
|---|---|
| Less than $2,500 for the year | No deposit required. You can pay with the return |
| $2,500 or more for the year, but less than $2,500 for the quarter | Deposit by the last day of the month after the quarter ends; the fourth quarter can go with Form 944 |
| $2,500 or more for the quarter | Follow the regular monthly or semiweekly deposit rules |
All federal tax deposits must be made by electronic funds transfer, either through EFTPS or your IRS business tax account. You can pay a balance due on the return itself by card, but not a deposit.
How to complete Form 944, step by step
- Enter your EIN, legal name and trade name exactly as the IRS has them. Don't use your social security number. If you don't have an EIN, see how to get one.
- Report the year's wages, tips and other pay, the federal income tax you withheld, and the social security and Medicare wages and taxes.
- Enter your total deposits for the year and work out the balance due or overpayment. Refunds now come by direct deposit, under a 2025 executive order on electronic payments.
- Complete Part 2 on your deposit schedule and tax liability if you had to deposit.
- If you closed the business or stopped paying wages, tick the final return box on line 14, enter the last date you paid wages, and attach a statement naming who keeps the payroll records and where.
A payroll service can do all of this, but the IRS is clear that you stay responsible if a third party fails to file or pay. If you're choosing one, these free payroll tools and this payroll software roundup are a good place to start.
If you sold or changed the business
If you sold or transferred the business during the year, you and the new owner each file a Form 944 or 941 for that year, reporting only the wages you each paid. The IRS treats changing from a sole proprietorship to a partnership or corporation as a transfer too, which may mean a new EIN.
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The verdict
Form 944 is a nice simplification if you only pay a little in wages, because one return a year beats four. But don't file it on your own initiative: you only use it when the IRS has told you to in writing, and the switch either way only counts once you have the IRS letter. Keep an eye on the $2,500 deposit line as you grow. You can stay on Form 944 for the year and still owe quarterly deposits, and missing those is where the penalties come from.
Frequently asked questions
Who files Form 944?
Employers the IRS has notified in writing to file it, generally those with an annual liability for social security, Medicare and withheld federal income tax of $1,000 or less.
When is Form 944 due?
For 2025, it was due February 2, 2026, or February 10, 2026 if you made all deposits on time and in full.
Can I choose to file Form 944 instead of Form 941?
You can ask. For 2026, call the IRS between January 1 and April 1, 2026, or write with a postmark between January 1 and March 16, 2026, then wait for written confirmation.
What if my payroll tax goes over $1,000 while I'm on Form 944?
If the IRS notified you to file Form 944, you still file it for that year, even if your liability is more than $1,000.
Do Form 944 filers make deposits?
Only once your tax reaches $2,500 for the year. Under $2,500 you can pay with the return.
How much in wages qualifies for Form 944?
The IRS says that if you pay $5,000 or less in wages subject to these taxes in a year, you're generally likely to owe $1,000 or less.
