How To Avoid Form 941 Penalties
As you may know, the second quarter deadline for Form 941, Employer’s Quarterly Federal Tax Return, has passed on July 31, 2020. If you are required to file this form, but failed to do so, this article is for you!
The revised Form 941 for the second quarter may seem overwhelming due to all of the changes. While it may be very tempting to put off filing your Form 941 for as long as possible, we promise it’s not a good idea!
Here are the penalties you need to worry about and some tips to prevent them!
What Are The IRS Penalties For Late Filing?
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 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.
If you would like some additional information that will either make you cringe or motivate you to file and make your tax payment ASAP (maybe both), check out our 941 Penalty Calculator.
I Missed My Deadline, What Should I Do?
We all miss a deadline every once in a while, given the current economic circumstances, overlooking your deadline is understandable. The TaxBandits team is here to help you avoid further IRS penalties. You can easily efile today with TaxBandits!
Our software will walk you through the Form 941 e-filing process line by line. If you need help calculating your COVID-19 tax credits, we support Worksheet 1, which is designed by the IRS to help report this information. For only $4.95 per form, you can get a variety of great features and an excellent customer support team that will quickly help you via phone, email, or live chat.
Once you have completed your Form 941, you can easily review your form for any errors and transmit your Form 941. There’s no need to worry about turnover time because your Form 941 will be instantly transmitted to the IRS.
With instant IRS approval, you’ll be wondering why you didn’t file on time! TaxBandits clients never have to worry about breezing through a deadline again, we will give you a heads up when the deadlines that apply to your business are approaching!
IRS penalties are a worry of the past when you have the TaxBandits team on your side!
Need some help getting started on your Form 941? You can check out our blog for even more information on everything Form 941 and more! Be sure to check out our YouTube channel as well for step-by-step videos like the one below!