IRS Clarifies Program Letting Employers File Annual Tax Returns

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IRS unveils final rules (T.D. 9566) clarifying its program allowing employers to voluntarily file annual employment tax returns instead of quarterly returns. The rules offer guidance on the Employer's Annual Federal Tax Program, also known as the Form 944 program, and the requirements for depositing employment taxes, such as Social Security, Medicare, and withheld federal income taxes. IRS says the final rules allow certain employers to file a Form 944, Employer's Annual Federal Tax Return, rather than a Form 941, Employer's Quarterly Tax Return.