For employers who must make a Federal Deposit (amount due is more than $2,500), take care to make sure you do everything correctly and on time. The IRS 941 Form late fees are no fun. Electronic Payment, whether it’s through your bank or EFTPS or your accountant, must be set up ahead of time. EFTPS requires a login which takes time to get.
Federal Deposit Late Fees
If you somehow mess up the Federal Deposit, you will encounter all kinds of headaches. Here’s a nice list of unpleasant things that can happen to you:
- a 10% penalty will be charged for failure to deposit
- if you pay with your return instead of making a Federal Deposit, you will also pay 10%
- If you are just one day late a 2% penalty applies. This goes for 2-5 days late too.
- 6 to 15 days late and your penalty bumps up to 5%
- 16 or more days late and you get 10% penalty
- And a nice 15% penalty on amounts still unpaid more than 10 days after the date of the first late notice the IRS sends you. This is on top of the late penalties mentioned above.