If you failed to file your 94x Series Form, you need to as soon as possible to avoid substantial IRS penalties. You will be penalized 5% of the tax return for each month the return is late. And if you failed to pay the required tax amount or made a particular payment you will be charged 2 to 15% of the unpaid tax amount determined by the number of calendar days it remains unpaid.
The following is a guide for what to expect if you failed to file and pay your second quarter 941 Form by July 31st. As a result of failing to file on time will result in a penalty of 5% of the total tax amount due. You will be charged an additional 5% each month the return is late for up to 5 months.
You will also be penalized for paying late. Initially, this will be .5 % of the unpaid tax amount and will be charged each month following the payment due date. The penalty will increase to 1% of the tax amount ten days following a notice that the IRS intends to levy. This notice is a final warning that the IRS is prepared to legally seize your property to satisfy the unpaid tax debt. The IRS can do this by garnishing wages, withdrawing money from your bank account, or by possessing other personal property. However, the penalty will be capped at 25% of the total tax due.
If you failed to pay taxes owed or did not pay the full amount: For payments made 1 to 5 days late, you will be charged a penalty of 2% of the unpaid tax, whether the full amount or the remaining balance. Deposits paid 6 to 15 days after the due date will be charged 5% of the unpaid amount.
Once you exceed 16 days, you will be penalized 10% of the unpaid tax amount until ten days after you receive your first notice from the IRS. Following this, you will be charged 15% and must pay immediately, or the IRS will be given legal right to seize the unpaid tax plus penalties.
Now that you understand the penalties you are facing, I am sure you will avoid being charged further. Just as a reminder 94x Series Forms, reporting wages and taxes for April through June, were due July 31st. E-file and pay any owed taxes today with ExpressTaxFilings!
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