With everything going on in the world right now, it’s totally understandable if filing your Employer’s Quarterly Federal Tax Return slipped through the cracks. If you forgot to file last quarter, we’re here to help. Here’s what to expect if you missed your Form 941 deadline and what you can do now.
Form 941 Deadlines
Since Form 941 is due every quarter, it’s easy to miss a deadline at some point. Form 941 is usually due on the last day of the month following the end of your business’s quarter.
For most businesses, those dates are:
Quarter 1-April 30, 2020
Quarter 2- July 31, 2020
Quarter 3- October 31, 2020
Quarter 4- January 31, 2021
IRS Form 941 Penalties
If you forgot to file for one of your Form 941 deadlines, things can get expensive. Here’s what you’re up against:
Late Filing Form 941
If you don’t file Form 941 by the deadline, the IRS charges your business 5% of the total amount of taxes that are due for each month that your form is late. The IRS will keep charging you 5% for up to 5 months. Late fees cap off at 25% of the total amount due. After you max out on fines and receive your final warning, the IRS can seize funds and property.
In addition to filing Form 941, your business needs to deposit employment taxes on time. Deposit penalties can ramp up fast.
If your payment is 1-5 days late, you will be fined 2% of the amount you owe. If it’s 6-15 days late, the penalty increases to 5%. At 16 days, the IRS will charge you 10%. After that, you will receive a warning from the IRS, at which point you will owe an additional 15% that you have to pay back right away.
Click here to find out everything that the IRS can penalize for and how to keep your business in good standing.
What you should do:
The best policy if you missed your IRS Form 941 deadline and are trying to stop penalties is just to file as soon as possible. E-filing makes it simple. You just select the correct quarter, complete your form, and transmit it to the IRS.
Missing your deadline isn’t the end of the world, but your business has enough going on without funneling hard-earned resources away on IRS fines. Get ahead of penalties before they start. Filing with an e-file provider can help you never miss another deadline. We’ll send you reminder emails each quarter and help you meet your deadline easily and on time.
Sometimes, IRS changes can contribute to late filing for your business. ExpressE-file can help by keeping you informed. This quarter, for your July 31, 2020 deadline, there are 23 new data-entry fields on Form 941. Find out everything you need to know and get the assistance you need so that Form 941 COVID-19 changes don’t catch your business off guard or cause you to miss your deadline. We’ll help you avoid mistakes when you file Form 941 for 2020.
File IRS Form 941 for the quarter you missed and put a stop to penalties.