Andreosatos Enterprises has received a letter from the IRS that due to their tax liability of $1,950 during the lookback period,they are an annual depositor.Which tax form should they file to report their payroll taxes?

Question

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Andreosatos Enterprises should file Form 944 to report their payroll taxes because they are an annual depositor. Form 944 is filed annually and is for small employers whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less. Form 940 is for employers to report and pay federal unemployment taxes. Form 945 is for employers to report and pay taxes withheld on non-payroll payments such as pensions or bonuses. Form 941 is for employers to report and pay taxes on quarterly payroll.

Andreosatos Enterprises Has Received a Letter from the IRS That