Instructions For Form 944 - Employer'S Annual Federal Tax Return

Part 3: Tell Us About Your Business

for the employer share of social security tax starting with

the first payroll payment of the quarter that includes

payments of wages to your employees subject to social

In Part 3, answer question 14 only if it applies to your

security tax. The credit may be taken to the extent of the

business. If it doesn't apply, leave it blank and go to Part

employer share of social security tax on wages associated

with the first payroll payment, and then to the extent of the

14. If Your Business Has Closed...

employer share of social security tax associated with

succeeding payroll payments in the quarter until the credit

If you go out of business or stop paying wages, you must

is used. Don’t reduce your monthly tax liability reported on

file a final return. To tell the IRS that a particular Form 944

line 13 or your daily tax liability reported on Form 945-A

is your final return, check the box on line 14 and enter the

below zero. Consistent with the entries on line 13 or Form

date you last paid wages in the space provided. For

945-A, the payroll tax credit should be taken into account

additional filing requirements, see If your business has

in making deposits of employment tax. If any payroll tax

closed..., earlier.

credit is remaining at the end of the quarter that has not

Part 4: May We Speak With Your

been used completely because it exceeds the employer

Third-party Designee?

share of social security tax for the quarter, the excess

credit may be carried forward to the succeeding quarter

and allowed as a payroll tax credit for the succeeding

If you want to allow an employee, a paid tax preparer, or

quarter. The payroll tax credit may not be taken as a credit

another person to discuss your Form 944 with the IRS,

against income tax withholding, Medicare tax, or the

check the “Yes” box in Part 4. Enter the name, phone

employee share of social security tax.

number, and the 5-digit personal identification number

(PIN) of the specific person to speak with—not the name

Also, the remaining payroll tax credit may not be

of the firm that prepared your tax return. The designee

carried back and taken as a credit against wages paid

may choose any five numbers as his or her PIN.

from preceding quarters that are reported on the same

Form 944 or on Forms 944 for preceding years. If an

By checking “Yes,” you authorize the IRS to talk to the

amount of payroll tax credit is unused at the end of the

person you named (your designee) about any questions

calendar year because it is in excess of the employer

we may have while we process your return. You also

share of social security tax on wages paid during the

authorize your designee to do all of the following.

applicable quarters in the calendar year, the remaining

Give us any information that is missing from your return.

payroll tax credit may be carried forward to the first

Call us for information about processing your return.

quarter of the succeeding calendar year as a payroll tax

Respond to certain IRS notices that you have shared

credit against the employer share of social security tax on

with your designee about math errors and return

wages paid in that quarter.

preparation. The IRS won't send notices to your designee.

Example. Rose Co. is an employer with a calendar tax

You’re not authorizing your designee to bind you to

year that filed its timely income tax return on April 18,

anything (including additional tax liability) or to otherwise

2017. Rose Co. elected to take the qualified small

represent you before the IRS. If you want to expand your

business payroll tax credit for increasing research

designee's authorization, see Pub. 947.

activities on Form 6765. The third quarter of 2017 is the

first quarter that begins after Rose Co. filed the income tax

The authorization will automatically expire 1 year after

the due date (without regard to extensions) for filing your

return making the payroll tax credit election. Therefore,

Form 944. If you or your designee want to terminate the

the payroll tax credit applies against Rose Co.'s share of

authorization, write to the IRS office for your location using

social security tax on wages paid to employees in the third

the Without a payment address under Where Should You

quarter of 2017. Rose Co. is a semiweekly schedule

File, earlier.

depositor. Rose Co. completes Form 945-A by reducing

the amount of liability entered for the first payroll payment

Part 5: Sign Here (Approved Roles)

in the third quarter of 2017 that includes wages subject to

social security tax by the lesser of (1) its share of social

Complete all information in Part 5 and sign Form 944. The

security tax on the wages or (2) the available payroll tax

following persons are authorized to sign the return for

credit. If the payroll tax credit elected is more than Rose

each type of business entity.

Co.'s share of social security tax on the first payroll

• Sole proprietorship— The individual who owns the

payment of the quarter, the excess payroll tax credit

business.

would be carried forward to succeeding payroll payments

in the third quarter until it is used. If the amount of the

• Corporation (including a limited liability company

payroll tax credit exceeds Rose Co.'s share of social

(LLC) treated as a corporation)— The president, vice

security tax on wages paid to its employees in the third

president, or other principal officer duly authorized to sign.

quarter, the excess credit would be treated as a payroll

• Partnership (including an LLC treated as a partner-

tax credit against its share of social security tax on wages

ship) or unincorporated organization— A responsible

paid in the fourth quarter. If the amount of the payroll tax

and duly authorized member, partner, or officer having

credit remaining exceeded Rose Co.'s share of social

knowledge of its affairs.

security tax on wages paid in the fourth quarter, it could be

carried forward and treated as a payroll tax credit for the

• Single-member LLC treated as a disregarded entity

first quarter of 2018.

for federal income tax purposes— The owner of the

LLC or a principal officer duly authorized to sign.

-10-

Instructions for Form 944 (2017)

Instructions For Form 944 - Employer'S Annual Federal Tax Return - 2017 Page 10

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