Is There a Penalty for Filing 941 Late?

Yes, your business will incur a penalty from the Internal Revenue Service if you file a late 941 form. Complete Form 941 correctly and by each quarterly deadline. It may otherwise appear as though you did not deposit the taxes when you owed them. The IRS’ late deposit penalty ranges from 2% to 15%. The severity of the penalty relates to the lateness of your deposit.

The IRS will determine your Form 941 late penalty by looking at the number of calendar days from when your payment was due to how late you submitted it.

1-5 calendar days – 2% of the unpaid deposit

6-15 calendar days – 5% of the unpaid deposit

More than 15 calendar days – 10% of the unpaid deposit

Over 10 calendar days after your first notice date or the date that you receive a letter for immediate payment – 15% of the unpaid deposit

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