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


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
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.
Instructions for Form 944 (2017)


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