What This Notice Means
Your annual federal employment tax filing requirement has changed. You're no longer eligible to file Form 944, Employer's Annual Federal Tax Return, to report and pay your employment taxes.
The reason is simple. Your annual employment tax liability was more than $1,000. Form 944 is meant for small employers below that level.
What to Do
- Read the notice carefully. It explains the changes the IRS made to your filing requirement.
- Review the Form 941 instructions. Form 941, Employer's Quarterly Federal Tax Return, is the quarterly employment tax return.
- Confirm with the notice which period your new filing requirement starts with, and file on that schedule.
- If a payroll service, bookkeeper, or preparer files your returns, give them a copy of the notice.
If You Disagree
Contact the IRS within 30 days from the date of the notice, using the number on your notice. Have your Form 944 filings and payroll records ready. If you want to know exactly what caused the change, ask on that same call.
Deposits Still Matter
Changing the return you file doesn't change your obligation to deposit employment taxes on time. Publication 15 (Circular E), Employer's Tax Guide, explains the deposit schedules. Publication 966 covers the Electronic Federal Tax Payment System.
Going Forward
- File the appropriate employment tax return by its due date.
- Attach every required form and schedule.
- Consider filing electronically. It helps you avoid mistakes.
- Keep this notice with your payroll records.
Payroll tax mistakes compound quickly. Fixing the filing schedule now is cheap. Cleaning up a year of wrong returns later is not.
If you received a CP250C notice and your payroll tax filings need attention, call us at (813) 229-7100.