Form 941 Penalties and How to Avoid them This Quarter

If you haven't filed yet, now is the time!

Stephanie Glanville | May 5, 2022 | Read time: 4 minute(s) | Form 94x Series, Penalties | No Comments

The deadline to file Form 941 for the first quarter of 2022 was this past Monday (May 2, 2022). If you haven’t filed your form yet, and the IRS requires you to complete this for your business, it’s time to get a move on!

If you need a little extra motivation to help you complete and file your Q1 Form 941, these potential IRS penalties might be the inspiration you need!

Keep reading for an overview of possible IRS penalties and how to avoid them.

What are the possible penalties for Late 941 Filing?

Here are the penalties that the IRS has laid out.

For every month that a business is late filing its 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 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.

Choose E-filing For More Accurate Forms

To avoid IRS errors you have to file on time with the IRS, and e-filing is a great option to save you time and eliminate the hassles of paper filing.

If you are looking to speed up your filing process and ensure that your form makes it to the IRS in time this quarter, file Form 941 electronically. Not only is the e-filing process quicker and more efficient than mailing a paper copy, but the IRS can process your electronic form at a much faster rate.

Plus, filing electronically increases the accuracy of your tax forms. For example, TaxBandits has built-in error checks that catch many common mistakes that go unnoticed when you review your paper form.

TaxBandits checks your Form 941 against the IRS Business Rules to help avoid mistakes that can result in errors and rejections.

E-file in Minutes Using TaxBandits

There’s no need to fall behind this quarter when TaxBandits is here to help you file in a matter of minutes. We make e-filing your Form 941 as easy as possible! Our application guides you through the filing process and we support all the Worksheets you need for the first quarter of 2022.

We check your information against the IRS business rules to catch common mistakes. You can even schedule your payments to the IRS when you choose to pay by Electronic Funds Withdrawal (EFW) or Electronic Federal Tax Payment System (EFTPS).

Once your form is transmitted to the IRS we will keep you updated with your IRS filing status. TaxBandits is here for you from start to finish, our excellent support team can easily help via email, phone, or live chat!