941 Late Filing Penalties for 2023: What to Know and How to Avoid Them!

An easy overview for businesses!

Stephanie Glanville | May 9, 2023 | Read time: 4 minute(s) | Deadline, Form 94x Series, Penalties | No Comments

Don’t let IRS penalties ruin your plans this summer!

Don’t worry, we understand that life gets away from us, and IRS filing deadlines may not be the most pressing matter your business is facing.

In light of the first quarter deadline that just passed on May 1st, we are back to give you one last reminder about the filing requirements.

What is the Form 941?

Let’s start with a quick recap. Form 941 is a quarterly payroll tax form that businesses are required to file if they withhold Medicare, social security, and income taxes from their employee’s paychecks.

Since it is a quarterly form, it has the following deadlines in 2023:

Q1 Deadline: May 1, 2023
Q2 Deadline: July 31, 2023
Q3 Deadline: October 31, 2023
Q3 Deadline: January 31, 2024

What are the Form 941 Late-filing Penalties?

For every month that your business is late filing Form 941 to the IRS, you will incur a penalty totaling 5% of your balance due to the IRS. You will continue to incur this 941 penalty every month for up to 5 months or 25% of your total balance due.

After this point, if your business has still failed to file you will be charged .5% of the tax payment owed to the IRS. This will increase to 1% of your total balance ten days after you receive a notice of levy from the IRS.

I Forgot to File 941 for my Business, Now What?

We all miss a deadline every once in a while, overlooking your deadline is understandable. It’s what you do next that is important! The sooner you complete and transmit your form to the IRS, the better. The longer you wait, the higher the penalties may become.

If you’ve missed a few quarterly deadlines, and need to get caught up, we support IRS Form 941 for previous tax years as well.

The TaxBandits team is here to help you avoid further IRS penalties. You can easily file today with TaxBandits!

It is also important to note that businesses that have made timely payments in full during the quarter can actually file by the 10th day of the second month, according to IRS guidelines.

If you made timely deposits in full to the IRS during the first quarter, you actually have until tomorrow, May 10, 2023, to file Form 941 for your business.

E-file Form 941 in Minutes with TaxBandits!

The Form 941 e-filing process is designed to be simple and you can complete the form for your business in minutes. Before you sit down to file, make sure you have all of your basic business information, the tax liability for the quarter, wages paid to employees, and withholding amounts on hand.

During the 941 filing process, you will be prompted to complete any necessary worksheets or attachments, like 941 Schedule B based on the information you provide. If you are filing for multiple businesses, you can take advantage of our bulk upload template, this will save you the time of entering the information manually.

Whether you’ve missed one deadline…or a few, TaxBandits can help you get the quarterly filing for your business back on track!