X Success! Thank You for Downloading Form 941 Guide from TaxBandits! Please check your email now! Form 941 Penalties - Late Filing, Late Payment & Failure to File Charles Hardy | Last Updated: May 07, 2025 Check the Penalty for filing 941 late Avoid IRS penalties—file your Form 941 now It’s never too late—file Form 941 now to avoid IRS penalties and stay compliant, even if you’ve missed the original deadline. File Today! Home Payroll Forms Form 941 Penalty If you own and operate a business with employees, you will need to know when to deposit and file Forms 941, and 944. If you are depositing taxes late or filing your return, the IRS will impose penalties. Businesses that don’t meet their tax obligations may owe a penalty. The IRS may impose penalties for several reasons, including failure to: File a 941 return on time Pay owed taxes on time and correctly Submit an accurate tax return Provide correct and timely returns Table of Contents What is the penalty for filing 941 late? What is the penalty for a late 941 payment? What is the penalty for failure to pay 941 taxes? How to Avoid Form 941 Penalties? 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. Facing IRS penalties for late Form 941 filing? We’ve got your back. Don’t risk additional penalties— file Form 941 accurately and on time with ease. Complete your filing in minutes and keep your business compliant and penalty-free. IRS-authorized and secure Instant IRS status updates Free retransmission if your return is rejected No tax expertise needed — See how easy e-filing can be! Explore More 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. No. of days your payment is late Penalty Amount 1-5 calendar days 2% of unpaid tax 6-15 calendar days 5% of unpaid tax More than 15 calendar days 10% of unpaid tax More than 10 calendar days after receiving your first notice or letter from the IRS (for example, CP220 Notice) or the day you get a notice or letter for immediate payment (for example, CP504J Notice) 15% of unpaid deposit Avoid Penalties—Make Your 941 Tax Deposit on Time Missed or late 941 tax deposits can lead to costly penalties. No worries—you can schedule and make secure tax deposits through EFTPS, eliminating last-minute stress. IRS-authorized EFTPS integration Schedule deposits in advance Step-by-step guidance for hassle-free payments Don’t let a missed deposit cost your business—learn how to deposit taxes through EFTPS Explore More 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. Failure to pay the amount shown as tax on your return If you fail to pay the tax amount reported on your return the failure to pay penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won’t exceed 25% of your unpaid taxes. Quick Info: If both the 941 late filing and late payment penalty are applied in the same month, the late filing penalty is reduced by the amount of the failure to pay penalty for that month, you will incur a 4.5% failure to file penalty and a 0.5% failure to pay penalty. Failure to pay tax you didn’t report on your return If the IRS determines that you owe additional taxes not reported on your return, you will receive a notice or letter stating the amount due and the payment deadline. Typically, you have 21 calendar days to pay, or 10 business days if the amount owed is $100,000 or more. To get more information on this, click here. Pay your 941 taxes before due to avoid late payment penalties. Deposit Using EFTPS Now 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! Learn More Running late on your 941 filing? Filing doesn’t have to be hard— it’s fast, simple, and IRS-compliant. File in Minutes– E-file your 941 quickly and easily. IRS-Compliant– Accurate filings ensured. Stay Updated– Get notified on your return status. See How Easy It Is Your Form 941 Compliance Guide Stay Penalty-Free with Our Compliance Guide Understand late filing and payment Follow steps to ensure on-time tax deposits Get clear guidance for stress-free compliance Download Now For Free Related Topics IRS Form 941 Form 941 Form 941 Instructions Form 941 Due Dates Form 941 Mailing Address Form 941 Schedule B Form 941 Penalty Form 940 vs 941 Form 941 vs 944 Changes in Form 941 for 2025 Form 941-X What is Form 941-X Form 941-X Instructions Form 941-X ERC Withdrawal Previous Revisions (2022-2024) Form 941 (Rev. 2024) Form 941 (Rev. 2023) Form 941 (Rev. 2022) Form 941 (Rev. Q2 & Q3 2022) Form 941 (Rev. 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Q1 2022) X Get Your Free 941 Guide Enter your details to get a free guide for filing Form 941 for 2025! Contact Name Email Address Phone Number Subscribe for Form 941 auto-reminders and helpful, tax-related updates Download Now