Tips for Avoiding Penalties for your Form 941 Q3

Banish IRS penalties this spooky season!

Don’t let IRS penalties be the most frightful thing you encounter this Halloween! Remember the Form 941 deadline for the third quarter is coming up on November 1, it’s just days away!

If you need some motivation to help you complete your filing on time, these potential IRS penalties are sure to get you moving!

IRS penalties For Filing Form 941 Late

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. 

Avoid Errors by E-filing

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. 

Use the Correct Worksheets

As you know, there are now 5 Form 941 worksheets. This quarter, employers may need to complete up to four of them. To learn more about the 941 worksheets and their specific purpose, click here. 

This quarter, it is very important that employers use Worksheet 4 instead of Worksheet 2 to calculate the refundable and non-refundable portions of their employee retention credit. 

This may seem like a minor change but it can impact your Form 941 in big ways. Using the incorrect worksheet will result in incorrect calculations on certain lines of the form. 

Don’t let the deadline creep up on you!

There’s no need to fall behind this quarter when you can easily get ahead with TaxBandits. 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 to calculate COVID-19 tax credits. 

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 the complete solution from start to finish! 


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