IRS Form 940 Penalty for 2023 & 2022

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IRS Form 940 Penalty for 2023

Updated on January 12, 2024 - 10:30 AM by Admin, TaxBandits

Form 940 is an IRS form used by employers to report their annual Federal Unemployment Tax Act (FUTA) tax. This must be reported on an annual basis to the IRS with the information about the Form 940 FUTA/SUTA taxes and the other supporting forms.

This must be filed before the due date. Otherwise, the IRS will impose penalties for not filing & late filing of the 940 Tax Form. Read the article to know more about the Form 940 penalty.

The following topics are covered in this article:

1. Due date for filing Form 940

The Employer's Annual Federal Unemployment (FUTA) Tax Return must be filed before January 31, 2024. However, if the employers have deposited all the FUTA tax when it was due, 940 Form can be filed by
February 10, 2024.

Penalties and interest are levied by the IRS on taxes paid late and returns filed late.

Visit to learn more about Form 940 deadline.

Form 940

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2. What are the IRS Form 940 penalties for 2023?

Employers may be subject to IRS penalties if the payment is not made or if 940 is not filed at the correct due date. This penalty may increase and accumulate if it is filed even later.

Below is the penalty calculator for Form 940:

Penalty Charged For
2% 1 to 5 days late deposit
5% 1 to 6 days late deposit
10% Deposits made 16+ days late, but 10 days before the date of the first notice the IRS
15% Deposits still unpaid more than 10 days after the date of the first notice from the IRS
Form 940

Know about the penalty rates for Form 940 under different conditions.

Avoid being penalized by the IRS and file your 940 on time and with accurate information.
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3. How to avoid 940 penalties?

These IRS penalties can be avoided if the correct way is followed and the payments are made on time to the IRS. To avoid hefty penalties from the IRS follow the below:

  • Deposit & pay the taxes on time when they are due.
  • File Form 940 before the due date
  • The Form 940 Schedule R should be attached if required
  • Attach the required Schedules (A, R)

To file before the due date, the IRS recommends filing the 940 electronically.

4. E-file and complete Form 940 quickly with TaxBandits

TaxBandits is an IRS authorized e-file provider of Payroll and Employment Tax Forms. Form 940 can be easily filed with TaxBandits and transmitted to the IRS. Follow the steps below to e-file 940 with TaxBandits:

  • Enter the Form 940 information
  • Review the completed Form 940
  • Pay and transmit to the IRS

Ready to file Form 940?

Get started with TaxBandits Today with TaxBandits and E-file your Form 940 in minutes. Get instant approval from the IRS.

TaxBandits offers the e-filing of Form 940 starting as low as $5.95/form. We also support online access services and electronic signature options. Be sure to avoid penalties by filing and paying earlier this tax year.

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