What Happens If You File 941 Late?

Employers who file 941 late will likely encounter the Failure to Deposit Penalty. The IRS’ penalty applies to employers who fail to make employment tax deposits on time, in the correct amount, and/or in the right way. The penalty that you owe the Internal Revenue Service is a percentage of the taxes in any of the three aforementioned scenarios. The IRS will send to your business a notice or letter explaining your penalty once they determine that you missed a filing deadline.

The IRS calculates your penalty based on how many calendar days your Form 941 is late. Make sure to resolve any missing forms as soon as you realize the problem.

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 received a letter for immediate payment – 15% of the unpaid deposit

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