Let the countdown begin! The Federal Form 941 deadline for third-quarter employment taxes is Thursday, October 31st. As an employer, you must file your 2019 941 Form quarterly to report employment taxes for your business. To prevent yourself from filing taxes late, you need to file Federal Form 941 now to avoid IRS penalties.
You Need To File Federal Form 941 Now To Avoid IRS Penalties
The penalty for filing taxes late can be pretty expensive. Plus, the longer you wait to file, the more penalties you will incur. Here’s a quick overview of the penalty for late taxes:
Failing to File
If you fail to file your 94x Series Form 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, and this charge can continue for up to 5 months.
If, in addition to failing to file, 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.
Failing to Pay
If you filed your 941 form but neglected to pay taxes owed or did not pay the amount in full, payments submitted 1 to 5 days following the deadline will result in a 2% penalty of the unpaid tax. Deposits paid 6 to 15 days after the deadline will be charged 5% of the outstanding amount.
Once you exceed 16 days, you and your business will be charged a penalty of 10% until ten days after receiving your first notice from the IRS. After this point, you will be penalized 15% and must pay immediately, or the IRS will have the legal right to seize the unpaid tax amount plus penalties.
Small Business Penalty for Filing Taxes Late
|No. of Days Following Deadline||Penalty Rate||Penalty on $3,000
(Based on Unpaid Tax Owned)
|One to five days||2%||$60|
|Six to fifteen days||5%||$150|
|Sixteen or more days||10%||$300|
|10 Days After Receiving Notice from IRS||15%||$450|
Note: Late deposit penalty amounts are determined by the date filed following the deadline.