PR Going from 944 to 941 - is it automatic?

[BulldogTom]

This is for me personally.  I have an employee/spouse in my business.  I don't pay my spouse a lot, and so I don't have a great deal of PR taxes to pay.  I have been filing the 944 PR return since it came out and the IRS switched me onto it.  I know it is for businesses that have less than $1,000.00 in Liability for the year.

I got soft and gave my employee a raise and now I am over the threshold of $1,000.00 in PR Liabilities.

Do I have to start filing 941's now that I have breached that level?  Who decides?  I read the instructions and it only talks about the IRS putting you on the form.  It does not talk about when you grow bigger than the minimum threshold.

Anyone out there have a resource I can look at?

Tom
Newark, CA

[Bart]

From the instructions for form 941:

Employers can choose to file Forms 941 instead of Form 944. Employers that would otherwise be required to file Form 944, Employer's ANNUAL Federal Tax Return, can notify the IRS if they want to file quarterly Forms 941 instead of annual Form 944. To request to file quarterly Forms 941 to report your social security and Medicare taxes for the 2015 calendar year, you must either call the IRS at 1-800-829-4933 between January 1, 2015, and April 1, 2015, or send a written request postmarked between January 1, 2015, and March 16, 2015. After you contact the IRS, the IRS will send you a written notice that your filing requirement has been changed to Forms 941. You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. If you do not receive this notice you must file Form 944 for calendar year 2015. See Rev. Proc. 2009-51, 2009-45 I.R.B. 625, available at www.irs.gov/ irb/2009-45_IRB/ar12.html.

Edited November 1, 2015 by Bart
Added reference to 941instructions

[kcjenkins]

If you do change, it will only be forward in 2016, and only 'required' if THEY NOTIFY YOU that the change is required.  in my experience, if the client was only slightly over the limit, they did not get a notice.  

From the instructions for form 941:

If you received notification to file Form 944, you must file
Form 944 to report your social security, Medicare, and
withheld federal income taxes for the 2015 calendar year
unless you contacted the IRS between January 1, 2015, and
April 1, 2015, to request to file Forms 941, 941-SS, or
941-PR quarterly instead and received written confirmation
that your filing requirement was changed. You must file Form
944 even if you have no taxes to report (or you have taxes in
excess of $1,000 to report) unless you filed a final return.

[BulldogTom]

Got my answer in the mail today...the commissioner says I now have to file form 941.  Nice letter.

Tom
Newark, CA

[Tax Prep by Deb]

Trust me on this, DO NOT CHANGE UNLESS IRS TELLS YOU TO!  Still working out this mess for a client whose previous preparer not only took it upon themselves to use 941 instead of 944 as required.  We have refiled the 941 numerous times and somehow IRS still can't get it fixed.   This goes back to 2008 and 2010.

[Lion EA]

I'm doing 941 for my very part-time employee.  Long ago, I qualified for the 944.  But, I thought changing would confuse our government.  Sounds like I'm right.  So, I'll continue filing 941.  I have to file quarterly in CT anyway, so filing 944 wouldn't save me much.  I'm listening to Deb.