A Simplified 941 Filing Guide for Reporting Agents

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Reporting agents play a crucial role in preparing Form 941 and other 94x series forms on behalf of many businesses. Their responsibilities include ensuring accurate reporting, proper tax liability calculations, and timely submissions. Handling these tasks helps prevent errors and penalties while meeting reporting obligations. This results in numerous tasks and details for reporting agents. 

Are you a reporting agent unsure where to begin with Form 941 filing for your clients? Don’t worry, TaxBandits simplifies the process and guides you every step of the way.

First, let’s dive deeper into the role of reporting agents.

What is a Reporting Agent? 

A reporting agent is an individual authorized to prepare and sign 941 forms for their clients. Typically, they are an accounting service, bank, or franchiser. Their primary role is to initiate the electronic submission of returns and transmit them to the IRS on behalf of their clients. 

An important thing to note is that reporting agents are required to e-file 94x tax forms. 

A Reporting Agent’s Responsibilities

When filing for clients, reporting agents are typically responsible for:

• Making deposits and payments for certain tax returns listed in Form 8655.
• Responding to IRS notices related to 94x tax forms.
• Receiving communications and duplicate copies from the IRS.

Ensure IRS Compliance for 941 Filings

Obtaining Authorization

As a reporting agent, you must use Form 8655 to get authorized to file for each of your clients. The 8655 form allows you to:

• Sign and file 941 returns.
• Receive IRS notices and communications.
• Make return deposits or payments.
• If penalized, assist the client in providing the IRS with the necessary information to determine whether a penalty should be waived or reduced.

 Follow these steps to ensure you’re authorized to file:

• Have each of your clients fill out and e-sign a Form 8655.
• Prepare your list of clients.
• Submit the client list and their respective 8655 forms to the IRS. 

If your form is accepted, the IRS will provide a Reporting Agent PIN that Reporting Agents must use to e-file 94x forms for their clients.

Other Authorization Forms

While Form 8655 is one of the most frequent authorization forms, there are two other authorization forms you may use at some point: 

• Form 2848: Power of Attorney and Declaration of Representative authorizes an eligible individual to represent a client before the IRS.
• Form 8821: Tax Information Authorization permits an individual to view a client’s tax records, forms, and sensitive information to provide tax guidance. However, it does not authorize the individual to file for a client. 

Collect and Verify Information 

Ensure you have all the information needed to file the 94x series, which may include employer and employment details. Once you have the required information, verify it is accurate to prevent the need to file corrections.

Deadlines to Keep in Mind

Keep track of the following 941 due dates:

• First Quarter: April 30
• Second Quarter: July 31
• Third Quarter: October 31
• Fourth Quarter: January 31

What Happens if I Don’t File by the Deadline?

While things happen, filing late is not fun for anyone. The IRS is strict on its deadlines and expects forms to be filed on time. When that does not happen, you may incur the penalties. Here’s what you need to know about the 941 late filing penalty:

• A 5 percent penalty of the total tax amount due accrues each month that the form is late. Up to 25 percent can be accrued.
• After 60 days, the minimum penalty payment is $510 or 100 percent of the underpayment, whichever is less.

 Simplify Your 94x E-Filing with TaxBandits!

There’s quite a bit you need to prepare and remember while meeting your 94x requirements, especially if you have a large number of clients. If this makes you feel overwhelmed, don’t worry, TaxBandits has you covered!

We offer exclusive features for reporting agents to simplify the 941 filing process, including bulk upload, client portals, and more. Additionally, we support various forms, such as Form 941, 940, 941 Schedule B, and 941/940 Schedule R, so that all your 94x e-filing needs are in one place.

Begin your simplified Form 941 filing journey today!