Tips for Avoiding IRS Form 941 Penalties for Q2, 2022
The Form 941 deadline for the second quarter of 2022 is just around the corner. With roughly four business days to go before August 1, 2022, it’s time to get a series about your quarterly filing requirements!
As a small business owner, you have a lot of pressing items on your “to do” list that can make filing look less critical, however, IRS penalties are serious and they can really become a problem for your business in the long term.
Here is a quick overview of what kinds of penalties the IRS typically charges and tips for avoiding them altogether!
Track your Deadlines
We know it sounds obvious, but with four 941 deadlines a year and a busy business to operate, it can be easy to forget. Life happens and sometimes deadlines can slip through the cracks.
While the first quarter deadline has already passed, here are the next three deadlines for Form 941. Adding a reminder to yourself to get started on your filing about a week before the deadline, is always a good idea!
- Second Quarter: August 1, 2022
- Third Quarter: October 31, 2022
- Fourth Quarter: January 31, 2023
Potential Penalties for Late 941 Filing
These are the potential penalties for filing Form 941 late, as described by the IRS.
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.
Save Time by E-filing Form 941
If you haven’t made the switch to e-filing 941 Forms, now is the time! The IRS prefers that employers file this form electronically, this format is easier for them to process.
Not only will your form be processed at a faster rate, but by e-filing, you’re able to receive updates on the status of your form. When you mail a paper form to the IRS, there is no way of knowing whether it made it there, let alone its status.
With TaxBandits, you can also take advantage of the added benefits that come with e-filing, such as built-in error checks and automatic tax calculations.
Ready to beat your deadline with TaxBandits? Create your free account today and begin filing Form 941 for just $4.95!
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