Temporary Regs - Employment Tax Returns

The IRS has issued TD 9440, which contains temporary regulations relating to the annual filing of Federal employment tax returns and requirements for employment tax deposits.  These temporary regulations relate to IRC Secs. 6011 and 6302 concerning reporting and paying income taxes withheld from wages and reporting and paying taxes under the Federal Insurance Contributions Act (FICA) (collectively, "employment taxes").  These temporary regulations generally allow certain employers to file a Form 944, "Employer's ANNUAL Federal Tax Return," rather than Form 941, "Employer's QUARTERLY Federal Tax Return."  In addition to rules related to Form 944, the temporary regulations provide an additional method for employers who file Form 941 to determine whether the amount of accumulated employment taxes is considered de minimis.  The portions of this document that are final regulations provide necessary cross-references to the temporary regulations.

Posted by Lewis J. Saret, General Editor, Wealth Strategies Journal.