IRS Form 941 Penalties for 2024

1. Failing to File Form 941 and 944

If you fail to File your Form 941 by the deadline:

The penalty for Failure to File 941 is based on how late you file your return and the amount of unpaid tax as of the original payment due date.

• 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.
• In addition to failing to file, if you did not pay your owed tax bill you will initially be charged 0.5% of the unpaid tax amount, and this fee will increase each month the payment remains unpaid. The penalty will increase to 1% ten days following the IRS notice of intent to levy.

Note: The Penalty rate for Failure to File Form 944 by the due date is the same as that of Form 941.

File your 941 now with the IRS before the deadline and Avoid Penalties!

2. Penalties for failing to pay payroll taxes reportable on 941 and 944 Forms

In case, if you have failed to pay the balance due on the filed 941 forms, you will probably receive a CP161 notice from the IRS about the penalty.

The IRS will impose the penalty based on How much tax you owe and when you made the payment.

For example: Consider, you are responsible for paying $3000 to the IRS for the quarter and you have deposited your taxes after 20 days from the deadline. Now the IRS will impose a penalty and send you a notice regarding the late payment. In this case, you will be liable for paying a penalty of $300 which is a 10% penalty rate of your taxes.

3. Penalty Calculator: Applicable Penalty Rates for not
paying taxes

The Penalty for failure to deposit taxes is based on the number of calendar days the deposit is made late, from the actual due date.

This applies to employers who fail to make employment tax deposits on time, or in the right amount. These employment taxes include Federal income tax, FICA Taxes (Social Security & Medicare tax), and FUTA tax.

Quick Info:

The penalty amounts don’t add up. For example, if the tax deposit is delayed by more than 15 calendar days, the IRS doesn’t add a 10% penalty with the earlier penalties (2% and 5%). Instead, the new total penalty would be 10%.

File your 941 and 944 Forms now with the IRS and avoid Late Payment penalties.

4. How to Avoid IRS 941 late payment penalties and Interest?

Avoid penalties and interest with the following actions:

• Pay the full amount of taxes you owe when they are due.
• Accurately report your tax liability.
• Submit valid checks for tax payments.
• Provide accurate Form W-2 to your employees.
• Accurately file Form W-3 and Copy A of Forms W-2 with the SSA on time.

In order to avoid penalties, be sure to deposit or pay your owed IRS taxes by the deadline along with your Employer's Quarterly Tax Return Form. Also, make sure that you have reported your tax liability (Form 941 Schedule B) without
any errors.

5. E-file Form 941 in minutes with TaxBandits.

When you e-file with TaxBandits, your form is checked for errors using the IRS Business Rules. Follow the simple steps to e-file form 941 for 2024 with TaxBandits.

• Choose Tax Form 941
• Enter Form 941 Information
• Review and Transmit to the IRS.

IRS 941 penalties are avoidable when you plan ahead of your filing deadline. File your Form 941 and Form 944 securely and accurately using TaxBandits, an IRS-authorized e-file provider. File your 941 and 944 Forms for just $5.95/form.