What This Notice Means
Your Form 944, Employer's Annual Federal Tax Return, showed a liability of more than $1,000. Even so, your filing requirement for the current calendar year has not changed. You remain a Form 944 filer this year.
The change comes next year. Beginning with the first quarter of the next calendar year, you must file quarterly on Form 941, Employer's Quarterly Federal Tax Return.
What to Do
- Read the notice carefully. It explains the actions you need to take.
- File Form 944 for the current calendar year.
- Starting with the first quarter of next year, file Form 941 every quarter.
- Review the Form 941 instructions before that first quarterly return is due.
- Give a copy of the notice to whoever handles your payroll so the switch happens on schedule.
Put a reminder on your calendar now. It's easy to keep filing the annual return out of habit. The quarterly requirement begins with the first quarter of next year whether or not anyone remembers it.
If You Disagree
Contact the IRS within 30 days from the date of the notice. Use the number listed on your notice. Have your Form 944 filings and payroll records ready. The same number can tell you the specifics of when and why your filing requirement changes.
Deposits and Filing
How often you file a return is separate from when you deposit employment taxes. Publication 15 (Circular E), Employer's Tax Guide, explains deposit schedules. Publication 966 explains the Electronic Federal Tax Payment System.
- File the correct return by its due date.
- Attach all required forms and schedules.
- Consider filing electronically to reduce errors.
If you received a CP250B notice and want your payroll filings set up correctly, call us at (813) 229-7100.