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IRS Form 941 Penalties - Late Filing and Not Filing

Updated on February 20, 2024 - 10:30 AM by Admin, TaxBandits

If you own and operate a business with employees, you will need to know about when to deposit your payroll and withholding taxes depending on tax liability, and when to file the payroll tax Form 941, and 944 forms. If you are late depositing or filing your return, the IRS will impose penalties.

The following are the topics that are more specific about Form 941 penalty.

  1. Failing to File Form 941 and 944
  2. Failing to pay 941 payroll taxes
  3. 941 Penalty Calculator
  4. How to Avoid IRS 941 late payment penalties and Interest?
  5. E-file Form 941 in minutes with TaxBandits

1. Failing to File Form 941 and 944

If you fail to File your Form 941 or Form 944 by the deadline:

  • Your business will incur a penalty of 5% of the total tax amount due.
  • You will continue to be charged an additional 5% each month the return is not submitted to the IRS up
    to 5 months.
  • In addition to failing to file, if you did not pay your owed tax bill you will initially be charged .5% of the unpaid tax amount, and this fee will increase each month the payment remains unpaid. The penalty will increase to 1% ten days following the IRS notice of intent to levy.

Avoid Penalties. File your 941 and 944 Forms now with the IRS.

2. Penalties for failing to pay payroll taxes reportable on 941 and 944 Forms

In case, if you have failed to pay the balance due on the filed 941 forms, you will probably receive a CP161 notice from the IRS about the penalty.

The IRS will impose the penalty based on How much tax you owe and when you made the payment.

For example: Consider, you are responsible for paying $3000 to the IRS for the quarter and you have deposited your taxes after 20 days from the deadline. Now the IRS will impose a penalty and send you a notice regarding the late payment. In this case, you will be liable for paying a penalty of $300 which is a 10% penalty rate of your taxes.

Form941

3. Penalty Calculator: Applicable Penalty Rates for not
paying taxes

No. of Days the payment delayed Penalty Rate
One to five days 2%
Six to fifteen days 5%
Sixteen or more days 10%
10 Days After Receiving Notice from IRS 15%

File your 941 and 944 Forms now with the IRS and avoid Late Payment penalties.

4. How to Avoid IRS 941 late payment penalties and Interest?

Avoid penalties and interest with the following actions:

In order to avoid penalties, be sure to deposit or pay your owed IRS taxes by the deadline along with your Employer's Quarterly Tax Return Form. Also, make sure that you have reported your tax liability (Form 941 Schedule B) without
any errors.

When you e-file with TaxBandits, your form is checked for errors using the IRS Business Rules. Follow the simple steps to e-file form 941 for 2024 with TaxBandits.

  • Choose Tax Form 941
  • Enter Form 941 Information
  • Review and Transmit to the IRS.

IRS 941 penalties are avoidable when you plan ahead of your filing deadline. File your Form 941 and Form 944 securely and accurately using TaxBandits, an IRS-authorized e-file provider. File your 941 and 944 Forms for just $5.95/form.

5. E-file Form 941 in minutes with TaxBandits.

When you efile with TaxBandits, your form is checked for errors using the IRS Business Rules. Follow the simple steps to e-file form 941 for 2024 with TaxBandits.

  • Choose Form 941
  • Enter Form 941 Information
  • Review and Transmit to the IRS.

IRS 941 penalties are avoidable when you plan ahead of your filing deadline. File your 2024 Form 941 and Form 944 securely and accurately using TaxBandits, an IRS-authorized e-file provider. File your 941 and 944 Forms for just $5.95/form.

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