Quarterly Tax Form 941 Penalties

Small business owner paying unpaid tax penalty

How to Avoid IRS Penalties on Tax Form 941

IRS penalties are completely avoidable when you plan ahead and know exactly where to go to file your 941 Form, Employer’s Quarterly Federal Tax Return. ExpressTaxFilings, is an IRS-authorized comprehensive solution for generating and e-filing in the simplest, quickest way possible.

Our team always wants to help your business by providing easy to understand IRS information. Here, we will focus on the penalties that can occur when there is a failure-to-file and/or failure-to-deposit taxes for your 941 Form.

Filing and Paying Late:

The following is a summary of what to expect if you fail to file and pay your second quarter 941 Form by July 31st.

A failure-to-file on time results in a penalty 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.

Also, 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 they intended 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 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.

Deposit Penalties:

These penalties are for the amount that is not fully or timely deposited on time. 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 remain 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.

Avoid the Penalties:

Now that you understand the penalties and what they entail, I am sure you will avoid having to pay them. 941 Forms, reporting wages and taxes for April through June, are due by July 31st. To avoid penalties use ExpressTaxFilings to e-file and pay any owed taxes on time with our quick, easy and secure step-by-step filing process. We also help filers with built-in error checks, bulk upload data and experienced US-based customer support.
If you have any questions about e-filing your Form 941 with ExpressTaxFilings, we’re available by phone, live chat, and email to help! A friendly support team member will be happy to answer any questions that may come up in your e-filing.

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