Form 941 Penalties - Late Filing, Late Payment & Failure to File

Penalty For Filing 941 Late

The 941 late filing penalty applies if you don't file Form 941 by the due date. The penalty incurred will be the percentage of taxes that aren’t paid on time.

• Your business will incur a penalty of 5% of the total tax amount due.
• You will continue to be charged an additional 5% each month the return is not submitted to the IRS for up to 5 months. The penalty will max up to 25% of the unpaid taxes.

If you fail to file Form 944 by the due date, the late filing penalty is the same as that of Form 941.

Penalty For Late 941 Tax Deposit

The 941 late payment penalty applies to businesses that fail to make employment tax deposits:

• On or before the due date
• In the right amount and right way

Employer-paid taxes include federal income tax, FICA (Social Security and Medicare taxes) ,and Federal Unemployment Tax (FUTA). The IRS will send you a notice or letter if you owe the FTD (Failure to Deposit) penalty.

The failure to deposit penalty is calculated based on the number of calendar days your deposit is late, starting from the actual payment due date.

Penalty for Late 941 Payment

The failure to pay penalty applies if you don’t pay your taxes on time. It is calculated as a percentage of the unpaid taxes.

The failure to pay penalty is calculated if you:

• Do not pay the tax amount reported on your return.
• Fail to pay taxes that were not initially reported on your return.

Pay your 941 taxes before due to avoid late payment penalties.

How to Avoid Form 941 Penalties?

Avoid 941 penalties and interest with the following actions:

• File your return by the IRS deadline: Ensure your 941 return is filed on time and submitted properly.
• Accurately report your tax liability: Check your calculations to ensure that your return is accurate and correctly report your tax liabilities.
• Timely Payments or Deposit of taxes: In order to avoid 941 late payment penalties, be sure to deposit or pay the taxes owed by the deadline along with your return.

Also, make sure that you have reported your tax liability on Form 941 Schedule B without any errors.

The IRS recommends taxpayers to pay taxes online using EFTPS and e-file 941 for quick and secure processing. In order to stay compliant avoiding penalties, you must get started with an IRS-authorized e-file provider, and TaxBandits has got
you covered!

TaxBandits provides an efficient solution to file Form 941 online and to deposit your taxes using the
EFTPS payment solution.

Avoid late filing and late payment penalties by getting started with TaxBandits today!