Understanding Form 941 Penalties for 2024: Overcoming Late Filing Penalties

The deadline may have passed the threat of IRS penalties will stick around, here's what you need to know!

Stephanie Glanville | August 1, 2024 | Read time: 5 minute(s) | Form 94x Series, Penalties | No Comments

Introduction

Believe it not, July is over and August has officially begun! The deadline for filing the IRS Form 941 for the second quarter of the 2024 tax year has been exceeded. Have you failed to file 941 this quarter?

No worries! If you still need to file your form, you can complete it efficiently with TaxBandits. However, if you file late, you may become subject to specific penalties. Here are the potential penalties that you might face while filing it late.

Keep reading this article to understand the penalties from the IRS for late filing of tax form 941.

What are the possible penalties for late filing?

Businesses/ Organizations that don’t file Form 941 for the second quarter of 2024 or fail to submit their tax returns on time could face stiff penalties from the IRS. The IRS will impose the penalties in the following manner:

Initial penalties: Your business will incur a penalty of 5% of the total tax amount due initially.

Penalties for continuous failure: If the business/organization fails to file Form 941 continuously, an additional 5% penalty will be imposed each month until the return remains unsubmitted to the IRS (For up to five months).

Interest for continuous failure: If form 941 is not filed even after a five-month time period, interest will be levied on the total accumulated penalty amount.

Penalty rate for late filing of Form 941

Here are the penalty rates for late filing of Form 941

Filed form 941 late by 1 to 5 days: 2% of the amount due will be calculated as a penalty.
Filed form 941 late by 6 to 15 days: 5% of the amount due will be calculated as a penalty.
Filed form 941 late by 16 days or more: 10% of the amount due will be calculated as a penalty.
Failed to file the form even after receiving the IRS notice: A penalty of 15% of the amount due will be calculated.

What if I failed to make IRS deposits on time?

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.

What if I still need to file 941 for my business?

While we might occasionally miss the deadline, filing the taxes immediately is crucial. The sooner you complete and transmit the form to the IRS, the more responsible you are in reducing the chance of higher penalties.

The TaxBandits team is here to help you avoid further penalties. With our efficient service, you can easily file your taxes today and avoid the stress of late filing penalties.

Efile Form 941 with TaxBandits!

There is no need to let late filing penalties weigh you down. TaxBandits is here to help you file 941 in minutes. TaxBandits makes e-filing of Form 941 as easy as possible by guiding you throughout the filing process.

With our advantageous features, TaxBandits can simplify your tax filing. If you are filing for multiple businesses, take advantage of our bulk upload template and save time. You can also copy the information from the previously filed tax return to the current quarter. Other supporting features of TaxBandits are zero reporting, built-in error checks, and secure filings.

Missed the 941 deadline, Don’t wait, start filing with TaxBandits today!