Get Answers Support Tax Filings & Payments 94x Forms Form 941 What are the penalty rates for Form 941? Last modified 5/25/2020 11:02:57 AM EST The IRS imposes penalties for three main reasons: Penalty for late filing Failing to file Form 941 results in a 5% penalty on the total tax due. If the return is late for more than one month, an additional 5% penalty applies for each month, up to five months. Penalty for late payments If you fail to make payments for the taxes owed to the IRS. You will be penalized with an additional penalty for late payment. Failure to deposit a penalty If the deposit is delayed for more than five calendar days, the penalty will be 2% of the unpaid tax. If the deposit is delayed by six to fifteen calendar days, the penalty will increase to 5% of unpaid tax. If the deposit is delayed more than fifteen calendar days, the penalty will increase to 10% of unpaid tax. To avoid such penalties, be sure to follow this checklist: Pay the full tax amounts when they are due. Don’t wait until the last minute—file your Form 941 on time. Report your tax liability accurately. Ensure that all checks are valid. Provide your employees with the correct W-2 forms. Double-check that all entries are correct. Always verify your EIN before filing. Was this helpful? Yes No Related Questions How to avoid the penalty for Form 943? What is the penalty for late filing form 944? Will the IRS impose penalty or interest while filing Form 941-X? Go to Home Page Need more help? Get in touch with our dedicated support team Contact Us (704) 684-4751 support@taxbandits.com Sign Up for a FREE TaxBandits Account! The Smart CPA Choice Register Now Already have an account? Sign in