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
We help businesses to reduce errors and missed deadlines with our Forms Filer Plus software. Download our free demo software to see how we support the different federal forms.