Tax Talk Today[R] October web cast provides insight into year-end employment tax preparation.

• Position: Tax info - Brief article

On the Oct. 17 Web cast of Tax Talk Today, a panel of Internal Revenue Service officials and tax experts discussed the new Form 944 and provided reminders and tips for tax practitioners dealing with Form 1099 as well as employment taxes in general.

Form 944, "Employer's Annual Federal Return," launched in 2006 with the first annual returns due Jan. 31, 2007, and primarily impacts small businesses. Designed for businesses with a total employment tax liability of $1,000 or less, Form 944 replaces the quarterly Form 941 with a single, annual filing and payment of federal employment tax for those taxpayers notified by the Service.

The first Forms 944 are due by Jan. 31, 2007. Existing businesses that qualify for Form 944 should have already received a notification letter from the IRS in Feb. 2006; new businesses that qualify for Form 944 will be identified as a part of their Employer Identification (EIN) application process. The IRS cautioned tax practitioners to remember that the $1,000 employment tax...