SECTION 2. BACKGROUND

.01 Form 944 was designed to reduce burden on small employers by permitting those employers to file one employment tax return to report their social security, Medicare, and withheld federal income taxes (referred to herein as their “employment tax liability”) for an entire taxable year instead of four employment tax returns (one for each quarter).

.02 The Treasury Department and the Internal Revenue Service (IRS) published temporary regulations (T.D. 9239, 2006–1 C.B. 401) related to Form 944 in the Federal Register (71 FR 11) on January 3, 2006. A notice of proposed rulemaking (REG–148568–04, 2006–1 C.B. 417) cross-referencing the temporary regulations was published in the Federal Register on the same day (71 FR 11). A correction to the temporary regulations was published in the Federal Register on March 17, 2006 (71 FR 13766). Revised temporary regulations (T.D. 9440, 2009–5 I.R.B. 409) and proposed regu

lations (REG–147440–08, 2009–9 I.R.B. 641) relating to Form 944 were published in the Federal Register (73 FR 79354 and 73 FR 79423) on December 29, 2008. A correction to the revised temporary regulations was published in the Federal Register on January 1, 2009 (74 FR 3421).

.03 Sections 31.6011(a)–1T(a)(5)(ii) and 31.6011(a)–4T(a)(4)(ii) of the revised temporary regulations provide that the IRS may establish procedures in published guidance for employers to follow to request to file Form 944 or to request to file Forms 941 (after receiving notification of their qualification to file Form 944).

.04 For tax year 2009, the IRS issued the procedures for employers to follow for purposes of Treas. Reg. §§ 31.6011(a)–1T(a)(5)(ii) and 31.6011(a)–4T(a)(4)(ii) on December 29, 2008, in Revenue Procedure 2009–13 (2009–3 IRB 323).

.05 A new revenue procedure for tax years beginning on or after January 1, 2010, is necessary to allow employers to opt out of filing Form 944 for any reason. Under the prior rules for tax years 2006, 2007, 2008, and 2009, employers who were qualified to file Form 944 could only opt out ( i.e., request to file Forms 941 instead) if they estimated that their employment tax liability would exceed the $1,000 threshold or if they wanted to e-file Forms 941 quarterly instead. Beginning in tax year 2010, employers will be able to opt out of filing Form 944 for any reason if they follow the procedures set forth in this revenue procedure. This revenue procedure constitutes published guidance for purposes of Treas. Reg. §§ 31.6011(a)–1T(a)(5)(ii) and 31.6011(a)–4T(a)(4)(ii). .06 Employers who file Forms 941 and 944 must deposit their employment tax liability in accordance with the rules in Treas. Reg. §§ 31.6302–1 and 31.6302–1T or, absent reasonable cause, the employers may be subject to the penalty for failure to deposit under section 6656. Generally, the same deposit rules apply to employers regardless of which form they file to report their employment tax liability; however, the de minimis deposit amount may be different. For more information on the deposit rules, see Publication 15, (Circular E), Employer’s Tax Guide, the Instructions for Form 941, the Instructions for Form 944, and the instructions for the related

2009–45 I.R.B. 625 November 9, 2009

(b) Employers in Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and international callers can call 215–516–2000.

.06 Mailing Addresses . Employers can write the IRS to opt in or out of filing Form 944 by using one of the mailing addresses specified in the Instructions for Form 944, Instructions for Form 944–SS, Instructions for Form 944(SP), or the Instructions for Form 944–PR, as applicable. At publication, the following mailing addresses have been identified for this purpose:

Department of Treasury, Internal Revenue Service Ogden, Utah 84201–0038 or Department of Treasury, Internal Revenue Service Cincinnati, Ohio 45999–0038.