Filed W-2 for Child--Need 944s?

[Super Mom]

Per advice received here. I reccomended to two clients with child employees (no SS or FICA) to do W-2's for the income. There is no withholding, as that is not applicable for the 2 kids. Now one of my clients has a letter from the IRS for 944 or 940 for 2008 and 2009, can this be avoided?

I'm on the phone holding for the IRS now!!

Thanks!!

[RitaB]

No, it can't be avoided

Per advice received here. I reccomended to two clients with child employees (no SS or FICA) to do W-2's for the income. There is no withholding, as that is not applicable for the 2 kids. Now one of my clients has a letter from the IRS for 944 or 940 for 2008 and 2009, can this be avoided?

I'm on the phone holding for the IRS now!!

Thanks!!

File the form. Hope the kids are really working.

[Super Mom]

Which one?

I'm only familiar with the quarterly 940, is the 944 annual?

[Super Mom]

Really Working!

Yes, it is for 2 different clients, and I have no doubt the kids are really working (young teenagers)

[RitaB]

Yeah, it's annual form

I'm only familiar with the quarterly 940, is the 944 annual?

and one of those things that make you scratch your head. Why did they change something that worked?

Anyhow, you can view/print the form at irs.gov if your software doesn't have payroll forms.

944 should be the one for your client if only their own kid under 18 is working.

[Burke]

The whole system is a nightmare. They will change you back and forth from year to year from 941 (quarterly) to 944 (annually) based on certain back quarters (not the immediate previous year). Last year my client got a letter telling him to file 944 (he was 941), then got another letter later saying that was an error, 944 was for previous year, to file 941, poor guy was so confused that he just gave up. Every time you file a 941 and they have you in the system for a 944, you get a letter saying it will not be processed, and $$$ credited to 944. Vice versa.

[S T]

Regardless of Form

Whether it be 941, 944 or form 940,

I believe you need to file, and if the children are exempt from FICA, Mcare and FUTA you would have mostly Zero's on the return. But they are still looking for the forms, at least that has been my experience in the past.

Sandy

[Burke]

Form 940 is for FUTA tax, and they should not have to file that in this circumstance as the kids are exempt from that also.

[S T]

In the past

I have received requests from IRS regarding the 940 form, when not filed. Usually it is because of exempt payments for children or spouse. So I have had complete the form, showing the wages, and then enter the "exempt" wages on line 4. -0-. But they want the form.

Sandy

[Lion]

File

I agree with Sandy. Once you're in their system, the computer will look for a return. File even with all zeros, but file. It'll take you less time than waiting on hold and speaking to someone who doesn't know anyway.